Pinnacle CEO Resigns

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J. Kim Fennell Monday resigned as Pinnacle Systems' president and CEO. The company’s board of directors appointed Charles Vaughan, a current board member, to serve as Pinnacle’s interim president and CEO. A board-directed search for a successor is now underway.

Fennell’s resignation followed Friday’s earning conference for the first quarter of 2004. Net sales had increased 3% over a year ago, from $68.57 million to $70.92 million. But pro-forma non-GAAP net loss for the quarter was $8.39 million or 13 cents per share, compared with income of $4.19 million a year ago.

Last Friday, Fennell pointed to a drop in U.S. consumer business, saying the company fell short of net revenue numbers and significantly missed its profit target. Sales in the broadcast and professional division were $34.28 million, down from $35 million last year, but still hitting estimates.

The company expects sales in the mid-$80 million range in the second quarter.

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