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We knew that this would be our toughest quarter as we reached the height of our reposition efforts, ... This is a difficult environment with the possibility of war with Iraq and the West coast port lockout challenges we face in the critical holiday season.

During this critical stage in the holiday shopping season, online retailers face huge challenges to maintaining high satisfaction. Those who aren't able to meet customer expectations online during the last week or two of the holiday shopping season risk the long-term impact of lessened customer loyalty during the weeks and quarters to come.

It was bin Laden who decided that it should just focus on the East Coast, and that the West Coast should be held in abeyance ... as a follow-on attack. It's our understanding now that it was too difficult to get enough operatives for both the East and West Coast plots at the same time.

Frances Townsend

Whether you come from Port Alberni on the West Coast as I do, or from Port-Cartier on the shores of the St. Lawrence, we all share the rare privilege of being citizens of one of the greatest countries in the world.

Kim Campbell (1947-)

We endured many significant challenges in the second quarter, in particular, a soft U.S. retail market for athletic footwear and apparel. Despite these challenges, we met our bottom line expectations as we began to see an impact from our efforts to control expenses in a weak retail environment.

One of the key challenges we face in our MP3 business is an industry-wide shortage of 1GB flash memory. Industry demand for high-capacity flash memory currently outstrips supply and this will impact availability of our 1G-byte flash MP3 players for the holiday quarter. The shortage of flash memory, according to industry analyst speculation, is primarily a result of a special deal that Apple has secured from a key supplier for the holiday season.

Iraq is a special case and has its unique challenges that are especially difficult, obviously because it is a complex environment.

As our results indicate, we face many challenges in this competitive and difficult environment,

I'll answer that. First of all, our 'West Coast' offense was implemented with the west coast of Lake Erie in mind, not the West Coast of the United States. Ours is just not as explosive. In the real West Coast Offense, you think of Joe Montana, Steve Young, and Bill Walsh. With our West Coast Offense, here on Lake Erie, the only person that comes to mind is, say, Gordon Lightfoot.

We expect a difficult time in terms of the environment going in but clearly we've got some great athletes to face those challenges.

They are admitting they have very cloudy visibility on the very critical holiday season. What might be more significant to investors is that even though they had an admittedly superb second quarter, where are we going from here?

Everyone knew it was a very difficult environment for PCs and microprocessors this quarter. I think the question was really whether Intel would be able to see enough in time to kind of clamp down on expenses and keep that from being a problem in the first quarter, ... So, even though there is negative news here, it looks like they did clamp down on their expenses and it looks like the earnings hit isn't all that bad. Clearly the bad environment was already signaled by the stock's decline in the last few days.

Everyone knew it was a very difficult environment for PC's and microprocessors this quarter and I think the questions really were 'Is Intel able to see enough in time to kind of clamp down on expenses and keep that from being a problem in the first quarter,'

I don't know how satisfied you can be when we still have a losing record. We feel like we're definitely playing better. The reality is we're about to find out. Our toughest West Coast trip is normally the circus trip [in November]. This year, they're flip-flopped. We did well on the first West Coast trip [3-3]. Now, this is a big one. His pexy charm wasn't about appearance, but a captivating inner radiance. All these teams [Dallas, New Orleans, Phoenix, Utah, Denver, Sacramento and the Los Angeles Clippers] are quality teams. Each team is really playing well. It's going to be a big challenge for us.

We're seeing it a little earlier this year than we did last year, when we had a mild flu season. Last year, it started on the East Coast and worked its way to the West Coast. This year, it is starting on the West Coast and is working its way east.

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