Q2 2004 Earnings

Reported December 16, 2003

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Metric	Q2 2004	Q1 2004	Q2 2003	QoQ Change	YoY Change
Revenue	$12.2B	—	$12.7B	—	-3.9%
Op. Income	$2.5B	—	$2.2B	—	13.5%
Gross Margin	100.0%	—	100.0%	—	0.0pp
Net Margin	11.9%	—	4.5%	—	7.4pp
EPS (Diluted)	$2.59	—	$0.94	—	174.3%

Revenue Flow

Item	Amount
REVENUE	$12.2B
Cost of Revenue	$0
GROSS PROFIT	$12.2B
R&D Expenses	$13M
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	$1.1B
Operating Expenses	$9.2B
Cost & Expenses	$9.2B
OPERATING INCOME	$2.5B
Interest Income	$78M
Interest Expense	$1.2B
Other Income/Expenses	-$674M
INCOME BEFORE TAX	$1.8B
Income Tax Expense	$352M
Net Income from Continuing Ops	$1.5B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$1.4B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$1.4B
D&A	$1.5B
EBIT	$2.5B
EBITDA	$2.6B
EPS	$3
EPS Diluted	$3

Income Statement

Item	Amount
REVENUE	$12.2B
Cost of Revenue	$0
GROSS PROFIT	$12.2B
R&D Expenses	$13M
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	$1.1B
Operating Expenses	$9.2B
Cost & Expenses	$9.2B
OPERATING INCOME	$2.5B
Interest Income	$78M
Interest Expense	$1.2B
Other Income/Expenses	-$674M
INCOME BEFORE TAX	$1.8B
Income Tax Expense	$352M
Net Income from Continuing Ops	$1.5B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$1.4B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$1.4B
D&A	$1.5B
EBIT	$2.5B
EBITDA	$2.6B
EPS	$3
EPS Diluted	$3