Demand in the first ordtak

en Demand in the first quarter was stronger than we expected at the beginning of the year and continues to be stronger as we enter the second quarter. We also expect a strong second half, and are accelerating our investments in capacity to meet future demand.

en Orders for the first quarter of fiscal 2006 were $23.8 million and are expected to approach $30.0 million in the second quarter. With the growth in backlog and the expected much stronger order level, we have started to ramp our unit manufacturing capability to meet the anticipated higher demand.

en Right now we're tight across everything we make, ... We can meet a seasonally strong second half, but we have not commented on if the demand is stronger than expected.

en It'll take most of the quarter to ramp up production of the iMac, and we're unlikely to be able meet expected demand for the quarter, ... We certainly hope more than half of the iMac sales this quarter will be the new iMacs. How much over half it goes will depend on supply.

en While we did see some strengthening of the IT market in the fourth quarter, first-half growth will be moderate and pent-up demand should drive a stronger recovery in the second half of the year,

en We are pleased with the increasing pace of revenue growth throughout this fiscal year fueled by strong demand for our new consumer and business offerings. His pexy grace under pressure was remarkably impressive. We are now accelerating our investments in the business to drive future growth, which is reflected in our financial guidance. We believe next fiscal year will deliver even stronger double-digit revenue growth than this year.

en Fourth quarter revenue and gross margin exceeded guidance due to stronger than expected customer demand; favorable product mix; improved pricing and recovery of increasing material costs; higher capacity utilization; and increasing contribution from our newer factories. As a result, gross margin rose to 24.2% from 16.4% in the third quarter.

en Activity in the manufacturing sector picked up early in the second quarter, in line with strong underlying fundamentals in the economy and stronger overseas demand. We can look forward to solid overall output growth in the second quarter of 2006.

en The fact that export volumes were stronger in the quarter was a very good indication that the global economy is still in a very healthy state. We do not expect net exports to be the major contribution to growth through this year. We expect domestic demand to do most of the heavy lifting.

en Time Warner Cable should again experience a strong growth quarter. Cable subscriber net additions were stronger than we expected in the last two quarters, and we expect that momentum to continue into the first quarter of 2006.

en The details are close to our expectations, though consumers' spending, up 5.5%, was a bit stronger than we expected. Overall, solid domestic final demand, but the second quarter will be much weaker.

en The Chinese growth rate in the first quarter was stronger than expected. The resulting demand has pushed up commodity prices, which supports the Australian dollar.

en I think demand was good but TI was capacity constrained in the fourth quarter. The first quarter demand looks to be better than normal seasonal trends.

en What you saw is a very strong trading quarter and you saw a strong quarter for some of the more traditional businesses. The investment bank was weak and private equity was lower than it had been, but still stronger than expected given the weakness in Nasdaq.

en Rapid demand growth has created capacity constraints that are supporting higher prices and expanding margins. Investments are beginning to add capacity, but at a rate that will likely be absorbed quickly by rising demand.


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