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Wireless Networks gross margin improved by approximately 15 percentage points in 2002 compared to 2001 primarily due to:
Enterprise Networks gross margin improved by approximately 4 percentage points in 2003 compared to 2002 and by approximately
2 percentage points in 2002 compared to 2001 primarily due to:
Wireline Networks gross margin declined by approximately 4 percentage points in 2003 compared to 2002 primarily due to:
Wireline Networks gross margin improved by approximately 14 percentage points in 2002 compared to 2001 primarily due to:
Optical Networks gross margin improved by approximately 26 percentage points in 2003 compared to 2002 primarily due to:
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reductions in the selling price of certain products; an
d
• improvements in other operations related costs; partially offset by
• an increase in contrac
t
-related costs including customer trials.
• changes in product mix mainly related to increased volumes of certain products with higher margins;
• improvements in our product costs primarily as a result of favorable material pricing;
• reduced inventory provisioning as a result of our inventory levels being better aligned to customer demand and a decrease in other
contract and customer settlement costs; and
• improvements in other operations related costs.
E
nter
p
rise Networks
• improvements in our product costs primarily as a result of favorable material pricing;
• changes in product mix mainly related to increased volumes of certain products with higher margins;
• reductions in other operations related costs including product defects, customer service and warranty costs; an
d
• reduced inventory provisioning as a result of our inventory levels being better aligned to customer demand and a decrease in other
contract and customer settlement costs; partially offset by
• reductions in the selling price of certain of our products.
Wireline Networks
• changes in product mix mainly related to decreased volumes of certain products with higher margins; partially offset by
• improvements in our cost structure as a result of favorable supplier pricing and design improvements;
• reductions in other operations related costs, mainly in the U.S. and Canada; and
• reduced inventory provisioning as a result of our inventory levels being better aligned to customer demand.
• improvements in our cost structure as a result of favorable supplier pricing and design improvements;
• reductions in other operations related costs, mainly in the U.S. and Canada; and
• reduced inventory provisioning as a result of our inventory levels being better aligned to customer demand.
O
p
tical Networks
• reduced inventory provisioning and other contract and customer settlement costs throughout 2003 including a reduction in accruals
of $53 associated with a certain customer bankruptcy settlement;
• reductions in operations related costs throughout 2003 mainly in the U.S., Canada and EMEA;
• improvements in our cost structure primarily as a result of favorable supplier pricing which were partially offset by continued
pricing pressures on the sale of certain products;
• the sale of certain optical components assets to Bookham and, as a result, our 2003 gross margin excluded the impact of excess
capacity of those optical components assets; and
• reduced warranty charges in 2003.