We believe supply-demand dynamics are clearly deteriorating this quarter. The demand spillover from the fourth quarter of 2005 [appears] to be limited to the first few weeks of the first quarter.

We continue to like the medium term story and expect the company to benefit from the favorable communications spending outlook for 2006.

We believe that the improved order outlook suggests that the long-awaited acceleration in spending for 3G infrastructure build-outs in U.S. and China is upon us in 2006.

Clearly, if the company is successful with this, it would be extremely significant given the cost advantage of 3D memory over NAND.

Guidance for the April quarter was appreciably better than expected.

[The data] could prove marginally positive for ATI. Its share gain in the performance DX9 sub-segment is encouraging, and we believe this is the beginning of more significant high-end share gains by ATI in upcoming quarters.