Dell Computer Corporation (DELL)Income Statement (in thousands, except EPS and Shares)

2/3/2012 1/28/2011 1/31/2010

Net revenue 62,071,000 $ 61,494,000 $ 52,900,000 Cost of net revenue 48,260,000 50,098,000 42,790,000 Cost of net revenue (as % of Net Revenue) 77.75% 81.47% 80.89%

Gross Profit 13,811,000 11,396,000 10,110,000 Gross Profit (as % of Net Revenue) 22.25% 18.53% 19.11%

Operating expenses: Selling, general and administrative 8,524,000 7,302,000 6,470,000 SG&A (as % of Net Revenue) 13.73% 11.87% 12.23% Research, development and engineering 856,000 661,000 624,000 R&D (as % of Net Revenue) 1.38% 1.07% 1.18% Non Recurring ？ - - 795,000 Non Recurring (as % of Net Revenue) 0.00% 0.00% 1.50%

Total operating expenses 9,380,000 7,963,000 7,889,000 Total operating expenses (as % of Net Reven 15.11% 12.95% 14.91% Operating Income: 4,431,000 3,433,000 2,221,000 Operating Income (as % of Net Revenue) 7.14% 5.58% 4.20%

Investment and other income(loss),net (191,000) (83,000) (37,000)

Investment and other (as % of Net Revenue) -0.31% -0.13% -0.07% Income before taxes 4,240,000 3,350,000 2,184,000 Income before taxes (as % of Net Revenue) 6.83% 5.45% 4.13%

Income tax provision 748,000 715,000 591,000 Income tax provision (as % of Net Revenue) 1.21% 1.16% 1.12% Interest Expense 160,000

Income after Taxes 3,492,000 2,635,000 1,433,000 Income after Taxes (as % of Net Revenue) 5.63% 4.28% 2.71%

Extraordinary income (loss) - - Net income 3,492,000 2,635,000 1,433,000 Net Income (as % of Net Revenue) 5.63% 4.28% 2.71%

Diluted EPS, Cont Ops$ 1.88 1.35 0.73

Diluted EPS$ 1.88 1.35 0.73 Shares 1,853 1,955 1,960

ROCE 41.86% 39.31% 28.91%

ROA 8.40% 7.29% 4.76%

Profit Margin 5.63% 4.28% 2.71%

Assets Turnover 1.49 1.70 1.76

Gross margin % 22.25% 18.53% 19.11%

SG&A% 13.73% 11.87% 12.23%R&D% 1.38% 1.07% 1.18%

Capital Structure Leverage 4.98 5.39 6.07

Fixed Asset Turnover 30.45 29.75 23.73

AP Turnover 4.21 4.44 4.37

Inventory Turnover 35.68 42.60 44.62

Days Receivables 38.13 44.62 51.70

Days Inventory 10.23 8.57 8.18

Days AP 86.60 82.16 83.58

Cash Cycle (38.24) (28.97) (23.70)

Analysis:

Dell vs HP:

In the period from 1997 to 1999 while having an average profit margins in line with the industry (Dell: 6.68%-8% vs. Industry: 6-8%) Dell was enjoying an incredible ROA (26%-26.2%) and ROCE (79.39%-80.80%). The reason for such great result was Dell's business model that included effective inventory management (Days Inventory 6-9 which is well above the industry average) and Just in time inventory, that is assembled and not produced, making the process less capital intensive, prepayment of its products (low A/R to Sales 0.10-0.12) and negative cash flow cycle (-6.51 to -9.66) which allowed Dell to self finance its operations with its own cash flows and have no interest expense for the period. Combining all this factors together allowed Dell to grow its business very fast and very effectively.

From 2000 to 2010 the financial situation for Dell started to look different. The margins deteriorated over the years (Profit Margins from record 8% to all time low 2.71% in 2010 and Gross Margins dropped to the average of 18.2%) which resulted in decline in ROA (from 18.16% to 4.76%) as well as very volatile ROCE numbers over the 10 year period. The change could be explained by the number of factors: while Asset TO was still high it was steadily declining over the time, Dell tried to change the situation with lower ROCE by employing higher Capital Structure Leverage which was steadily growing from 2.41 to 6.07 (company used outside financing very heavily in 2009 and 2010 boosting it's LTD to TA to a record 11%), change in selling model contributed to the situation as well when Dell started to offer financing options (boosting A/R) for its products. Another major change that came along was the increasing competition in the technology market. While taking all of the above factors into consideration it is worth mentioning that despite the negative changes Dell was still enjoying a negative cash cycle throughout the whole period. To summarize: decline in ROA, profit Margins as well as boost in leverage caused Dell's business to slowdown and possibly enter a mature stage.

HP had a better cost control throughout the years (COGS to Sales are always lower than Dell's), SG&A expense was steadily going down for HP while growing for Dell in recent years. At the same time HP's average ROA 5.46% is much lower than Dell's 13.86%, which could be explained by much lower Asset TO (Dell's average 2.38 vs 1.14) and Inventory TO (66.45 vs 10.05).Also, Dell is better positioned with it's average negative cash cycle of -28 vs HP's positive 40 which allowed it to self finance its operations without incurring interest. Overall it is hard to tell which company is positioned better as both have different business stratgy, however based on the analysis HP has better recent performance while Dell performed better historically in terms of ROA and Asset and Inventory TO.

1/30/2009 2/1/2008 2/2/2007 2/3/2006 1/28/2005 1/30/2004

$ 61,101,000 $ 61,133,000 $ 57,420,000 $ 55,908,000 $ 49,205,000 $ 41,444,000 50,144,000 49,462,000 47,904,000 45,958,000 40,190,000 33,892,000

82.07% 80.91% 83.43% 82.20% 81.68% 81.78% 10,957,000 11,671,000 9,516,000 9,950,000 9,015,000 7,552,000

17.93% 19.09% 16.57% 17.80% 18.32% 18.22%

7,102,000 7,538,000 5,948,000 5,140,000 4,298,000 3,544,000 11.62% 12.33% 10.36% 9.19% 8.73% 8.55%

663,000 610,000 498,000 463,000 463,000 464,000 1.09% 1.00% 0.87% 0.83% 0.94% 1.12%

2,000 83,000 - - - - 0.00% 0.14% 0.00% 0.00% 0.00% 0.00%

7,767,000 8,231,000 6,446,000 5,603,000 4,761,000 4,008,000 12.71% 13.46% 11.23% 10.02% 9.68% 9.67%

3,190,000 3,440,000 3,070,000 4,347,000 4,254,000 3,544,000 5.22% 5.63% 5.35% 7.78% 8.65% 8.55%

134,000 387,000 275,000 227,000 191,000 180,000

0.22% 0.63% 0.48% 0.41% 0.39% 0.43% 3,324,000 3,827,000 3,345,000 4,574,000 4,445,000 3,724,000

5.44% 6.26% 5.83% 8.18% 9.03% 8.99% 846,000 880,000 762,000 1,002,000 1,402,000 1,079,000

1.38% 1.44% 1.33% 1.79% 2.85% 2.60% - - - - - - 2,478,000 2,947,000 2,583,000 3,572,000 3,043,000 2,645,000

4.06% 4.82% 4.50% 6.39% 6.18% 6.38% - - - - - - 2,478,000 2,947,000 2,583,000 3,572,000 3,043,000 2,645,000

4.06% 4.82% 4.50% 6.39% 6.18% 6.38%

1.25 1.31 1.14 1.46 1.18 1.01

1.25 1.31 1.14 1.46 1.18 1.01 1,986 2,247 2,271 2,449 2,568 2,619

61.90% 73.10% 61.09% 67.31% 47.68% 47.43%

9.17% 11.08% 10.60% 15.42% 14.31% 15.21%

4.06% 4.82% 4.50% 6.39% 6.18% 6.38%

2.26 2.30 2.36 2.41 2.31 2.38

17.93% 19.09% 16.57% 17.80% 18.32% 18.22%

11.62% 12.33% 10.36% 9.19% 8.73% 8.55%1.09% 1.00% 0.87% 0.83% 0.94% 1.12%

6.75 6.60 5.76 4.36 3.33 3.12

24.71 24.08 26.02 30.25 30.68 34.11

5.03 4.56 4.73 4.92 4.97 5.10

48.99 53.76 77.51 88.81 102.26 107.08

42.22 41.33 36.88 32.64 30.35 27.39

7.45 6.79 4.71 4.11 3.57 3.41

72.52 80.04 77.09 74.21 73.37 71.60

(22.85) (31.92) (35.50) (37.46) (39.45) (40.80)

(28.02)

1/31/2003 2/1/2002 2/1/2001 1/28/2000 1/29/1999 2/1/1998

$ 35,404,000 $ 31,168,000 $ 31,888,000 $ 25,265,000 $ 18,243,000 $ 12,327,000 29,055,000 25,661,000 25,445,000 20,047,000 14,137,000 9,605,000

82.07% 82.33% 79.79% 79.35% 77.49% 77.92% 6,349,000 5,507,000 6,443,000 5,218,000 4,106,000 2,722,000

17.93% 17.67% 20.21% 20.65% 22.51% 22.08%

3,050,000 2,784,000 3,193,000 2,387,000 1,788,000 1,202,000 8.61% 8.93% 10.01% 9.45% 9.80% 9.75%

455,000 452,000 482,000 374,000 272,000 204,000 1.29% 1.45% 1.51% 1.48% 1.49% 1.65%

- 482,000 105,000 194,000 - - 0.00% 1.55% 0.33% 0.77% 0.00% 0.00%

3,505,000 3,718,000 3,780,000 2,955,000 2,060,000 1,406,000 9.90% 11.93% 11.85% 11.70% 11.29% 11.41%

2,844,000 1,789,000 2,663,000 2,263,000 2,046,000 1,316,000 8.03% 5.74% 8.35% 8.96% 11.22% 10.68%

183,000 (58,000) 531,000 188,000 38,000 52,000

0.52% -0.19% 1.67% 0.74% 0.21% 0.42% 3,027,000 1,731,000 3,194,000 2,451,000 2,084,000 1,368,000

8.55% 5.55% 10.02% 9.70% 11.42% 11.10% 905,000 485,000 958,000 785,000 624,000 424,000

2.56% 1.56% 3.00% 3.11% 3.42% 3.44% - - - - - - 2,122,000 1,246,000 2,236,000 1,666,000 1,460,000 944,000

5.99% 4.00% 7.01% 6.59% 8.00% 7.66% - - (59,000) - - - 2,122,000 1,246,000 2,177,000 1,666,000 1,460,000 944,000

5.99% 4.00% 6.83% 6.59% 8.00% 7.66%

0.80 0.46 0.81 0.61 0.27

0.80 0.46 0.79 0.61 0.27 2,644 2,726 2,746 2,728 5,544

44.36% 24.16% 39.84% 43.68% 80.80% 79.39%

14.63% 9.24% 17.48% 18.16% 26.20% 26.00%

5.99% 4.00% 6.83% 6.59% 8.00% 7.66%

2.44 2.31 2.56 2.75 3.27 3.40

17.93% 17.67% 20.21% 20.65% 22.51% 22.08%

8.61% 8.93% 10.01% 9.45% 9.80% 9.75%1.29% 1.45% 1.51% 1.48% 1.49% 1.65%

3.03 2.61 2.28 2.41 3.08 3.05

40.72 34.21 36.22 39.23 42.18 42.73

5.26 5.46 6.51 6.80 7.02 7.15

99.50 75.70 64.34 60.38 55.88 39.69

25.03 30.24 31.49 33.96 35.81 35.37

3.67 4.82 5.67 6.04 6.53 9.20

69.43 66.89 56.10 53.71 52.01 51.07

(40.73) (31.83) (18.93) (13.70) (9.66) (6.51)

2/2/1997

$ 7,759,000 6,093,000

78.53% 1,666,000

21.47%

826,000 10.65%

126,000 1.62%

- 0.00%

952,000 12.27%

714,000 9.20%

33,000

0.43% 747,000

9.63% 216,000

2.78% - 531,000

6.84% (13,000) 518,000

6.68%

6.68%

21.47%

10.65%1.62%

Dell Computer Corporation (DELL)Balance Sheet (in thousands)

PERIOD ENDING 2/3/2012

ASSETS Current Assets:

Cash and cash equivalents 13,852,000

Short-term investments 966,000

Accounts receivable, net 6,476,000

Inventories, net of allowance 1,404,000

Other Current Assets 6,750,000 Total Current Assets 29,448,000

Property Plant and Equipment, net of depreciation 2,124,000 Investments 3,404,000 Long-term financing receivables 1,372,000

Goodwill 5,838,000

Intangible Assets, net of amortization 1,857,000 Other non-current Assets 490,000

Total Assets 44,533,000

LIABILITIES

Current Liabilities:

Short Term Borrowing 2,867,000

Accounts Payable 11,656,000

Accrued and other 3,934,000

Short-term deferred service revenue 3,544,000 Total Current Liabilities 22,001,000

Long Term Debt 6,387,000 Long-term deferred service revenue 3,836,000 Other non-current liabilities 3,392,000

Total Liabilities 35,616,000

STOCKHOLDER'S EQUITY Put options

Common Stock 12,187,000 Retained Earnings 28,236,000 Other Comprehensive Income(Loss) (61,000)

Treasury Stock (31,445,000) Other Stockholder Equity

Total Stockholder Equity 8,917,000 Total Liabilities and Stockholders Equity 44,533,000

1/28/2011 1/31/2010 1/30/2009 2/1/2008 2/2/2007

$ 13,913,000 $ 10,635,000 $ 8,352,000 $ 7,764,000 $ 9,546,000

452,000 373,000 740,000 208,000 752,000

6,493,000 8,543,000 6,443,000 7,693,000 6,152,000

1,301,000 1,051,000 867,000 1,180,000 660,000

6,862,000 3,643,000 3,749,000 3,035,000 2,829,000 29,021,000 24,245,000 20,151,000 19,880,000 19,939,000 1,953,000 2,181,000 2,277,000 2,668,000 2,409,000 704,000 781,000 454,000 1,560,000 2,147,000 799,000 332,000 500,000 407,000 323,000

4,365,000 4,074,000 1,737,000 1,648,000 110,000

1,495,000 1,694,000 724,000 780,000 45,000 262,000 345,000 657,000 618,000 662,000 38,599,000 33,652,000 26,500,000 27,561,000 25,635,000

851,000 663,000 113,000 225,000 188,000

11,293,000 11,373,000 8,309,000 11,492,000 10,430,000

4,181,000 3,884,000 3,788,000 4,323,000 5,141,000

3,158,000 3,040,000 2,649,000 2,486,000 2,032,000 19,483,000 18,960,000 14,859,000 18,526,000 17,791,000

5,146,000 3,417,000 1,898,000 362,000 569,000 3,518,000 3,029,000 3,000,000 2,774,000 2,189,000 2,686,000 2,605,000 2,472,000 2,164,000 758,000

30,833,000 28,011,000 22,229,000 23,826,000 21,307,000

- - -

11,797,000 11,472,000 11,189,000 10,589,000 10,107,000 24,744,000 22,110,000 20,677,000 18,199,000 15,282,000 (71,000) (37,000) 309,000 (16,000) (28,000)

(28,704,000) (27,904,000) (27,904,000) (25,037,000) (21,033,000) - - -

7,766,000 5,641,000 4,271,000 3,735,000 4,328,000 38,599,000 33,652,000 26,500,000 27,561,000 25,635,000

2/3/2006 1/28/2005 1/30/2004 1/31/2003 2/1/2002 2/1/2001

$ 7,042,000 $ 4,747,000 $ 4,317,000 $ 4,232,000 $ 3,641,000 $ 4,910,000

2,016,000 5,060,000 835,000 406,000 273,000 528,000

5,452,000 4,548,000 3,635,000 2,586,000 2,269,000 2,895,000

576,000 459,000 327,000 306,000 278,000 400,000

2,620,000 2,083,000 1,519,000 1,394,000 1,416,000 758,000 17,706,000 16,897,000 10,633,000 8,924,000 7,877,000 9,491,000 2,005,000 1,691,000 1,517,000 913,000 826,000 996,000 2,691,000 4,294,000 6,770,000 5,267,000 4,373,000 2,418,000 325,000 199,000 - - - -

- - - - - -

- - - - - - 382,000 134,000 391,000 366,000 459,000 530,000 23,109,000 23,215,000 19,311,000 15,470,000 13,535,000 13,435,000

- - -

9,840,000 8,895,000 7,316,000 5,989,000 5,075,000 4,286,000

6,087,000 5,241,000 3,580,000 2,944,000 2,444,000 2,257,000

- - - - - - 15,927,000 14,136,000 10,896,000 8,933,000 7,519,000 6,543,000

504,000 505,000 505,000 506,000 520,000 509,000 - - - 2,549,000 2,089,000 1,630,000 1,158,000 802,000 761,000

18,980,000 16,730,000 13,031,000 10,597,000 8,841,000 7,813,000

- - - - - -

9,540,000 8,195,000 6,823,000 6,018,000 5,605,000 4,795,000 12,746,000 9,174,000 6,131,000 3,486,000 1,364,000 839,000 (103,000) (82,000) (83,000) (33,000) 38,000 62,000

(18,007,000) (10,758,000) (6,539,000) (4,539,000) (2,249,000) - (47,000) (44,000) (52,000) (59,000) (64,000) (74,000) 4,129,000 6,485,000 6,280,000 4,873,000 4,694,000 5,622,000 23,109,000 23,215,000 19,311,000 15,470,000 13,535,000 13,435,000

-   -   -  

-   -   -  

1/28/2000 1/29/1999 2/1/1998 2/2/1997

$ 3,809,000 $ 1,726,000 $ 320,000 $ 115,000 323,000 923,000 1,524,000 1,237,000

2,608,000 2,094,000 1,486,000 903,000

391,000 273,000 233,000 251,000

550,000 791,000 349,000 241,000 7,681,000 5,807,000 3,912,000 2,747,000 765,000 523,000 342,000 235,000 1,048,000 532,000 - - -

1,673,000 - - -

304,000 15,000 - - - - 14,000 11,000 11,471,000 6,877,000 4,268,000 2,993,000

- - - -

3,538,000 2,397,000 1,643,000 1,040,000

1,654,000 1,298,000 1,054,000 618,000

- - - - 5,192,000 3,695,000 2,697,000 1,658,000

508,000 512,000 17,000 18,000 - - 225,000 219,000 463,000 349,000 36,000 13,000

6,163,000 4,556,000 2,975,000 1,908,000

- - - 279,000

3,583,000 1,781,000 747,000 195,000 1,260,000 606,000 607,000 647,000 533,000 (36,000) - -

- - - - (68,000) (30,000) (61,000) (36,000) 5,308,000 2,321,000 1,293,000 1,085,000 11,471,000 6,877,000 4,268,000 2,993,000

Hewlett-Packard Company (HPQ)Income Statement (in thousands, except EPS and Shares)

10/31/2011 10//31/10

Net revenue 127,245,000 $ 126,033,000 Cost of net revenue 97,529,000 95,956,000

Gross Profit 29,716,000 30,077,000 Operating expenses:

Selling, general and administrative 13,466,000 12,718,000 Research, development and engineering 3,254,000 2,959,000 Non Recurring 3,319,000 2,921,000

Total operating expenses 20,039,000 18,598,000 Operating Income: 9,677,000 11,479,000

Investment and other income(loss),net (695,000) (505,000) Income before taxes 8,982,000 10,974,000

Income tax provision 1,908,000 2,213,000 Interest Expense - -

Income after Taxes 7,074,000 8,761,000 Extraordinary loss - -

Net income 7,074,000 8,761,000

Diluted EPS, Cont Ops$ 3.32 3.69 Diluted EPS$ 3.32 3.69 Shares 2,128 2,372

ROCE 17.73% 21.55%

ROA 5.57% 7.32%

Profit Margin 5.56% 6.95%

Assets Turnover 1.00 1.05

Gross margin % 23.35% 23.86%

SG&A% 10.58% 10.09%R&D% 2.56% 2.35%

COGS % 76.65% 76.14%

Capital Structure Leverage 3.18 2.94

Fixed Asset Turnover 10.58 10.95

AP Turnover 5.27 5.76

Inventory Turnover 13.98 15.24

Days Receivables 52.64 54.58

Days Inventory 26.12 23.95

Days AP 69.20 63.36

Cash Cycle 9.56 15.18

10/31/2009 10/31/2008 10/31/2007 10/31/2006 10/31/2005

$ 114,552,000 $ 118,364,000 $ 104,286,000 $ 91,658,000 $ 86,696,000 87,524,000 89,921,000 78,887,000 69,427,000 66,440,000 27,028,000 28,443,000 25,399,000 22,231,000 20,256,000

11,613,000 13,104,000 12,226,000 11,266,000 11,184,000 2,819,000 3,588,000 3,801,000 3,643,000 3,492,000 2,460,000 1,278,000 653,000 762,000 2,107,000 16,892,000 17,970,000 16,680,000 15,671,000 16,783,000 9,415,000 10,473,000 8,719,000 6,560,000 3,473,000 - - 458,000 631,000 70,000 9,415,000 10,473,000 9,177,000 7,191,000 3,543,000 1,755,000 2,144,000 1,913,000 993,000 1,145,000 - - - - - 7,660,000 8,329,000 7,264,000 6,198,000 2,398,000 - - - - - 7,660,000 8,329,000 7,264,000 6,198,000 2,398,000

2.16 3.25 2.68 2.18 0.82 2.16 3.25 2.68 2.18 0.82 9,540 2,567 2,716 2,852 2,909

19.28% 21.50% 18.95% 16.46% 6.42%

6.72% 8.25% 8.51% 7.78% 3.13%

6.69% 7.04% 6.97% 6.76% 2.77%

1.00 1.17 1.22 1.15 1.13

23.59% 24.03% 24.36% 24.25% 23.36%

10.14% 11.07% 11.72% 12.29% 12.90%2.46% 3.03% 3.64% 3.97% 4.03%

76.41% 75.97% 75.64% 75.75% 76.64%

2.87 2.61 2.23 2.11 2.05

10.37 12.70 14.23 13.77 13.24

5.93 6.93 6.63 6.30 6.76

12.50 11.30 10.00 9.49 9.53

61.26 54.23 51.17 51.30 53.94

29.21 32.29 36.51 38.45 38.31

61.59 52.71 55.07 57.96 54.00

28.88 33.81 32.61 31.80 38.26

10/31/2004 10/31/2003 10/31/2002 10/31/2001 10/31/2000 10/31/1999

$ 79,905,000 $ 73,061,000 $ 56,588,000 $ 45,226,000 $ 48,782,000 $ 42,370,000 60,340,000 53,857,000 41,579,000 33,474,000 34,864,000 29,720,000 19,565,000 19,204,000 15,009,000 11,752,000 13,918,000 12,650,000

11,024,000 11,012,000 9,033,000 7,259,000 7,383,000 6,522,000 3,543,000 3,653,000 4,105,000 2,670,000 2,646,000 2,440,000 771,000 1,643,000 2,883,000 384,000 - - 15,338,000 16,308,000 16,021,000 10,313,000 10,029,000 8,962,000 4,227,000 2,896,000 (1,012,000) 1,439,000 3,889,000 3,688,000 (31,000) (8,000) (40,000) (737,000) 736,000 506,000 4,196,000 2,888,000 (1,052,000) 702,000 4,625,000 4,194,000 699,000 349,000 (129,000) 78,000 1,064,000 1,090,000 - - - - - - 3,497,000 2,539,000 (923,000) 624,000 3,561,000 3,104,000 - - 20,000 (216,000) 136,000 387,000 3,497,000 2,539,000 (903,000) 408,000 3,697,000 3,491,000

1.15 0.83 (0.37) 0.32 1.73 1.49 1.15 0.83 (0.36) 0.21 1.80 1.67 3,055 3,063 2,499 1,974 2,077 2,104

9.29% 6.86% -3.60% 2.90% 22.75%

4.64% 3.49% -1.75% 1.23% 10.67%

4.38% 3.48% -1.60% 0.90% 7.58% 8.24%

1.06 1.00 1.10 1.36 1.41

24.49% 26.28% 26.52% 25.99% 28.53% 29.86%

13.80% 15.07% 15.96% 16.05% 15.13% 15.39%4.43% 5.00% 7.25% 5.90% 5.42% 5.76%

75.51% 73.72% 73.48% 74.01% 71.47%

2.00 1.96 2.06 2.36 2.13

12.17 10.90 10.00 10.17 11.05

6.57 6.64 7.81 7.46 8.34

9.19 9.08 7.56 6.14 6.60

57.23 59.44 59.92 61.49 61.41

39.73 40.20 48.29 59.44 55.29

55.52 54.95 46.75 48.92 43.79

41.44 44.68 61.46 72.02 72.91

Hewlett-Packard Company (HPQ)Balance Sheet (in thousands)

PERIOD ENDING 10/31/2011 10/31/2010

ASSETS Current Assets:

Cash and cash equivalents 8,043,000 $ 10,929,000

Short-term investments 3,162,000 2,986,000

Accounts receivable, net 18,224,000 18,481,000

Inventories, net of allowance 7,490,000 6,466,000

Other Current Assets 14,102,000 15,322,000

Total Current Assets 51,021,000 54,184,000 Property Plant and Equipment, net of depreciation 12,292,000 11,763,000 Long-term financing receivables 10,755,000 12,225,000

Goodwill 44,551,000 38,483,000

Intangible Assets, net of amortization 10,898,000 7,848,000 Other non-current Assets - -

Total Assets 129,517,000 124,503,000

LIABILITIES

Current Liabilities:

Short-term borrowing 8,083,000 7,046,000

Accounts payable 18,749,000 18,621,000

Accrued and other 15,113,000 16,207,000

Taxes payable 1,048,000 802,000

Short-term deferred service revenue 7,449,000 6,727,000 Total Current Liabilities 50,442,000 49,403,000

Long Term Debt 22,551,000 15,258,000 Other non-current liabilities 17,520,000 19,061,000

Total Liabilities 90,513,000 83,722,000

STOCKHOLDER'S EQUITY

Common Stock 20,000 22,000

Additional paid-in capital 6,837,000 11,569,000 Retained Earnings 35,266,000 32,695,000 Other Comprehensive Income(Loss) -3,498,000 (3,837,000)

Treasury Stock - - Other Stockholder Equity 379,000 332,000

Total Stockholder Equity 39,004,000 40,781,000 Total Liabilities and Stockholders Equity 129,517,000 124,503,000

10/31/2009 10/31/2008 10/31/2007 10/31/2006 10/31/2005

$ 13,279,000 $ 10,153,000 $ 11,293,000 $ 16,400,000 $ 13,911,000

55,000 - - 22,000 18,000

19,212,000 19,242,000 15,927,000 13,313,000 12,454,000

6,128,000 7,879,000 8,033,000 7,750,000 6,877,000

13,865,000 14,454,000 12,149,000 10,779,000 10,074,000

52,539,000 51,728,000 47,402,000 48,264,000 43,334,000 11,262,000 10,838,000 7,798,000 6,863,000 6,451,000 11,289,000 10,468,000 7,647,000 6,649,000 7,502,000

33,109,000 32,335,000 21,773,000 16,853,000 16,441,000

6,600,000 7,962,000 4,079,000 3,352,000 3,589,000 - - - - 114,799,000 113,331,000 88,699,000 81,981,000 77,317,000

1,850,000 - 3,186,000 2,705,000 1,831,000

14,809,000 14,138,000 11,787,000 12,102,000 10,223,000

19,252,000 16,211,000 17,371,000 14,829,000 13,224,000

910,000 869,000 1,891,000 1,905,000 2,367,000

6,182,000 21,721,000 5,025,000 4,309,000 3,815,000 43,003,000 52,939,000 39,260,000 35,850,000 31,460,000

13,980,000 7,676,000 4,997,000 2,490,000 3,392,000 17,299,000 13,774,000 5,916,000 5,497,000 5,289,000

74,282,000 74,389,000 50,173,000 43,837,000 40,141,000

24,000 24,000 26,000 27,000 28,000

13,804,000 14,012,000 16,381,000 17,966,000 20,490,000 29,936,000 24,971,000 21,560,000 20,729,000 16,679,000 (3,247,000) (65,000) 559,000 18,000 (21,000)

- - - (596,000) - - - - - - 40,517,000 38,942,000 38,526,000 38,144,000 37,176,000 114,799,000 113,331,000 88,699,000 81,981,000 77,317,000

10/31/2004 10/31/2003 10/31/2002 10/31/2001 10/31/2000 10/31/1999

$ 12,663,000 $ 14,188,000 $ 11,192,000 $ 4,197,000 $ 3,415,000 $ 5,411,000

311,000 403,000 237,000 139,000 592,000 -

13,171,000 11,886,000 11,909,000 6,671,000 8,568,000 7,847,000

7,071,000 6,065,000 5,797,000 5,204,000 5,699,000 4,863,000

9,685,000 8,454,000 6,940,000 5,094,000 4,970,000 3,521,000

42,901,000 40,996,000 36,075,000 21,305,000 23,244,000 21,642,000 6,649,000 6,482,000 6,924,000 4,397,000 4,500,000 4,333,000 6,657,000 7,980,000 7,760,000 6,126,000 6,265,000 5,789,000

15,828,000 14,894,000 15,089,000 667,000 - -

4,103,000 4,356,000 4,862,000 89,000 - - - - - - - 3,533,000 76,138,000 74,708,000 70,710,000 32,584,000 34,009,000 35,297,000

2,511,000 1,080,000 1,793,000 1,722,000 1,555,000 3,105,000

9,377,000 9,285,000 7,012,000 3,791,000 5,049,000 3,517,000

12,033,000 11,009,000 10,716,000 4,766,000 4,788,000 4,110,000

1,709,000 1,599,000 1,529,000 1,818,000 2,046,000 2,152,000

2,958,000 3,657,000 3,260,000 1,867,000 1,759,000 1,437,000 28,588,000 26,630,000 24,310,000 13,964,000 15,197,000 14,321,000

4,623,000 6,494,000 6,035,000 3,729,000 3,402,000 1,764,000 5,363,000 3,838,000 4,103,000 938,000 1,201,000 917,000

38,574,000 36,962,000 34,448,000 18,631,000 19,800,000 17,002,000

29,000 30,000 30,000 19,000 19,000 20,000

22,129,000 24,587,000 24,660,000 200,000 - - 15,649,000 13,332,000 11,973,000 13,693,000 14,097,000 18,275,000 (243,000) (203,000) (401,000) 41,000 93,000 -

- - - - - - - - - - - - 37,564,000 37,746,000 36,262,000 13,953,000 14,209,000 18,295,000 76,138,000 74,708,000 70,710,000 32,584,000 34,009,000 35,297,000