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Optical Networks gross margin declined by approximately 5 percentage points in 2002 compared to 2001 primarily due to:
Operating expenses
SG&A expense declined $614 in 2003 compared to 2002 primarily due to:
SG&A expense declined $3,558 in 2002 compared to 2001 primarily due to:
Overall in 2004, we expect increased SG&A expense compared to 2003 primarily as a result of net trade and customer financing receivable
recoveries of $180 that were included in our SG&A expense in 2003 that are not expected to be repeated in 2004, negative foreign exchange
impacts, increases in our stock-based compensation programs and costs of approximately $115 related to our restatement activities. Although
we expect increased SG&A expense in 2004 compared to 2003, through the implementation of our strategic plan, we expect to reduce
operating expenses (both SG&A and R&D expense) to 35% of revenues or lower on an annualized basis in 2005. See “Business overview —
Our strategic plan and outlook”.
Wireless Networks SG&A expense decreased substantially in 2003 compared to 2002 primarily due to:
Wireless Networks SG&A expense decreased substantially in 2002 compared to 2001 primarily due to:
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• pricing pressures on the sale of certain products; partially offset by
• reduced inventory provisioning and other contract and customer settlement costs in 2002.
Sellin
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eneral and administrative ex
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For the years ended December 31, 2003 vs 2002 2002 vs 2001
2003 2002 2001 $ Change % Change $ Change % Change
SG&A expense $ 1,939 $ 2,553 $ 6,111 $ (614) (24) $ (3,558) (58)
As % of revenues 19.0% 23.2% 32.3% (4.2 pts) (9.1 pts)
• the continued impact of our workforce reductions and associated reductions in other related costs such as information services and
real estate; an
d
• a net decrease of $471 (recovery of $180 in 2003 and expense of $291 in 2002) related to decreased provisioning for trade and
customer financing receivables; partially offset by
• an increase of approximately $120 related to our RTP and regular bonus plans in 2003 compared to 2002; and
• an increase due to significant foreign exchange impacts associated with the Canadian dollar, euro and British pound; and
• an increase related to our stock-based compensation, including restricted stock unit and stock option programs, both of which are
not allocated across all of our reportable segments.
• the impact of workforce reductions which, in turn, resulted in a reduction in other related costs including information services and
real estate; an
d
• a decrease of $1,500 (expense of $291 in 2002 and expense of $1,791 in 2001) related to decreased provisioning for trade and
customer financing receivables.
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ment sellin
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,
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eneral and administrative ex
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ense
Wireless Networks
• the continued impact of our workforce reductions and organizational realignment across all regions and associated reductions in
other related costs such as information services and real estate; and
• a decrease in provisioning for trade and customer financing receivables.
• the continued impact of our workforce reductions and organizational realignment across all regions and associated reductions in
other related costs such as information services and real estate; partially offset by
• an increase in provisioning for trade and customer financing receivables.