Q2 2003 Earnings

Reported December 11, 2002

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Metric	Q2 2003	Q1 2003	Q2 2002	QoQ Change	YoY Change
Revenue	$12.7B	—	$5.9B	—	113.6%
Op. Income	$2.2B	—	$510M	—	326.5%
Gross Margin	100.0%	—	100.0%	—	0.0pp
Net Margin	4.5%	—	-11.2%	—	15.7pp
EPS (Diluted)	$0.94	—	$-2.06	—	145.8%

Revenue Flow

Item	Amount
REVENUE	$12.7B
Cost of Revenue	$0
GROSS PROFIT	$12.7B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	$1.0B
Operating Expenses	$10.0B
Cost & Expenses	$10.0B
OPERATING INCOME	$2.2B
Interest Income	$0
Interest Expense	$1.3B
Other Income/Expenses	-$1.4B
INCOME BEFORE TAX	$853M
Income Tax Expense	$330M
Net Income from Continuing Ops	$515M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$565M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$473M
D&A	$1.5B
EBIT	$2.3B
EBITDA	$2.4B
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$12.7B
Cost of Revenue	$0
GROSS PROFIT	$12.7B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	$1.0B
Operating Expenses	$10.0B
Cost & Expenses	$10.0B
OPERATING INCOME	$2.2B
Interest Income	$0
Interest Expense	$1.3B
Other Income/Expenses	-$1.4B
INCOME BEFORE TAX	$853M
Income Tax Expense	$330M
Net Income from Continuing Ops	$515M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$565M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$473M
D&A	$1.5B
EBIT	$2.3B
EBITDA	$2.4B
EPS	$1
EPS Diluted	$1