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FIRM 6: ?????????????????????????????????????????????????? INDUSTRY PMS

PERFORMANCE EVALUATION REPORT, MONTH 4 PAGE 1

*****************************************************************************

+------+------Industry ------+

| Firm 6 | Worst Average Best |

------+------+------+

FINANCIAL | | |

Net Income to Revenues | 9.6%| 9.0% 9.7% 10.4%|

Change in Net Income to Revenues | -3.5%| -3.9% -3.0% -1.9%|

Return on Assets | 22.7%| 20.5% 23.4% 26.1%|

Net Asset Turns | 2.3 | 2.3 2.4 2.5 |

------+------+------+

OPERATIONAL | | |

Inventory Turnover | 1.7 | 1.2 1.5 1.9 |

Fill Rate | 100.0%| 100.0% 100.0% 100.0%|

Failure Rate | 7.6%| 7.6% 7.3% 6.7%|

Controllable Procure&Mfg to Revenues | 1.1%| 1.5% 1.3% 1.1%|

Transportation Expenses Per Unit Sold | 33.2 | 33.5 32.9 32.2 |

Forecasting Accuracy | 85.0%| 76.2% 82.1% 86.5%|

(Marketing + Service) to Revenues | 10.7%| 10.8% 10.4% 9.9%|

------+------+------+

CUSTOMER | | |

Change in Market Share | -0.8%| -1.3% 0.0% 1.1%|

Customer Satisfaction | 25.5%| 24.7% 25.6% 26.6%|

------+------+------+

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FIRM 6: ?????????????????????????????????????????????????? INDUSTRY PMS

LINKS DASHBOARD, MONTH 4 PAGE 1

*****************************************************************************

Month 3 Month 4

+------+------+

Sales Volume | 76,882 | 51,835 |

Unfilled Orders | 0 | 0 |

------+------+------+

Price | 392 | 403 |

------+------+------+

Revenues | 30,149,520 100.0% | 20,909,985 100.0% |

Product Costs | 14,053,743 46.6% | 9,759,940 46.7% |

Gross Margin | 12,703,731 42.1% | 8,554,307 40.9% |

Net Income | 3,940,270 13.1% | 2,003,702 9.6% |

+------+------+

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FIRM 6: ?????????????????????????????????????????????????? INDUSTRY PMS

CORPORATE P&L STATEMENT, MONTH 4 PAGE 2

*****************************************************************************

All Products Product 6-1 Product 6-2

------

Sales Volume 51,835 27,452 24,383

Unfilled Orders 0 0 0

Price 403 397 410

Revenues 20,909,985 10,909,200 10,000,785

- Product Costs 9,759,940 4,738,439 5,021,501

- Order Processing 770,960 383,888 387,072

- Replacement Parts 106,035 47,220 58,815

- Transportation Costs 1,718,743

------

Gross Margin 8,554,307 5,739,653 4,533,397

Gross Margin % 40.9% 52.6% 45.3%

Fixed & Other Costs:

Administrative O/H 1,200,000 600,000 600,000

Consulting Fees 0

Corporate O/H 500,000

Distribution FC 25,000

Emergency Procurement 213

Forecast Inaccuracy 162,770 105,171 57,599

Inventory Charges 171,824

Marketing 1,440,000 720,000 720,000

Plant Capacity FC 200,000

Procurement FC 12,500

Production FC 47,000

Research Studies 0

Service Outsourcing 787,596 460,862 326,734

Unfilled Handling 0

Total Fixed & Other 4,546,903 1,886,033 1,704,333

------

Operating Income 4,007,404 3,853,620 2,829,064

------

Non-Operating Income 0

Taxes -2,003,702

======

Net Income 2,003,702

======

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FIRM 6: ?????????????????????????????????????????????????? INDUSTRY PMS

HISTORICAL CORPORATE P&L STATEMENT, MONTH 4 PAGE 3

*****************************************************************************

Previous (Month 3) Current (Month 4)

------

Sales Volume 76,882 51,835

Unfilled Orders 0 0

Price 392 403

Revenues 30,149,520 100.0% 20,909,985 100.0%

- Product Costs 14,053,743 46.6% 9,759,940 46.7%

- Order Processing 1,015,448 3.4% 770,960 3.7%

- Replacement Parts 101,446 0.3% 106,035 0.5%

- Transportation Costs 2,275,152 7.5% 1,718,743 8.2%

------

Gross Margin 12,703,731 42.1% 8,554,307 40.9%

Fixed & Other Costs:

Administrative O/H 1,200,000 4.0% 1,200,000 5.7%

Consulting Fees 0 0.0% 0 0.0%

Corporate O/H 500,000 1.7% 500,000 2.4%

Distribution FC 25,000 0.1% 25,000 0.1%

Emergency Procurement 21,621 0.1% 213 0.0%

Forecast Inaccuracy 292,354 1.0% 162,770 0.8%

Inventory Charges 144,038 0.5% 171,824 0.8%

Marketing 1,440,000 4.8% 1,440,000 6.9%

Plant Capacity FC 200,000 0.7% 200,000 1.0%

Procurement FC 12,500 0.0% 12,500 0.1%

Production FC 47,000 0.2% 47,000 0.2%

Research Studies 0 0.0% 0 0.0%

Service Outsourcing 908,178 3.0% 787,596 3.8%

Unfilled Handling 0 0.0% 0 0.0%

Total Fixed & Other 4,790,691 15.9% 4,546,903 21.7%

------

Operating Income 7,913,040 26.2% 4,007,404 19.2%

------

Non-Operating Income -32,501 -0.1% 0 0.0%

Taxes -3,940,269 -13.1% -2,003,702 -9.6%

======

Net Income 3,940,270 13.1% 2,003,702 9.6%

======

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FIRM 6: ?????????????????????????????????????????????????? INDUSTRY PMS

PRODUCT 6-1 P&L STATEMENT, MONTH 4 PAGE 4

*****************************************************************************

All Regions Region 1 Region 2 Region 3

(TOTAL ) ( U.S.A.) ( Europe) ( Pacific)

------

Active? Ch#1,2 Yes Yes Yes Yes Yes Yes

Sales Volume, Ch#1 13,748 4,612 1,966 7,170

Sales Volume, Ch#2 13,704 3,113 4,366 6,225

Unfilled Orders 0 0 0 0

Price, Ch#1,2 330 465 330 465 330 465 330 465

Revenues 10,909,200 2,969,505 2,678,970 5,260,725

- Product Costs 4,738,439 1,333,398 1,092,954 2,312,087

- Order Processing 383,888 93,160 112,648 178,080

- Replacement Parts 47,220 12,654 11,184 23,382

------

Gross Margin 5,739,653 1,530,293 1,462,184 2,747,176

Gross Margin % 52.6% 51.5% 54.6% 52.2%

Fixed Costs:

Administrative O/H 600,000 200,000 200,000 200,000

Forecast Inaccuracy 105,171 30,488 47,982 26,701

Marketing, Ch#1 360,000 120,000 120,000 120,000

Marketing, Ch#2 360,000 120,000 120,000 120,000

Service Outsourcing 460,862 105,740 110,124 244,998

Total Fixed Costs 1,886,033 576,228 598,106 711,699

------

Operating Income 3,853,620 954,065 864,078 2,035,477

======

Sales Volume Forecast, Ch#1 5,423 3,029 8,587

Sales Volume Forecast, Ch#2 3,539 4,194 5,660

Product 6-1 Configuration: H55211

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FIRM 6: ?????????????????????????????????????????????????? INDUSTRY PMS

PRODUCT 6-2 P&L STATEMENT, MONTH 4 PAGE 5

*****************************************************************************

All Regions Region 1 Region 2 Region 3

(TOTAL ) ( U.S.A.) ( Europe) ( Pacific)

------

Active? Ch#1,2 Yes Yes Yes Yes Yes Yes

Sales Volume, Ch#1 9,906 3,873 2,367 3,666

Sales Volume, Ch#2 14,477 7,202 1,900 5,375

Unfilled Orders 0 0 0 0

Price, Ch#1,2 330 465 330 465 330 465 330 465

Revenues 10,000,785 4,627,020 1,664,610 3,709,155

- Product Costs 5,021,501 2,280,816 878,757 1,861,928

- Order Processing 387,072 188,340 55,068 143,664

- Replacement Parts 58,815 25,413 11,400 22,002

------

Gross Margin 4,533,397 2,132,451 719,385 1,681,561

Gross Margin % 45.3% 46.1% 43.2% 45.3%

Fixed Costs:

Administrative O/H 600,000 200,000 200,000 200,000

Forecast Inaccuracy 57,599 20,049 22,265 15,285

Marketing, Ch#1 360,000 120,000 120,000 120,000

Marketing, Ch#2 360,000 120,000 120,000 120,000

Service Outsourcing 326,734 129,520 62,196 135,018

Total Fixed Costs 1,704,333 589,569 524,461 590,303

------

Operating Income 2,829,064 1,542,882 194,924 1,091,258

======

Sales Volume Forecast, Ch#1 3,417 2,738 3,209

Sales Volume Forecast, Ch#2 6,564 1,746 5,137

Product 6-2 Configuration: M66322

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FIRM 6: ?????????????????????????????????????????????????? INDUSTRY PMS

BALANCE SHEET, MONTH 4 PAGE 6

*****************************************************************************

ASSETS

------

Cash 1,045,499

Marketable Securities 0

Finished Goods Inventory:

Plant & DC1: Product 6-1 ( 29,894 units @ 172.61/unit) 5,159,950

Product 6-2 ( 6,438 units @ 205.94/unit) 1,325,859

Plant Investment 100,000,000

Procurement Inventory:

Plant & DC1: Alpha ( 0 units @ 0.00/unit) 0

Beta ( 0 units @ 0.00/unit) 0

Gamma ( 904 units @ 23.95/unit) 21,647

Delta ( 18,843 units @ 25.59/unit) 482,123

Epsilon ( 8,978 units @ 29.00/unit) 260,362

Total Assets 108,295,440

LIABILITIES AND EQUITIES

------

Corporate Capitalization 100,000,000

Dividends, Current Month -601,110

Dividends, Cumulative Prior To This Month -2,581,374

Loans 869,640

Retained Earnings, Current Month 2,003,702

Retained Earnings, Cumulative Prior To This Month 8,604,582

Total Liabilities and Equities 108,295,440

Note: These epsilon components are on-order, for delivery next month :

Region 1: 35,000Ds 35,000Da

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FIRM 6: ?????????????????????????????????????????????????? INDUSTRY PMS

FINISHED GOODS INVENTORY REPORT, MONTH 4 PAGE 7

*****************************************************************************

Product Product

6-1 6-2

------

PLANT/DC1 FG INVENTORY

------

Beginning Inventory 14,846 4,821

+ Production 42,500 26,000

= Available Inventory 57,346 30,821

- Sales, Region 1 -7,725 -11,075

- Sales, Region 2 -6,332 -4,267

- Sales, Region 3 -13,395 -9,041

= Ending Inventory 29,894 6,438

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FIRM 6: ?????????????????????????????????????????????????? INDUSTRY PMS

PROCUREMENT INVENTORY REPORT, MONTH 4 PAGE 8

*****************************************************************************

Alpha Beta Gamma Delta Epsilon

------

PLANT & DC1

------

Beginning Inventory 0 0 2,273 14,165 9,143

+ Purchases, Surface 368,500 368,500 20,096 12,318 28,077

+ Purchases, Air 21,000 16,000 35,000

+ Purchases, Emergency 0 0 71 0 0

= Available Inventory 368,500 368,500 43,440 42,483 72,220

- Production:

Product 6-1 -212,500 -212,500 -42,500 0 -42,500

Product 6-2 -156,000 -156,000 0 -26,000 -26,000

- Replacement Parts -940 -1,322 -1,665

+ Purchases, Delayed 904 3,682 6,923

= Ending Inventory 0 0 904 18,843 8,978

*****************************************************************************

FIRM 6: ?????????????????????????????????????????????????? INDUSTRY PMS

OTHER DECISION VARIABLES REPORT, MONTH 4 PAGE 9

*****************************************************************************

======

PROCUREMENT, RAW MATERIALS

======

DC1: Alpha 368,500

DC1: Beta 368,500

======Supplier

PROCUREMENT, SUB------

ASSEMBLY COMPONENTS A B C D E F G

======------

DC1: Gamma, Surface 0 0 0 21,000

DC1: Gamma, Air 0 0 0 21,000

DC1: Delta, Surface 0 0 16,000 0 0

DC1: Delta, Air 0 0 16,000 0 0

DC1: Epsilon, Surface 35,000 0 0 0

DC1: Epsilon, Air 35,000 0 0 0

======

MANUFACTURING 6-1 6-2

======------

Production 42,500 26,000

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FIRM 6: ?????????????????????????????????????????????????? INDUSTRY PMS

REPLACEMENT PARTS DEMAND REPORT, MONTH 4 PAGE 10

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Gamma Delta Epsilon

------

Ch#1 Ch#2 Ch#1 Ch#2 Ch#1 Ch#2

------

PRODUCT 6-1

------

DC1:Region1 160 96 0 0 144 81

DC1:Region2 100 126 0 0 92 100

DC1:Region3 278 180 0 0 240 173

PRODUCT 6-2

------

DC1:Region1 0 0 203 372 125 244

DC1:Region2 0 0 146 109 94 65

DC1:Region3 0 0 161 331 102 205

------

TOTAL Gamma: 940 Delta: 1,322 Epsilon: 1,665

% of Sales 3.4% 5.4% 3.2%

------

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FIRM 6: ?????????????????????????????????????????????????? INDUSTRY PMS

FORECASTING ACCURACY REPORT, MONTH 4 PAGE 11

*****************************************************************************

Region Forecast Actual Accuracy

------

Product 6-1, Channel 1 1 5,423 4,612 82.4%

Product 6-1, Channel 2 1 3,539 3,113 86.3%

Product 6-1, Channel 1 2 3,029 1,966 45.9%

Product 6-1, Channel 2 2 4,194 4,366 96.1%

Product 6-1, Channel 1 3 8,587 7,170 80.2%

Product 6-1, Channel 2 3 5,660 6,225 90.9%

Product 6-2, Channel 1 1 3,417 3,873 88.2%

Product 6-2, Channel 2 1 6,564 7,202 91.1%

Product 6-2, Channel 1 2 2,738 2,367 84.3%

Product 6-2, Channel 2 2 1,746 1,900 91.9%

Product 6-2, Channel 1 3 3,209 3,666 87.5%

Product 6-2, Channel 2 3 5,137 5,375 95.6%

SUMMARY: For 12 forecasts, average forecasting accuracy is 85.0%

Note: Forecasts count within the calculation of forecasting accuracy only

if the "actual" value being forecast is greater than 100 for sales volumes

(to not penalize you for "small" forecasts). Otherwise, the relevant values

of "forecast" and "actual" are only reported for reference purposes, but such

forecasts are not counted for forecasting accuracy scoring. This is the

reason why the number of forecasts referenced in "SUMMARY" may be less than

the detailed line-by-line reporting of forecasts.

Product-Specific Product Product

Forecasting Accuracy Overall 6-1 6-2

------

Forecasting Accuracy 85.0% 80.3% 89.8%

Number of Forecasts 12 6 6

Region-Specific Region Region Region

Forecasting Accuracy Overall 1 2 3

------

Forecasting Accuracy 85.0% 87.0% 79.6% 88.6%

Number of Forecasts 12 4 4 4

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FIRM 6: ?????????????????????????????????????????????????? INDUSTRY PMS

FORECASTING ACCURACY REPORT, MONTH 4 PAGE 12

*****************************************************************************

Month Month Month Month

SALES HISTORY 1 2 3 4

------

REGION 1

Hyperware

Product 6-1H, Ch#1 5,423 5,147 8,867 4,612

Product 6-1H, Ch#2 3,539 4,343 5,103 3,113

Industry 53,772 54,566 72,808 57,190

Industry Unfilled 0 0 0 0

Metaware

Product 6-2M, Ch#1 3,417 4,126 3,437 3,873

Product 6-2M, Ch#2 6,564 7,032 7,492 7,202

Industry 59,886 60,344 65,717 64,782

Industry Unfilled 0 0 0 0

REGION 2

Hyperware

Product 6-1H, Ch#1 3,029 3,719 6,183 1,966

Product 6-1H, Ch#2 4,194 4,141 5,990 4,366

Industry 43,338 43,591 65,242 47,919

Industry Unfilled 0 0 0 0

Metaware

Product 6-2M, Ch#1 2,738 3,041 2,951 2,367

Product 6-2M, Ch#2 1,746 1,831 2,246 1,900

Industry 26,904 26,969 29,214 29,335

Industry Unfilled 0 0 0 0

REGION 3

Hyperware

Product 6-1H, Ch#1 8,587 7,845 16,786 7,170

Product 6-1H, Ch#2 5,660 5,757 8,341 6,225

Industry 85,482 83,555 121,548 86,959

Industry Unfilled 0 0 0 0

Metaware

Product 6-2M, Ch#1 3,209 2,423 3,262 3,666

Product 6-2M, Ch#2 5,137 6,303 6,224 5,375

Industry 50,076 51,150 53,595 56,055

Industry Unfilled 0 0 0 0

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FIRM 6: ?????????????????????????????????????????????????? INDUSTRY PMS

SET-TOP BOX INDUSTRY BULLETIN, MONTH 4 PAGE 13

*****************************************************************************

Welcome to the month 4 issue of the Set-Top Box Industry Bulletin.

Notable set-top box industry developments are highlighted in the Bulletin.

INDUSTRY NEWS HEADLINES

Total industry PMS profits were 12,495,007 this month.

Firm 2 leads industry PMS in market share (17.1%).

Firm 5 has the second-highest market share in industry PMS (16.8%).

Industry PMS inventory investment increased from 31,847,752 to

49,379,315 this month.

SUB-ASSEMBLY COMPONENT COSTS: Month 5

Supplier

------

A B C D E F G

------

Gamma 10 - 12 - 10 - 25 +

Delta 12 - 14 - 27 + 12 - 13

Epsilon 31 + 17 - 16 - 18 -

Notes: "n/a" denotes unavailable spot-market suppliers. A "+" ("-") after

a cost denotes an increase (a decrease) since last month.

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FIRM 6: ?????????????????????????????????????????????????? INDUSTRY PMS

DECISION VARIABLE CHECKS AND MESSAGES, MONTH 4 PAGE 14

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FORECASTING DECISION VARIABLE CHECKS [Firm PMS6]

12 forecasts are unchanged. Forecasts are normally changed every month .

INVENTORY CHARGES DETAILS

$ Begin $ End $ Average Inventory Inventory

Inventory Inventory Inventory Cost (%) Charges

------

DC1: SAC Gamma 52,231 21,647 36,939 3.0 1,108

DC1: SAC Delta 350,716 482,123 416,419 3.0 12,492

DC1: SAC Epsilon 265,147 260,362 262,754 3.0 7,882

DC1: FinGoods 6-1 2,548,018 5,159,950 3,853,984 3.0 115,619

DC1: FinGoods 6-2 989,024 1,325,859 1,157,441 3.0 34,723

Total Inventory Charges (Reported on the Corporate P&L Statement) 171,824

PRODUCTION SHIFTS AND PLANT CAPACITY FC CALCULATION DETAILS

Production 6-1 = 42,500 units.

Production 6-2 = 26,000 units.

Total Production = 68,500 units.

Production Shifts = 2.

Plant Capacity FC = 200,000.