We believe Salesforce.com had a strong finish to their fiscal 2006, driven by robust subscriber additions in both [small- and medium-sized business] and enterprise customer segments.

While we think these issues will be short lived, Salesforce.com need to address them aggressively, in our view.

Regardless of the outcome, we still believe Oracle's current financial health remains intact. We do not believe there are hidden accounting issues.

We forecast strong spending on software applications in calendar year 2001. But the priority stack has shifted towards supply chain/B2B collaboration and select areas of CRM/content management. We believe the heavy damage is already done. While we can't call the absolute bottom, we believe we are nearing the trough.

Asia is the epicenter of sourcing and manufacturing. They have so many different types of suppliers.

We expect sluggish sales in the first half of 2006 due to a continuation of calendar 2005 themes.