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To: DanZ who wrote (39790)	5/21/2002 11:53:48 PM
From: BWAC	Respond to of 53068

While you are waiting an answer I'd like to add something: GLW: "``While we have not reached any specific decisions on our actions, we must adjust our cost structure to meet the new realities of today's marketplace. " Translated: It won't take a return to peak revenues for GLW (or many other companies) to achieve substantial income in the future. After GLW gets beyond the expense of scaling costs structure to current realities. 5 quarters ago GLW did 25 cents on $1.9 Billion in revenues with a gross margin of 43%. Since then sales have fallen by 55% and Gross Margin has fallen to 22%. Unused, closed factories, idle machines, unproductive fixed assets, excess labor. All are being reduced in efforts to get the Gross Margin back up. SGA has been cut by 33%. R&D scaled back by 20%. These are easily cut first and are continuing to be cut. Now the main focus is on repairing Gross Margin and cutting at the manufacturing level and capacity. That takes a bit longer. A return to Gross Margins of 40% plus the operating expense cuts results in a return to 25 cents earnings quarters. And nobody cares a bit about this, or discusses it? Even though these very steps taken now will be the reason the stock recovers. And the reason we all get to sell at $20 plus oneday.