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FIRM 5: ?????????????????????????????????????????????????? INDUSTRY EMS
PERFORMANCE EVALUATION REPORT, QUARTER 5 PAGE 1
*****************************************************************************
+------+------Industry ------+
| Firm 5 | Worst Average Best |
------+------+------+
FINANCIAL | | |
Net Income to Revenues | 10.6%| 10.2% 11.0% 11.6%|
Change in Net Income to Revenues | 0.9%| -1.1% 0.9% 2.7%|
Return on Assets | 11.7%| 11.2% 13.7% 15.5%|
Net Asset Turns | 1.1 | 1.1 1.2 1.3 |
------+------+------+
OPERATIONAL | | |
Inventory Turnover | 2.2 | 1.6 2.2 2.8 |
Fill Rate | 100.0%| 100.0% 100.0% 100.0%|
Unplanned Production | 0.0%| 6.5% 3.1% 0.0%|
Forecasting Accuracy | 79.6%| 79.3% 82.4% 87.9%|
(Marketing + Service) to Revenues | 8.8%| 8.9% 8.1% 7.5%|
------+------+------+
CUSTOMER | | |
Change in Market Share | -1.6%| -1.6% 0.0% 1.4%|
Customer Satisfaction | 17.4%| 17.4% 18.2% 18.9%|
------+------+------+
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FIRM 5: ?????????????????????????????????????????????????? INDUSTRY EMS
LINKS DASHBOARD, QUARTER 5 PAGE 1
*****************************************************************************
Quarter 4 Quarter 5
+------+------+
Sales Volume | 88,497 | 82,109 |
Unfilled Orders | 0 | 0 |
------+------+------+
Price | 380 | 371 |
------+------+------+
Revenues | 33,652,150 100.0% | 30,541,550 100.0% |
Product Costs | 15,213,917 45.2% | 12,912,915 42.3% |
Gross Margin | 13,527,626 40.2% | 13,049,238 42.7% |
Net Income | 3,269,382 9.7% | 3,230,603 10.6% |
+------+------+
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FIRM 5: ?????????????????????????????????????????????????? INDUSTRY EMS
CORPORATE P&L STATEMENT, QUARTER 5 PAGE 2
*****************************************************************************
All Products Product 5-1 Product 5-2
------
Sales Volume 82,109 64,075 18,034
Unfilled Orders 0 0 0
Price 371 350 450
Revenues 30,541,550 22,426,250 8,115,300
- Product Costs 12,912,915 7,592,885 5,320,030
- Order Processing 328,436 256,300 72,136
- Replacement Parts 191,303 0 191,303
- Transportation Costs 2,269,687
- Duties & Tariffs 1,789,971 1,716,496 73,475
------
Gross Margin 13,049,238 12,860,569 2,458,356
Gross Margin % 42.7% 57.3% 30.3%
Fixed & Other Costs:
Administrative O/H 1,200,000 720,000 480,000
Consulting Fees 0
Corporate O/H 1,500,000
Disposal Sales 0
Distribution FC 25,000
Emergency Production 40,000
Forecast Inaccuracy 244,503 61,597 182,906
Information Technology 16,000
Introductions 0
Inventory Charges 174,246
Marketing 1,800,000 1,080,000 720,000
Plant Capacity FC 600,000
Price Changes 0 0 0
Production FC 135,000
Reconfiguration 0
Research Studies 0
Service Outsourcing 880,371 624,901 255,470
Unfilled Handling 0
Total Fixed & Other 6,615,120 2,486,498 1,638,376
------
Operating Income 6,434,118 10,374,071 819,980
------
Non-Operating Income 27,087
Patent Royalties 0
Taxes -3,230,602
======
Net Income 3,230,603
======
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FIRM 5: ?????????????????????????????????????????????????? INDUSTRY EMS
HISTORICAL CORPORATE P&L STATEMENT, QUARTER 5 PAGE 3
*****************************************************************************
Previous (Quarter 4) Current (Quarter 5)
------
Sales Volume 88,497 82,109
Unfilled Orders 0 0
Price 380 371
Revenues 33,652,150 100.0% 30,541,550 100.0%
- Product Costs 15,213,917 45.2% 12,912,915 42.3%
- Order Processing 353,988 1.1% 328,436 1.1%
- Replacement Parts 193,335 0.6% 191,303 0.6%
- Transportation Costs 2,425,295 7.2% 2,269,687 7.4%
- Duties & Tariffs 1,937,989 5.8% 1,789,971 5.9%
------
Gross Margin 13,527,626 40.2% 13,049,238 42.7%
Fixed & Other Costs:
Administrative O/H 1,200,000 3.6% 1,200,000 3.9%
Consulting Fees 0 0.0% 0 0.0%
Corporate O/H 1,500,000 4.5% 1,500,000 4.9%
Disposal Sales 0 0.0% 0 0.0%
Distribution FC 25,000 0.1% 25,000 0.1%
Emergency Production 209,550 0.6% 40,000 0.1%
Forecast Inaccuracy 171,507 0.5% 244,503 0.8%
Information Technology 16,000 0.0% 16,000 0.1%
Introductions 0 0.0% 0 0.0%
Inventory Charges 122,514 0.4% 174,246 0.6%
Marketing 1,800,000 5.3% 1,800,000 5.9%
Plant Capacity FC 900,000 2.7% 600,000 2.0%
Price Changes 0 0.0% 0 0.0%
Production FC 135,000 0.4% 135,000 0.4%
Reconfiguration 0 0.0% 0 0.0%
Research Studies 0 0.0% 0 0.0%
Service Outsourcing 924,528 2.7% 880,371 2.9%
Unfilled Handling 0 0.0% 0 0.0%
Total Fixed & Other 7,004,099 20.8% 6,615,120 21.7%
------
Operating Income 6,523,527 19.4% 6,434,118 21.1%
------
Non-Operating Income 15,237 0.0% 27,087 0.1%
Patent Royalties 0 0.0% 0 0.0%
Taxes -3,269,382 -9.7% -3,230,602 -10.6%
======
Net Income 3,269,382 9.7% 3,230,603 10.6%
======
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FIRM 5: ?????????????????????????????????????????????????? INDUSTRY EMS
PRODUCT 5-1 P&L STATEMENT, QUARTER 5 PAGE 4
*****************************************************************************
All Regions Region 1 Region 2 Region 3
(TOTAL ) ( U.S.A.) ( Europe) ( Pacific)
------
Active? Yes Yes Yes
Sales Volume 64,075 17,088 18,354 28,633
Unfilled Orders 0 0 0 0
Price 350 350 350 350
Revenues 22,426,250 5,980,800 6,423,900 10,021,550
- Product Costs 7,592,885 2,024,927 2,174,948 3,393,010
- Order Processing 256,300 68,352 73,416 114,532
- Replacement Parts 0 0 0 0
- Duties & Tariffs 1,716,496 0 513,911 1,202,585
------
Gross Margin 12,860,569 3,887,521 3,661,625 5,311,423
Gross Margin % 57.3% 65.0% 57.0% 53.0%
Fixed Costs:
Administrative O/H 720,000 240,000 240,000 240,000
Forecast Inaccuracy 61,597 27,766 29,800 4,031
Marketing 1,080,000 360,000 360,000 360,000
Price Changes 0 0 0 0
Service Outsourcing 624,901 135,420 173,880 315,601
Total Fixed Costs 2,486,498 763,186 803,680 919,632
------
Operating Income 10,374,071 3,124,335 2,857,945 4,391,791
======
Sales Volume Forecast 15,111 16,075 28,152
CSR Service Outsourcing 2 Standard 2 Standard 2 Standard
Product 5-1 Configuration: H11101
*****************************************************************************
FIRM 5: ?????????????????????????????????????????????????? INDUSTRY EMS
PRODUCT 5-2 P&L STATEMENT, QUARTER 5 PAGE 5
*****************************************************************************
All Regions Region 1 Region 2 Region 3
(TOTAL ) ( U.S.A.) ( Europe) ( Pacific)
------
Active? Yes Yes No
Sales Volume 18,034 15,993 2,041 0
Unfilled Orders 0 0 0 0
Price 450 450 450 450
Revenues 8,115,300 7,196,850 918,450 0
- Product Costs 5,320,030 4,717,935 602,095 0
- Order Processing 72,136 63,972 8,164 0
- Replacement Parts 191,303 161,026 30,277 0
- Duties & Tariffs 73,475 0 73,475 0
------
Gross Margin 2,458,356 2,253,917 204,439 0
Gross Margin % 30.3% 31.3% 22.3% 0.0%
Fixed Costs:
Administrative O/H 480,000 240,000 240,000 0
Forecast Inaccuracy 182,906 44,974 137,932 0
Marketing 720,000 360,000 360,000 0
Price Changes 0 0 0 0
Service Outsourcing 255,470 205,970 49,500 0
Total Fixed Costs 1,638,376 850,944 787,432 0
------
Operating Income 819,980 1,402,973 -582,993 0
======
Sales Volume Forecast 18,990 3,214 0
CSR Service Outsourcing 2 Standard 2 Standard 2 Standard
Product 5-2 Configuration: H37632
*****************************************************************************
FIRM 5: ?????????????????????????????????????????????????? INDUSTRY EMS
BALANCE SHEET, QUARTER 5 PAGE 6
*****************************************************************************
ASSETS
------
Cash 3,054,155
Marketable Securities 2,503,739
Finished Goods Inventory:
Plant & DC1: Product 5-1 ( 52,030 units @ 118.50/unit) 6,165,554
Product 5-2 ( 1,966 units @ 295.00/unit) 579,970
Plant Investment 100,000,000
Total Assets 112,303,418
LIABILITIES AND EQUITIES
------
Corporate Capitalization 100,000,000
Dividends, Current Quarter -969,180
Dividends, Cumulative Prior To This Quarter -4,303,709
Loans 0
Retained Earnings, Current Quarter 3,230,603
Retained Earnings, Cumulative Prior To This Quarter 14,345,704
Total Liabilities and Equities 112,303,418
*****************************************************************************
FIRM 5: ?????????????????????????????????????????????????? INDUSTRY EMS
CASH FLOW ANALYSIS REPORT, QUARTER 5 PAGE 7
*****************************************************************************
Starting "Cash" Balance (Final "Cash" Balance, Quarter 4) 3,365,215
+ Marketable Securities (Converted To "Cash" In Quarter 4) 1,805,838
- "Loans" (Liquidated During Quarter 4) 0
+ "Finished Goods Inventory" Changes:
Product 5-1 (From 4,870,942 To 6,165,554) -1,294,612
Product 5-2 (From 0 To 579,970) -579,970
+ "Plant Investment" Changes 0
+ "Net Income" 3,230,603
= Preliminary "Cash" Balance 6,527,074
- "Dividends" (Paid at End of Quarter 5) -969,180
= Actual "Cash" Balance (End of Quarter 5) 5,557,894
- Operating "Cash" Excess (To "Marketable Securities") -2,503,739
+ Operating "Cash" Deficit (From "Loans") 0
= Final "Cash" Balance (End of Quarter 5) 3,054,155
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 5: ?????????????????????????????????????????????????? INDUSTRY EMS
PRODUCT COST REPORT, QUARTER 5 PAGE 8
*****************************************************************************
ORIGINAL (PLANT) Product Product
MANUFACTURING COST 5-1 5-2
------
Alpha 3.00 9.00
Beta 4.00 28.00
Bandwidth 10.50 118.00
Warranty 0.00 35.00
Packaging 10.00 14.00
Gamma 17.00 17.00
Epsilon 24.00 24.00
Labor Cost 30.00 30.00
Production Cost 20.00 20.00
------
118.50 295.00
*****************************************************************************
FIRM 5: ?????????????????????????????????????????????????? INDUSTRY EMS
FINISHED GOODS INVENTORY REPORT, QUARTER 5 PAGE 9
*****************************************************************************
Product Product
5-1 5-2
------
Beginning Inventory 41,105 0
+ Regular Production 75,000 20,000
+ Emergency Production 0 0
= Available Inventory 116,105 20,000
- Sales, Region 1 -17,088 -15,993
- Sales, Region 2 -18,354 -2,041
- Sales, Region 3 -28,633 0
= Ending Inventory 52,030 1,966
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FIRM 5: ?????????????????????????????????????????????????? INDUSTRY EMS
SERVICE CENTER OPERATIONS REPORT, QUARTER 5 PAGE 10
*****************************************************************************
All Region Region Region
Regions 1 2 3
------
PRODUCT 5-1
Calls 52,309 13,542 14,490 24,277
CSR Cost/Call 11.95 10.00 12.00 13.00
PRODUCT 5-2
Calls 24,722 20,597 4,125 0
CSR Cost/Call 10.33 10.00 12.00 0.00
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FIRM 5: ?????????????????????????????????????????????????? INDUSTRY EMS
TRANSPORTATION COST REPORT, QUARTER 5 PAGE 11
*****************************************************************************
======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 99,855 399,420
Epsilon 6.00 0 6.00 0 6.00 99,532 597,192
CUSTOMER SHIPMENTS
Region 1 ( 33,081 units @ $ 4.00/unit) 132,324
Region 2 ( 20,395 units @ $18.00/unit) 367,110
Region 3 ( 28,633 units @ $26.00/unit) 744,458
REPLACEMENT PARTS SHIPMENTS TO CUSTOMERS
Region 1 ( 7,900 units @ $ 2.00/unit) 15,800
Region 2 ( 1,487 units @ $ 9.00/unit) 13,383
TOTAL TRANSPORTATION COSTS 2,269,687
*****************************************************************************
FIRM 5: ?????????????????????????????????????????????????? INDUSTRY EMS
OTHER DECISION VARIABLES REPORT, QUARTER 5 PAGE 12
*****************************************************************************
======
MANUFACTURING 5-1 5-2
======------
Production 75,000 20,000
Emergency Production Limit 10,000 10,000
*****************************************************************************
FIRM 5: ?????????????????????????????????????????????????? INDUSTRY EMS
FORECASTING ACCURACY REPORT, QUARTER 5 PAGE 13
*****************************************************************************
Region Forecast Actual Accuracy
------
Product 5-1 1 15,111 17,088 88.4%
Product 5-1 2 16,075 18,354 87.6%
Product 5-1 3 28,152 28,633 98.3%
Product 5-2 1 18,990 15,993 81.3%
Product 5-2 2 3,214 2,041 42.5%
SUMMARY: For 5 forecasts, average forecasting accuracy is 79.6%
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 5-1 5-2
------
Forecasting Accuracy 79.6% 91.4% 61.9%
Number of Forecasts 5 3 2
Region-Specific Region Region Region
Forecasting Accuracy Overall 1 2 3
------
Forecasting Accuracy 79.6% 84.8% 65.1% 98.3%
Number of Forecasts 5 2 2 1
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FIRM 5: ?????????????????????????????????????????????????? INDUSTRY EMS
FORECASTING ACCURACY REPORT, QUARTER 5 PAGE 14
*****************************************************************************
Quarter Quarter Quarter Quarter Quarter
SALES HISTORY 1 2 3 4 5
------
REGION 1
Product 5-1H 15,111 18,592 13,629 15,448 17,088
Product 5-2H 18,990 17,468 23,768 21,028 15,993
REGION 2
Product 5-1H 16,075 19,578 20,158 15,169 18,354
Product 5-2H 3,214 3,283 4,078 5,754 2,041
REGION 3
Product 5-1H 28,152 37,162 28,723 31,098 28,633
*****************************************************************************
FIRM 5: ?????????????????????????????????????????????????? INDUSTRY EMS
SET-TOP BOX INDUSTRY BULLETIN, QUARTER 5 PAGE 15
*****************************************************************************
Welcome to the quarter 5 issue of the Set-Top Box Industry Bulletin.
Notable set-top box industry developments are highlighted in the Bulletin.
INDUSTRY NEWS HEADLINES
Total industry EMS profits were 18,765,559 this quarter.
Firm 3 leads industry EMS in market share (21.5%).
Firm 1 has the second-highest market share in industry EMS (20.5%).
Industry EMS inventory investment increased from 31,699,814 to
36,686,751 this quarter.
Total industry EMS 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 5: ?????????????????????????????????????????????????? INDUSTRY EMS
DECISION VARIABLE CHECKS AND MESSAGES, QUARTER 5 PAGE 16
*****************************************************************************
FORECASTING DECISION VARIABLE CHECKS [Firm EMS5]
5 forecasts are unchanged. Forecasts are normally changed every quarter.
RESEARCH STUDIES DECISION VARIABLE CHECKS [Firm EMS5]
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 5-1 4,870,942 6,165,554 5,518,248 3.0 165,547
DC1: FinGoods 5-2 0 579,970 289,985 3.0 8,699
Total Inventory Charges (Reported on the Corporate P&L Statement) 174,246
PRODUCTION SHIFTS AND PLANT CAPACITY FC CALCULATION DETAILS
Production 5-1 = 75,000 units.
Production 5-2 = 20,000 units.
Total Production = 95,000 units.
Production Shifts = 2.
Plant Capacity FC = 600,000.