*****************************************************************************
FIRM 6: ?????????????????????????????????????????????????? INDUSTRY MCM
PERFORMANCE EVALUATION REPORT, QUARTER 2 PAGE 1
*****************************************************************************
+------+------Industry ------+
| Firm 6 | Worst Average Best |
------+------+------+
FINANCIAL | | |
Net Income to Revenues | 2.9%| 2.6% 3.0% 3.2%|
Change in Net Income to Revenues | -0.9%| -1.2% -0.8% -0.6%|
Return on Assets | 6.5%| 5.5% 6.6% 7.4%|
Net Asset Turns | 2.8 | 2.7 2.9 3.0 |
------+------+------+
OPERATIONAL | | |
Inventory Turnover | 6.3 | 5.0 6.5 7.8 |
Fill Rate | 100.0%| 100.0% 100.0% 100.0%|
Unplanned Production | 0.0%| 0.0% 0.0% 0.0%|
Transportation Expenses Per Unit Sold | 31.2 | 32.5 31.6 31.1 |
Forecasting Accuracy | 89.9%| 89.4% 91.0% 93.1%|
(Marketing + Service) to Revenues | 10.7%| 11.1% 10.6% 10.3%|
------+------+------+
CUSTOMER | | |
Change in Market Share | 0.0%| -0.6% 0.0% 0.4%|
Customer Satisfaction | 18.7%| 18.3% 18.6% 19.0%|
------+------+------+
*****************************************************************************
FIRM 6: ?????????????????????????????????????????????????? INDUSTRY MCM
LINKS DASHBOARD, QUARTER 2 PAGE 1
*****************************************************************************
Quarter 1 Quarter 2
+------+------+
Sales Volume | 175,987 | 178,296 |
Unfilled Orders | 0 | 0 |
------+------+------+
Price | 415 | 413 |
------+------+------+
Revenues | 73,192,675 100.0% | 73,671,665 100.0% |
Product Costs | 38,565,660 52.7% | 38,836,856 52.7% |
Gross Margin | 20,879,059 28.5% | 21,159,531 28.7% |
Net Income | 2,784,581 3.8% | 2,149,394 2.9% |
+------+------+
*****************************************************************************
FIRM 6: ?????????????????????????????????????????????????? INDUSTRY MCM
CORPORATE P&L STATEMENT, QUARTER 2 PAGE 2
*****************************************************************************
All Products Product 6-1 Product 6-2 Product 6-3
------
Sales Volume 178,296 112,505 65,791 0
Unfilled Orders 0 0 0 0
Price 413 374 479 0
Revenues 73,671,665 42,105,915 31,565,750 0
- Product Costs 38,836,856 20,250,900 18,585,956 0
- Order Processing 1,907,768 1,223,292 684,476 0
- Replacement Parts 1,326,448 568,036 758,412 0
- RFID Costs 934,912 505,923 428,989 0
- Transportation Costs 5,566,198
+ Transportation Rebates 0
- Duties & Tariffs 3,939,952 2,514,369 1,425,583 0
------
Gross Margin 21,159,531 17,043,395 9,682,334 0
Gross Margin % 28.7% 40.5% 30.7% 0.0%
Fixed & Other Costs:
Administrative O/H 4,440,000 2,700,000 1,740,000 0
Consulting Fees 0
Corporate O/H 1,500,000
Distribution FC 25,000
Emergency Production 100,000
Forecast Inaccuracy 469,527 238,132 231,395 0
Information Technology 23,000
Introductions 0
Inventory Charges 185,914
Marketing 5,400,000 3,240,000 2,160,000 0
Marketing Creative 0 0 0 0
Plant Capacity FC 1,200,000
Price Changes 0 0 0 0
Production FC 141,000
Research Studies 0
Service Outsourcing 2,448,335 1,547,460 900,875 0
Unfilled Handling 0
Total Fixed & Other 15,932,776 7,725,592 5,032,270 0
------
Operating Income 5,226,755 9,317,803 4,650,064 0
------
Non-Operating Income -927,967
Taxes -2,149,394
======
Net Income 2,149,394
======
*****************************************************************************
FIRM 6: ?????????????????????????????????????????????????? INDUSTRY MCM
CORPORATE P&L STATEMENT, QUARTER 2 PAGE 3
*****************************************************************************
Product 6-4
------
Sales Volume 0
Unfilled Orders 0
Price 0
Revenues 0
- Product Costs 0
- Order Processing 0
- Replacement Parts 0
- RFID Costs 0
- Transportation Costs
+ Transportation Rebates
- Duties & Tariffs 0
------
Gross Margin 0
Gross Margin % 0.0%
Fixed & Other Costs:
Administrative O/H 0
Consulting Fees
Corporate O/H
Distribution FC
Emergency Production
Forecast Inaccuracy 0
Information Technology
Introductions
Inventory Charges
Marketing 0
Marketing Creative 0
Plant Capacity FC
Price Changes 0
Production FC
Research Studies
Service Outsourcing 0
Unfilled Handling
Total Fixed & Other 0
------
Operating Income 0
------
*****************************************************************************
FIRM 6: ?????????????????????????????????????????????????? INDUSTRY MCM
HISTORICAL CORPORATE P&L STATEMENT, QUARTER 2 PAGE 4
*****************************************************************************
Previous (Quarter 1) Current (Quarter 2)
------
Sales Volume 175,987 178,296
Unfilled Orders 0 0
Price 415 413
Revenues 73,192,675 100.0% 73,671,665 100.0%
- Product Costs 38,565,660 52.7% 38,836,856 52.7%
- Order Processing 1,907,012 2.6% 1,907,768 2.6%
- Replacement Parts 1,326,051 1.8% 1,326,448 1.8%
- RFID Costs 915,079 1.3% 934,912 1.3%
- Transportation Costs 5,592,144 7.6% 5,566,198 7.6%
+ Transportation Rebates 0 0.0% 0 0.0%
- Duties & Tariffs 4,007,670 5.5% 3,939,952 5.3%
------
Gross Margin 20,879,059 28.5% 21,159,531 28.7%
Fixed & Other Costs:
Administrative O/H 4,440,000 6.1% 4,440,000 6.0%
Consulting Fees 0 0.0% 0 0.0%
Corporate O/H 1,500,000 2.0% 1,500,000 2.0%
Distribution FC 25,000 0.0% 25,000 0.0%
Emergency Production 100,000 0.1% 100,000 0.1%
Forecast Inaccuracy 0 0.0% 469,527 0.6%
Information Technology 0 0.0% 23,000 0.0%
Introductions 0 0.0% 0 0.0%
Inventory Charges 63,327 0.1% 185,914 0.3%
Marketing 5,400,000 7.4% 5,400,000 7.3%
Marketing Creative 0 0.0% 0 0.0%
Plant Capacity FC 1,200,000 1.6% 1,200,000 1.6%
Price Changes 0 0.0% 0 0.0%
Production FC 141,000 0.2% 141,000 0.2%
Research Studies 0 0.0% 0 0.0%
Service Outsourcing 2,440,570 3.3% 2,448,335 3.3%
Unfilled Handling 0 0.0% 0 0.0%
Total Fixed & Other 15,309,897 20.9% 15,932,776 21.6%
------
Operating Income 5,569,162 7.6% 5,226,755 7.1%
------
Non-Operating Income 0 0.0% -927,967 -1.3%
Taxes -2,784,581 -3.8% -2,149,394 -2.9%
======
Net Income 2,784,581 3.8% 2,149,394 2.9%
======
*****************************************************************************
FIRM 6: ?????????????????????????????????????????????????? INDUSTRY MCM
PRODUCT 6-1 P&L STATEMENT, QUARTER 2 PAGE 5
*****************************************************************************
All Regions Region 1 Region 2 Region 3
(TOTAL ) ( U.S.A.) ( Europe) ( Pacific)
------
Active? Ch#1,2,3 Yes Yes Yes Yes Yes Yes Yes Yes Yes
Sales Volume, Ch#1 45,993 18,705 10,279 17,009
Sales Volume, Ch#2 20,098 8,023 5,255 6,820
Sales Volume, Ch#3 46,414 20,508 11,515 14,391
Unfilled Orders 0 0 0 0
Price, Ch#1,2,3 295 450 420 295 450 420 295 450 420 295 450 420
Revenues 42,105,915 17,741,685 10,233,355 14,130,875
- Product Costs 20,250,900 8,502,480 4,868,820 6,879,600
- Order Processing 1,223,292 513,468 305,416 404,408
- Replacement Parts 568,036 228,161 133,224 206,651
- RFID Costs 505,923 205,755 113,069 187,099
- Duties & Tariffs 2,514,369 0 818,666 1,695,703
------
Gross Margin 17,043,395 8,291,821 3,994,160 4,757,414
Gross Margin % 40.5% 46.7% 39.0% 33.7%
Fixed Costs:
Administrative O/H 2,700,000 900,000 900,000 900,000
Forecast Inaccuracy 238,132 75,809 63,079 99,244
Marketing, Ch#1 1,080,000 360,000 360,000 360,000
Marketing, Ch#2 1,080,000 360,000 360,000 360,000
Marketing, Ch#3 1,080,000 360,000 360,000 360,000
Marketing Creative 0 0 0 0
Price Changes 0 0 0 0
Service Outsourcing 1,547,460 558,040 382,476 606,944
Total Fixed Costs 7,725,592 2,613,849 2,425,555 2,686,188
------
Operating Income 9,317,803 5,677,972 1,568,605 2,071,226
======
Distribution Center? 2 Owned 0 None 0 None
RFID Outsource/Insource? 0 Outsourced 0 Outsourced 0 Outsourced
Emergency Carrier N N
Sales Volume Forecast, Ch#1 16,505 9,776 16,632
Sales Volume Forecast, Ch#2 8,494 5,270 8,054
Sales Volume Forecast, Ch#3 18,700 9,584 15,772
Service: Service Outsourcing 2 Standard 2 Standard 2 Standard
Product 6-1 Configuration: H55221
*****************************************************************************
FIRM 6: ?????????????????????????????????????????????????? INDUSTRY MCM
PRODUCT 6-1 P&L STATEMENT, QUARTER 2 (MARKETING PROGRAM DETAILS) PAGE 6
*****************************************************************************
Region 1 Region 2 Region 3
( U.S.A.) ( Europe) ( Pacific)
------
Marketing Program, Channel #1:
Marketing Spending: 360,000 360,000 360,000
Advertising Spending 144,000 144,000 144,000
Promotion Spending 108,000 108,000 108,000
Sales Force Spending 108,000 108,000 108,000
Marketing Mix Allocation 403030 403030 403030
Positioning 37 37 37
Promotional Program 49 49 49
Sales Force Spending ($/Quarter) 108,000 108,000 108,000
Sales Force O/H Rate 2.50 2.50 2.50
Sales Force Salary ($/Month) 3,250 3,250 3,250
Sales Force Size 3.16 3.16 3.16
Marketing Program, Channel #2:
Marketing Spending: 360,000 360,000 360,000
Advertising Spending 144,000 144,000 144,000
Promotion Spending 108,000 108,000 108,000
Sales Force Spending 108,000 108,000 108,000
Marketing Mix Allocation 403030 403030 403030
Positioning 37 37 37
Promotional Program 49 49 49
Sales Force Spending ($/Quarter) 108,000 108,000 108,000
Sales Force O/H Rate 2.50 2.50 2.50
Sales Force Salary ($/Month) 3,250 3,250 3,250
Sales Force Size 3.16 3.16 3.16
Marketing Program, Channel #3:
Marketing Spending: 360,000 360,000 360,000
Advertising Spending 144,000 144,000 144,000
Promotion Spending 108,000 108,000 108,000
Sales Force Spending 108,000 108,000 108,000
Marketing Mix Allocation 403030 403030 403030
Positioning 37 37 37
Promotional Program 49 49 49
Sales Force Spending ($/Quarter) 108,000 108,000 108,000
Sales Force O/H Rate 2.50 2.50 2.50
Sales Force Salary ($/Month) 3,250 3,250 3,250
Sales Force Size 3.16 3.16 3.16
*****************************************************************************
FIRM 6: ?????????????????????????????????????????????????? INDUSTRY MCM
PRODUCT 6-2 P&L STATEMENT, QUARTER 2 PAGE 7
*****************************************************************************
All Regions Region 1 Region 2 Region 3
(TOTAL ) ( U.S.A.) ( Europe) ( Pacific)
------
Active? Ch#1,2,3 Yes Yes Yes Yes Yes No Yes No No
Sales Volume, Ch#1 38,999 10,492 10,519 17,988
Sales Volume, Ch#2 17,248 12,883 4,365 0
Sales Volume, Ch#3 9,544 9,544 0 0
Unfilled Orders 0 0 0 0
Price, Ch#1,2,3 410 560 620 410 560 620 410 560 620 410 560 620
Revenues 31,565,750 17,433,480 6,757,190 7,375,080
- Product Costs 18,585,956 9,299,617 4,204,729 5,081,610
- Order Processing 684,476 465,688 146,836 71,952
- Replacement Parts 758,412 385,850 178,681 193,881
- RFID Costs 428,989 115,412 115,709 197,868
- Duties & Tariffs 1,425,583 0 540,574 885,009
------
Gross Margin 9,682,334 7,166,913 1,570,661 944,760
Gross Margin % 30.7% 41.1% 23.2% 12.8%
Fixed Costs:
Administrative O/H 1,740,000 900,000 600,000 240,000
Forecast Inaccuracy 231,395 119,099 101,756 10,540
Marketing, Ch#1 1,080,000 360,000 360,000 360,000
Marketing, Ch#2 720,000 360,000 360,000 0
Marketing, Ch#3 360,000 360,000 0 0
Marketing Creative 0 0 0 0
Price Changes 0 0 0 0
Service Outsourcing 900,875 418,510 224,796 257,569
Total Fixed Costs 5,032,270 2,517,609 1,646,552 868,109
------
Operating Income 4,650,064 4,649,304 -75,891 76,651
======
Distribution Center? 2 Owned 0 None 0 None
RFID Outsource/Insource? 0 Outsourced 0 Outsourced 0 Outsourced
Emergency Carrier N N
Sales Volume Forecast, Ch#1 12,332 10,746 17,198
Sales Volume Forecast, Ch#2 11,036 5,536 0
Sales Volume Forecast, Ch#3 10,352 0 0
Service: Service Outsourcing 2 Standard 2 Standard 2 Standard
Product 6-2 Configuration: M55542
*****************************************************************************
FIRM 6: ?????????????????????????????????????????????????? INDUSTRY MCM
PRODUCT 6-2 P&L STATEMENT, QUARTER 2 (MARKETING PROGRAM DETAILS) PAGE 8
*****************************************************************************
Region 1 Region 2 Region 3
( U.S.A.) ( Europe) ( Pacific)
------
Marketing Program, Channel #1:
Marketing Spending: 360,000 360,000 360,000
Advertising Spending 144,000 144,000 144,000
Promotion Spending 108,000 108,000 108,000
Sales Force Spending 108,000 108,000 108,000
Marketing Mix Allocation 403030 403030 403030
Positioning 37 37 37
Promotional Program 49 49 49
Sales Force Spending ($/Quarter) 108,000 108,000 108,000
Sales Force O/H Rate 2.50 2.50 2.50
Sales Force Salary ($/Month) 3,250 3,250 3,250
Sales Force Size 3.16 3.16 3.16
Marketing Program, Channel #2:
Marketing Spending: 360,000 360,000 0
Advertising Spending 144,000 144,000 0
Promotion Spending 108,000 108,000 0
Sales Force Spending 108,000 108,000 0
Marketing Mix Allocation 403030 403030 403030
Positioning 37 37 37
Promotional Program 49 49 49
Sales Force Spending ($/Quarter) 108,000 108,000 0
Sales Force O/H Rate 2.50 2.50 2.50
Sales Force Salary ($/Month) 3,250 3,250 3,250
Sales Force Size 3.16 3.16 0.00
Marketing Program, Channel #3:
Marketing Spending: 360,000 0 0
Advertising Spending 144,000 0 0
Promotion Spending 108,000 0 0
Sales Force Spending 108,000 0 0
Marketing Mix Allocation 403030 403030 403030
Positioning 37 37 37
Promotional Program 49 49 49
Sales Force Spending ($/Quarter) 108,000 0 0
Sales Force O/H Rate 2.50 2.50 2.50
Sales Force Salary ($/Month) 3,250 3,250 3,250
Sales Force Size 3.16 0.00 0.00
*****************************************************************************
FIRM 6: ?????????????????????????????????????????????????? INDUSTRY MCM
PRODUCT 6-3 P&L STATEMENT, QUARTER 2 PAGE 9
*****************************************************************************
All Regions Region 1 Region 2 Region 3
(TOTAL ) ( U.S.A.) ( Europe) ( Pacific)
------
Active? Ch#1,2,3 No No No No No No No No No
Sales Volume, Ch#1 0 0 0 0
Sales Volume, Ch#2 0 0 0 0
Sales Volume, Ch#3 0 0 0 0
Unfilled Orders 0 0 0 0
Price, Ch#1,2,3 0 0 0 250 450 400 250 450 400 250 450 400
Revenues 0 0 0 0
- Product Costs 0 0 0 0
- Order Processing 0 0 0 0
- Replacement Parts 0 0 0 0
- RFID Costs 0 0 0 0
- Duties & Tariffs 0 0 0 0
------
Gross Margin 0 0 0 0
Gross Margin % 0.0% 0.0% 0.0% 0.0%
Fixed Costs:
Administrative O/H 0 0 0 0
Forecast Inaccuracy 0 0 0 0
Marketing, Ch#1 0 0 0 0
Marketing, Ch#2 0 0 0 0
Marketing, Ch#3 0 0 0 0
Marketing Creative 0 0 0 0
Price Changes 0 0 0 0
Service Outsourcing 0 0 0 0
Total Fixed Costs 0 0 0 0
------
Operating Income 0 0 0 0
======
Distribution Center? 2 Owned 0 None 0 None
RFID Outsource/Insource? 0 Outsourced 0 Outsourced 0 Outsourced
Emergency Carrier N N
Sales Volume Forecast, Ch#1 0 0 0
Sales Volume Forecast, Ch#2 0 0 0
Sales Volume Forecast, Ch#3 0 0 0
Service: Service Outsourcing 2 Standard 2 Standard 2 Standard
Product 6-3 Configuration: H11101
*****************************************************************************
FIRM 6: ?????????????????????????????????????????????????? INDUSTRY MCM
PRODUCT 6-3 P&L STATEMENT, QUARTER 2 (MARKETING PROGRAM DETAILS) PAGE 10
*****************************************************************************
Region 1 Region 2 Region 3
( U.S.A.) ( Europe) ( Pacific)
------
Marketing Program, Channel #1:
Marketing Spending: 0 0 0
Advertising Spending 0 0 0
Promotion Spending 0 0 0
Sales Force Spending 0 0 0
Marketing Mix Allocation 403030 403030 403030
Positioning 37 37 37
Promotional Program 49 49 49
Sales Force Spending ($/Quarter) 0 0 0
Sales Force O/H Rate 2.50 2.50 2.50
Sales Force Salary ($/Month) 3,250 3,250 3,250
Sales Force Size 0.00 0.00 0.00
Marketing Program, Channel #2:
Marketing Spending: 0 0 0
Advertising Spending 0 0 0
Promotion Spending 0 0 0
Sales Force Spending 0 0 0
Marketing Mix Allocation 403030 403030 403030
Positioning 37 37 37
Promotional Program 49 49 49
Sales Force Spending ($/Quarter) 0 0 0
Sales Force O/H Rate 2.50 2.50 2.50
Sales Force Salary ($/Month) 3,250 3,250 3,250
Sales Force Size 0.00 0.00 0.00
Marketing Program, Channel #3:
Marketing Spending: 0 0 0
Advertising Spending 0 0 0
Promotion Spending 0 0 0
Sales Force Spending 0 0 0
Marketing Mix Allocation 403030 403030 403030
Positioning 37 37 37
Promotional Program 49 49 49
Sales Force Spending ($/Quarter) 0 0 0
Sales Force O/H Rate 2.50 2.50 2.50
Sales Force Salary ($/Month) 3,250 3,250 3,250
Sales Force Size 0.00 0.00 0.00
*****************************************************************************
FIRM 6: ?????????????????????????????????????????????????? INDUSTRY MCM
PRODUCT 6-4 P&L STATEMENT, QUARTER 2 PAGE 11
*****************************************************************************
All Regions Region 1 Region 2 Region 3
(TOTAL ) ( U.S.A.) ( Europe) ( Pacific)
------
Active? Ch#1,2,3 No No No No No No No No No
Sales Volume, Ch#1 0 0 0 0
Sales Volume, Ch#2 0 0 0 0
Sales Volume, Ch#3 0 0 0 0
Unfilled Orders 0 0 0 0
Price, Ch#1,2,3 0 0 0 250 450 400 250 450 400 250 450 400
Revenues 0 0 0 0
- Product Costs 0 0 0 0
- Order Processing 0 0 0 0
- Replacement Parts 0 0 0 0
- RFID Costs 0 0 0 0
- Duties & Tariffs 0 0 0 0
------
Gross Margin 0 0 0 0
Gross Margin % 0.0% 0.0% 0.0% 0.0%
Fixed Costs:
Administrative O/H 0 0 0 0
Forecast Inaccuracy 0 0 0 0
Marketing, Ch#1 0 0 0 0
Marketing, Ch#2 0 0 0 0
Marketing, Ch#3 0 0 0 0
Marketing Creative 0 0 0 0
Price Changes 0 0 0 0
Service Outsourcing 0 0 0 0
Total Fixed Costs 0 0 0 0
------
Operating Income 0 0 0 0
======
Distribution Center? 2 Owned 0 None 0 None
RFID Outsource/Insource? 0 Outsourced 0 Outsourced 0 Outsourced
Emergency Carrier N N
Sales Volume Forecast, Ch#1 0 0 0
Sales Volume Forecast, Ch#2 0 0 0
Sales Volume Forecast, Ch#3 0 0 0
Service: Service Outsourcing 2 Standard 2 Standard 2 Standard
Product 6-4 Configuration: M11101
*****************************************************************************
FIRM 6: ?????????????????????????????????????????????????? INDUSTRY MCM
PRODUCT 6-4 P&L STATEMENT, QUARTER 2 (MARKETING PROGRAM DETAILS) PAGE 12
*****************************************************************************
Region 1 Region 2 Region 3
( U.S.A.) ( Europe) ( Pacific)
------
Marketing Program, Channel #1:
Marketing Spending: 0 0 0
Advertising Spending 0 0 0
Promotion Spending 0 0 0
Sales Force Spending 0 0 0
Marketing Mix Allocation 403030 403030 403030
Positioning 37 37 37
Promotional Program 49 49 49
Sales Force Spending ($/Quarter) 0 0 0
Sales Force O/H Rate 2.50 2.50 2.50
Sales Force Salary ($/Month) 3,250 3,250 3,250
Sales Force Size 0.00 0.00 0.00
Marketing Program, Channel #2:
Marketing Spending: 0 0 0
Advertising Spending 0 0 0
Promotion Spending 0 0 0
Sales Force Spending 0 0 0
Marketing Mix Allocation 403030 403030 403030
Positioning 37 37 37
Promotional Program 49 49 49
Sales Force Spending ($/Quarter) 0 0 0
Sales Force O/H Rate 2.50 2.50 2.50
Sales Force Salary ($/Month) 3,250 3,250 3,250
Sales Force Size 0.00 0.00 0.00
Marketing Program, Channel #3:
Marketing Spending: 0 0 0
Advertising Spending 0 0 0
Promotion Spending 0 0 0
Sales Force Spending 0 0 0
Marketing Mix Allocation 403030 403030 403030
Positioning 37 37 37
Promotional Program 49 49 49
Sales Force Spending ($/Quarter) 0 0 0
Sales Force O/H Rate 2.50 2.50 2.50
Sales Force Salary ($/Month) 3,250 3,250 3,250
Sales Force Size 0.00 0.00 0.00
*****************************************************************************
FIRM 6: ?????????????????????????????????????????????????? INDUSTRY MCM
BALANCE SHEET, QUARTER 2 PAGE 13
*****************************************************************************
ASSETS
------
Cash 3,683,583
Marketable Securities 0
Finished Goods Inventory:
Plant & DC1: Product 6-1 ( 18,708 units @ 180.00/unit) 3,367,440
Product 6-2 ( 17,009 units @ 282.50/unit) 4,805,042
Product 6-3 ( 0 units @ 0.00/unit) 0
Product 6-4 ( 0 units @ 0.00/unit) 0
Plant Investment 125,000,000
Total Assets 136,856,065
LIABILITIES AND EQUITIES
------
Corporate Capitalization 100,000,000
Dividends, Current Quarter -644,818
Dividends, Cumulative Prior To This Quarter -835,374
Loans 33,402,282
Retained Earnings, Current Quarter 2,149,394
Retained Earnings, Cumulative Prior To This Quarter 2,784,581
Total Liabilities and Equities 136,856,065
*****************************************************************************
FIRM 6: ?????????????????????????????????????????????????? INDUSTRY MCM
CASH FLOW ANALYSIS REPORT, QUARTER 2 PAGE 14
*****************************************************************************
Starting "Cash" Balance (Final "Cash" Balance, Quarter 1) 3,659,633
+ Marketable Securities (Converted To "Cash" In Quarter 1) 0
- "Loans" (Liquidated During Quarter 1) -30,932,266
+ "Finished Goods Inventory" Changes:
Product 6-1 (From 2,018,340 To 3,367,440) -1,349,100
Product 6-2 (From 2,203,500 To 4,805,042) -2,601,542
Product 6-3 (From 0 To 0) 0
Product 6-4 (From 0 To 0) 0
+ "Plant Investment" Changes 0
+ "Net Income" 2,149,394
= Preliminary "Cash" Balance -29,073,881
- "Dividends" (Paid at End of Quarter 2) -644,818
= Actual "Cash" Balance (End of Quarter 2) -29,718,699
- Operating "Cash" Excess (To "Marketable Securities") 0
+ Operating "Cash" Deficit (From "Loans") 33,402,282
= Final "Cash" Balance (End of Quarter 2) 3,683,583
Notes:
(1) "Marketable Securities" and "Loans" refer to the values on last
quarter's balance sheet.
(2) Investment changes can be positive, negative, or zero. A positive
(negative) {zero}. Investment change corresponds to an increase (a
decrease) {no change} in the dollar value of the investment from last
quarter to this quarter which leads to a decrease (an increase)
(no change) in current-quarter "Cash" balance.
(3) At most, one of Operating "Cash" Excess and Operating "Cash" Deficit will
be non-zero; it is possible for both to be zero. Recall that "Cash" must
be between 5.0% and 10.0% of current-quarter sales revenues. Excess
"Cash" (above 10.0% of revenues) is invested in "Marketable Securities";
shortfalls in "Cash" (below 5.0% of revenues) result in "Loans."
*****************************************************************************
FIRM 6: ?????????????????????????????????????????????????? INDUSTRY MCM
FINISHED GOODS INVENTORY REPORT, QUARTER 2 PAGE 15
*****************************************************************************
Product Product Product Product
6-1 6-2 6-3 6-4
------
PLANT/DC1 FG INVENTORY
------
Beginning Inventory 11,213 7,800 0 0
+ Regular Production 120,000 75,000 0 0
+ Emergency Production 0 0 0 0
= Available Inventory 131,213 82,800 0 0
- Sales, Region 1 -47,236 -32,919 0 0
- Sales, Other Regions -65,269 -32,872 0 0
= Ending Inventory 18,708 17,009 0 0
*****************************************************************************
FIRM 6: ?????????????????????????????????????????????????? INDUSTRY MCM
SERVICE CENTER OPERATIONS REPORT, QUARTER 2 PAGE 16
*****************************************************************************
All Region Region Region
Regions 1 2 3
------
======
ACTIVITY REPORT
======
PRODUCT 6-1
Calls 134,365 55,804 31,873 46,688
CSR Cost/Call 11.52 10.00 12.00 13.00
PRODUCT 6-2
Calls 80,397 41,851 18,733 19,813
CSR Cost/Call 11.21 10.00 12.00 13.00
PRODUCT 6-3
Calls 0 0 0 0
CSR Cost/Call 0.00 0.00 0.00 0.00
PRODUCT 6-4
Calls 0 0 0 0
CSR Cost/Call 0.00 0.00 0.00 0.00
*****************************************************************************
FIRM 6: ?????????????????????????????????????????????????? INDUSTRY MCM
TRANSPORTATION COST REPORT, QUARTER 2 PAGE 17
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======Surface Air Emergency
SUB-ASSEMBLY ------
COMPONENTS Cost Volume Cost Volume Cost Volume Total Cost
======------
Plant/DC1: Gamma 4.00 0 4.00 0 4.00 131,652 526,608
Delta 4.00 0 4.00 0 4.00 93,130 372,520
Epsilon 6.00 0 6.00 0 6.00 216,896 1,301,376
CUSTOMER SHIPMENTS
Region 1, Channel 1 ( 29,197 units @ $ 4.00/unit) 116,788
Region 1, Channel 2 ( 20,906 units @ $ 8.00/unit) 167,248
Region 1, Channel 3 ( 30,052 units @ $ 6.00/unit) 180,312
Region 2, Channel 1 ( 20,798 units @ $18.00/unit) 374,364
Region 2, Channel 2 ( 9,620 units @ $28.00/unit) 269,360
Region 2, Channel 3 ( 11,515 units @ $22.00/unit) 253,330
Region 3, Channel 1 ( 34,997 units @ $26.00/unit) 909,922
Region 3, Channel 2 ( 6,820 units @ $36.00/unit) 245,520
Region 3, Channel 3 ( 14,391 units @ $30.00/unit) 431,730
REPLACEMENT PARTS SHIPMENTS TO CUSTOMERS
Region 1, Channel 1 ( 8,703 units @ $ 2.00/unit) 17,406
Region 1, Channel 2 ( 6,731 units @ $ 4.00/unit) 26,924
Region 1, Channel 3 ( 8,452 units @ $ 3.00/unit) 25,356
Region 2, Channel 1 ( 6,649 units @ $ 9.00/unit) 59,841
Region 2, Channel 2 ( 3,320 units @ $14.00/unit) 46,480
Region 2, Channel 3 ( 2,185 units @ $11.00/unit) 24,035
Region 3, Channel 1 ( 10,999 units @ $13.00/unit) 142,987
Region 3, Channel 2 ( 1,502 units @ $18.00/unit) 27,036
Region 3, Channel 3 ( 3,137 units @ $15.00/unit) 47,055
TOTAL TRANSPORTATION COSTS 5,566,198
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FIRM 6: ?????????????????????????????????????????????????? INDUSTRY MCM
OTHER DECISION VARIABLES REPORT, QUARTER 2 PAGE 18
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======
MANUFACTURING 6-1 6-2 6-3 6-4
======------
Production 120,000 75,000 0 0
Emergency Production Limit 10,000 10,000 10,000 10,000
======Carrier
TRANSPORTATION, PLANT/DC1 ------
SHIPMENTS TO OTHER DCs I J K L M N
======------
======
INFORMATION TECHNOLOGY
======
IT Synchronization With Carriers? 000000
Procurement Transactions Report? 0
Product Cost Report? 0
Replacement Parts Demand Report? 0
Retail Pipeline Report? 0
Service Center Statistics Report? 0
Transportation Cost Report? 0
Transportation Report? 0
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FIRM 6: ?????????????????????????????????????????????????? INDUSTRY MCM
FORECASTING ACCURACY REPORT, QUARTER 2 PAGE 19
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Region Forecast Actual Accuracy
------
Product 6-1, Channel 1 1 16,505 18,705 88.2%
Product 6-1, Channel 2 1 8,494 8,023 94.1%
Product 6-1, Channel 3 1 18,700 20,508 91.2%
Product 6-1, Channel 1 2 9,776 10,279 95.1%
Product 6-1, Channel 2 2 5,270 5,255 99.7%
Product 6-1, Channel 3 2 9,584 11,515 83.2%
Product 6-1, Channel 1 3 16,632 17,009 97.8%
Product 6-1, Channel 2 3 8,054 6,820 81.9%
Product 6-1, Channel 3 3 15,772 14,391 90.4%
Product 6-2, Channel 1 1 12,332 10,492 82.5%
Product 6-2, Channel 2 1 11,036 12,883 85.7%
Product 6-2, Channel 3 1 10,352 9,544 91.5%
Product 6-2, Channel 1 2 10,746 10,519 97.8%
Product 6-2, Channel 2 2 5,536 4,365 73.2%
Product 6-2, Channel 1 3 17,198 17,988 95.6%
SUMMARY: For 15 forecasts, average forecasting accuracy is 89.9%
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 Product Product
Forecasting Accuracy Overall 6-1 6-2 6-3 6-4
------
Forecasting Accuracy 89.9% 91.3% 87.7% 0.0% 0.0%
Number of Forecasts 15 9 6 0 0
Region-Specific Region Region Region
Forecasting Accuracy Overall 1 2 3
------
Forecasting Accuracy 89.9% 88.9% 89.8% 91.4%
Number of Forecasts 15 6 5 4
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FIRM 6: ?????????????????????????????????????????????????? INDUSTRY MCM
FORECASTING ACCURACY REPORT, QUARTER 2 PAGE 20
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Quarter Quarter
SALES HISTORY 1 2
------
REGION 1
Product 6-1H, Ch#1 16,505 18,705
Product 6-1H, Ch#2 8,494 8,023
Product 6-1H, Ch#3 18,700 20,508
Product 6-2M, Ch#1 12,332 10,492
Product 6-2M, Ch#2 11,036 12,883
Product 6-2M, Ch#3 10,352 9,544
REGION 2
Product 6-1H, Ch#1 9,776 10,279
Product 6-1H, Ch#2 5,270 5,255
Product 6-1H, Ch#3 9,584 11,515
Product 6-2M, Ch#1 10,746 10,519
Product 6-2M, Ch#2 5,536 4,365
REGION 3
Product 6-1H, Ch#1 16,632 17,009
Product 6-1H, Ch#2 8,054 6,820
Product 6-1H, Ch#3 15,772 14,391
Product 6-2M, Ch#1 17,198 17,988
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FIRM 6: ?????????????????????????????????????????????????? INDUSTRY MCM
SET-TOP BOX INDUSTRY BULLETIN, QUARTER 2 PAGE 21
*****************************************************************************
Welcome to the quarter 2 issue of the Set-Top Box Industry Bulletin.
Notable set-top box industry developments are highlighted in the Bulletin.
INDUSTRY NEWS HEADLINES
Total industry MCM profits were 13,221,733 this quarter.
Firm 1 leads industry MCM in market share (17.1%).
Firm 2 has the second-highest market share in industry MCM (16.9%).
Industry MCM inventory investment increased from 25,331,040 to
47,799,653 this quarter.
Total industry MCM research study spending was 0 this quarter.
DISTRIBUTION CENTER ACTIVITY
No distribution centers were opened this quarter.
No distribution centers were closed this quarter.
PRODUCT LAUNCHES AND "UNLAUNCHES"
No products were introduced this quarter.
No products were "unlaunched" (dropped) this quarter.
PLANT-DC SURFACE TRANSPORTATION DELIVERY RELIABILITY
------
Carrier I Carrier J Carrier K Carrier L Carrier M Carrier N
------
Region 2 70.0% 40.0% 70.0% 75.0% 65.0% 80.3% -
Region 3 70.0% 30.0% 60.0% 60.0% 75.0% 76.3% -
Notes: These estimates of plant-DC surface transportation delivery
reliability (performance) are derived from shipping industry benchmarking
studies for product categories like set-top boxes. "+" ("-") after a figure
denotes an increase (a decrease) since last quarter of at least 1% but no
more than 2.5%; "++" ("--") after a figure denotes an increase (a decrease)
since last quarter of more than 2.5%.
PLANT-DC-CUSTOMER TRANSPORTATION/SHIPPING COSTS: Quarter 3
Channel 1 Channel 2 Channel 3
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FIRM 6: ?????????????????????????????????????????????????? INDUSTRY MCM
SET-TOP BOX INDUSTRY BULLETIN, QUARTER 2 PAGE 22
*****************************************************************************
------
Surface Air Surface Air Surface Air
------
Region 1 Costs
------
DC1 To Region 1 Customers 4.00 8.00 6.00
DC1 To Region 2 Customers 18.00 28.00 22.00
DC1 To Region 3 Customers 26.00 36.00 30.00
Region 2 Costs (With DC2)
------
DC1 To DC2 Via Carrier I 6.00 8.00 6.00 8.00 6.00 8.00
DC1 To DC2 Via Carrier J 4.00 10.00 4.00 10.00 4.00 10.00
DC1 To DC2 Via Carrier K 6.00 8.00 6.00 8.00 6.00 8.00
DC1 To DC2 Via Carrier L 8.00 10.00 8.00 10.00 8.00 10.00
DC1 To DC2 Via Carrier M 6.00 8.00 6.00 8.00 6.00 8.00
DC1 To DC2 Via Carrier N 10.00 12.00 10.00 12.00 10.00 12.00
DC2 To Region 2 Customers 6.00 12.00 8.00
Region 3 Costs (With DC3)
------
DC1 To DC3 Via Carrier I 10.00 14.00 10.00 14.00 10.00 14.00
DC1 To DC3 Via Carrier J 4.00 14.00 4.00 14.00 4.00 14.00
DC1 To DC3 Via Carrier K 6.00 14.00 6.00 14.00 6.00 14.00
DC1 To DC3 Via Carrier L 6.00 14.00 6.00 14.00 6.00 14.00
DC1 To DC3 Via Carrier M 8.00 16.00 8.00 16.00 8.00 16.00
DC1 To DC3 Via Carrier N 12.00 18.00 12.00 18.00 12.00 18.00
DC3 To Region 3 Customers 8.00 16.00 12.00
Notes: These plant-DC-customer transportation/shipping costs include "local"
and DC1 sourcing options for all available carriers (I,J,K,L,M,N), channels,
and regions (R1-R3) for finished goods inventory. These costs update the
corresponding costs in Exhibits 9 and 10 in the LINKS participant's manual.
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FIRM 6: ?????????????????????????????????????????????????? INDUSTRY MCM
SPECIAL MESSAGES ABOUT YOUR LINKS VERSION, QUARTER 2 PAGE 23
*****************************************************************************
------
MARKETING SPENDING CONSTRAINT
------
A marketing spending constraint exists within LINKS. Your total marketing
spending this quarter for all products, channels, and regions must not
exceed 10.0% of your revenues from last quarter. For your reference:
Current Revenues = 73,671,665
Current Marketing Spending = 5,400,000
Marketing Spending Constraint Next Quarter = 7,367,166
If you inadvertently violate your marketing spending constraint, marketing
spending will be automatically reduced pro-rata to meet your marketing
spending constraint. There is no explicit cost associated with such a
marketing spending violation.
------
PLANT-DC SURFACE TRANSPORTATION DELIVERY RELIABILITY
------
Plant-DC surface transportation delivery reliability may vary through time.
Best estimates of current plant-DC surface transportation performance for all
carriers are shown in the "Set-Top Box Industry Bulletin."
------
PLANT-DC TRANSPORTATION/SHIPPING COSTS
------
Plant-DC shipping costs (including direct shipments from the plant to final
customers in region 1 and in other regions without a "local" DC) change
through time in response to general economic conditions and demand-supply
conditions in transportation/shipping markets. See the "Set-Top Box Industry
Bulletin" for the current shipping costs in the set-top box industry.
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FIRM 6: ?????????????????????????????????????????????????? INDUSTRY MCM
DECISION VARIABLE CHECKS AND MESSAGES, QUARTER 2 PAGE 24
*****************************************************************************
FORECASTING DECISION VARIABLE CHECKS [Firm MCM6]
15 forecasts are unchanged. Forecasts are normally changed every quarter.
RESEARCH STUDIES DECISION VARIABLE CHECKS [Firm MCM6]
No research studies have been ordered.
Research studies are normally ordered every quarter.
INVENTORY CHARGES DETAILS
$ Begin $ End $ Average Inventory Inventory
Inventory Inventory Inventory Cost (%) Charges
------
DC1: FinGoods 6-1 2,018,340 3,367,440 2,692,890 3.0 80,786
DC1: FinGoods 6-2 2,203,500 4,805,042 3,504,271 3.0 105,128
Total Inventory Charges (Reported on the Corporate P&L Statement) 185,914
PRODUCTION SHIFTS AND PLANT CAPACITY FC CALCULATION DETAILS
Production 6-1 = 120,000 units.
Production 6-2 = 75,000 units.
Total Production = 195,000 units.
Production Shifts = 4.
Plant Capacity FC = 1,200,000.