Exhibit 99.2

PINNACLE SYSTEMS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands, except per share data)

	GAAP
	Three Months Ended December 31,
	2004			2003
Net sales	$	86,129		$	80,348
Costs and expenses:
Cost of sales		46,294			48,043
Cost of sales - license fee		—			3,813
Engineering and product development		8,586			8,990
Sales, marketing, and service		20,475			22,494
General and administrative		6,583			5,213
Amortization of other intangible assets		847			1,490
Impairment of goodwill		9,447			5,950
Restructuring costs		3,337			3,320
Legal judgment		(3,137	)		—
Total costs and expenses		92,432			99,313
Operating income (loss)		(6,303	)		(18,965	)
Interest paid on legal settlement		—			(2,050	)
Interest and other income, net		418			327
Income (loss) from continuing operations before income taxes		(5,885	)		(20,688	)
Income tax expense		1,009			908
Income (loss) from continuing operations		(6,894	)		(21,596	)
Income (loss) from discontinued operations, net of taxes		35			(8,259	)
Net income (loss)	$	(6,859	)	$	(29,855	)
Loss per share from continuing operations:
Basic and Diluted	$	(0.10	)	$	(0.33	)
Income (loss) per share from discontinued operations:
Basic and Diluted	$	0.00		$	(0.12	)
Net income (loss) per share:
Basic and Diluted	$	(0.10	)	$	(0.45	)
Shares used to compute net income (loss) per share:
Basic and Diluted		69,517			66,401

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PINNACLE SYSTEMS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands)

	December 31, 2004			June 30, 2004
Assets
Current assets:
Cash and cash equivalents	$	78,444		$	59,059
Marketable securities		13,631			10,955
Accounts receivable, net		39,996			40,970
Inventories		34,740			46,417
Prepaid expenses and other current assets		6,431			8,388
Current assets of discontinued operations		5,320			4,522
Total current assets		178,562			170,311
Restricted cash		—			16,850
Property and equipment, net		14,981			16,314
Goodwill		52,116			59,211
Other intangible assets, net		7,193			8,840
Other assets		7,995			7,628
Long-term assets of discontinued operations		23,930			22,590
	$	284,777		$	301,744
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	11,020		$	17,912
Accrued and other liabilities		51,569			54,003
Deferred revenue		12,667			13,818
Current liabilities of discontinued operations		3,055			3,357
Total current liabilities		78,311			89,090
Long-term liabilities of discontinued operations		1,988			1,972
Total liabilities		80,299			91,062
Shareholders’ equity:
Common stock		379,303			375,550
Accumulated deficit		(186,277	)		(169,487	)
Accumulated other comprehensive income		11,452			4,619
Total shareholders’ equity		204,478			210,682
	$	284,777		$	301,744

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