EXHIBIT 99.3
Pinnacle Systems Reports Financial Results for the Fourth Quarter Of Fiscal 2000
MOUNTAIN VIEW, Calif, July 25/PRNewswire/ -- Pinnacle Systems, Inc.(Nasdaq:PCLE)
today announced financial results for the fourth quarter of fiscal 2000, which
ended June 30, 2000.
Net sales for the fourth quarter of fiscal 2000 were $63,712,000 compared to
$47,506,000 in the same quarter last fiscal year. Net income, including
acquisition-related charges*, for the fourth quarter of fiscal 2000 was a loss
of $2,261,000, or $.05 per diluted share. Net income, excluding
acquisition-related charges*, for the fourth quarter of fiscal 2000 was
$3,439,000, or $.06 per diluted share.
Net sales for fiscal 2000 were a record $237,967,000 compared to $159,098,000 in
fiscal 1999. Net income, including acquisition-related charges*, for the fourth
quarter of fiscal 2000 was $7,587,000, or $.14 per diluted share. Net income,
excluding acquisition-related and one time charges*, for fiscal 2000 was
$27,013,000, or $.50 per diluted share.
Pinnacle Systems also announced that its Board of Directors has authorized a
stock repurchase program pursuant to which the Company may purchase up to
3,000,000 shares of its Common Stock in the open market from time to time.
According to Pinnacle Systems' President and Chief Executive Officer, Mark
Sanders, "Net sales in fiscal 2000 increased 50% over fiscal 1999, and sales
during the fourth quarter of fiscal 2000 increased 34% over the same quarter
last year. Nonetheless, this was below our expectations for the quarter,
impacting our profitability. The fourth quarter was particularly back-end loaded
and a significant amount of business closed in the last week on terms less
favorable than expected. The resulting sales shortfall and compressed margins
became apparent after the end of the quarter. However, we believe the
fundamentals of our business continue to be sound, and the markets we serve
offer exceptional growth prospects for the future, especially as broadband
networks and full-quality video over the Internet become widely available. To
take better advantage of these opportunities, we are in the process of
re-organizing our business groups in a way that should make them more efficient,
focused and accountable."
*Acquisition-related charges in the fourth quarter of fiscal 2000 include
$6,543,000 in amortization of acquisition-related intangible assets and $400,000
in acquisition related in-process research and development expenses. The net
income calculation, excluding acquisition related charges, uses an 18% tax rate
for the fourth fiscal quarter and a 19% rate for fiscal 2000.
Acquisition-related and one-time charges for fiscal 2000 includes $18,382,000 in
amortization of acquisition-related intangible assets, $3,500,000 in acquisition
related in-process research and development expense, plus $2,102,000 in costs
associated with a legal settlement.
This press release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934 about the Company's expected results for the fourth quarter
and fiscal 2000. The forward-looking statements are based upon current
information and expectations regarding Pinnacle Systems and its subsidiaries.
These estimates and statements are made as of today, do not guarantee future
performance, and involve certain risks, uncertainties and assumptions that are
difficult to predict. Therefore, actual outcomes and results could materially
differ from what is expressed, implied or forecast in these forward-looking
statements. About Pinnacle Systems, Inc.
Pinnacle Systems' broadcast, desktop, and consumer products provide video
professionals and
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consumers cutting-edge digital video tools to create, store, distribute and view
web enabled digital video easier and more affordably than ever before. Pinnacle
Systems may be reached at 650-526-1600 or on the World Wide Web at
www.pinnaclesys.com.
PINNACLE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED, In thousands)
June 30, June 30,
2000 1999
Assets
Current assets:
Cash and investments $ 82,145 $ 88,978
Accounts receivable, trade net 55,072 35,449
Inventories 36,824 22,221
Deferred income taxes 17,103 10,653
Prepaid expenses & other assets 4,100 2,500
195,244 159,801
Property and equipment, net 16,143 10,809
Goodwill and other intangibles 109,810 25,503
Other assets 1,602 356
$ 322,799 $ 196,469
Liabilities and Shareholders' Equity
Liabilities:
Accounts payable $ 22,422 $ 12,744
Accrued expenses 27,301 14,530
Income taxes 13,456 2,936
Total liabilities 63,179 30,210
Shareholders' equity:
Common stock 257,496 169,078
Retained earnings (accumulated deficit) 7,198 (389)
Accumulated other comprehensive loss (5,074) (2,430)
Total shareholders' equity 259,620 166,259
$ 322,799 $ 196,469
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PINNACLE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED, In thousands, except per share data)
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Three Months Ended Year Ended
June 30, June 30,
2000 1999 2000 1999
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Net sales $ 63,712 $ 47,506 $237,967 $159,098
Cost of sales 32,898 22,371 113,573 74,022
Gross profit 30,814 25,135 124,394 85,076
Operating expenses:
Engineering and product development 8,106 5,201 27,767 16,137
Sales and marketing 15,882 10,616 56,126 38,871
General and administrative 3,476 1,776 10,554 6,840
Acquisition expenses and one-time charges
Legal settlement -- -- 2,102 --
Amortization of goodwill and other intangibles 6,543 1,095 18,382 2,289
In process research and development 400 -- 3,500 6,579
Total operating expenses 34,407 18,688 118,431 70,716
Operating income (loss) (3,593) 6,447 5,963 14,360
Interest income and other, net 839 1,332 3,403 4,742
Income before income taxes (2,754) 7,779 9,366 19,102
Income tax expense (benefit) (493) (1,599) 1,779 666
Net income (loss) $ (2,261) $ 9,378 $ 7,587 $ 18,436
Net income (loss) per share
Basic $ (0.05) $ 0.21 $ 0.16 $ 0.43
Diluted $ (0.05) $ 0.19 $ 0.14 $ 0.39
Shares used to compute net income (loss) per share
Basic 50,129 45,160 48,311 42,780
Diluted 50,129 50,654 55,442 46,966
Pro-forma net income per share (excluding
acquisition expenses and one-time charges) $ 0.06 $ 0.14 $ 0.50 $ 0.48
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/CONTACT: Paulien Ruijssenaars of Pinnacle Systems, Inc., 888-484-3366, or
[email protected], or investors, [email protected]/
