Pinnacle Systems reports improving results

PINNACLE Systems have announced financial results for their second quarter of fiscal 2002, which ended December 31, 2001.
Net sales for the second quarter of 2002 were £42 million, 26 per cent higher than net sales during the previous quarter.
Net income for the second quarter of fiscal 2002 was a loss of £5.8 million or £0.10 per share.
The Personal Web Video Division, which provides digital editing and viewing products for consumer and video enthusiasts, generated fiscal second quarter sales of £21 million, a 41 per cent sequential increase over sales during the first quarter.
The Broadcast and Professional Solutions Division, which provides media creation, storage and distribution systems for broadcast and professional applications generated fiscal second quarter sales of £20.7 Million, a 13 per cent sequential increase over sales during the first quarter.
Blended gross margins for the second quarter were 50 per cent, nearly six points higher than margins of 44 per cent in the first quarter. In addition, the Company generated over £11 Million in cash during the second quarter and ended with a £49 Million cash balance.
Pinnacle Systems’ President and Chief Executive Officer, Mark Sanders, said: “The business climate this quarter improved across all product categories from broadcast to consumer, with the introduction and shipment of a number of new and innovative products in time for the holiday and year-end buying season. Investments the company made last year in new products and technology are now yielding positive results. In addition, our cost reduction programs, streamlined product offerings and organisational changes provided improved efficiencies during the quarter. As a result, we are pleased to report a quarterly increase in net sales, gross margins, net income and positive cash flow as compared to the previous quarter. Though our business trend has clearly been positive these last few months, we are still being cautious in our outlook until these trends become more established.”
Notable events during the quarter included completion of Pinnacle’s acquisition of FAST Multimedia, their eighth “Emmy” award for technical innovation, and the Studio 7 software winning PC Magazine’s “Editor’s Choice” award as well as being named “Best product of 2001” in the multimedia category. (GB)