Digital Video Systems, Inc. Condensed Consolidated Statements of Operations (In Thousands, except Per Share Amounts) (Unaudited)     Three Months Ended September 30, Nine Months Ended September 30,   2003 2002 2003 2002           Net revenue $ 19,677 $ 47,756 $ 70,603 $ 113,182 Cost of revenue......................................................................................... 17,469 43,184 64,833 102,758 Gross margin............................................................................................. 2,208 4,572 5,770 10,424 Operating expenses:         Research and development...................................................................... 1,364 953 4,033 2,640 Sales and marketing............................................................................... 634 879 2,196 2,001 General and administrative....................................................................... 1,519 1,266 5,008 4,673 Total operating expenses.................................................................... 3,517 3,098 11,237 9,314 (Loss) income from operations............................................................ (1,309) 1,474 (5,467) 1,110 Interest (expense) income, net .................................................................... (378) (625) (921) (1,389) Other (expense) income.............................................................................. (732) 1,503 (145) (23) (Loss) income before minority interest and income taxes.........................................................................................  (2,419)  2,352  (6,533)  (302) Income tax benefit (provision)...................................................................... 230 (280) 228 (332) Minority interest......................................................................................... 593 (225) 1,811 (317) Net (loss) income...................................................................................... $ (1,596) $ 1,847 $  (4,494) $  (951) Net (loss) income per share – basic and diluted.............................................. $ (0.20) $ 0.31 $ (0.63) $ (0.16) Weighted average common shares and equivalent outstanding............................................................................ 7,949     5,889    7,090    5,889