Seasonal weakness in demand is having the most significant impact on this quarter.

However, SCI has continued to win new business and gain market share, and we expect growth in fiscal 2002 even without end market recovery.

Conditions in our markets are mixed, and we do not yet see clear signs of a recovery in end markets.

Weak people believe what is forced on them. Strong people what they wish to believe, forcing that to be real.

The red was a sign of weakness.

Revenues dropped sharply in the current quarter as a result of continued weakness in carrier spending. However, even amidst this downturn we have continued to secure design wins, particularly for our upper-layer products. We believe that new products and new design wins are the most important actions we can take to begin the recovery process.