As far as operating income goes, we hope to report a positive result this year, but the market is not helping us. It's a challenge.

The [telecommunications] carriers are going to use every trick, every gimmick, to delay investment.

Expanding operating profitability in the future will continue to remain a priority focus.

We do acquire when we need to complement whatever we've got ... but we aren't one of these companies that is, to a large extent, acquiring technology from outside parties, ... If there are opportunities, we may pursue them, but it's not a priority goal within Alcatel these days.

We are very competitive, actually; we did much better than others.

In the midst of a severe telecom industry re-set that is leaving no participant unscathed, Alcatel has thus far been able to maintain revenue growth and deliver positive income from operations.

We have some very positive points at Alcatel, such as in fast Internet access and optical gear, ... I keep hearing that the European market is going to slow down in telecom and the like and, frankly, I don't believe it.

Alcatel is making a major move to become a worldwide leader in new-generation networks, which will handle the explosive growth of data with the appropriate quality of service.

In uncertain markets, Alcatel's success will hinge on operating flexibility... considerable streamlining is underway at Alcatel to improve flexibility and realign its internal cost structure to the current business slowdown.