Pinnacle Micro, IRVINE

Nature of business: Computer optical drives, CD-ROMS, information systems.

Total employees: 77

In Orange County: 65

Stock listing in The Times: On NASDAQ ‘PinclMic”

Ticker symbol: “PNCL”

Friday’s stock close: $18.25

One-week change: Up $1.25

Analyst review: “Pinnacle Micro continues to show success in the distribution of its products to a wide range of end users. The company intends to expand further into the international markets through its European sales office and to expand its existing European and Pacific Rim distributor network. We estimate its revenues to increase 73% in 1993 with earnings per share rising 91% to 41 cents. Pinnacle Micro’s balance sheet was strengthened significantly after its initial public offering July 1. Cash and equivalents were $10 million, with a current ratio of 3.6-to-1. The company has no long-term debt. We believe it will benefit from a rapidly growing industry, product introductions and international expansion.”--James D. Utz, analyst, OLDE Brokerage, Detroit, Mich.

(in millions of dollars)

3 quarters ’90 ’91 ’92 ’92 ’93 Revenue 11.0 15.0 23.0 15.1 28.0 Profits 1.1 1.2 1.3 0.3 1.3

Corporate outlook: “We are a total systems solutions company. Our current emphasis is on the smaller user. We recently introduced the RCD-202, a CD-ROM device in the under-$4,000 range that enables you to make your own CD. The Paperless-1 is a low-cost office image storage system for PC and MacIntosh users for under $7,000.”--William F. Blum, president / CEO

RETURN ON INVESTMENT: 3-YEAR SUMMARY AND YEAR-TO-DATE

Fiscal year ending Dec. 31 Dec. 31 Dec. 31 3 qtrs. ’90 ’91 ’92 ’92 52-week high* N/A N/A N/A N/A 52-week low* N/A N/A N/A N/A Book value per share $0.41 $0.61 $0.87 $0.77 Price per share* N/A N/A N/A N/A Net earnings (loss) per share $0.19 $0.23 $0.22 $0.08 Price-to-earnings ratio N/A N/A N/A N/A Avg. return on investor equity 68% 45% 33% 33%

3 qtrs. ’93 52-week high* $13.00 52-week low* $10.00 Book value per share $3.66 Price per share* $12.38 Net earnings (loss) per share $0.29 Price-to-earnings ratio 38:1 Avg. return on investor equity 18%

* Note: On July 1, 1993, Pinnacle Micro converted from an S corporation to a C corporation and sold 1.8 million shares of stock at its initial public offering; proceeds: $18.9 million.

For more information call or write, Pinnacle Micro: 19 Technology Drive, Irvine, Calif., 92718 (714) 727-3300.

Source: Pinnacle Micro; Bloomberg Business News.