AMCM Products:
       The Company's network monitoring systems are computer-controlled devices, which monitor the condition and performance of cable TV and broadband telecommunications systems. A monitoring system includes system software installed on a PC, master control units located at the "head-end" control center, and transponders located in the field. The transponder devices are placed generally within equipment which transmits or powers the CATV signals in a network and continuously monitor such functions as signal levels and temperature and instantaneously report any problems, thus enabling the operator of the system to pinpoint trouble spots and avoid or minimize system downtime. The system software is installed on an IBM compatible PC at the central monitoring location. The PC is connected to one or more Master Control Units (MCU) typically located in the head-end of a monitored system. The MCU serves as a real-time "polling engine" for the software system and communicates with remote monitors called "transponders" via a dedicated RF frequency on the monitored broadband system. The MCU processes the PC's request for information, communicates that request to the appropriate transponders, and distills the response into a form that the PC will accept. The transponders are data collection and control devices located in remote transmission equipment (line amplifiers, power supplies, etc.) which can communicate with the MCU.
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       The Company also provides performance monitoring products designed to assist cable TV operators in collecting and analyzing the data associated with the mandated FCC system proof of performance tests and to assess operating characteristics of the system at remote points. Performance monitoring units can make frequency response measurements from 40 MHz through 1 GHz, measure RF levels against alarm limits, analyze noise, distortion, and hum, and measure channel frequencies. They also perform real-time spectrum analysis and system sweep measures, with the results displayed in high-resolution color graphics.
       Cable TV and broadband telecommunications systems have and continue to experience significant change. The cable TV industry is undergoing a trend toward consolidation as larger operators purchase systems from smaller operators. Cable TV operators are also developing plans to expand their revenue base by offering telephony services and other alternative video and multimedia services such as Internet access, video on demand, home shopping, interactive data services, distance learning, home monitoring, etc. The U.S. telephone (telco) industry has entered selected markets for video services using various technologies including HFC, wireless and existing telco infrastructure by building new communications networks capable of providing voice, video, and data services. Recent telecommunications legislation has further increased the competitive environment among service providers.
       The communications network conceived to be able to handle the range of voice, video and data being planned has been termed the "information superhighway". Both CATV operators and telephone providers desiring to provide video services recognize a need to upgrade their existing communications networks to provide two-way transmission and receipt of services in order to deliver the wide range of services planned. Status and performance monitoring products, as provided by the Company, have become a critical component to improve operating efficiencies and insure the reliability of the new communications networks. In response to this, the Company introduced in fiscal 1996 the OmniStat(TM) System, an advanced status monitoring system for broadband networks. In fiscal 2000 the Company introduced Omni2000TM which represents its latest generation of monitoring technology.
       Omni2000(TM) is a total integrated system comprised of hardware and software products designed to address the evolving need for standards based network management architectures and consists of 4 product categories:
  1.   Plant Equipment Monitoring Devices - These `transponder' units are      installed inside monitored plant equipment, such as optic-electronic nodes,      RF amplifiers, power supplies, and end-of-line monitors. The transponders      measure and monitor various parameters and report the data back to a      central software monitoring system.
  2.   Monitoring Control Units - These units are installed in the headend and/or      hub locations. They manage the data communications between the plant      transponders and the software monitoring system.
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  3.   Headend Monitoring Devices - Telemetry Application Monitor (TAM) is a      modular rack unit device housed in the headend. It can be equipped with a      wide range of plug-in application modules.
  4.   Network Monitoring Software System - This system communicates with the      headend monitoring control units. It collects and processes information      sent back by transponders in the field.
  Plant Equipment Monitoring Devices
       The Omni2000 Management System incorporates an advanced set of plant transponders based on AM's FlexStat(TM) platform. The FlexStat platform provides the following benefits:
       o Frequency agile RF modems      o Downloadable firmware      o User defined alarm limits      o Real-time measurement display      o Remote control of network equipment      o Automatic RF return levels
       Transponders are available for most every major brand and type of network distribution equipment including amplifiers, power supplies, and optical nodes. The Company currently has over 40 different transponders and continues to design new devices. Amplifier transponders monitor amplifier internal currents, voltages, signal levels, and temperature and perform certain control functions. Power supply transponders monitor and control the status of standby power packs and provide notice of local power failures, state of batteries, input and output voltages, output current demand, and enclosure temperature and monitor the RF levels of the system monitoring communications channels. Fiber node transponders monitor and control the operation of the fiber optic node equipment and measure the optical power received by the node, as well as the power supply voltages, currents, and temperature within the node. Node monitors also allow remote control of the possible operational modes of the node.
  Monitoring Control Units
       The Omni2000(TM) Headend Monitoring Control Unit (MCU) is a real-time data manager that is capable of managing thousands of transponder equipped devices in the outside plant as well as in the headend. Its key features include:
       o   Large capacity (over 10,000 transponders)      o   Fast polling and alarm processing      o   Automatic new transponder detection      o   Multi-protocol capability      o   Robust communications with error correction      o   Scalable hardware and software architecture      o   Network capable      o   Downloadable software      o   Frequency agile
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       The MCU has been designed as a scalable unit. It supports multiple intelligent plug-in RF protocol cards with the master processor on the backplane of the MCU managing these protocol cards. This hardware modularity makes it possible to configure the MCU as a cost-effective solution for small to medium sized networks or as a robust, powerful solution for large networks. The Company commenced shipment of the OmniMCU during the first quarter of fiscal 1998.
  Headend Monitoring Devices
       A modern HFC headend facility contains different types and brands of headend equipment, including optical transmitters, optical receivers, modulators, and other transmission elements. The manufacturers of these headend elements often incorporate telemetry interfaces to allow an external manager to monitor and control their equipment. However, no compatibility standards exist for these interfaces, and so every manufacturer has developed their own unique electrical interface as well as proprietary data communication protocols.
       The Company's Telemetry Application Monitor (TAM) is a modular rack unit, which can be equipped with a wide range of application modules to enable monitoring and control of headend transmission equipment. Serial Application Modules (SAM) are pre-programmed TAM plug-ins that monitor and manage a specific brand and type of headend equipment.
       The Company also markets its Scanning Ingress Monitor System (SIMS) of which the second generation unit was introduced in fiscal 2000. The SIMS module is a TAM based product, which monitors and analyzes the return RF spectrum from specific node areas. The Company continues to identify new types of plug-in monitoring modules for modulators, switching equipment, and other headend systems and will undertake new development efforts when market opportunities warrant such.
  Network Monitoring Software System
       The Omni2000(TM) monitoring software is a multi-user, multi-tasking system that runs under either Windows 95 or Windows NT. Features include Topologer, a schematic-based display node that allows a user to view the status of regions, systems, head-ends and distribution networks. The system is designed specifically to address new market requirements for integrated, enterprise-wide network management systems and allows users to interface Omni2000(TM) to operation support systems and other third party software applications. The Company commenced shipment of its initial release of Omni based software in April 1996.
       In conjunction with the new strategic development relationship with NeST, the Company undertook a substantial development program, which resulted in the introduction in the first half of fiscal 2000 of the new Omni2000 software platform. The Omni2000 product has been designed as a modular software platform based upon Windows NT and standard Microsoft interfaces, and employs standard Microsoft development practices. This modular platform provides benefits such as easier and more efficient maintenance, improved stability, and ease of building optional modules for increased features and functionality including independent third-party add-on products. The Company began delivering this product during fiscal 2000.
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       The Company's strategy has been to form close working relationships with the major OEM (original equipment manufacturer) CATV network suppliers and to develop customized monitors which meet the specific requirements, including size and performance characteristics, for each type of network equipment offered. The Company's system is generally inter-operable with most cable network distribution and transmission equipment. The Company believes it has the broadest monitoring product line in the monitoring industry. Omni2000 solutions are available for virtually every major brand of transmission equipment, including:
         o  ADC                                  o  Harmonic        o  Alpha Technologies                   o  Kathrein        o  Antec                                o  Lectro (Exide Electronics)        o  Augat (Thomas & Betts)               o  Philips Broadband Networks        o  Fuba Communication Systems           o  Power Guard        o  Motorola (General Instrument)        o  Scientific-Atlanta        o  Wavetek Wandel Goltermann            o  Barco
       In addition, several of the major network equipment suppliers have entered into OEM agreements with AM to private label the AM product. The Company currently has OEM agreements or provides OEM private label products to: Motorola (formerly General Instrument), Scientific-Atlanta and Philips Broadband Systems.
  Quick STAT Plant Management System
       AM has leveraged the modularity of the Omni2000 platform to develop a cost-effective solution for monitoring small to medium size systems known as "QuickSTAT." QuickSTAT is a pre-packaged, economical hardware and software solution built into a client server PC station. The system components include:
       o A single pre-configured PC client/server station      o Omni2000(TM) network monitoring software      o OmniAlert(TM) alarm paging software      o OmniComm(TM) cable system interface card      o QuickTest(TM) embedded test transponder
       The Company introduced the QuickStat system in the first quarter of fiscal 2000.
       There are several communications delivery technologies which can be utilized in building the "information superhighway" communications network, including hybrid fiber/coax (HFC), fiber-to-the curb (FTTC), Digital Subscriber Loop (DSL), wireless and others. HFC technology is being utilized most extensively by the CATV providers due to its economics and proven architecture and also has been recently chosen by several telephone providers as the technology used to build their video delivery systems. The Company's current products are substantially focused in HFC architecture systems. Should the industry adopt other competing architectures, the Company's revenue opportunities for its existing products could be adversely affected.
       The Company's business is not subject to marked seasonal fluctuation. |