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FIRM 7: ?????????????????????????????????????????????????? INDUSTRY SMK

PERFORMANCE EVALUATION REPORT, QUARTER 1 PAGE 1

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

| Firm 7 | Worst Average Best |

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

FINANCIAL | | |

Net Income to Revenues | 10.0%| 9.6% 9.9% 10.1%|

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

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

OPERATIONAL | | |

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

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

CSR Turnover | 9.7%| 10.6% 8.7% 5.8%|

CSR Cost/Call | 78.3 | 80.8 78.9 77.8 |

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

CUSTOMER | | |

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

Customer Satisfaction | 27.9%| 27.8% 28.0% 28.3%|

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

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FIRM 7: ?????????????????????????????????????????????????? INDUSTRY SMK

CORPORATE P&L STATEMENT, QUARTER 1 PAGE 2

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

All Services Service 7-1 Service 7-2

------

Sales Volume 76,755 47,326 29,429

Unfilled Orders 0 0 0

Price 236 150 375

Revenues 18,134,775 7,098,900 11,035,875

- Variable Costs 3,181,137 1,135,824 2,045,313

- Order Processing 767,550 473,260 294,290

------

Gross Margin 14,186,088 5,489,816 8,696,272

Gross Margin % 78.2% 77.3% 78.8%

Fixed & Other Costs:

Administrative O/H 600,000 300,000 300,000

Call Center Service 541,284 370,644 170,640

Consulting Fees 0

Corporate O/H 1,000,000

Forecast Inaccuracy 0 0 0

Information Technology 1,000

Introductions 0

Marketing 2,400,000 1,200,000 1,200,000

Marketing Creative 0 0 0

Price Changes 0 0 0

Reconfiguration 0

Research Studies 0

Service Salaries 2,925,000 1,462,500 1,462,500

Service O/H 2,925,000 1,462,500 1,462,500

Service Hire&Fire 162,000 81,000 81,000

Unfilled Handling 0

Total Fixed & Other 10,554,284 4,876,644 4,676,640

------

Operating Income 3,631,804 613,172 4,019,632

------

Non-Operating Income 0

Taxes -1,815,902

======

Net Income 1,815,902

======

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FIRM 7: ?????????????????????????????????????????????????? INDUSTRY SMK

SERVICE 7-1 P&L STATEMENT, QUARTER 1 PAGE 3

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

All Regions Region 1 Region 2 Region 3

(TOTAL ) ( Central) ( North) ( East)

------

Active? Yes Yes Yes

Sales Volume 47,326 16,443 11,843 19,040

Unfilled Orders 0 0 0 0

Price 150 150 150 150

Revenues 7,098,900 2,466,450 1,776,450 2,856,000

- Variable Costs 1,135,824 394,632 284,232 456,960

- Order Processing 473,260 164,430 118,430 190,400

------

Gross Margin 5,489,816 1,907,388 1,373,788 2,208,640

Gross Margin % 77.3% 77.3% 77.3% 77.3%

Fixed Costs:

Administrative O/H 300,000 100,000 100,000 100,000

Call Center Service 370,644 128,796 92,646 149,202

Forecast Inaccuracy 0 0 0 0

Marketing 1,200,000 400,000 400,000 400,000

Marketing Creative 0 0 0 0

Price Changes 0 0 0 0

Service Salaries 1,462,500 481,500 508,500 472,500

Service O/H 1,462,500 481,500 508,500 472,500

Service Hire&Fire 81,000 27,000 27,000 27,000

Total Fixed Costs 4,876,644 1,618,796 1,636,646 1,621,202

------

Operating Income 613,172 288,592 -262,858 587,438

======

Sales Volume Forecast 16,443 11,843 19,040

Service: CSR Salary $/Month 3,000 3,000 3,000

Service: CSR Hiring&Firing 9 9 9

Service: CSR Maximum Capacity Limit 95 95 95

Service: CSR Time Allocation 50 50 50

Marketing Mix Allocation 403030 403030 403030

Marketing Positioning 37 37 37

Service 7-1 Configuration: H446320

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FIRM 7: ?????????????????????????????????????????????????? INDUSTRY SMK

SERVICE 7-2 P&L STATEMENT, QUARTER 1 PAGE 4

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

All Regions Region 1 Region 2 Region 3

(TOTAL ) ( Central) ( North) ( East)

------

Active? Yes Yes Yes

Sales Volume 29,429 12,894 9,814 6,721

Unfilled Orders 0 0 0 0

Price 375 375 375 375

Revenues 11,035,875 4,835,250 3,680,250 2,520,375

- Variable Costs 2,045,313 896,132 682,072 467,109

- Order Processing 294,290 128,940 98,140 67,210

------

Gross Margin 8,696,272 3,810,178 2,900,038 1,986,056

Gross Margin % 78.8% 78.8% 78.8% 78.8%

Fixed Costs:

Administrative O/H 300,000 100,000 100,000 100,000

Call Center Service 170,640 74,484 57,000 39,156

Forecast Inaccuracy 0 0 0 0

Marketing 1,200,000 400,000 400,000 400,000

Marketing Creative 0 0 0 0

Price Changes 0 0 0 0

Service Salaries 1,462,500 481,500 508,500 472,500

Service O/H 1,462,500 481,500 508,500 472,500

Service Hire&Fire 81,000 27,000 27,000 27,000

Total Fixed Costs 4,676,640 1,564,484 1,601,000 1,511,156

------

Operating Income 4,019,632 2,245,694 1,299,038 474,900

======

Sales Volume Forecast 12,894 9,814 6,721

Service: CSR Salary $/Month 3,000 3,000 3,000

Service: CSR Hiring&Firing 9 9 9

Service: CSR Maximum Capacity Limit 95 95 95

Service: CSR Time Allocation 50 50 50

Marketing Mix Allocation 403030 403030 403030

Marketing Positioning 37 37 37

Service 7-2 Configuration: M663131

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FIRM 7: ?????????????????????????????????????????????????? INDUSTRY SMK

BALANCE SHEET, QUARTER 1 PAGE 5

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

ASSETS

------

Cash 1,271,132

Marketable Securities 0

Facilities and Equipment Investment 50,000,000

Total Assets 51,271,132

LIABILITIES AND EQUITIES

------

Corporate Capitalization 50,000,000

Dividends, Current Quarter -544,770

Dividends, Cumulative Prior To This Quarter 0

Loans 0

Retained Earnings, Current Quarter 1,815,902

Retained Earnings, Cumulative Prior To This Quarter 0

Total Liabilities and Equities 51,271,132

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FIRM 7: ?????????????????????????????????????????????????? INDUSTRY SMK

SERVICE VARIABLE COST REPORT, QUARTER 1 PAGE 5

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

Service Service

7-1 7-2

------

Support Service Category 0.00 0.00

CSR Technical Training 0.00 0.00

CSR Service Skills Training 0.00 0.00

Service Appointment Scheduling 1.00 12.50

Scheduling Style 3.00 12.00

Service Call Duration 10.00 25.00

Service Call Format 10.00 20.00

------

24.00 69.50

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FIRM 7: ?????????????????????????????????????????????????? INDUSTRY SMK

SERVICE OPERATIONS REPORT, QUARTER 1 PAGE 6

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

All Region Region Region

Regions 1 2 3

------

======

STAFFING REPORT

======

Beginning CSRs 330 110 110 110

- CSR Resignations -32 -12 -6 -14

- CSR Firing 0 0 0 0

+ CSR Hiring 27 9 9 9

= Available CSRs 325 107 113 105

======

PRODUCTIVITY REPORT

======

SERVICE 7-1 [H446320]

Gross CSR Productivity 528.0 528.0 528.0

- Technical Training -12.0 -12.0 -12.0

- Service Skills Training -12.0 -12.0 -12.0

- Service Appoint Scheduling -1.5 -1.5 -1.5

- Duration and Format -45.7 -45.7 -45.7

Net CSR Productivity 456.8 456.8 456.8

CSRs 98 104 96

Hires Productivity 304.5 304.5 304.5

Hires 9 9 9

Time Allocation 50% 50% 50%

Potential CSR Capacity 23,754 25,124 23,297

CSR Maximum Capacity Limit 95% 95% 95%

Actual CSR Capacity 22,566 23,867 22,132

SERVICE 7-2 [M663131]

Gross CSR Productivity 528.0 528.0 528.0

- Technical Training -18.0 -18.0 -18.0

- Service Skills Training -18.0 -18.0 -18.0

- Service Appoint Scheduling -24.0 -24.0 -24.0

- Duration and Format -172.4 -172.4 -172.4

Net CSR Productivity 295.6 295.6 295.6

CSRs 98 104 96

Hires Productivity 197.1 197.1 197.1

Hires 9 9 9

Time Allocation 50% 50% 50%

Potential CSR Capacity 15,370 16,256 15,074

CSR Maximum Capacity Limit 95% 95% 95%

Actual CSR Capacity 14,601 15,443 14,320

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FIRM 7: ?????????????????????????????????????????????????? INDUSTRY SMK

SERVICE OPERATIONS REPORT, QUARTER 1 PAGE 7

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

======

ACTIVITY REPORT

======

SERVICE 7-1

Service Calls 47,326 16,443 11,843 19,040

CSR Capacity 72,175 23,754 25,124 23,297

CSR Utilization [Q# 1] 69% 47% 82%

CSR Utilization [Q# 0] 69% 47% 82%

CSR Cost/Call 63.52 60.21 88.15 51.05

CSR Turnover 11% 2% 11%

SERVICE 7-2

Service Calls 29,429 12,894 9,814 6,721

CSR Capacity 46,700 15,370 16,256 15,074

CSR Utilization [Q# 1] 84% 60% 45%

CSR Utilization [Q# 0] 84% 60% 45%

CSR Cost/Call 102.14 76.78 106.38 144.62

CSR Turnover 11% 9% 15%

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FIRM 7: ?????????????????????????????????????????????????? INDUSTRY SMK

SERVICE CENTER STATISTICS REPORT, QUARTER 1 PAGE 8

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

All Region Region Region

Regions 1 2 3

------

SERVICE 7-1

------

Billings 5,676 1,972 1,420 2,284

Design Configuration 2,366 822 592 952

Design Quality 10,516 3,654 2,631 4,231

First-Time Usage 5,915 2,055 1,480 2,380

Introduction 0 0 0 0

Miscellaneous 5,909 2,053 1,478 2,378

Service Call Duration 2,366 822 592 952

Service Experience 8,221 2,859 2,042 3,320

Service Scheduling 20,805 7,229 5,206 8,370

Unfilled Orders 0 0 0 0

SERVICE 7-2

------

Billings 3,528 1,546 1,177 805

Design Configuration 1,470 644 490 336

Design Quality 5,080 2,174 1,720 1,186

First-Time Usage 3,677 1,611 1,226 840

Introduction 0 0 0 0

Miscellaneous 3,672 1,609 1,225 838

Service Call Duration 735 322 245 168

Service Experience 5,106 2,242 1,692 1,172

Service Scheduling 5,172 2,266 1,725 1,181

Unfilled Orders 0 0 0 0

ALL SERVICES

------

Billings 9,204 3,518 2,597 3,089

Design Configuration 3,836 1,466 1,082 1,288

Design Quality 15,596 5,828 4,351 5,417

First-Time Usage 9,592 3,666 2,706 3,220

Introduction 0 0 0 0

Miscellaneous 9,581 3,662 2,703 3,216

Service Call Duration 3,101 1,144 837 1,120

Service Experience 13,327 5,101 3,734 4,492

Service Scheduling 25,977 9,495 6,931 9,551

Unfilled Orders 0 0 0 0

... Total ... 90,214

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FIRM 7: ?????????????????????????????????????????????????? INDUSTRY SMK

INFORMATION TECHNOLOGY REPORT, QUARTER 1 PAGE 9

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

IT Costs

------

Billing System Technology? 0 0

Industry Employee Satisfaction Survey Participation? 1 1,000

Internal CSR Employee Satisfaction Survey? 0 0

Internet-Delivered Ancillary Service? 0 0

Telecommunications Systems Support? 000 0

Note: This listing of IT Costs does not include the $1,000/page charge for

the previous quarter's financial/operating reports and research studies.

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

FIRM 7: ?????????????????????????????????????????????????? INDUSTRY SMK

FORECASTING ACCURACY REPORT, QUARTER 1 PAGE 10

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

Region Forecast Actual Accuracy

------

Service 7-1 1 16,443 16,443 100.0%

Service 7-1 2 11,843 11,843 100.0%

Service 7-1 3 19,040 19,040 100.0%

Service 7-2 1 12,894 12,894 100.0%

Service 7-2 2 9,814 9,814 100.0%

Service 7-2 3 6,721 6,721 100.0%

SUMMARY: For 6 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.

Service-Specific Service Service

Forecasting Accuracy Overall 7-1 7-2

------

Forecasting Accuracy 100.0% 100.0% 100.0%

Number of Forecasts 6 3 3

Region-Specific Region Region Region

Forecasting Accuracy Overall 1 2 3

------

Forecasting Accuracy 100.0% 100.0% 100.0% 100.0%

Number of Forecasts 6 2 2 2

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FIRM 7: ?????????????????????????????????????????????????? INDUSTRY SMK

FORECASTING ACCURACY REPORT, QUARTER 1 PAGE 11

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

Quarter

SALES HISTORY 1

------

REGION 1

Service 7-1H 16,443

Service 7-2M 12,894

REGION 2

Service 7-1H 11,843

Service 7-2M 9,814

REGION 3

Service 7-1H 19,040

Service 7-2M 6,721

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FIRM 7: ?????????????????????????????????????????????????? INDUSTRY SMK

SUPPORT SERVICES INDUSTRY BULLETIN, QUARTER 1 PAGE 12

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

Welcome to the quarter 1 issue of the Support Services Industry Bulletin.

Notable industry developments are highlighted in the Bulletin.

INDUSTRY NEWS HEADLINES

Total industry SMK profits were 12,590,549 this quarter.

Firm 3 leads industry SMK in market share (14.4%).

Firm 5 has the second-highest market share in industry SMK (14.3%).

Total industry SMK research study spending was 0 this quarter.

SERVICE LAUNCHES AND "UNLAUNCHES"

No services were introduced this quarter.

No services were "unlaunched" (dropped) this quarter.

RECONFIGURATIONS

No services were reconfigured this quarter.

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

FIRM 7: ?????????????????????????????????????????????????? INDUSTRY SMK

DECISION VARIABLE CHECKS AND MESSAGES, QUARTER 1 PAGE 14

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FORECASTING DECISION VARIABLE CHECKS [Firm SMK7]

6 forecasts are unchanged. Forecasts are normally changed every quarter.

RESEARCH STUDIES DECISION VARIABLE CHECKS [Firm SMK7]

No research studies have been ordered.

Research studies are normally ordered every quarter.