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

FIRM3:??????????????????????????????????????????????????INDUSTRYUW2
PERFORMANCEEVALUATIONREPORT,QUARTER1PAGE1
*****************************************************************************
++Industry+
|Firm3|WorstAverageBest|
+++
FINANCIAL|||
NetIncometoRevenues|6.6%|6.6%6.6%6.6%|
ChangeinNetIncometoRevenues|0.0%|0.0%0.0%0.0%|
+++
OPERATIONAL|||
ForecastingAccuracy|100.0%|100.0%100.0%100.0%|
(Marketing+Service)toRevenues|9.4%|9.4%9.4%9.4%|
+++
CUSTOMER|||
ChangeinMarketShare|0.0%|0.0%0.0%0.0%|
CustomerSatisfaction|18.9%|18.9%18.9%18.9%|
+++

*****************************************************************************
FIRM3:??????????????????????????????????????????????????INDUSTRYUW2
CORPORATEP&LSTATEMENT,QUARTER1PAGE2
*****************************************************************************
AllProductsProduct31Product32

SalesVolume102,45889,57312,885
Price257225480
Revenues26,338,72520,153,9256,184,800
ProductCosts13,964,49810,614,3983,350,100
TransportationCosts2,463,438
Duties&Tariffs1,279,0691,279,0690

GrossMargin8,631,7208,260,4582,834,700
GrossMargin%32.8%41.0%45.8%
Fixed&OtherCosts:
AdministrativeO/H1,200,000900,000300,000
ConsultingFees0
CorporateO/H1,500,000
ForecastInaccuracy000
InformationTechnology0
Introductions0
Marketing1,600,0001,200,000400,000
MarketingCreative000
PriceChanges000
Reconfiguration0
ResearchStudies0
ServiceOutsourcing876,974790,98485,990
TotalFixed&Other5,176,9742,890,984785,990

OperatingIncome3,454,7465,369,4742,048,710

NonOperatingIncome0
PatentRoyalties0
Taxes1,727,373
============
NetIncome1,727,373
============

*****************************************************************************
FIRM3:??????????????????????????????????????????????????INDUSTRYUW2
PRODUCT31P&LSTATEMENT,QUARTER1PAGE3
*****************************************************************************
AllRegionsRegion1Region2Region3
(TOTAL)(U.S.A.)(Europe)(Pacific)

Active?YesYesYes
SalesVolume89,57335,61019,77034,193
Price225225225225
Revenues20,153,9258,012,2504,448,2507,693,425
ProductCosts10,614,3984,219,7842,342,7444,051,870
Duties&Tariffs1,279,0690355,859923,210

GrossMargin8,260,4583,792,4661,749,6472,718,345
GrossMargin%41.0%47.3%39.3%35.3%
FixedCosts:
AdministrativeO/H900,000300,000300,000300,000
ForecastInaccuracy0000
Marketing1,200,000400,000400,000400,000
MarketingCreative0000
PriceChanges0000
ServiceOutsourcing790,984271,400180,804338,780
TotalFixedCosts2,890,984971,400880,8041,038,780

OperatingIncome5,369,4742,821,066868,8431,679,565
=============================================================================
SalesVolumeForecast35,61019,77034,193
CSRServiceOutsourcing2Standard2Standard2Standard
MarketingMixAllocation403030403030403030
MarketingPositioning757575
Product31Configuration:H111010

*****************************************************************************
FIRM3:??????????????????????????????????????????????????INDUSTRYUW2
PRODUCT32P&LSTATEMENT,QUARTER1PAGE4
*****************************************************************************
AllRegionsRegion1Region2Region3
(TOTAL)(U.S.A.)(Europe)(Pacific)

Active?YesNoNo
SalesVolume12,88512,88500
Price480480480480
Revenues6,184,8006,184,80000
ProductCosts3,350,1003,350,10000
Duties&Tariffs0000

GrossMargin2,834,7002,834,70000
GrossMargin%45.8%45.8%0.0%0.0%
FixedCosts:
AdministrativeO/H300,000300,00000
ForecastInaccuracy0000
Marketing400,000400,00000
MarketingCreative0000
PriceChanges0000
ServiceOutsourcing85,99085,99000
TotalFixedCosts785,990785,99000

OperatingIncome2,048,7102,048,71000
=============================================================================
SalesVolumeForecast12,88500
CSRServiceOutsourcing2Standard2Standard2Standard
MarketingMixAllocation403030403030403030
MarketingPositioning171717
Product32Configuration:H376020

*****************************************************************************
FIRM3:??????????????????????????????????????????????????INDUSTRYUW2
BALANCESHEET,QUARTER1PAGE5
*****************************************************************************
ASSETS

Cash1,316,936
MarketableSecurities0
FinishedGoodsInventory0
PlantInvestment100,000,000
TotalAssets101,316,936
LIABILITIESANDEQUITIES

CorporateCapitalization80,000,000
Dividends,CurrentQuarter518,211
Dividends,CumulativePriorToThisQuarter0
Loans20,107,774
RetainedEarnings,CurrentQuarter1,727,373
RetainedEarnings,CumulativePriorToThisQuarter0
TotalLiabilitiesandEquities101,316,936

*****************************************************************************
FIRM3:??????????????????????????????????????????????????INDUSTRYUW2
PRODUCTCOSTREPORT,QUARTER1PAGE6
*****************************************************************************
ORIGINAL(PLANT)ProductProduct
MANUFACTURINGCOST3132

Alpha3.009.00
Beta4.0028.00
Bandwidth10.50118.00
Warranty0.000.00
Packaging10.0014.00
MemoryCapacity0.000.00
Gamma17.0017.00
Epsilon24.0024.00
LaborCost30.0030.00
ProductionCost20.0020.00
ExperienceCurveEffect0.000.00

118.50260.00

*****************************************************************************
FIRM3:??????????????????????????????????????????????????INDUSTRYUW2
TRANSPORTATIONCOSTREPORT,QUARTER1PAGE7
*****************************************************************************

============SurfaceAirEmergency
SUBASSEMBLY
COMPONENTSCostVolumeCostVolumeCostVolumeTotalCost
============
Plant/DC1:Gamma4.0004.0004.00102,458409,832
Epsilon6.0006.0006.00102,458614,748
CUSTOMERSHIPMENTS
Region1(48,495units@$4.00/unit)193,980
Region2(19,770units@$18.00/unit)355,860
Region3(34,193units@$26.00/unit)889,018
TOTALTRANSPORTATIONCOSTS2,463,438

*****************************************************************************
FIRM3:??????????????????????????????????????????????????INDUSTRYUW2
SERVICECENTEROPERATIONSREPORT,QUARTER1PAGE8
*****************************************************************************
AllRegionRegionRegion
Regions123

PRODUCT31
Calls68,26727,14015,06726,060
CSRCost/Call11.5910.0012.0013.00
PRODUCT32
Calls8,5998,59900
CSRCost/Call10.0010.000.000.00

*****************************************************************************
FIRM3:??????????????????????????????????????????????????INDUSTRYUW2
FORECASTINGACCURACYREPORT,QUARTER1PAGE9
*****************************************************************************
RegionForecastActualAccuracy

Product31135,61035,610100.0%
Product31219,77019,770100.0%
Product31334,19334,193100.0%
Product32112,88512,885100.0%
SUMMARY:For4forecasts,averageforecastingaccuracyis100.0%
Note:Forecastscountwithinthecalculationofforecastingaccuracyonly
ifthe"actual"valuebeingforecastisgreaterthan100forsalesvolumes
(tonotpenalizeyoufor"small"forecasts).Otherwise,therelevantvalues
of"forecast"and"actual"areonlyreportedforreferencepurposes,butsuch
forecastsarenotcountedforforecastingaccuracyscoring.Thisisthe
reasonwhythenumberofforecastsreferencedin"SUMMARY"maybelessthan
thedetailedlinebylinereportingofforecasts.

ProductSpecificProductProduct
ForecastingAccuracyOverall3132

ForecastingAccuracy100.0%100.0%100.0%
NumberofForecasts431

RegionSpecificRegionRegionRegion
ForecastingAccuracyOverall123

ForecastingAccuracy100.0%100.0%100.0%100.0%
NumberofForecasts4211

*****************************************************************************
FIRM3:??????????????????????????????????????????????????INDUSTRYUW2
FORECASTINGACCURACYREPORT,QUARTER1PAGE10
*****************************************************************************
Quarter
SALESHISTORY1

REGION1
Product31H35,610
Product32H12,885
REGION2
Product31H19,770
REGION3
Product31H34,193

*****************************************************************************
FIRM3:??????????????????????????????????????????????????INDUSTRYUW2
SETTOPBOXINDUSTRYBULLETIN,QUARTER1PAGE11
*****************************************************************************

Welcometothequarter1issueoftheSetTopBoxIndustryBulletin.
NotablesettopboxindustrydevelopmentsarehighlightedintheBulletin.

INDUSTRYNEWSHEADLINES
TotalindustryUW2profitswere8,636,865thisquarter.
Firm1leadsindustryUW2inmarketshare(20.0%).
Firm2hasthesecondhighestmarketshareinindustryUW2(20.0%).
TotalindustryUW2researchstudyspendingwas0thisquarter.

PRODUCTLAUNCHESAND"UNLAUNCHES"
Noproductswereintroducedthisquarter.
Noproductswere"unlaunched"(dropped)thisquarter.

RECONFIGURATIONS
Noproductswerereconfiguredthisquarter.

*****************************************************************************
FIRM3:??????????????????????????????????????????????????INDUSTRYUW2
SPECIALMESSAGESABOUTYOURLINKSVERSION,QUARTER1PAGE12
*****************************************************************************

EXPERIENCECURVES

ExperiencecurveeffectsexistwithinyourLINKSversion.Theseexperience
or"learning"effectsreduceyourproductionandlaborcostsforall
production.
(1)Experiencecurveeffectsaccrueforaproductinthequarterafter
cumulativeproductionexperiencewithaconfigurationreaches45,000
65,000units.
(2)Theexperiencecurveforproductionisestimatedtobeabout25%
forhyperware.Everysuccessivedoublingofcumulativeproduction
experienceforhyperwareyieldsa25%reductioninproductionandlabor
costsfromtheirpreviousvalues.
(3)Experiencecurvecostadjustmentsareembeddedwithinproductcosts.
Currentvaluesofexperiencecurvecostadjustmentsarereportedinthe
"ProductCostReport."
(4)Experiencecurveeffectsaccruetoindividualproducts,aslongastheir
configurationsdonotchange.Forreconfiguredproducts,cumulative
productionexperienceisresettozerounitsunlessareconfigurationis
"minor."Areconfigurationis"minor"if:(i)eachrawmaterialchanges
bynomorethanoneunit;(ii)bandwidthchangesbynomorethanone
unit;and,(iii)warrantychangesbynomorethanonequarter.
(5)Currentcumulativeproductionexperienceforallofyourproductsis:
Product31cumulativeproductionexperience=89,573units
Product32cumulativeproductionexperience=12,885units

MARKETINGSPENDINGCONSTRAINT

AmarketingspendingconstraintexistswithinLINKS.Yourtotalmarketing
spendingthisquarterforallproducts,channels,andregionsmustnot
exceed15.0%ofyourrevenuesfromlastquarter.Foryourreference:
CurrentRevenues=26,338,725
CurrentMarketingSpending=1,600,000
MarketingSpendingConstraintNextQuarter=3,950,808
Ifyouinadvertentlyviolateyourmarketingspendingconstraint,marketing
spendingwillbeautomaticallyreducedproratatomeetyourmarketing
spendingconstraint.Thereisnoexplicitcostassociatedwithsucha
marketingspendingviolation.

*****************************************************************************
FIRM3:??????????????????????????????????????????????????INDUSTRYUW2
DECISIONVARIABLECHECKSANDMESSAGES,QUARTER1PAGE13
*****************************************************************************

FORECASTINGDECISIONVARIABLECHECKS[FirmUW23]
4forecastsareunchanged.Forecastsarenormallychangedeveryquarter.
RESEARCHSTUDIESDECISIONVARIABLECHECKS[FirmUW23]
Noresearchstudieshavebeenordered.
Researchstudiesarenormallyorderedeveryquarter.