Income Statement

1993 1994

Revenue
License Fees 3,687 49.95% 3,087
Royalties 562 7.61% 876
Prepaid Royalties 1,475 19.98% 448
Maintenance and Training 1,657 22.45% 2,137
Total Revenue 7,381 100.00% 6,548
Cost of Sales 1,150 15.58% 705
Gross Profit 6,231 84.42% 5,843
Operating Expenses
Sales and Marketing 3,220 43.63% 2,710
Research and Development 3,843 52.07% 3,166
General and Administration 1,776 24.06% 950
Severence Costs 300 4.06%
Total Operating Expenses 9,139 123.82% 6,826
Earnings (Loss) from Operations -2,908 -39.40% -983
Other Expense, Net 61 0.83% 42
Earnings (loss) before income taxes and Extraordinary items -2,969 -40.22% -1,025
Income Tax Expense 42 0.57% 137
Earnings (loss) before extraordinary item -3,011 -40.79% -1,162
Extraordinary Item - 0.00% 298
Net Earnings (loss) -3,011 -40.79% -864

Non-Interest Part of "Other" -67 -0.91% 16

Interest Income 40 0.54% 24
Interest Expense -34 -0.46% -82

Balance Sheet

1993 1994

Current Assets
Cash and Cash Equivalents 288
Accounts Receivable 1742
Prepaid Expenses, etc. 185
Total Current Assets 2215
Equipment , Net 256
Purchased Software, net 292
Total Assets 2763
Current Liabilities
Notes Payable 0
Accounts Payable 279
Accrued Royalties payable 286
Other Accruels 1130
Deferred Revenue 1726
Total Current Liabilities 3421
Non-Current Notes Payable (adhoc about 31% MV Entity) 500
Total Liabilities 3921

Convertible Preferred 14155

Par Common 10
Additional Paid-in-Capital 143
Deficit / Retained Earnings -15260
Treasury Stock -176
Foreign Currency Transactions -30
Total Equity Balance -1158

Total Liabilities and Equity 2763

tement
(Amount in thousands, Except per share Data)
1994 1995 1996
(Half Year) (Projected) (Ratios)

47.14% 4,850 56.206% 2,348 4,773 51.04%

13.38% 1,207 13.988% 1,228 1,832 19.59%
6.84% 0.000% 0.00%
32.64% 2,572 29.806% 1,461 2,747 29.37%
100.00% 8,629 100.000% 5,037 9,352 100.00%
10.77% 677 7.846% 403 742 7.93%
89.23% 7,952 92.154% 4,634 8,610 92.07%

41.39% 2,942 34.094% 1,674 3,145 33.63% 38.18%

48.35% 3,123 36.192% 1,913 3,475 37.15%
14.51% 1,210 14.022% 767 1,372 14.67%
0.00% 0.000% 0.00%
104.25% 7,275 84.309% 4,354 7,992 85.46%
-15.01% 677 7.846% 280 619 6.61%
0.64% 115 1.333% 51 109 1.16%
-15.65% 562 6.513% 229 510 5.45%
2.09% 174 2.016% 45 132 1.41%
-17.75% 388 4.496% 184 378 4.04%
4.55% - 0.000% - - 0.00%
-13.19% 388 4.496% 184 378 4.04%

0.24% -53 -0.614% 1 -25.5 -0.27%

0.37% 21 0.243% 12 22.5 0.24%
-1.25% -83 -0.962% -64 -105.5 -1.13%

Sheet
(Amount in thousands, Except per share Data)
1994 1995 1996
(Half Year) (Projected) (Ratios)

4.40% 153 1.773% 390 390 4.17%

26.60% 1893 21.938% 2293 2293 24.52%
2.83% 179 2.074% 171 171 1.83%
33.83% 2225 25.785% 2854 2854 30.52%
3.91% 377 4.369% 373 373 3.99%
4.46% 246 2.851% 410 410 4.38%
42.20% 2848 33.005% 3637 3637 38.89%
 0.00% 500 5.794% 0 0.00%
4.26% 585 6.779% 410 410 4.38%
4.37% 455 5.273% 398 398 4.26%
17.26% 848 9.827% 1231 1231 13.16%
26.36% 1220 14.138% 1779 1779 19.02%
52.24% 3608 41.812% 3818 3818 40.83%
7.64% 0 0.000% 0 0.00%
59.88% 3608 41.812% 3818 3818 40.83%

14155 14155
11 11 52
183 419 14533
-14872 -14688 -14688
-176 0 0
-0.46% -61 -0.707% -78 -78 -0.83%
-0.46% -760 -0.707% -181 -181 -0.83%

59.42% 2848 41.106% 3637 3637 39.99%

 Projected Income Statement
(Amount in thousands, Except per share Data)
1996
(Half Year) (Projected) (Ratios)
Revenue
License Fees 2,348 4,773 51.04%
Royalties 1,228 1,832 19.59%
Prepaid Royalties 0.00%
Maintenance and Training 1,461 2,747 29.37%
Total Revenue 5,037 9,352 100.00%
Cost of Sales 403 742 7.93%
Gross Profit 4,634 8,610 92.07%
Operating Expenses
Sales and Marketing 1,674 3,145 33.63%
Research and Development 1,913 3,475 37.15%
General and Administration 767 1,372 14.67%
Severence Costs - - 0.00%
Total Operating Expenses 4,354 7,992 85.46%
Earnings (Loss) from Operations 280 619 6.61%
Other Expense, Net 51 109 1.16%
Earnings (loss) before income taxes and Extraordinary items 229 510 5.45%
Income Tax Expense 45 132 1.41%
Earnings (loss) before extraordinary item 184 378 4.04%
Extraordinary Item - - 0.00%
Net Earnings (loss) 184 378 4.04%

Non-Interest Part of "Other" 1 -25.5 -0.27%

Interest Income 12 22.5 0.24%
Interest Expense -64 -105.5 -1.13%

Projected Balance Sheet

(Amount in thousands, Except per share Data)
1996
(Half Year) (Projected) (Ratios)

Current Assets
Required Cash 390 390 4.17%
Excess Cash 0
Accounts Receivable 2293 2293 24.52%
Prepaid Expenses, etc. 171 171 1.83%
Total Current Assets 2854 2854 30.52%
Equipment , Net 373 373 3.99%
Purchased Software, net 410 410 4.38%
Total Assets 3637 3637 38.89%
Current Liabilities
Notes Payable 0 0 0.00%
Accounts Payable 410 410 4.38%
Accrued Royalties payable 398 398 4.26%
Other Accruels 1231 1231 13.16%
Deferred Revenue 1779 1779 19.02%
Total Current Liabilities 3818 3818 40.83%
Non-Current Notes Payable (adhoc about 31% MV Entity) 0 0 0.00%
Total Liabilities 3818 3818 40.83%

Convertible Preferred 14155

Par Common 11 52
Additional Paid-in-Capital 419 14533
Deficit / Retained Earnings -14688 -14688
Treasury Stock 0 0
Foreign Currency Transactions -78 -78 -0.83%
Total Equity Balance -181 -181 -0.83%

Total Liabilities and Equity 3637 3637 39.99%

Statement of Cash Flows

(Amount in thousands, Except per share Data)

Net Earnings
+D&A
-Change in AR
-Change in Prepaid
+Change in AP
+Change in Accruels
+Change in Def. Rev.
-CAPEX
+Exercise Proceeds
+Note Proceeds
-Current transl. Losses
-Cash Dump (Dividend)
Change in Cash
Beginning Cash
Ending Cash

Valuation of Cash Flows

Net Earnings
+D&A
-CAPEX
-Change in NWC
-Current transl. Losses
+Debt Proceeds
Equity VCF from operations
cted Income Statement
xcept per share Data)
1997 1998 1999 2000 2001 SS SS +1 Growth

10,249 11,233 12,312 13,494 14,789 15,676 16,617 6%

820 899 985 1,080 1,183 1,254 1,329 6%
9,429 10,334 11,327 12,414 13,606 14,422 15,288 6%

3,382 3,707 4,063 4,453 4,881 5,174 5,484 6%

3792 4156 4555 4993 5472 5800 6148 6%
1,538 1685 1847 2023 2218 2351 2493 6%
0 0 0 0 0 0 0 6%
8,712 9,548 10,465 11,469 12,571 13,325 14,125 6%
717 786 862 945 1,035 1,097 1,163 6%
28 3 -24 -54 -89 309 327 6%
689 783 886 999 1,124 788 836 6%
172 196 221 250 281 197 209 6%
517 587 665 749 843 591 627 6%
- - - - - - - 6%
517 587 665 749 843 591 627 6%

-28 -30 -33 -36 -40 -42 -45

0
0

jected Balance Sheet

xcept per share Data)
1997 1998 1999 2000 2001 SS SS +1 Growth

431 472 517 567 621 658 698

537 1136 1813 2577 0 0 0
2511 2752 3016 3305 3623 3841 4071
184 202 222 243 266 282 299
3663 4562 5568 6692 4510 4781 5068
410 449 493 541 593 626 664
451 494 542 593 651 690 731
4524 5505 6603 7826 5754 6097 6463
 0 0 0 0 0 0 0
451 494 542 594 651 690 731
441 483 529 580 636 674 715
1353 1483 1625 1781 1952 2069 2193
1947 2134 2339 2564 2810 2978 3157
4192 4594 5035 5519 6049 6411 6796
0 0 0 0 1776 1882 1995
4192 4594 5035 5519 7825 8293 8791

52 52 52 52 52 52 52
14533 14533 14533 14533 14533 14533 14533
-14,171 -13,584 -12,919 -12,170 -16,538 -16,656 -16,780
0 0 0 0 0 0 0
-82 -90 -98 -108 -118 -125 -133
332 911 1568 2307 -2071 -2196 -2328

4524 5505 6603 7826 5754 6097 6463

ement of Cash Flows

xcept per share Data)
1997 1998 1999 2000 2001 SS SS +1 Growth

517 587 665 749 843 591 627

243 268 291 321 349 385 408
-218 -241 -264 -290 -317 -217 -230
-13 -18 -19 -21 -23 -16 -17
41 43 47 52 57 39 41
165 172 189 207 227 155 165
168 187 205 225 246 169 179
-321 -350 -383 -420 -460 -460 -487
0 0 0 0 0 0 0
0 0 0 0 1776 107 113
-4 -8 -9 -9 -10 -7 -8
0 0 0 0 -5,211 -709 -751
578 640 722 814 -2,523 37 40
390 968 1,608 2,330 3,144 621 658
968 1,608 2,330 3,144 621 658 698

517 587 665 749 843 591 627

 243 268 291 321 349 385 408
-321 -350 -383 -420 -460 -460 -487
-435 -497 -564 -641 2713 93 98
-4 -8 -9 -9 -10 -7 -8
0 0 0 0 1776 107 113
- - - - 5,211 709 751