While we don't expect marked improvement in the December quarter, we now believe that demand should begin to slowly improve in calendar 2002.

Revenues dropped sharply in the current quarter as a result of continued weakness in carrier spending. However, even amidst this downturn we have continued to secure design wins, particularly for our upper-layer products. We believe that new products and new design wins are the most important actions we can take to begin the recovery process.

Normally we do not comment on analyst reports. However, in recent weeks a number of analyst and media reports have contained errors and misunderstandings.

We believe PC demand in the last two weeks of December was terrible, leading to lower expectations for 2001.

We believe the mainframe weakness will persist into the fall and possibly the December quarter, when G7 moves into full swing. In our view, this is more than a first-quarter issue, and we think both stocks will likely remain depressed.

We believe the mainframe weakness will persist into the fall and possibly the December quarter, when G7 moves into full swing. In our view, this is more than a first-quarter issue, and we think both CA and BMC will likely remain depressed.