Data

Express Fee for Services

Total
CM
OEM
X86
ICP

Cost of Sales
EBIT
Debtors
Bad Debts
Inventory
Fixed Assets
Current Assets
Gross Profit
Net Profit

0.06%
Revenue (000)
2,700,000.00
20%
540,000.00
56%
1,512,000.00
11%
297,000.00
13%
351,000.00

1996
5,492,556.00
362,571.00
902,878.00
39,753.00
1,044,841.00
115,225.00
2,120,123.00
6,133,950.00
202,709.00

1995
4,888,746.00
379,341.00
940,049.00
38,670.00
1,039,111.00
117,335.00
2,104,717.00
5,496,211.00
202,544.00

Creditors
Expenses

594,474.00
37,959.00

561,834.00
46,361.00

Current Liabilities
Equity

846,107.00
51,380.00

886,657.00
48,081.00

34,244.00

34,496.00

68,488.00
36,982.00
604,412.00

68,992.00
33,299.00
574,166.00

Warranties (Paid out

at average 65% of
previous year's
Other Liabilities)
Other Liabilities
Depreciation
Selling & Admin

Outcome Calculation
Total
Optimistic View
Transactional Customers
Total Maker Value Lost (Add 12%)
Pessimistic View
Relationship Customer
Potential Market (Add 6%)
CM Market Lost to Express (a)
Transactional Convert (b)
Total Market Value Lost

Average Debtors
Average Creditors

COS as % of Rev
Debtor as % of Sales
Creditors as % COS
Inventory as % COS
Inventory as % Sale

Revenue (000)
2,700,000.00
25%

675,000.00
756,000.00

75%

2,025,000.00
2,227,500.00
891,000.00
756,000.00
1,647,000.00

40%
25%
(a+b)
1996
$ 921,463.50
$ 578,154.00

85.00%
33.44%
10.82%
19.02%
39%

Industry Growth 1 yrs

Arrow
10%
Avtel
14%
Average Industry
12%
CM Market Growth 1 yrs
5 yrs
30%
1 yr
6%

Operational Ratios
1996 Optimistic
Revenue ($000)

2,700,000.00

Pessimistic

1,944,000.00

1,053,000.00

Debtor Days
Creditor Days
Invetory Days
Cash Cycle (Days)

125
38
69
156

146
85
69
130

218
141
69
146

Interest Coverage
Ratio (Times)

9.6

0.8

0.6

Current Ratio
Acid Test Ratio
G.P Margin
N.P Margin

2.51
1.27
15%
8%

1.25
0.85
-18%
-26%

0.70
0.48
-43%
-53%

Return on Assets
(ROA)

0.09

1.74

1.57

-9.8

-10.9

Return on Equity
(ROE)
Total Assets

3.95

1,114,634.83

672,615.49

1996 Optimistic
Customers
CM
OEM (Altera)
X86 (Intel)
ICP

Cost of Sales (85%)

EBIT
Debtors
Bad Debts (4%)
Inventory

% of Business
20%
56%
11%
13%

2,700,000.00

1,944,000.00

540,000.00
1,512,000.00
297,000.00
351,000.00

388,800.00
1,088,640.00
213,840.00
252,720.00

Optimistic
1,652,400.00
116,640.00
650,072.16
26,002.89
314,333.67

Fixed Assets

115,225.00

Current Assets
Sales-COS

999,409.83
291,600.00

Gross Profit
Net Profit
Creditors
Expenses
Current Liabilities
Equity
Warranties (Paid out at average 65% of previous yea
Other Liabilities

(349,794.00)
(504,393.00)
178,843.66
154,599.00
801,589.80
51,380.00
44,517.20
68,488.00

Pessimistic
1,053,000.00
210,600.00
589,680.00
115,830.00
136,890.00

Pessimistic
895,050.00
63,180.00
352,122.42
14,084.90
170,264.07
115,225.00
557,390.49
157,950.00
(449,515.00)
(559,056.00)
96,873.65
109,541.00
801,262.20
51,380.00
44,844.80
68,992.00

Optimistic

Pessimistic

Average
Debtors

776,475.08

627,500.21

Average
Creditors

386,658.83

345,673.83