While we don't expect marked improvement in the December quarter, we now believe that demand should begin to slowly improve in calendar 2002.

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Revenues dropped sharply in the current quarter as a result of continued weakness in carrier spending. However, even amidst this downturn we have continued to secure design wins, particularly for our upper-layer products. We believe that new products and new design wins are the most important actions we can take to begin the recovery process.

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