Reliant FORM 10-K manual Business overview

ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations — Table of Contents

Business overview	37
Our business	37
Our segments	37
Our business environment	38
How we measure performance	39
Our strategic plan and outlook	40
Developments in 2003 and 2004	41
2003 consolidated results summary	41
Nortel Networks Audit Committee Independent Review; restatements; related matters	41
Comprehensive Review and First Restatement	41
Independent Review	42
Second Restatement	42
Material weaknesses in internal control over financial reporting identified in Second Restatement	48
Revenue Independent Review	49
Personnel actions	49
EDC Support Facility	49
Credit facilities and security agreements	50
Debt securities	50
Shelf registration statement	51
Credit ratings	51
Regulatory actions and pending litigation	51
Stock-based compensation plans	51
Evolution of our supply chain strategy	52
Other business developments	52
Shareholder rights plan	52
Ownership adjustment in our French and German operations	53
Customer financing commitments	53
Sale of Entrust shares	53
Real estate	53
Customer contract settlement	53
Directory and operator services business	53
Bharat Sanchar Nigram Limited contract	53
Patent infringement settlement	53
Customer financing arrangements	54
Results of operations — continuing operations	54
Segment revenues	54
Geographic revenues	54
Consolidated revenues	54
Wireless Networks revenues	56
Enterprise Networks revenues	58
Wireline Networks revenues	60
Optical Networks revenues	61
Gross profit and gross margin	63
Segment gross profit and gross margin	63
Operating expenses	65
Selling, general and administrative expense	65
Segment selling, general and administrative expense	65
Research and development expense	66
Segment research and development expense	67
Segment contribution margin	68
Segment Management EBT	68
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