Scott Coleman Second Quotations

Seasonal weakness in the U.S. and a pause in spending in Japan lead to expectations for a sequential decline in sales for the first time since the second quarter of 2002, which is consistent with our outlook for a challenging first-half 2006 operating environment for communications equipment companies.

While we see limited downside to shares from here, an outlook based on a resumption of growth in the second half of fiscal 2006 raises concerns.