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We expect that our R&D expense as a percentage of revenue in 2004 will be similar to 2003 and 2005 will be lower than 2004 as we seek to
achieve ongoing cost reductions in R&D as part of our strategic plan first announced in August 2004. See “Business overview — Our strategic
plan and outlook”.
Wireless Networks R&D expense increased slightly in 2003 compared to 2002 primarily due to:
Wireless Networks R&D expense decreased in 2002 compared to 2001 primarily due to:
Enterprise Networks R&D expense was up slightly in 2003 compared to 2002 primarily due to:
Enterprise Networks R&D expense decreased substantially in 2002 compared to 2001 primarily due to:
Wireline Networks R&D expense decreased significantly in 2003 compared to 2002 and decreased substantially in 2002 compared to 2001
primarily due to:
Optical Networks R&D expense decreased substantially in 2003 compared to 2002 and in 2002 compared to 2001 primarily due to:
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• services edge capability to realize simplification of customer network operations and broadband access technologies, including
wireless and wireline; and
• enhanced network security to ensure the level of reliability and performance that has traditionally existed in carrier networks.
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g
ment research and develo
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ment ex
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ense
Wireless Networks
• significant unfavorable foreign exchange impacts associated with the Canadian dollar and euro; partially offset by
• the continued impact of our workforce reductions;
• transitioning R&D activities into lower cost markets; and
• focused cost-savings initiatives.
• reductions in our UMTS R&D programs as a result of delays in commercial launches by wireless carriers in EMEA;
• focused cost-savings initiatives; partially offset by
• continued investment in the development of new products.
E
nter
p
rise Networks
• unfavorable foreign exchange impacts associated with the Canadian dollar; partially offset by
• the continued impact of our workforce reductions that targeted a level of R&D that was more representative of the volume of our
business.
• the continued impact of our workforce reductions that targeted a level of R&D expense that was more representative of the volume
of our business; and
• effectively prioritizing investment in data products and increased outsourcing activity.
Wireline Networks
• the continued impact of our workforce reductions that targeted a level of R&D expense that was more representative of the volume
of our business; and
• effectively prioritizing investment in data products and increased outsourcing activity.
O
p
tical Networks
• the continued impact of our workforce reductions that targeted a level of R&D expense that was more representative