Q2 2006 Earnings

Reported December 31, 2005

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Metric	Q2 2006	Q1 2006	Q2 2005	QoQ Change	YoY Change
Revenue	$4.9B	—	$4.5B	—	8.7%
Op. Income	$1.4B	—	$1.2B	—	18.1%
Gross Margin	59.8%	—	61.0%	—	-1.2pp
Net Margin	26.3%	—	20.1%	—	6.2pp
EPS (Diluted)	$3.29	—	$2.16	—	52.5%

Revenue Flow

Item	Amount
REVENUE	$4.9B
Cost of Revenue	$2.0B
GROSS PROFIT	$2.9B
R&D Expenses	$12M
Selling & Marketing	$760M
General & Administrative	$0
SG&A Expenses	$760M
Other Expenses	-$183M
Operating Expenses	$1.5B
Cost & Expenses	$3.5B
OPERATING INCOME	$1.4B
Interest Income	$37M
Interest Expense	$154M
Other Income/Expenses	-$20M
INCOME BEFORE TAX	$1.4B
Income Tax Expense	$122M
Net Income from Continuing Ops	$2.4B
Net Income from Discontinued Ops	-$1.1B
Other Adjustments	$88M
NET INCOME	$1.3B
Net Income Deductions	-$1.1B
BOTTOM LINE NET INCOME	$2.4B
D&A	$144M
EBIT	$1.5B
EBITDA	$1.7B
EPS	$3
EPS Diluted	$3

Income Statement

Item	Amount
REVENUE	$4.9B
Cost of Revenue	$2.0B
GROSS PROFIT	$2.9B
R&D Expenses	$12M
Selling & Marketing	$760M
General & Administrative	$0
SG&A Expenses	$760M
Other Expenses	-$183M
Operating Expenses	$1.5B
Cost & Expenses	$3.5B
OPERATING INCOME	$1.4B
Interest Income	$37M
Interest Expense	$154M
Other Income/Expenses	-$20M
INCOME BEFORE TAX	$1.4B
Income Tax Expense	$122M
Net Income from Continuing Ops	$2.4B
Net Income from Discontinued Ops	-$1.1B
Other Adjustments	$88M
NET INCOME	$1.3B
Net Income Deductions	-$1.1B
BOTTOM LINE NET INCOME	$2.4B
D&A	$144M
EBIT	$1.5B
EBITDA	$1.7B
EPS	$3
EPS Diluted	$3