Exhibit 99.2

Pinnacle Systems Announces 3Q05 Results 1

PINNACLE SYSTEMS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP

(Unaudited, in thousands, except per-share data)

	Three Months Ended March 31,						Nine Months Ended March 31,
	2005			2004			2005			2004
Net sales	$	65,237		$	82,098		$	212,568		$	220,763
Costs and expenses:
Cost of sales		35,802			44,517			118,206			130,180
Engineering and product development		7,376			9,639			24,036			27,591
Sales, marketing, and service		18,508			21,489			55,420			61,821
General and administrative		6,705			6,032			19,984			17,567
Amortization of other intangible assets		848			869			2,544			3,883
Impairment of goodwill		—			—			1,310			5,950
Legal settlement		—			—			(3,137	)		—
Transaction costs		2,752			—			2,752			—
In-process research and development		—			—			—			2,193
Restructuring costs (reversal)		(175	)		320			5,597			3,640
Total costs and expenses		71,816			82,866			226,712			252,825
Operating loss		(6,579	)		(768	)		(14,144	)		(32,062	)
Interest paid on legal settlement		—			—			—			(2,050	)
Interest and other income, net		368			891			1,276			1,515
Income (loss) from continuing operations before income taxes		(6,211	)		123			(12,868	)		(32,597	)
Income tax expense		942			1,114			2,854			2,938
Loss from continuing operations		(7,153	)		(991	)		(15,722	)		(35,535	)
Income (loss) from discontinued operations, net of taxes		6,538			699			(1,683	)		(7,591	)
Net loss	$	(615	)	$	(292	)	$	(17,405	)	$	(43,126	)
Loss per share from continuing operations:
Basic and Diluted	$	(0.10	)	$	(0.01	)	$	(0.23	)	$	(0.53	)
Income (loss) per share from discontinued operations:
Basic and Diluted	$	0.09		$	0.01		$	(0.02	)	$	(0.11	)
Net loss per share:
Basic and Diluted	$	(0.01	)	$	(0.00	)	$	(0.25	)	$	(0.65	)
Shares used to compute net loss per share:
Basic and Diluted		69,942			68,108			69,498			66,526

Pinnacle Systems Announces 3Q05 Results 2

PINNACLE SYSTEMS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands)

	March 31, 2005			June 30, 2004
Assets
Current assets:
Cash and cash equivalents	$	118,922		$	59,059
Marketable securities		14,507			10,955
Accounts receivable, net		30,876			37,941
Inventories		27,876			45,762
Prepaid expenses and other current assets		5,673			8,366
Current assets of discontinued operations		—			10,429
Total current assets		197,854			172,512
Restricted cash		—			16,850
Property and equipment, net		12,945			15,641
Goodwill		43,440			42,874
Other intangible assets, net		6,324			8,840
Other assets		7,433			7,283
Long-term assets of discontinued operations		—			39,945
	$	267,996		$	303,945
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	13,877		$	17,776
Accrued and other liabilities		38,072			55,748
Deferred revenue		13,736			12,497
Current liabilities of discontinued operations		—			5,164
Total current liabilities		65,685			91,185
Long-term liabilities of discontinued operations		—			2,078
Total liabilities		65,685			93,263
Shareholders’ equity:
Common stock		380,835			375,550
Accumulated deficit		(186,892	)		(169,487	)
Accumulated other comprehensive income		8,368			4,619
Total shareholders’ equity		202,311			210,682
	$	267,996		$	303,945