*****************************************************************************
FIRM 7: ?????????????????????????????????????????????????? INDUSTRY PSS
PERFORMANCE EVALUATION REPORT, QUARTER 3 PAGE 1
*****************************************************************************
+------+------Industry ------+
| Firm 7 | Worst Average Best |
------+------+------+
FINANCIAL | | |
Net Income to Revenues | 7.9%| 7.0% 7.6% 8.4%|
Change in Net Income to Revenues | 1.0%| 0.0% 1.7% 3.9%|
------+------+------+
OPERATIONAL | | |
Forecasting Accuracy | 94.0%| 77.7% 85.1% 94.0%|
(Marketing + Service) to Revenues | 9.1%| 9.1% 8.9% 8.0%|
------+------+------+
CUSTOMER | | |
Change in Market Share | -1.0%| -1.1% 0.0% 2.5%|
Customer Satisfaction | 18.9%| 18.9% 19.1% 19.4%|
------+------+------+
*****************************************************************************
FIRM 7: ?????????????????????????????????????????????????? INDUSTRY PSS
LINKS DASHBOARD, QUARTER 3 PAGE 1
*****************************************************************************
Quarter 2 Quarter 3
+------+------+
Sales Volume | 114,826 | 108,503 |
------+------+------+
Price | 251 | 256 |
------+------+------+
Revenues | 28,934,355 100.0% | 27,859,500 100.0% |
Product Costs | 14,898,090 51.5% | 13,617,772 48.9% |
Gross Margin | 9,928,700 34.3% | 10,277,622 36.9% |
Net Income | 1,972,424 6.8% | 2,188,857 7.9% |
+------+------+
*****************************************************************************
FIRM 7: ?????????????????????????????????????????????????? INDUSTRY PSS
CORPORATE P&L STATEMENT, QUARTER 3 PAGE 2
*****************************************************************************
All Products Product 7-1 Product 7-2
------
Sales Volume 108,503 94,988 13,515
Price 256 225 480
Revenues 27,859,500 21,372,300 6,487,200
- Product Costs 13,617,772 10,103,872 3,513,900
- Transportation Costs 2,608,600
- Duties & Tariffs 1,355,506 1,355,506 0
------
Gross Margin 10,277,622 9,912,922 2,973,300
Gross Margin % 36.9% 46.4% 45.8%
Fixed & Other Costs:
Administrative O/H 1,200,000 900,000 300,000
Consulting Fees 0
Corporate O/H 1,500,000
Forecast Inaccuracy 72,079 58,095 13,984
Information Technology 14,000
Introductions 0
Marketing 1,600,000 1,200,000 400,000
Marketing Creative 0 0 0
Price Changes 0 0 0
Reconfiguration 0
Research Studies 0
Service Outsourcing 929,267 839,987 89,280
Total Fixed & Other 5,315,346 2,998,082 803,264
------
Operating Income 4,962,276 6,914,840 2,170,036
------
Non-Operating Income -584,562
Patent Royalties 0
Taxes -2,188,857
======
Net Income 2,188,857
======
*****************************************************************************
FIRM 7: ?????????????????????????????????????????????????? INDUSTRY PSS
HISTORICAL CORPORATE P&L STATEMENT, QUARTER 3 PAGE 3
*****************************************************************************
Previous (Quarter 2) Current (Quarter 3)
------
Sales Volume 114,826 108,503
Price 251 256
Revenues 28,934,355 100.0% 27,859,500 100.0%
- Product Costs 14,898,090 51.5% 13,617,772 48.9%
- Transportation Costs 2,722,242 9.4% 2,608,600 9.4%
- Duties & Tariffs 1,385,323 4.8% 1,355,506 4.9%
------
Gross Margin 9,928,700 34.3% 10,277,622 36.9%
Fixed & Other Costs:
Administrative O/H 1,200,000 4.1% 1,200,000 4.3%
Consulting Fees 0 0.0% 0 0.0%
Corporate O/H 1,500,000 5.2% 1,500,000 5.4%
Forecast Inaccuracy 120,997 0.4% 72,079 0.3%
Information Technology 13,000 0.0% 14,000 0.1%
Introductions 0 0.0% 0 0.0%
Marketing 1,600,000 5.5% 1,600,000 5.7%
Marketing Creative 0 0.0% 0 0.0%
Price Changes 0 0.0% 0 0.0%
Reconfiguration 0 0.0% 0 0.0%
Research Studies 0 0.0% 0 0.0%
Service Outsourcing 946,622 3.3% 929,267 3.3%
Total Fixed & Other 5,380,619 18.6% 5,315,346 19.1%
------
Operating Income 4,548,081 15.7% 4,962,276 17.8%
------
Non-Operating Income -603,233 -2.1% -584,562 -2.1%
Patent Royalties 0 0.0% 0 0.0%
Taxes -1,972,424 -6.8% -2,188,857 -7.9%
======
Net Income 1,972,424 6.8% 2,188,857 7.9%
======
*****************************************************************************
FIRM 7: ?????????????????????????????????????????????????? INDUSTRY PSS
PRODUCT 7-1 P&L STATEMENT, QUARTER 3 PAGE 4
*****************************************************************************
All Regions Region 1 Region 2 Region 3
(TOTAL ) ( U.S.A.) ( Europe) ( Pacific)
------
Active? Yes Yes Yes
Sales Volume 94,988 37,319 22,395 35,274
Price 225 225 225 225
Revenues 21,372,300 8,396,775 5,038,875 7,936,650
- Product Costs 10,103,872 3,969,621 2,382,156 3,752,095
- Duties & Tariffs 1,355,506 0 403,109 952,397
------
Gross Margin 9,912,922 4,427,154 2,253,610 3,232,158
Gross Margin % 46.4% 52.7% 44.7% 40.7%
Fixed Costs:
Administrative O/H 900,000 300,000 300,000 300,000
Forecast Inaccuracy 58,095 13,738 35,164 9,193
Marketing 1,200,000 400,000 400,000 400,000
Marketing Creative 0 0 0 0
Price Changes 0 0 0 0
Service Outsourcing 839,987 293,540 198,216 348,231
Total Fixed Costs 2,998,082 1,007,278 933,380 1,057,424
------
Operating Income 6,914,840 3,419,876 1,320,230 2,174,734
======
Sales Volume Forecast 35,610 19,770 34,193
CSR Service Outsourcing 2 Standard 2 Standard 2 Standard
Marketing Mix Allocation 403030 403030 403030
Marketing Positioning 75 75 75
Product 7-1 Configuration: H111010
*****************************************************************************
FIRM 7: ?????????????????????????????????????????????????? INDUSTRY PSS
PRODUCT 7-2 P&L STATEMENT, QUARTER 3 PAGE 5
*****************************************************************************
All Regions Region 1 Region 2 Region 3
(TOTAL ) ( U.S.A.) ( Europe) ( Pacific)
------
Active? Yes No No
Sales Volume 13,515 13,515 0 0
Price 480 480 480 480
Revenues 6,487,200 6,487,200 0 0
- Product Costs 3,513,900 3,513,900 0 0
- Duties & Tariffs 0 0 0 0
------
Gross Margin 2,973,300 2,973,300 0 0
Gross Margin % 45.8% 45.8% 0.0% 0.0%
Fixed Costs:
Administrative O/H 300,000 300,000 0 0
Forecast Inaccuracy 13,984 13,984 0 0
Marketing 400,000 400,000 0 0
Marketing Creative 0 0 0 0
Price Changes 0 0 0 0
Service Outsourcing 89,280 89,280 0 0
Total Fixed Costs 803,264 803,264 0 0
------
Operating Income 2,170,036 2,170,036 0 0
======
Sales Volume Forecast 12,885 0 0
CSR Service Outsourcing 2 Standard 2 Standard 2 Standard
Marketing Mix Allocation 403030 403030 403030
Marketing Positioning 17 17 17
Product 7-2 Configuration: H376020
*****************************************************************************
FIRM 7: ?????????????????????????????????????????????????? INDUSTRY PSS
BALANCE SHEET, QUARTER 3 PAGE 6
*****************************************************************************
ASSETS
------
Cash 1,392,975
Marketable Securities 0
Finished Goods Inventory 0
Plant Investment 100,000,000
Total Assets 101,392,975
LIABILITIES AND EQUITIES
------
Corporate Capitalization 80,000,000
Dividends, Current Quarter -656,657
Dividends, Cumulative Prior To This Quarter -1,109,938
Loans 17,270,916
Retained Earnings, Current Quarter 2,188,857
Retained Earnings, Cumulative Prior To This Quarter 3,699,797
Total Liabilities and Equities 101,392,975
*****************************************************************************
FIRM 7: ?????????????????????????????????????????????????? INDUSTRY PSS
PRODUCT COST REPORT, QUARTER 3 PAGE 7
*****************************************************************************
ORIGINAL (PLANT) Product Product
MANUFACTURING COST 7-1 7-2
------
Alpha 3.00 9.00
Beta 4.00 28.00
Bandwidth 10.50 118.00
Warranty 0.00 0.00
Packaging 10.00 14.00
Memory Capacity 0.00 0.00
Gamma 17.00 17.00
Epsilon 24.00 24.00
Labor Cost 30.00 30.00
Production Cost 20.00 20.00
Experience Curve Effect -12.13 0.00
------
106.37 260.00
*****************************************************************************
FIRM 7: ?????????????????????????????????????????????????? INDUSTRY PSS
TRANSPORTATION COST REPORT, QUARTER 3 PAGE 8
*****************************************************************************
======Surface Air Emergency
SUB-ASSEMBLY ------
COMPONENTS Cost Volume Cost Volume Cost Volume Total Cost
======------
Plant/DC1: Gamma 4.00 0 4.00 0 4.00 108,503 434,012
Epsilon 6.00 0 6.00 0 6.00 108,503 651,018
CUSTOMER SHIPMENTS
Region 1 ( 50,834 units @ $ 4.00/unit) 203,336
Region 2 ( 22,395 units @ $18.00/unit) 403,110
Region 3 ( 35,274 units @ $26.00/unit) 917,124
TOTAL TRANSPORTATION COSTS 2,608,600
*****************************************************************************
FIRM 7: ?????????????????????????????????????????????????? INDUSTRY PSS
SERVICE CENTER OPERATIONS REPORT, QUARTER 3 PAGE 9
*****************************************************************************
All Region Region Region
Regions 1 2 3
------
PRODUCT 7-1
Calls 72,659 29,354 16,518 26,787
CSR Cost/Call 11.56 10.00 12.00 13.00
PRODUCT 7-2
Calls 8,928 8,928 0 0
CSR Cost/Call 10.00 10.00 0.00 0.00
*****************************************************************************
FIRM 7: ?????????????????????????????????????????????????? INDUSTRY PSS
FORECASTING ACCURACY REPORT, QUARTER 3 PAGE 10
*****************************************************************************
Region Forecast Actual Accuracy
------
Product 7-1 1 35,610 37,319 95.4%
Product 7-1 2 19,770 22,395 88.3%
Product 7-1 3 34,193 35,274 96.9%
Product 7-2 1 12,885 13,515 95.3%
SUMMARY: For 4 forecasts, average forecasting accuracy is 94.0%
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 7-1 7-2
------
Forecasting Accuracy 94.0% 93.5% 95.3%
Number of Forecasts 4 3 1
Region-Specific Region Region Region
Forecasting Accuracy Overall 1 2 3
------
Forecasting Accuracy 94.0% 95.4% 88.3% 96.9%
Number of Forecasts 4 2 1 1
*****************************************************************************
FIRM 7: ?????????????????????????????????????????????????? INDUSTRY PSS
FORECASTING ACCURACY REPORT, QUARTER 3 PAGE 11
*****************************************************************************
Quarter Quarter Quarter
SALES HISTORY 1 2 3
------
REGION 1
Product 7-1H 35,610 44,314 37,319
Product 7-2H 12,885 12,151 13,515
REGION 2
Product 7-1H 19,770 21,158 22,395
REGION 3
Product 7-1H 34,193 37,203 35,274
*****************************************************************************
FIRM 7: ?????????????????????????????????????????????????? INDUSTRY PSS
SET-TOP BOX INDUSTRY BULLETIN, QUARTER 3 PAGE 12
*****************************************************************************
Welcome to the quarter 3 issue of the Set-Top Box Industry Bulletin.
Notable set-top box industry developments are highlighted in the Bulletin.
INDUSTRY NEWS HEADLINES
Total industry PSS profits were 15,419,142 this quarter.
Firm 6 leads industry PSS in market share (15.4%).
Firm 3 has the second-highest market share in industry PSS (14.5%).
Total industry PSS research study spending was 0 this quarter.
PRODUCT LAUNCHES AND "UNLAUNCHES"
No products were introduced this quarter.
No products were "unlaunched" (dropped) this quarter.
RECONFIGURATIONS
No products were reconfigured this quarter.
*****************************************************************************
FIRM 7: ?????????????????????????????????????????????????? INDUSTRY PSS
SPECIAL MESSAGES ABOUT YOUR LINKS VERSION, QUARTER 3 PAGE 13
*****************************************************************************
------
EXPERIENCE CURVES
------
Experience curve effects exist within your LINKS version. These experience
or "learning" effects reduce your production and labor costs for all
production.
(1) Experience curve effects accrue for a product in the quarter after
cumulative production experience with a configuration reaches 45,000-
65,000 units.
(2) The experience curve for production is estimated to be about 25%
for hyperware. Every successive doubling of cumulative production
experience for hyperware yields a 25% reduction in production and labor
costs from their previous values.
(3) Experience curve cost adjustments are embedded within product costs.
Current values of experience curve cost adjustments are reported in the
"Product Cost Report."
(4) Experience curve effects accrue to individual products, as long as their
configurations do not change. For reconfigured products, cumulative
production experience is reset to zero units unless a reconfiguration is
"minor." A reconfiguration is "minor" if: (i) each raw material changes
by no more than one unit; (ii) bandwidth changes by no more than one
unit; and, (iii) warranty changes by no more than one quarter.
(5) Current cumulative production experience for all of your products is:
Product 7-1 cumulative production experience = 287,236 units
Product 7-2 cumulative production experience = 38,551 units
------
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 15.0% of your revenues from last quarter. For your reference:
Current Revenues = 27,859,500
Current Marketing Spending = 1,600,000
Marketing Spending Constraint Next Quarter = 4,178,925
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.
*****************************************************************************
FIRM 7: ?????????????????????????????????????????????????? INDUSTRY PSS
DECISION VARIABLE CHECKS AND MESSAGES, QUARTER 3 PAGE 14
*****************************************************************************
FORECASTING DECISION VARIABLE CHECKS [Firm PSS7]
4 forecasts are unchanged. Forecasts are normally changed every quarter.
RESEARCH STUDIES DECISION VARIABLE CHECKS [Firm PSS7]
No research studies have been ordered.
Research studies are normally ordered every quarter.