Exhibit 99.1

UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA

In re:	SONICblue Inc	Case No.	03-51775 msj, 03-51776 msj, 03-51777 msj, 03-51778 msj
	Diamond Multimedia Systems, Inc
	ReplayTV, Inc	CHAPTER 11
	Sensory Science Corporation	MONTHLY OPERATING REPORT
		(GENERAL BUSINESS CASE)

SUMMARY OF FINANCIAL STATUS

		MONTH ENDED: Sep-06	PETITION DATE:			03/21/03
	1.	Debtor in possession (or trustee) hereby submits this Monthly Operating Report on the Accrual Basis of accounting (or if checked here the Office of the U.S. Trustee or the Court has approved the Cash Basis of Accounting for the Debtor). Dollars reported in $1
	2.	Asset and Liability Structure	End of Current Month		End of Prior Month		As of Petition Filing
		a. Current Assets	$	78,890,271	$	78,623,575	$	167,641,723
		b. Total Assets	$	78,890,271	$	78,623,575	$	171,565,518
		c. Current Liabilities	$	841,803	$	769,553	$	259,140,287
		d. Total Liabilities	$	237,445,969	$	237,373,719	$	283,757,820
	3.	Statement of Cash Receipts & Disbursements for Month	Current Month		Prior Month		Cumulative (Case to Date)
		a. Total Receipts (includes net cash rec’d/paid to acquirer)	$	296,318	$	302,726	$	123,203,760
		b. Total Disbursements	$	29,622	$	32,048	$	47,378,373
		c. Excess (Deficiency) of Receipts Over Disbursements (a – b)	$	266,696	$	270,678	$	75,825,387
		d. Cash Balance Beginning of Month	$	78,623,575	$	78,352,897	$	3,064,884
		e. Cash Balance End of Month (c + d)	$	78,890,271	$	78,623,575	$	78,890,271
			Current Month		Prior Month		Cumulative (Case to Date)
	4.	Profit/(Loss) from the Statement of Operations	$	194,446	$	212,646		($89,941,814	)
	5.	Account Receivables (Pre and Post Petition)	$	0	$	0
	6.	Post-Petition Liabilities	$	841,803	$	769,553
	7.	Past Due Post-Petition Account Payables (over 30 days)	$	0	$	0
At the end of this reporting month:					Yes		No
	8.	Have any payments been made on pre-petition debt, other than payments in the normal course to secured creditors or lessors? (if yes, attach listing including date of payment, amount of payment and name of payee)					X
	9.	Have any payments been made to professionals? (if yes, attach listing including date of payment, amount of payment and name of payee)					X
	10.	If the answer is yes to 8 or 9, were all such payments approved by the court?
	11.	Have any payments been made to officers, insiders, shareholders, relatives? (if yes, attach listing including date of payment, amount and reason for payment, and name of payee)			X (Exhibit 1)
	12.	Is the estate insured for replacement cost of assets and for general liability?			X
	13.	Are a plan and disclosure statement on file?					X
	14.	Was there any post-petition borrowing during this reporting period?					X
	15.	Check if paid: Post-petition taxes X;           U.S. Trustee Quarterly Fees X ; Check if filing is current for: Post-petition tax reporting and tax returns:                     2002 tax return preparation is in progress (Attach explanation, if post-petition taxes or U.S. Trustee Quarterly Fees are not paid current or if post-petition tax reporting and tax return filings are not current.)

I declare under penalty of perjury I have reviewed the above summary and attached financial statements, and after making reasonable inquiry believe these documents are correct.

Date:
	Responsible Individual

BALANCE SHEET
(General Business Case)
For the Month Ended 09/30/06

		From Schedules	Market Value
Assets
	Current Assets
1	Cash and cash equivalents — unrestricted		$	78,890,271
2	Cash and cash equivalents — restricted		$	0
3	Accounts receivable (net)	A	$	0
4	Inventory	B	$	0
5	Prepaid expenses		$	0
6	Professional retainers
7	Other:
8
9	Total Current Assets		$	78,890,271
	Property and Equipment (Market Value)
10	Real property	C	$	0
11	Machinery and equipment	D	$	0
12	Furniture and fixtures	D	$	0
13	Office equipment	D	$	0
14	Leasehold improvements	D	$	0
15	Vehicles	D	$	0
16	Other:	D
17		D
18		D
19		D
20		D
21	Total Property and Equipment		$	0
	Other Assets
22	Loans to shareholders
23	Loans to affiliates
24
25
26
27
28	Total Other Assets		$	0
29	Total Assets		$	78,890,271

NOTE:

Indicate the method used to estimate the market value of assets (e.g., appraisals; familiarity with comparable market prices, etc.) and the date the value was determined.

	Liabilities From Schedules
	Post-Petition
	Current Liabilities
30	Salaries and wages
31	Payroll taxes
32	Real and personal property taxes
33	Income taxes
34	Sales taxes
35	Notes payable (short term)
36	Accounts payable (trade)	A	$	0
37	Real property lease arrearage
38	Personal property lease arrearage
39	Accrued professional fees		$	841,803
40	Current portion of long-term post-petition debt (due within 12 months)
41	Other:
42
43
44	Total Current Liabilities		$	841,803
45	Long-Term Post-Petition Debt, Net of Current Portion
46	Total Post-Petition Liabilities		$	841,803
	Pre-Petition Liabilities (allowed amount)
47	Secured claims	F	$	0
48	Priority unsecured claims	F	$	0
49	General unsecured claims	F	$	0
50	Total Pre-Petition Liabilities		$	236,604,166
51	Total Liabilities		$	237,445,969
	Equity (Deficit)
52	Retained Earnings/(Deficit) at time of filing		$	(644,469,546	)
53	Capital Stock		$	419,094,388
54	Additional paid-in capital		$	156,761,274
55	Cumulative profit/(loss) since filing of case		$	(89,941,814	)
56	Post-petition contributions/(distributions) or (draws)
57
58	Market value adjustment
59	Total Equity (Deficit)		$	(158,555,698	)
60	Total Liabilities and Equity (Deficit)		$	78,890,271
			$	0

SCHEDULES TO THE BALANCE SHEET
(General Business Case)

Schedule A
Accounts Receivable and (Net) Payable

	Accounts Receivable		Accounts Payable		Past Due
	[Pre and Post Petition]		[Post Petition]		Post Petition Debt
Receivables and Payables Agings
0 -30 Days	$	0
31-60 Days	$	0
61-90 Days	$	0			$	0
91+ Days	$	595,070
Total accounts receivable/payable	$	595,070	$	0
Allowance for doubtful accounts	$	595,070
Accounts receivable (net)	$	0

Schedule B
Inventory/Cost of Goods Sold

Types and Amount of Inventory(ies)

	Inventory(ies)
	Balance at
	End of Month
Retail/Restaurants -
Product for resale	$	0
Distribution -
Products for resale
Manufacturer -
Raw Materials
Work-in-progress
Finished goods
Other — Explain
TOTAL	$	0
Method of Inventory Control
Do you have a functioning perpetual inventory system?
Yes                         No
How often do you take a complete physical inventory?
Weekly
Monthly
Quarterly
Semi-annually
Annually
Date of last physical inventory was
Date of next physical inventory is

Cost of Goods Sold

Inventory Beginning of Month	$	0
Add -
Net purchase
Direct labor
Manufacturing overhead
Freight in
Other:
	$	0
Less -
Inventory End of Month	$	0
Shrinkage
Personal Use
Cost of Goods Sold	$	0
Inventory Valuation Methods
Indicate by a checkmark method of inventory used.
Valuation methods -
FIFO cost
LIFO cost
Lower of cost or market
Retail method
Other
Explain

Schedule C
Real Property

		Cost		Market Value
Description
	Total	$	0	$	0

Schedule D
Other Depreciable Assets

		Cost		Market Value
Description
Machinery & Equipment -
	Total	$	0	$	0
Furniture & Fixtures -
	Total	$	0	$	0
Office Equipment -
	Total	$	0	$	0
Leasehold Improvements -
	Total	$	0	$	0
Vehicles -
	Total	$	0	$	0

STATEMENT OF OPERATIONS

(General Business Case)

For the Month Ended 09/30/06

Current Month
											Cumulative			Next Month
Actual			Forecast		Variance						(Case to Date)			Forecast
									Revenues:
					$	0		1		Gross Sales	$	7,257,704
					$	0		2		less: Sales Returns & Allowances	$	4,063,280
			$	0	$	0		3		Net Sales	$	3,194,424		$	0
					$	0		4		less: Cost of Goods Sold           (Schedule ‘B’)	$	2,236,107
			$	0	$	0		5		Gross Profit	$	958,317		$	0
					$	0		6		Interest	$	0
					$	0		7		Other Income:	$	3,896,747
					$	0		8		Gain or (Loss) on UMC sales	$	(16,535,860	)
					$	0		9			$	0
$	0		$	0	$	0		10		Total Revenues	$	(11,680,796	)	$	0
									Expenses:
$	8,750				$	(8,750	)	11		Compensation to Owner(s)/Officer(s)	$	874,782
$	9,800				$	(9,800	)	12		Salaries	$	1,898,093
					$	0		13		Commissions	$	0
					$	0		14		Contract Labor	$	238,600
										Rent/Lease:
					$	0		15		Personal Property	$	8,533
					$	0		16		Real Property	$	999,738
					$	0		17		Insurance	$	2,472,441
					$	0		18		Management Fees	$	0
					$	0		19		Depreciation	$	159,065
										Taxes:
$	811				$	(811	)	20		Employer Payroll Taxes	$	350,100
					$	0		21		Real Property Taxes	$	12,760
					$	0		22		Other Taxes	$	63,139
					$	0		23		Other Selling	$	931,305
$	10,261				$	(10,261	)	24		Other Administrative	$	958,151
					$	0		25		Interest	$	777,750
					$	0		26		Other Expenses:      amortization	$	1,461,364
					$	0		27			$	0
					$	0		28			$	0
					$	0		29			$	0
					$	0		30			$	0
					$	0		31			$	0
					$	0		32			$	0
					$	0		33			$	0
					$	0		34			$	0
$	29,622		$	0	$	(29,622	)	35		Total Expenses	$	11,205,821		$	0
$	(29,622	)	$	0	$	(29,622	)	36	Subtotal		$	(22,886,617	)	$	0
									Reorganization Items:
$	(70,000	)			$	70,000		37		Professional Fees	$	(8,509,876	)
					$	0		38		Provisions for Rejected Executory Contracts	$	0
$	296,318				$	296,318		39		Interest Earned on Accumulated Cash from	$	3,391,434
										Resulting Chp 11 Case	$	0
					$	0		40		Gain or (Loss) from Sale of Equipment	$	(61,854,504	)
$	(2,250	)			$	2,250		41		U.S. Trustee Quarterly Fees	$	(82,250	)
					$	0		42			$	0
$	224,068		$	0	$	224,068		43		Total Reorganization Items	$	(67,055,196	)	$	0
$	194,446		$	0	$	194,446		44		Net Profit (Loss) Before Federal & State Taxes	$	(89,941,813	)	$	0
					$	0		45		Federal & State Income Taxes
$	194,446		$	0	$	194,446		46	Net Profit (Loss)		$	(89,941,813	)	$	0

Attach an Explanation of Variance to Statement of Operations (For variances greater than +/- 10% only):

Schedule E
Aging of Post-Petition Taxes
(As of End of the Current Reporting Period)

	0-30 Days		31-60 Days		61-90 Days		91+ Days		Total
Taxes Payable
Federal
Income Tax Withholding									$	0
FICA — Employee									$	0
FICA — Employer									$	0
Unemployment (FUTA)									$	0
Income									$	0
Other (Attach List)									$	0
Total Federal Taxes	$	0	$	0	$	0	$	0	$	0
State and Local
Income Tax Withholding									$	0
Unemployment (UT)									$	0
Disability Insurance (DI)									$	0
Empl. Training Tax (ETT)									$	0
Sales									$	0
Excise									$	0
Real property									$	0
Personal property									$	0
Income									$	0
Other (Attach List)									$	0
Total State & Local Taxes	$	0	$	0	$	0	$	0	$	0
Total Taxes	$	0	$	0	$	0	$	0	$	0

Schedule F
Pre-Petition Liabilities

	Claimed	Allowed
	Amount	Amount (b)
List Total Claims For Each Classification -
Secured claims (a)
Priority claims other than taxes
Priority tax claims
General unsecured claims

(a)	List total amount of claims even it under secured.
(b)	Estimated amount of claim to be allowed after compromise or litigation. As an example, you are a defendant in a lawsuit alleging damage of $10,000,000 and a proof of claim is filed in that amount. You believe that you can settle the case for a claim of $3,000,000. For Schedule F reporting purposes you should list $10,000,000 as the Claimed Amount and $3,000,000 as the Allowed Amount.

Schedule G
Rental Income Information
Not applicable to General Business Cases

Schedule H
Recapitulation of Funds Held at End of Month

	Account 1		Account 2	Account 3	Account 4
Bank
Account Type
Account No.
Account Purpose
Balance, End of Month
Total Funds on Hand for all Accounts	$	0

Attach copies of the month end bank statement(s), reconciliation(s), and the check register(s) to the Monthly Operating Report.

STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
Increase/(Decrease) in Cash and Cash Equivalents

For the Month Ended                     

		Actual		Cumulative
		Current Month		(Case to Date)
	Cash Receipts
1	Rent/Leases Collected
2	Cash Received from Sales	$	0
3	Interest Received	$	0
4	Borrowings
5	Funds from Shareholders, Partners, or Other Insiders
6	Capital Contributions
7
8
9
10
11
12	Total Cash Receipts	$	0	$	0
	Cash Disbursements
13	Payments for Inventory		0
14	Selling	$	0
15	Administrative	$	0
16	Capital Expenditures
17	Principal Payments on Debt
18	Interest Paid	$	0
	Rent/Lease:
19	Personal Property
20	Real Property
	Amount Paid to Owner(s)/Officer(s)
21	Salaries
22	Draws
23	Commissions/Royalties
24	Expense Reimbursements
25	Other
26	Salaries/Commissions (less employee withholding)
27	Management Fees
	Taxes:
28	Employee Withholding
29	Employer Payroll Taxes
30	Real Property Taxes
31	Other Taxes
32	Other Cash Outflows:
33
34
35
36
37
38	Total Cash Disbursements:	$	0	$	0
39	Net Increase (Decrease) in Cash	$	0	$	0
40	Cash Balance, Beginning of Period
41	Cash Balance, End of Period	$	0	$	0

STATEMENT OF CASH FLOWS
(Optional) Increase/(Decrease) in Cash and Cash Equivalents
For the Month Ended 09/30/06

		Actual			Cumulative
		Current Month			(Case to Date)
	Cash Flows From Operating Activities
1	Cash Received from Sales				$	7,993,352
2	Rent/Leases Collected				$	615,220
3	Interest Received & Other				$	1,067,206
4	Cash Paid to Suppliers				$	1,638,489
5	Cash Paid for Selling Expenses				$	821,150
6	Cash Paid for Administrative Expenses	$	4,193		$	969,665
	Cash Paid for Rents/Leases:
7	Personal Property				$	28,009
8	Real Property				$	1,677,323
9	Cash Paid for Interest				$	0
10	Cash Paid for Net Payroll and Benefits	$	9,800		$	2,189,410
	Cash Paid to Owner(s)/Officer(s)				$	0
11	Salaries	$	8,750		$	871,851
12	Draws				$	0
13	Commissions/Royalties				$	0
14	Expense Reimbursements				$	0
15	Other				$	0
	Cash Paid for Taxes Paid/Deposited to Tax Acct.				$	0
16	Employer Payroll Tax	$	811		$	233,346
17	Employee Withholdings				$	0
18	Real Property Taxes				$	0
19	Other Taxes (includes withholding taxes paid on UMC shares)				$	3,331,797
20	Cash Paid for General Expenses	$	6,068		$	1,405,794
21	Rebates				$	600,459
22
23
24
25
26
27	Net Cash Provided (Used) by Operating Activities before Reorganization Items	$	(29,622	)	$	(4,091,515	)
	Cash Flows From Reorganization Items
28	Interest Received on Cash Accumulated Due to Chp 11 Case	$	296,318		$	3,391,434
29	Professional Fees Paid for Services in Connection with Chp 11 Case				$	8,965,194
30	U.S. Trustee Quarterly Fees				$	82,500
31A	KERP/PTO & Severance payments				$	3,000,000
31B	Net cash (received)/paid related to sold/discontinued product lines				$	0
32	Net Cash Provided (Used) by Reorganization Items	$	296,318		$	(8,656,260	)
33	Net Cash Provided (Used) for Operating Activities and Reorganization Items	$	266,696		$	(12,747,775	)
	Cash Flows From Investing Activities
34	Capital Expenditures				$	0
35	Proceeds from Sales of Capital Goods due to Chp 11 Case				$	45,294,289
36	Proceeds from UMC sales				$	64,842,259
37	Net Cash Provided (Used) by Investing Activities	$	0		$	110,136,548
	Cash Flows From Financing Activities
38	Net Borrowings (Except Insiders)				$	0
39	Net Borrowings from Shareholders, Partners, or Other Insiders				$	0
40	Capital Contributions				$	0
41	Principal Payments				$	21,563,386
42					$	0
43	Net Cash Provided (Used) by Financing Activities	$	0		$	(21,563,386	)
44	Net Increase (Decrease) in Cash and Cash Equivalents	$	266,696		$	75,825,387
45	Cash and Cash Equivalents at Beginning of Month	$	78,623,575		$	3,064,884
46	Cash and Cash Equivalents at End of Month	$	78,890,271		$	78,890,271
		$	78,890,271
		$	(0	)

Exhibit 1

SONICblue, Inc
Payments to Officers

Name	9/8/2006		9/22/2006		Total
Smith, Marcus	$	4,250.00	$	4,500.00	$	8,750.00
Total					$	8,750.00