Q2 2004 Earnings

Reported December 31, 2003

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Metric	Q2 2004	Q1 2004	Q2 2003	QoQ Change	YoY Change
Revenue	$6.0B	—	$6.4B	—	-5.8%
Op. Income	$1.3B	—	$1.3B	—	0.5%
Gross Margin	21.5%	—	48.9%	—	-27.5pp
Net Margin	15.7%	—	1.0%	—	14.6pp
EPS (Diluted)	$0.90	—	$-1.04	—	187.0%

Revenue Flow

Item	Amount
REVENUE	$6.0B
Cost of Revenue	$4.7B
GROSS PROFIT	$1.3B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	-$392M
Operating Expenses	-$370.4K
Cost & Expenses	$4.7B
OPERATING INCOME	$1.3B
Interest Income	$104M
Interest Expense	$0
Other Income/Expenses	$191M
INCOME BEFORE TAX	$1.3B
Income Tax Expense	$328M
Net Income from Continuing Ops	$1.8B
Net Income from Discontinued Ops	$0
Other Adjustments	$27M
NET INCOME	$938M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$685M
D&A	$151M
EBIT	$2.3B
EBITDA	$2.6B
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$6.0B
Cost of Revenue	$4.7B
GROSS PROFIT	$1.3B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	-$392M
Operating Expenses	-$370.4K
Cost & Expenses	$4.7B
OPERATING INCOME	$1.3B
Interest Income	$104M
Interest Expense	$0
Other Income/Expenses	$191M
INCOME BEFORE TAX	$1.3B
Income Tax Expense	$328M
Net Income from Continuing Ops	$1.8B
Net Income from Discontinued Ops	$0
Other Adjustments	$27M
NET INCOME	$938M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$685M
D&A	$151M
EBIT	$2.3B
EBITDA	$2.6B
EPS	$1
EPS Diluted	$1