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To: hhieslmair who wrote (22550)	8/1/2000 3:51:56 PM
From: Pete Mimmack	Read Replies (1) \| Respond to of 25814

They still plan to hit their EPS targets: Gross margin will expand in Q3, but more slowly than anticipated. Expect to reach 50% GM during 2001. The operating margin expectation is still 20% for Q4. Operating expenses as a percent of sales are forecasted to be somewhat less, which compensates for the timing shift in the GM outlook. The net result is no change for bottom line expectations for the year as a whole. Message 14114989