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To: BillyG who wrote (25895)	11/30/1997 1:17:00 PM
From: BillyG	Read Replies (2) \| Respond to of 50808

Pinnacle Micro, optical storage company, may go bankrupt.............. Pinnacle may file for bankruptcy By Reuters November 29, 1997, 11:00 a.m. PT Pinnacle Micro said this week that it may have to seek protection under federal bankruptcy law if it is unable to find new funding. Pinnacle {PNCL) made the announcement late Wednesday with the release of its third-quarter results, which showed loss of $14.7 million, or $1.02 a share, compared with a loss of $9.1 million, or $1.15 a share, in the year-ago period. Revenues in the latest quarter fell to $3.3 million from $14.3 million. The optical storage company blamed decreased sales on competition and the end of life for some of its products. Moreover, results for the third quarter of this year were hurt by a seasonal downturn in the hard drive industry in general. The company said that it has borrowed more than its available credit under a revolving line and that the lender continues to provide funds. It is soliciting alternative lenders but cannot guarantee that it will be able to find any or that the cooperation of its current lender will continue. If it is unable to locate other financial sources, the company said it may be required to seek protection under the federal bankruptcy laws. The company said it has continued restructuring, including closing its Colorado Springs, Colorado, facilities and outsourcing certain operations, resulting in one-time charges in the third quarter. It also said it discontinued its research and development efforts for the next generation Apex II drive and closed its European sales office. This month, the company said a committee of trade creditors representing more than 50 percent of its trade debt had given it a 60-day moratorium on collection activities that expires December 15. Story Copyright c 1997 Reuters Limited. All rights reserved.