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

PERFORMANCE EVALUATION REPORT, MONTH 1 PAGE 1

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

| Firm 6 | Worst Average Best |

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

FINANCIAL | | |

Net Income to Revenues | 10.5%| 10.5% 10.5% 10.5%|

Change in Net Income to Revenues | 0.0%| 0.0% 0.0% 0.0%|

Return on Assets | 26.7%| 26.7% 26.7% 26.7%|

Net Asset Turns | 2.5 | 2.5 2.5 2.5 |

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

OPERATIONAL | | |

Inventory Turnover | 3.2 | 3.2 3.2 3.2 |

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

Failure Rate | 6.3%| 6.3% 6.3% 6.3%|

Controllable Procure&Mfg to Revenues | 0.7%| 0.7% 0.7% 0.7%|

Transportation Expenses Per Unit Sold | 33.9 | 33.9 33.9 33.9 |

Forecasting Accuracy | 100.0%| 100.0% 100.0% 100.0%|

(Marketing + Service) to Revenues | 10.2%| 10.2% 10.2% 10.2%|

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

CUSTOMER | | |

Change in Market Share | 0.0%| 0.0% 0.0% 0.0%|

Customer Satisfaction | 25.3%| 25.3% 25.3% 25.3%|

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

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

CORPORATE P&L STATEMENT, MONTH 1 PAGE 2

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

All Products Product 6-1 Product 6-2

------

Sales Volume 53,243 30,432 22,811

Unfilled Orders 0 0 0

Price 398 389 409

Revenues 21,193,590 11,850,615 9,342,975

- Product Costs 9,868,720 5,203,872 4,664,848

- Order Processing 749,772 389,588 360,184

- Replacement Parts 86,267 35,228 51,039

- Transportation Costs 1,806,357

------

Gross Margin 8,682,474 6,221,927 4,266,904

Gross Margin % 41.0% 52.5% 45.7%

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 51,438

Forecast Inaccuracy 0 0 0

Inventory Charges 46,191

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 714,332 409,898 304,434

Unfilled Handling 0

Total Fixed & Other 4,236,461 1,729,898 1,624,434

------

Operating Income 4,446,013 4,492,029 2,642,470

------

Non-Operating Income 0

Taxes -2,223,006

======

Net Income 2,223,007

======

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

PRODUCT 6-1 P&L STATEMENT, MONTH 1 PAGE 3

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

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 17,039 5,423 3,029 8,587

Sales Volume, Ch#2 13,393 3,539 4,194 5,660

Unfilled Orders 0 0 0 0

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

Revenues 11,850,615 3,435,225 2,949,780 5,465,610

- Product Costs 5,203,872 1,532,502 1,235,133 2,436,237

- Order Processing 389,588 106,628 112,772 170,188

- Replacement Parts 35,228 10,334 8,366 16,528

------

Gross Margin 6,221,927 1,785,761 1,593,509 2,842,657

Gross Margin % 52.5% 52.0% 54.0% 52.0%

Fixed Costs:

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

Forecast Inaccuracy 0 0 0 0

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

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

Service Outsourcing 409,898 102,120 98,712 209,066

Total Fixed Costs 1,729,898 542,120 538,712 649,066

------

Operating Income 4,492,029 1,243,641 1,054,797 2,193,591

======

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 1 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 9,364 3,417 2,738 3,209

Sales Volume, Ch#2 13,447 6,564 1,746 5,137

Unfilled Orders 0 0 0 0

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

Revenues 9,342,975 4,179,870 1,715,430 3,447,675

- Product Costs 4,664,848 2,041,114 916,978 1,706,756

- Order Processing 360,184 171,204 52,856 136,124

- Replacement Parts 51,039 22,371 10,023 18,645

------

Gross Margin 4,266,904 1,945,181 735,573 1,586,150

Gross Margin % 45.7% 46.5% 42.9% 46.0%

Fixed Costs:

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

Forecast Inaccuracy 0 0 0 0

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

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

Service Outsourcing 304,434 117,710 60,156 126,568

Total Fixed Costs 1,624,434 557,710 500,156 566,568

------

Operating Income 2,642,470 1,387,471 235,417 1,019,582

======

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 1 PAGE 5

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ASSETS

------

Cash 1,059,679

Marketable Securities 0

Finished Goods Inventory:

Plant & DC1: Product 6-1 ( 12,068 units @ 171.00/unit) 2,063,628

Product 6-2 ( 3,189 units @ 204.50/unit) 652,150

Plant Investment 100,000,000

Procurement Inventory:

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

Beta ( 0 units @ 0.00/unit) 0

Gamma ( 2,100 units @ 22.00/unit) 46,200

Delta ( 4,776 units @ 24.00/unit) 114,624

Epsilon ( 6,999 units @ 29.00/unit) 202,971

Total Assets 104,139,252

LIABILITIES AND EQUITIES

------

Corporate Capitalization 100,000,000

Dividends, Current Month -666,902

Dividends, Cumulative Prior To This Month 0

Loans 2,583,147

Retained Earnings, Current Month 2,223,007

Retained Earnings, Cumulative Prior To This Month 0

Total Liabilities and Equities 104,139,252

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 1 PAGE 6

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

Product Product

6-1 6-2

------

PLANT/DC1 FG INVENTORY

------

Beginning Inventory 0 0

+ Production 42,500 26,000

= Available Inventory 42,500 26,000

- Sales, Region 1 -8,962 -9,981

- Sales, Region 2 -7,223 -4,484

- Sales, Region 3 -14,247 -8,346

= Ending Inventory 12,068 3,189

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

PROCUREMENT INVENTORY REPORT, MONTH 1 PAGE 7

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

Alpha Beta Gamma Delta Epsilon

------

PLANT & DC1

------

Beginning Inventory 0 0 0 0 0

+ Purchases, Surface 368,500 368,500 18,900 12,801 28,001

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

+ Purchases, Emergency 0 0 3,326 0 6,910

= Available Inventory 368,500 368,500 43,226 28,801 69,911

- 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 -726 -1,224 -1,411

+ Purchases, Delayed 2,100 3,199 6,999

= Ending Inventory 0 0 2,100 4,776 6,999

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

OTHER DECISION VARIABLES REPORT, MONTH 1 PAGE 8

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======

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 1 PAGE 9

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Gamma Delta Epsilon

------

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

------

PRODUCT 6-1

------

DC1:Region1 130 84 0 0 118 76

DC1:Region2 72 100 0 0 66 92

DC1:Region3 206 134 0 0 188 124

PRODUCT 6-2

------

DC1:Region1 0 0 183 354 111 216

DC1:Region2 0 0 147 93 90 57

DC1:Region3 0 0 171 276 105 168

------

TOTAL Gamma: 726 Delta: 1,224 Epsilon: 1,411

% of Sales 2.4% 5.4% 2.7%

------

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

FORECASTING ACCURACY REPORT, MONTH 1 PAGE 10

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

Region Forecast Actual Accuracy

------

Product 6-1, Channel 1 1 5,423 5,423 100.0%

Product 6-1, Channel 2 1 3,539 3,539 100.0%

Product 6-1, Channel 1 2 3,029 3,029 100.0%

Product 6-1, Channel 2 2 4,194 4,194 100.0%

Product 6-1, Channel 1 3 8,587 8,587 100.0%

Product 6-1, Channel 2 3 5,660 5,660 100.0%

Product 6-2, Channel 1 1 3,417 3,417 100.0%

Product 6-2, Channel 2 1 6,564 6,564 100.0%

Product 6-2, Channel 1 2 2,738 2,738 100.0%

Product 6-2, Channel 2 2 1,746 1,746 100.0%

Product 6-2, Channel 1 3 3,209 3,209 100.0%

Product 6-2, Channel 2 3 5,137 5,137 100.0%

SUMMARY: For 12 forecasts, average forecasting accuracy is 100.0%

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 100.0% 100.0% 100.0%

Number of Forecasts 12 6 6

Region-Specific Region Region Region

Forecasting Accuracy Overall 1 2 3

------

Forecasting Accuracy 100.0% 100.0% 100.0% 100.0%

Number of Forecasts 12 4 4 4

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

FORECASTING ACCURACY REPORT, MONTH 1 PAGE 11

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

Month

SALES HISTORY 1

------

REGION 1

Hyperware

Product 6-1H, Ch#1 5,423

Product 6-1H, Ch#2 3,539

Industry 53,772

Industry Unfilled 0

Metaware

Product 6-2M, Ch#1 3,417

Product 6-2M, Ch#2 6,564

Industry 59,886

Industry Unfilled 0

REGION 2

Hyperware

Product 6-1H, Ch#1 3,029

Product 6-1H, Ch#2 4,194

Industry 43,338

Industry Unfilled 0

Metaware

Product 6-2M, Ch#1 2,738

Product 6-2M, Ch#2 1,746

Industry 26,904

Industry Unfilled 0

REGION 3

Hyperware

Product 6-1H, Ch#1 8,587

Product 6-1H, Ch#2 5,660

Industry 85,482

Industry Unfilled 0

Metaware

Product 6-2M, Ch#1 3,209

Product 6-2M, Ch#2 5,137

Industry 50,076

Industry Unfilled 0

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

SET-TOP BOX INDUSTRY BULLETIN, MONTH 1 PAGE 12

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

Welcome to the month 1 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 13,338,042 this month.

Firm 1 leads industry PMS in market share (16.7%).

Firm 2 has the second-highest market share in industry PMS (16.7%).

Industry PMS inventory investment increased from 0 to

18,477,438 this month.

SUB-ASSEMBLY COMPONENT COSTS: Month 2

Supplier

------

A B C D E F G

------

Gamma 12 14 13 22

Delta 15 16 24 14 13

Epsilon 29 20 19 21

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 1 PAGE 13

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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 0 46,200 23,100 3.0 692

DC1: SAC Delta 0 114,624 57,312 3.0 1,719

DC1: SAC Epsilon 0 202,971 101,485 3.0 3,044

DC1: FinGoods 6-1 0 2,063,628 1,031,814 3.0 30,954

DC1: FinGoods 6-2 0 652,150 326,075 3.0 9,782

Total Inventory Charges (Reported on the Corporate P&L Statement) 46,191

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.