Pinnacle Systems Reports 2nd Quarter Financial Results

Pinnacle Systems (http://www.pinnaclesys.com) announced financial results for the second quarter of fiscal 2000, which ended December 31, 1999.

Net sales for the second quarter of fiscal 2000 were a record $62,562,000 compared to $39,172,000 in the same quarter last fiscal year. The increase was the result of record quarterly sales in each of the company's three video business groups.

Net income, including acquisition-related charges for the second quarter of fiscal 2000 was $5,389,000 or $.20 per share on a diluted basis. Excluding acquisition-related charges, net income for the second quarter of fiscal 2000 was $8,667,000 or $.32 per share, compared to net income of $5,260,000 or $.23 per share in the second quarter of fiscal 1999.

"We were very pleased with the results for the quarter. Net sales were a record for the tenth consecutive quarter," said Pinnacle Systems' President and Chief Executive Officer, Mark Sanders. "They increased 60% over the same quarter last fiscal year and increased 24% sequentially. The sales growth was fueled by important new products in each of our three video business groups. Net income, excluding acquisition-related charges(1), increased 64% over the same quarter last fiscal year and was up 27% sequentially. In addition, we also produced good balance sheet results: Both DSO's and inventory came down during the quarter, and we generated very positive cash flow from operations which added nicely to our cash and marketable securities balance."