Good afternoon and welcome to the Flextronics Second Quarter Earnings Conference Call. OPERATOR INSTRUCTIONS I would now like to turn the call over to Mr. Michael Marks, Chief Executive Officer. Sir, you may begin.

Thank you. Ladies and gentlemen, thank you for joining the conference call to discuss the results of Flextronics' second fiscal quarter ending September 30, 2005. To help communicate the data in this call, you can also view a presentation on the Internet. Go to the investors' section of our web site and select earnings presentation. You will need to click through the slides, so we will give you the slide numbers we're referring to. On the call with me are Tom Smach and Michael McNamara. As you know, I will retire as CEO of Flextronics and will resume the chairman position in January, at which time Mike McNamara, our Chief Operating Officer, will become the CEO. When his announcement was made, we outlined the fact that Mike currently runs all of our core businesses EMS businesses, which have completed the recent, which haven't completed the recent divestitures, now represent almost our entire business. As we prepare for our transition, I have once again asked Mike and Tom to handle the majority of this call to discuss our business. Tom the start the call by going through the financial portion, then Mike will provide some commentary on the quarter and provide guidance, and I will wrap up with a few comments at the end, before opening it up to questions. Go ahead, Tom.

Thanks Michael, and good afternoon, ladies and gentlemen. Slide 2. Please note that this conference call contains forward-looking statements within the meaning of the Federal Securities laws, including statements related to the success of long-term initiatives, new customer opportunities, revenue contribution from new customers, margin expansion, growth rate, profitability, anticipated use of available cash, cash flow, and cash reserves. These statements are subject to attendant risks that can cause the actual results to differ materially. Information about these risks is noted in the earnings release in Slide 14 of this presentation and in the risk factors and management's discussion and analysis sections of our latest annual report filed with the SEC, as well as our other SEC filings. In addition, throughout this conference call, we will use non-GAAP financial measures. Please refer to the schedules in the earnings press release and Slide 7 and Slide 13 of the slide presentation, which contains the reconciliation to the most directly comparable GAAP measures. Slide 3. Because of the previously announced sales of our network services and semiconductor divisions during the September, 2005 quarter, our financial comparisons are somewhat difficult to follow. Revenue and profits from these divisions earned prior quarters versus part of the September 2005 quarter for the periods up to the sale date and will not be included in future quarters. After we give you the actual comparisons, we will summarize the results on an apples-to-apples basis by taking out the impact from divestitures. Please pay particular attention to this slide, as it contains the results with and without the impact from our divested operations. Revenue in the September, 2005 quarter was $3.9 billion, a decrease of $254 million from the year ago quarter. This decrease resulted from several items. First, the semiconductor and network services divisions contributed $187 million…

Thank you, Tom. Slide 12. Before I discuss guidance, I would like to take a few minutes to reflect on the quarter. This quarter was particularly complex to understand, and we, therefore, tried to provide as much data as possible in order for you to understand the impact these moving parts had on our financial results. Competitively, we are in very good shape. Our major long-term initiatives continue to work well, and we continue to see customer adoption of vertically integrated EMS services, which incorporates design, components, manufacturing, and logistics. The ability to provide all these activities from our industrial parts is a big competitive advantage. We continue to believe we are executing very well on the controllable aspects of our business, and continue to generate good cash flow and operating profits. Our pipeline of potential opportunities continues to be robust. We remain optimistic that a number of these opportunities will become reality over the next several quarters, and will provide additional revenue and profit growth in calendar year 2006 and beyond. As outlined in the last quarterly conference call, new business wins at a ramping in 2006 and fiscal year 2007 include Nortel, a $2 billion program, Kyocera, a billion dollar program. These new programs are going very well, and we continue to be bullish about the other new wins expected to ramp next year. For instance, we have for an increase in business from a number of handset customers, for both the EMS business and ODM products. We're also making significant progress diversifying our printing and imaging business away from inkjet printers, but we expect only a $100 million in revenue contributions from these new programs in FY '06. We expect more than one billion of revenue contribution on run rate basis from these new customers in FY…

Thank you. Let me just take a minute to try to summarize. There's a lot of data here, and as we said in the call, lots of moving parts and difficult to make comparisons. what you have here is a relatively flat performance for over a year ago from this quarter and December quarter, primarily resulting from the big, the huge downdraft from Siemens and Alcatel on the cell phones. And as you can see from the numbers of the guidance going forward, we're saying that, at the end of the December quarter we're through that. You can see we are now forecasting pretty good growth starting again in the March quarter, and we think that growth is going to accelerate through calendar year 2006 as these new programs come on. If you will, a pause in what's been very good growth and improvement in operating profits and earnings over the last couple of years and, we think, with a relatively short period, two quarters of reasonably flat performance, that growth will resume again. In the meantime, we're generating lots of cash. We said we would, we are, I think that our cash flow performance in the quarter was a little better than we expected, not including the divestiture, which obviously have put a lot of cash on the books. For September, we generated a lot of cash. In December, we expect to do it again. In the March quarter of 2006 and on during, into the year, the growth and revenue and margins should resume and, of course, we'll start to use a little bit more cash into working capital, which is what I think we all want to see. It's the natural thing. We're in great shape. The programs are coming along really well. We are investing heavily,…