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RESULTS OF OPERATIONS
The following table sets forth certain historical financial information
from our audited and unaudited combined statements of operations expressed as a
percent of revenues.
SIX MONTHS
FISCAL YEARS ENDED ENDED
MARCH 31, SEPTEMBER 30,
----------------------- --------------
1997 1998 1999 1998 1999
----- ----- ----- ----- -----
Product revenue.................................... 94.1% 92.8% 92.5% 93.7% 88.8%
Service fee revenue........................... 5.9 7.2 7.5 6.3 11.2
----- ----- ----- ----- -----
Total revenues...................... 100.0 100.0 100.0 100.0 100.0
----- ----- ----- ----- -----
Cost of product revenue (as % of product
revenue).................................... 95.3 94.7 94.3 95.0 94.4
Cost of service fee revenue (as % of service
fee revenue)................................ 57.6 62.4 70.5 78.1 69.9
----- ----- ----- ----- -----
Total costs of revenues............. 93.1 92.4 92.5 93.9 91.6
----- ----- ----- ----- -----
Gross profit.................................. 6.9 7.6 7.5 6.1 8.4
Selling, general and administrative
expenses.................................... 6.1 7.5 6.6 5.8 9.4
----- ----- ----- ----- -----
Income (loss) from operations................. 0.8 0.1 0.9 0.3 (1.0)
Interest expense, net......................... 0.5 0.3 0.4 0.3 1.0
----- ----- ----- ----- -----
Income (loss) before income taxes............. 0.3 (0.2) 0.5 (0.0) (2.0)
Provision (benefit) for income taxes.......... 0.2 0.0 0.2 (0.0) (0.8)
----- ----- ----- ----- -----
Net income (loss)............................. 0.1% (0.2)% 0.3% (0.0)% (1.2)%
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