Pinnacle Systems' J. Kim Fennell has resigned as the company's president and CEO and member of the board of directors after the company reported less than stellar revenue results. Current board member Charles J. Vaughn was appointed to serve as Pinnacle's interim president and CEO while the board searches for a successor.
While the company reported a 3 percent rise in revenues for its first fiscal quarter for 2004, the company lost $8.39 million -- excluding costs related to amortization and in process R&D -- compared to a profit of $4.19 million in the same quarter last year. The company also expects to incur expenses as a result of negotiations with shareholders of Digital Editing Systems who claim that Pinnacle Systems owes them money related to its acquisition by Pinnacle in 2000.
Vaughn founded VLCO Investments, a private investment firm, and has been a partner since 1985. He also held senior management and financial positions with companies such as General electric, where he was president of GE Technical Services Company, vice president of auditing and CFO of the International and Consumer Products sectors.
A replay of the conference call is available at www.pinnaclesys.com.
