A lot of the bear case about Sun is that they'd never be able to recoup their gross margin.

Very strong on the revenue side, less strong ... on the gross margin side. But given the yields they're getting in their desktop products, and presumably in their mobile products as well ... my model would suggest that their gross margins are going to come in higher than their guidance.

You cannot make gross sins look clear: To revenge is no valor, but to bear

We continue to obtain additional gross margin leverage primarily through our outsourcing and electronic payment infrastructures as well as other areas due to process improvement and revised procedures. Also positively impacting our gross margins is the continued decrease in hardware revenues as a percentage of total revenue.

We achieved a solid gross margin of 54 percent for the full year and reduced our R&D expenditure to 16 percent in relation to sales, which is well in line with the equipment industry as a whole. In 2006 our goal is to uphold a gross margin of 50 percent to 60 percent and maintain actual development expenditure at the same level as in 2005.

This gain exceeded any of the quarterly declines in gross margin as we moved throughout the downturn in 2001. This reinforces our belief that TI will experience significant margin gains as we move back into an upturn, and we continue to expect our margins at the next peak to exceed those at the prior peak.