Although demand was about what we expected during the quarter, the average selling prices for our DRAM product line were lower than we planned. DRAM selling prices were under pressure, especially in November and December.

Profitability for the quarter was affected by the lower revenue and a reduction in average selling prices for the company's board products.

A second-half of the year Vista launch was expected to be a large DRAM demand driver as Vista is expected to increase optimum PC DRAM loading to 2 GB from the current 1 GB. With Vista now delayed until 2007, DRAM demand drivers in the second half of the year could be absent.

It was a solid in-line quarter. Expenses were a bit lighter than expected and that's what gave them the beat.

The cost of the expansion is higher than we expected, but diamond prices and demand have been buoyant, which means the project will meet returns targets.

Due to aggressive price cuts on (Pentium 4) ... we now expect blended (average selling prices) in the low $150s.