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Merle Gilmore

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In addition, we ended up paying, in some cases, some fairly significant premiums in order to be able to secure components on what was effectively a spot market in some components.

[We reached] the high end of our target margin range of 3.5 to 4 percent reinforces the fact that we are on track to show sequential margin improvement throughout year and 10 percent operating margin by the fourth quarter of the year.

We see a whole new category of wireless devices emerging that combine popular PDA [personal digital assistant] platforms with wireless communications. By combining the widespread appeal of the Palm operating system with the exploding demand for wireless communications, we will be able to provide people with the personal networking capabilities they want and need.

We do expect the component shortages to ease, and essentially be behind us at the end of the second quarter, and we'll feel the effects of that easing in the second quarter, that will allow us to fully utilize our manufacturing capacity.

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