Page 1 > of 4 ZOOM + 2001 16,462 SCIAT INC and SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited - in thousands, except per share amounts) 2004 2003 2002 REVENUES Total revenues $ 201,600 IS 66,194 IS 32,235$ COST OF REVENUES Total cost of revenues 99,275$ 16,837$ 8,963 GROSS PROFIT 102,325$ 49,357 S 23,272 OPERATING EXPENSES Research and development expenses S 24,2495 14,664 1$ 8,504 $ Sales and marketing expenses S 28,626 $ 14,929 $ 7,341 $ General and administrative expenses $ 16,564 $ 6,716 S 3,852 IS Write-off of acquired in-process research and development costs $ 9,681 IS 3,375 Restructuring charges $ 1,300 4,525 11,937 S 6,118 5,061 2.203 Costs of integration of acquired companies $ 15,908S 3,934 IS 256 Amortization of unearned compensation $ 5,925 $ S 8.676$ 101,248 IS 1,077 $ 2,687 $ 4,710 S 54,634S (5,277) $ 807 IS 1,488 IS 24,816 IS (1,544) 669 IS S 13,382 (1,445) 1,336 w S Amortization of acquired intangible assets Total operating expenses OPERATING INCOME (LOSS) Interest and other income, net INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES Income tax expense (benefit) INCOME (LOSS) FROM CONTINUING OPERATIONS Income (loss) from continuing operations (109) S $ 3,764 $ 1,581 $ (4,470) $ 1,618 IS (875) (90) $ 2,1831S (6,088) $ (785) S (109) Page 1 > of 4 ZOOM + S 2,183 1$ (6,088) $ (785) $ (109) OPERATIONS Income (loss) from continuing operations Loss from operations of discontinued GDS business (including loss on disposal of $3,506 in 2002) NET INCOME (LOSS) Basic income (loss) per common share: $ $ $ 2,183$ $ (6,088)S (3,954) (4,739) $ 0 (109) $ Income (loss) from continuing operations Loss from discontinued GDS business Net income (loss) per share $ 0.10 TS $ 0.10 15 (0.54) $ S (0.54) (0.10) (0.51) (0.61) Diluted income (loss) per common share: 2001 Income (loss) from continuing operations $ 0.10$ (0.54) $ (0.10) Loss from discontinued GDS business $ (0.51) Net income (loss) per share 0.10 (0.54 $ (0.61) SCIAT INC and SUBSIDIARIES CONSOLIDATED STATEMENTS BALANCE SHEETS (Unaudited - in thousands, except per share amounts) December 31, 2004 2003 2002 ASSETS Current assets: Cash and cash equivalents $ 74,901 $ 24,451 1 $ 3,399 IS Short-term investments S 93,310 IS 92,280 TS 28,763 $ Accounts receivable, net of allowance for doubtful accounts of $2,264, $940, $244, and $150 in 2004, 2003, 2002, and 2001, respectively $ 56,224 IS 13,191 $ 4,534 1 $ Inventories, net of reserve of $726, $1,275, $958, and $482 in 2004, 2003, 2002, and 2001, respectively 18,168 $ 3,123 $ 1,008S 14.819 15,865 3,225 1,260 Page 1 > of 4 ZOOM + $ $ 1,008$ 1.002S S 18,168 IS 3,123 1$ 3,252 IS 1,405 IS 10.944 S 256,808 S 134,459 IS 18,313$ 3,809 $ 1,260 850 784 36,812 969 93 38,808 IS 1,246 S S S 727 $ $ 2,349 IS 305,311 IS 1,982 IS 42,407 IS 479 IS 12,826 Inventories, net of reserve of $726, $1,275, $958, and $482 in 2004, 2003, 2002, and 2001, respectively Prepaid expenses and other current assets Other current assets Total Current Assets Property and equipment, net Computer software development costs, net of accumulated amortization of $2,619, $1,696, $1,513, and $3,113 in 2004, 2003, (2002, and 2001, respectively Goodwill Other intangible assets, net of accumulated amortization of $28,223 in 2004 and $8,483 in 2003 Other assets TOTAL ASSETS LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable Accrued compensation and related costs Advance payments and deferred revenue Other accrued expenses Other current liabilities Total current liabilities Other liabilities Total liabilities STOCKHOLDERS' EQUITY Common stock, $.01 par value per share, authorized 50,000 shares, issued and outstanding shares of 24,401 in 2004 and 13,286 in 2003 Additional paid-in capital $ $ $ 139,192 TS 2,005 IS 723.978 S 23,599 $ 1,900 S 208.156 IS 595 1,374 IS 55,328 IS 1,378 39.886 $ S ***** S 11,615 IS 13,046 IS 11,319S 7,060 IS 11,109 IS 54,149 57,243S 111,392 IS S 3,799 IS 3,770 IS 4,791 S 1,774 1$ 8,695 22,829 IS 6,330S 29,159 $ 1,456 IS 2,162 S 1,393 $ 1,424 377 IS 6,812S 129 6,941 $ 988 713 1,918 577 222 4,418 S S S $ 4,418 S $ 244 $ 133 1$ 633,882 $ 199,7831$ 791S 65,665 $ 80 52,400 Page 1 > of 4 ZOOM + 727 $ S 2,349S 305,311 1 s 1,982 IS 42,407 $ 479 IS 12,826 $ $ S 139,192 $ 23,599 $ 2,005 IS 1,900 IS 723.978 IS_208.156 IS 595 1,374 IS 55,328 IS 1,378 39.886 S S S of accumulated amortization of $2,619, $1,696, $1,513, and $3,113 in 2004, 2003, 2002, and 2001, respectively Goodwill Other intangible assets, net of accumulated amortization of $28,223 in 2004 and $8,483 in 2003 Other assets TOTAL ASSETS LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable Accrued compensation and related costs Advance payments and deferred revenue Other accrued expenses Other current liabilities Total current liabilities Other liabilities Total liabilities STOCKHOLDERS' EQUITY Common stock, $.01 par value per share, authorized 50,000 shares, issued and outstanding shares of 24,401 in 2004 and 13,286 in 2003 Additional paid-in capital Unearned compensation Accumulated other comprehensive income Accumulated deficit Total stockholders' equity Total liabilities and stockholders' equity S 11,615 IS 13,046 $ 11,319 $ 7,0601$ 11,109 54,149S 57,243 $ 111,39219 3,799 IS 3,7701$ 4,791 $ 1,774 15 8,695 $ 22,8295 6,330$ 29,159 IS 1,456 IS 2,162 $ 1,393 S 1,424 IS 377 IS 6,812 IS 129 6,941 $ 988 713 1,918 577 222 4,418 S S $ S 4,418 $ S S 791 $ 65,665 $ 80 52,400 S 244 $ 133$ 633,882 1$ 199,783 IS (6,719) 9,309 $ 5,394 $ (24,130) IS (26,313) $ 612,586 $ 178,997 IS 723.978 S 208.156 15 S 2,859 (20,225) S 48,378 IS 55,319 (1,526) (15,486) 35,468 39,886 S S Page 2 > of 4 ZOOM + 2004 SCIAT INC and SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited - in thousands, except per share amounts) 2001 2002 2003 REVENUES Total revenues COST OF REVENUES Total cost of revenues GROSS PROFIT OPERATING EXPENSES Research and development expenses Sales and marketing expenses General and administrative expenses Write-off of acquired in-process research and development costs Restructuring charges Costs integration of acquired companies Amortization of unearned compensation Amortization of acquired intangible assets Total operating expenses OPERATING INCOME (LOSS) Interest and other income, net INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES Income tax expense (benefit) INCOME (LOSS) FROM CONTINUING OPERATIONS Income ilace from continuing onerations Page 2 > of 4 ZOOM + REVENUES Total revenues COST OF REVENUES Total cost of revenues GROSS PROFIT OPERATING EXPENSES Research and development expenses Sales and marketing expenses General and administrative expenses Write-off of acquired in-process research and development costs Restructuring charges Costs of integration of acquired companies Amortization of unearned compensation Amortization of acquired intangible assets Total operating expenses OPERATING INCOME (LOSS) Interest and other income, net INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES Income tax expense (benefit) INCOME (LOSS) FROM CONTINUING OPERATIONS Income (loss) from continuing operations Loss from operations of discontinued GDS business (including loss on disposal of $3,506 in 2002) NET INCOME (LOSS) SCIAT INC and SUBSIDIARIES CONSOLIDATED STATEMENTS DALANC curts Page 2 > of 4 ZOOM + 2004 NET INCOME (LOSS) SCIAT INC and SUBSIDIARIES CONSOLIDATED STATEMENTS BALANCE SHEETS (Unaudited - in thousands, except per share amounts) December 31, 2001 2002 2003 ASSETS Current assets: Cash and cash equivalents Short-term investments Accounts receivable, net of allowance for doubtful accounts of $2,264, $940, $244, and $150 in 2004, 2003, 2002, and 2001, respectively Inventories, net of reserve of $726, $1,275, $958, and $482 in 2004, 2003, 2002, and 2001, respectively Prepaid expenses and other current assets Other current assets Total Current Assets Property and equipment, net Computer software development costs, net of accumulated amortization of $2,619, $1,696, $1,513, and $3,113 in 2004, 2003, 2002, and 2001, respectively Goodwill Other intangible assets, net of accumulated amortization of $28,223 in 2004 and $8,483 in 2003 Other assets TOTAL ASSETS LIABILITIES AND STOCKHOLDERS' EQUITY Page 2 > of 4 ZOOM + Other assets TOTAL ASSETS LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable Accrued compensation and related costs Advance payments and deferred revenue Other accrued expenses Other current liabilities Total current liabilities Other liabilities Total liabilities STOCKHOLDERS' EQUITY Common stock, $.01 par value per share, authorized 50,000 shares, issued and outstanding shares of 24,401 in 2004 and 13,286 in 2003 Additional paid-in capital Unearned compensation Accumulated other comprehensive income Accumulated deficit Total stockholders' equity Total liabilities and stockholders' equity Page 3 > of 4 ZOOM + 2004 SCIAT INC and SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited - in thousands, except per share amounts) 2001 2002 2003 REVENUES Total revenues COST OF REVENUES Total cost of revenues GROSS PROFIT OPERATING EXPENSES Research and development expenses Sales and marketing expenses General and administrative expenses Write-off of acquired in-process research and development costs Restructuring charges Costs of integration of acquired companies Amortization of unearned compensation Amortization of acquired intangible assets Total operating expenses OPERATING INCOME (LOSS) Interest and other income, net INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES Income tax expense (benefit) INCOME (LOSS) FROM CONTINUING OPERATIONS Income (loss) from continuing operations Page 3 > of 4 ZOOM + 2004 Income (loss) from continuing operations Loss from operations of discontinued GDS business (including loss on disposal of $3,506 in 2002) NET INCOME (LOSS) SCIAT INC and SUBSIDIARIES CONSOLIDATED STATEMENTS BALANCE SHEETS (Unaudited - in thousands, except per share amounts) December 31, 2001 2002 2003 ASSETS Current assets: Cash and cash equivalents Short-term investments Accounts receivable, net of allowance for doubtful accounts of $2,264, $940, $244, and $150 in 2004, 2003, 2002, and 2001, respectively Inventories, net of reserve of $726, $1,275, $958, and $482 in 2004, 2003, 2002, and 2001, respectively Prepaid expenses and other current assets Other current assets Total Current Assets Property and equipment, net Computer software development costs, net of accumulated amortization of $2,619, $1,696, $1,513, and $3,113 in 2004, 2003, 2002, and 2001, respectively Goodwill Other intangible assets, net of accumulated amortization of 179 777 in 2001 and 9.197 Page 3 > of 4 ZOOM + CUTITLOSSCUS Tiporer capensis Other current assets Total Current Assets Property and equipment, net Computer software development costs, net of accumulated amortization of $2,619, $1,696, $1,513, and $3,113 in 2004, 2003, 2002, and 2001, respectively Goodwill Other intangible assets, net of accumulated amortization of $28,223 in 2004 and $8,483 in 2003 Other assets TOTAL ASSETS LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable Accrued compensation and related costs Advance payments and deferred revenue Other accrued expenses Other current liabilities Total current liabilities Other liabilities Total liabilities STOCKHOLDERS' EQUITY Common stock, $.01 par value per share, authorized 50,000 shares, issued and outstanding shares of 24,401 in 2004 and 13,286 in 2003 Additional paid-in capital Unearned compensation Accumulated other comnrehensive income Page 3 > of 4 ZOOM + Other assets TOTAL ASSETS LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable Accrued compensation and related costs Advance payments and deferred revenue Other accrued expenses Other current liabilities Total current liabilities Other liabilities Total liabilities STOCKHOLDERS' EQUITY Common stock, $.01 par value per share, authorized 50,000 shares, issued and outstanding shares of 24,401 in 2004 and 13,286 in 2003 Additional paid-in capital Unearned compensation Accumulated other comprehensive income Accumulated deficit Total stockholders' equity Total liabilities and stockholders' equity Page 4 of 4 ZOOM + Accumulated other comprehensive income Accumulated deficit Total stockholders' equity Total liabilities and stockholders' equity 2001 2002 2003 2004 Insert line charts below Ratio Current Ratio Quick Ratio Inventory Turnover Receivables Turnover Gross Margin Operating Margin Return on Assets Return on Equity Page 1 > of 4 ZOOM + 2001 16,462 SCIAT INC and SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited - in thousands, except per share amounts) 2004 2003 2002 REVENUES Total revenues $ 201,600 IS 66,194 IS 32,235$ COST OF REVENUES Total cost of revenues 99,275$ 16,837$ 8,963 GROSS PROFIT 102,325$ 49,357 S 23,272 OPERATING EXPENSES Research and development expenses S 24,2495 14,664 1$ 8,504 $ Sales and marketing expenses S 28,626 $ 14,929 $ 7,341 $ General and administrative expenses $ 16,564 $ 6,716 S 3,852 IS Write-off of acquired in-process research and development costs $ 9,681 IS 3,375 Restructuring charges $ 1,300 4,525 11,937 S 6,118 5,061 2.203 Costs of integration of acquired companies $ 15,908S 3,934 IS 256 Amortization of unearned compensation $ 5,925 $ S 8.676$ 101,248 IS 1,077 $ 2,687 $ 4,710 S 54,634S (5,277) $ 807 IS 1,488 IS 24,816 IS (1,544) 669 IS S 13,382 (1,445) 1,336 w S Amortization of acquired intangible assets Total operating expenses OPERATING INCOME (LOSS) Interest and other income, net INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES Income tax expense (benefit) INCOME (LOSS) FROM CONTINUING OPERATIONS Income (loss) from continuing operations (109) S $ 3,764 $ 1,581 $ (4,470) $ 1,618 IS (875) (90) $ 2,1831S (6,088) $ (785) S (109) Page 1 > of 4 ZOOM + S 2,183 1$ (6,088) $ (785) $ (109) OPERATIONS Income (loss) from continuing operations Loss from operations of discontinued GDS business (including loss on disposal of $3,506 in 2002) NET INCOME (LOSS) Basic income (loss) per common share: $ $ $ 2,183$ $ (6,088)S (3,954) (4,739) $ 0 (109) $ Income (loss) from continuing operations Loss from discontinued GDS business Net income (loss) per share $ 0.10 TS $ 0.10 15 (0.54) $ S (0.54) (0.10) (0.51) (0.61) Diluted income (loss) per common share: 2001 Income (loss) from continuing operations $ 0.10$ (0.54) $ (0.10) Loss from discontinued GDS business $ (0.51) Net income (loss) per share 0.10 (0.54 $ (0.61) SCIAT INC and SUBSIDIARIES CONSOLIDATED STATEMENTS BALANCE SHEETS (Unaudited - in thousands, except per share amounts) December 31, 2004 2003 2002 ASSETS Current assets: Cash and cash equivalents $ 74,901 $ 24,451 1 $ 3,399 IS Short-term investments S 93,310 IS 92,280 TS 28,763 $ Accounts receivable, net of allowance for doubtful accounts of $2,264, $940, $244, and $150 in 2004, 2003, 2002, and 2001, respectively $ 56,224 IS 13,191 $ 4,534 1 $ Inventories, net of reserve of $726, $1,275, $958, and $482 in 2004, 2003, 2002, and 2001, respectively 18,168 $ 3,123 $ 1,008S 14.819 15,865 3,225 1,260 Page 1 > of 4 ZOOM + $ $ 1,008$ 1.002S S 18,168 IS 3,123 1$ 3,252 IS 1,405 IS 10.944 S 256,808 S 134,459 IS 18,313$ 3,809 $ 1,260 850 784 36,812 969 93 38,808 IS 1,246 S S S 727 $ $ 2,349 IS 305,311 IS 1,982 IS 42,407 IS 479 IS 12,826 Inventories, net of reserve of $726, $1,275, $958, and $482 in 2004, 2003, 2002, and 2001, respectively Prepaid expenses and other current assets Other current assets Total Current Assets Property and equipment, net Computer software development costs, net of accumulated amortization of $2,619, $1,696, $1,513, and $3,113 in 2004, 2003, (2002, and 2001, respectively Goodwill Other intangible assets, net of accumulated amortization of $28,223 in 2004 and $8,483 in 2003 Other assets TOTAL ASSETS LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable Accrued compensation and related costs Advance payments and deferred revenue Other accrued expenses Other current liabilities Total current liabilities Other liabilities Total liabilities STOCKHOLDERS' EQUITY Common stock, $.01 par value per share, authorized 50,000 shares, issued and outstanding shares of 24,401 in 2004 and 13,286 in 2003 Additional paid-in capital $ $ $ 139,192 TS 2,005 IS 723.978 S 23,599 $ 1,900 S 208.156 IS 595 1,374 IS 55,328 IS 1,378 39.886 $ S ***** S 11,615 IS 13,046 IS 11,319S 7,060 IS 11,109 IS 54,149 57,243S 111,392 IS S 3,799 IS 3,770 IS 4,791 S 1,774 1$ 8,695 22,829 IS 6,330S 29,159 $ 1,456 IS 2,162 S 1,393 $ 1,424 377 IS 6,812S 129 6,941 $ 988 713 1,918 577 222 4,418 S S S $ 4,418 S $ 244 $ 133 1$ 633,882 $ 199,7831$ 791S 65,665 $ 80 52,400 Page 1 > of 4 ZOOM + 727 $ S 2,349S 305,311 1 s 1,982 IS 42,407 $ 479 IS 12,826 $ $ S 139,192 $ 23,599 $ 2,005 IS 1,900 IS 723.978 IS_208.156 IS 595 1,374 IS 55,328 IS 1,378 39.886 S S S of accumulated amortization of $2,619, $1,696, $1,513, and $3,113 in 2004, 2003, 2002, and 2001, respectively Goodwill Other intangible assets, net of accumulated amortization of $28,223 in 2004 and $8,483 in 2003 Other assets TOTAL ASSETS LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable Accrued compensation and related costs Advance payments and deferred revenue Other accrued expenses Other current liabilities Total current liabilities Other liabilities Total liabilities STOCKHOLDERS' EQUITY Common stock, $.01 par value per share, authorized 50,000 shares, issued and outstanding shares of 24,401 in 2004 and 13,286 in 2003 Additional paid-in capital Unearned compensation Accumulated other comprehensive income Accumulated deficit Total stockholders' equity Total liabilities and stockholders' equity S 11,615 IS 13,046 $ 11,319 $ 7,0601$ 11,109 54,149S 57,243 $ 111,39219 3,799 IS 3,7701$ 4,791 $ 1,774 15 8,695 $ 22,8295 6,330$ 29,159 IS 1,456 IS 2,162 $ 1,393 S 1,424 IS 377 IS 6,812 IS 129 6,941 $ 988 713 1,918 577 222 4,418 S S $ S 4,418 $ S S 791 $ 65,665 $ 80 52,400 S 244 $ 133$ 633,882 1$ 199,783 IS (6,719) 9,309 $ 5,394 $ (24,130) IS (26,313) $ 612,586 $ 178,997 IS 723.978 S 208.156 15 S 2,859 (20,225) S 48,378 IS 55,319 (1,526) (15,486) 35,468 39,886 S S Page 2 > of 4 ZOOM + 2004 SCIAT INC and SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited - in thousands, except per share amounts) 2001 2002 2003 REVENUES Total revenues COST OF REVENUES Total cost of revenues GROSS PROFIT OPERATING EXPENSES Research and development expenses Sales and marketing expenses General and administrative expenses Write-off of acquired in-process research and development costs Restructuring charges Costs integration of acquired companies Amortization of unearned compensation Amortization of acquired intangible assets Total operating expenses OPERATING INCOME (LOSS) Interest and other income, net INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES Income tax expense (benefit) INCOME (LOSS) FROM CONTINUING OPERATIONS Income ilace from continuing onerations Page 2 > of 4 ZOOM + REVENUES Total revenues COST OF REVENUES Total cost of revenues GROSS PROFIT OPERATING EXPENSES Research and development expenses Sales and marketing expenses General and administrative expenses Write-off of acquired in-process research and development costs Restructuring charges Costs of integration of acquired companies Amortization of unearned compensation Amortization of acquired intangible assets Total operating expenses OPERATING INCOME (LOSS) Interest and other income, net INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES Income tax expense (benefit) INCOME (LOSS) FROM CONTINUING OPERATIONS Income (loss) from continuing operations Loss from operations of discontinued GDS business (including loss on disposal of $3,506 in 2002) NET INCOME (LOSS) SCIAT INC and SUBSIDIARIES CONSOLIDATED STATEMENTS DALANC curts Page 2 > of 4 ZOOM + 2004 NET INCOME (LOSS) SCIAT INC and SUBSIDIARIES CONSOLIDATED STATEMENTS BALANCE SHEETS (Unaudited - in thousands, except per share amounts) December 31, 2001 2002 2003 ASSETS Current assets: Cash and cash equivalents Short-term investments Accounts receivable, net of allowance for doubtful accounts of $2,264, $940, $244, and $150 in 2004, 2003, 2002, and 2001, respectively Inventories, net of reserve of $726, $1,275, $958, and $482 in 2004, 2003, 2002, and 2001, respectively Prepaid expenses and other current assets Other current assets Total Current Assets Property and equipment, net Computer software development costs, net of accumulated amortization of $2,619, $1,696, $1,513, and $3,113 in 2004, 2003, 2002, and 2001, respectively Goodwill Other intangible assets, net of accumulated amortization of $28,223 in 2004 and $8,483 in 2003 Other assets TOTAL ASSETS LIABILITIES AND STOCKHOLDERS' EQUITY Page 2 > of 4 ZOOM + Other assets TOTAL ASSETS LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable Accrued compensation and related costs Advance payments and deferred revenue Other accrued expenses Other current liabilities Total current liabilities Other liabilities Total liabilities STOCKHOLDERS' EQUITY Common stock, $.01 par value per share, authorized 50,000 shares, issued and outstanding shares of 24,401 in 2004 and 13,286 in 2003 Additional paid-in capital Unearned compensation Accumulated other comprehensive income Accumulated deficit Total stockholders' equity Total liabilities and stockholders' equity Page 3 > of 4 ZOOM + 2004 SCIAT INC and SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited - in thousands, except per share amounts) 2001 2002 2003 REVENUES Total revenues COST OF REVENUES Total cost of revenues GROSS PROFIT OPERATING EXPENSES Research and development expenses Sales and marketing expenses General and administrative expenses Write-off of acquired in-process research and development costs Restructuring charges Costs of integration of acquired companies Amortization of unearned compensation Amortization of acquired intangible assets Total operating expenses OPERATING INCOME (LOSS) Interest and other income, net INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES Income tax expense (benefit) INCOME (LOSS) FROM CONTINUING OPERATIONS Income (loss) from continuing operations Page 3 > of 4 ZOOM + 2004 Income (loss) from continuing operations Loss from operations of discontinued GDS business (including loss on disposal of $3,506 in 2002) NET INCOME (LOSS) SCIAT INC and SUBSIDIARIES CONSOLIDATED STATEMENTS BALANCE SHEETS (Unaudited - in thousands, except per share amounts) December 31, 2001 2002 2003 ASSETS Current assets: Cash and cash equivalents Short-term investments Accounts receivable, net of allowance for doubtful accounts of $2,264, $940, $244, and $150 in 2004, 2003, 2002, and 2001, respectively Inventories, net of reserve of $726, $1,275, $958, and $482 in 2004, 2003, 2002, and 2001, respectively Prepaid expenses and other current assets Other current assets Total Current Assets Property and equipment, net Computer software development costs, net of accumulated amortization of $2,619, $1,696, $1,513, and $3,113 in 2004, 2003, 2002, and 2001, respectively Goodwill Other intangible assets, net of accumulated amortization of 179 777 in 2001 and 9.197 Page 3 > of 4 ZOOM + CUTITLOSSCUS Tiporer capensis Other current assets Total Current Assets Property and equipment, net Computer software development costs, net of accumulated amortization of $2,619, $1,696, $1,513, and $3,113 in 2004, 2003, 2002, and 2001, respectively Goodwill Other intangible assets, net of accumulated amortization of $28,223 in 2004 and $8,483 in 2003 Other assets TOTAL ASSETS LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable Accrued compensation and related costs Advance payments and deferred revenue Other accrued expenses Other current liabilities Total current liabilities Other liabilities Total liabilities STOCKHOLDERS' EQUITY Common stock, $.01 par value per share, authorized 50,000 shares, issued and outstanding shares of 24,401 in 2004 and 13,286 in 2003 Additional paid-in capital Unearned compensation Accumulated other comnrehensive income Page 3 > of 4 ZOOM + Other assets TOTAL ASSETS LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable Accrued compensation and related costs Advance payments and deferred revenue Other accrued expenses Other current liabilities Total current liabilities Other liabilities Total liabilities STOCKHOLDERS' EQUITY Common stock, $.01 par value per share, authorized 50,000 shares, issued and outstanding shares of 24,401 in 2004 and 13,286 in 2003 Additional paid-in capital Unearned compensation Accumulated other comprehensive income Accumulated deficit Total stockholders' equity Total liabilities and stockholders' equity Page 4 of 4 ZOOM + Accumulated other comprehensive income Accumulated deficit Total stockholders' equity Total liabilities and stockholders' equity 2001 2002 2003 2004 Insert line charts below Ratio Current Ratio Quick Ratio Inventory Turnover Receivables Turnover Gross Margin Operating Margin Return on Assets Return on Equity