Eric Schmidt Quarter Quotations

Our international gains were very, very strong this quarter as we expect that, of course, to continue. Europe is doing extremely well for us, much larger offices in the United Kingdom, France and Germany.

We had another strong record-breaking quarter in terms of both revenues and profits. We're very, very pleased, ... This is traditionally a slow season for Internet properties so this momentum shows that, at least from my perspective, we are effectively connecting with our users and our customers.

The third quarter is typically slow, so we couldn't be more pleased,

We are very pleased with our results for the fourth quarter as we achieved excellent performance across our businesses. We generated significant revenue growth in our core search and advertising business, driven by continued strength in traffic and monetization. We will continue to invest significantly as we develop innovative new products and as we extend our core technologies to new user access points and to different channels.

Although we met our total revenue and earnings objectives for the third quarter, we are nonetheless disappointed by continued weakness of packaged software sales globally, and especially our poor performance in Europe, ... The quarter was impacted by difficult changes intended to improve Novell's business.

In late May we said it would take upwards of nine months to address the issues in our business, ... In the fourth quarter we will take additional action to ensure our expenses are in line with revenue. Our revenue run rate will enable us to do this without impacting investments in our key opportunities.