Consolidated Statement of Income

(Unaudited; In thousands-except per share amounts)

Three Months Ended December 31, Six Months Ended December 31, 1994 1993 1994 1993

Product and other revenues: $469,949 $330,923 $847,914 $595,923 Service revenues 54,053 39,473 103,475 76,109 --------------------------------------------------------------- Total revenues 524,002 370,396 951,389 672,032

Costs and expenses: Cost of product and other revenues 221,015 160,223 397,135 286,689 Cost of service revenues 28,205 21,184 54,047 40,856 Research and development 57,363 42,560 110,590 81,585 Selling, general and administrative 135,665 96,131 250,374 179,630 ---------------------------------------------------------------- Total costs and expenses 442,248 320,098 812,146 588,760 ----------------------------------------------------------------

Operating income 81,754 50,298 139,243 83,272 Interest income and other, net (4,773) 1,616 (2,496) 2,128 ---------------------------------------------------------------- Income before income taxes 76,981 51,914 136,747 85,400 Provision for income taxes 23,094 15,574 41,024 23,320 ---------------------------------------------------------------- Net income $53,887 $36,340 $95,723 $62,080 ---------------------------------------------------------------- Net income per common share $0.34 $0.24 $0.61 $0.41 ---------------------------------------------------------------- Common shares and common share equivalents used in the calculation of net income per common share 158,898 154,046 158,216 152,698

We welcome feedback and comments at webmaster@www.sgi.com.