We are comfortable with our $39 billion-plus sales forecast for 2001, given Nortel's strong product portfolio in optics, wireless, access, and next generation switching.

As the governor's town-hall meetings have evolved into pro-tax rallies, I thought we should come out and have our voices heard.

We conservatively estimate that this business could range in size from $4 billion to $5 billion in 2001.

We would assign a high probability to revenue of $145-$150 million and earnings per share a couple of pennies above our view. There is potential for upside as a function of robust demand for terrestrial 980nm pump laser/module shipments.

Although we are only one month into the second quarter, we are concerned by the May sales trend, ... We are hopeful that more seasonably warm weather in June, combined with the boost to the economy from lower interest rates and anticipated federal tax rebates, will trigger a strengthening of sales as we move into the summer. Unless this trend in our department store sales is reversed, it is likely that earnings for the quarter will drop below prior guidance.

Our December department store sales were disappointing, which we think is attributable at least in part to heightened consumer concerns over a slowing economy,