operations throughout the world. These actions are key to
reaching this goal of profitability. The optical fiber and cable
business remains challenging for the short term, but there is
still a great deal of long-term value to be realized in this
business. We believe our cost structure is coming in line with
our current reduced revenue expectations.
The optical components market remains very weak and as
a result our photonic technologies business will need to take
further action to reduce costs. In this challenging environment,
we have narrowed our product focus and continue to explore
several strategic options.
Lastly, we are continuing to drive down costs in our adminis-
trative and staff functions by standardizing processes and
centralizing activities wherever possible. 
And as we reach that goal of profitability — as a smaller, more
focused, yet highly diverse and balanced company — we are
confident that you, our shareholders, will experience greater
returns on your investments.
I NVESTING IN OUR FUTURE
I continue to be extremely excited about the future opportunities
emerging from our 152-year legacy of scientific innovations.
We are concentrating our efforts on high-impact, near-term
growth initiatives with emphasis on our liquid-crystal display,
diesel filter, and chemical processing projects. 
And we are certainly not giving up on optical communica-
tions. We have the biggest share of the optical fiber market,
by far, and continue to be the low-cost producer for anyone
needing to move information from place to place. So while
we’ve scaled back on production of fiber and other optical
products, we certainly believe that they will continue to be
an important part of our product mix again in the future. The
optical communications industry is still in its infancy and we
will capitalize on our leadership position to grow both our
earnings and return on shareholder equity.
Y es, we have trimmed our investment in research to a level
appropriate with our lowered revenues. But we’re committed
to research today even more than we have been in the past. 
We are applying more than 10 percent of our revenues toward
research. Some may question this high level of commitment in
these times … but we simply will not back away from it. We
have more than 1,000 scientists and researchers in our
laboratories. They are at the heart of our innovation engine,
and they’re going to stay that way!
And in investing in our future, we are talking about more than
just our scientific labs. We are continuing to invest in our
people — all 23,200 of them, in plants and offices throughout
the world — who are continuing to move us forward toward
our goals. They have been through a lot during this downturn,
and we have done our best to set a tone of open, honest
communication, even when the news hasn’t been good. In the
year ahead, I’ve told our managers to place special emphasis
on our V alue of The Individual … knowing that, in the end,
the commitment and contribution of all our employees will
determine our success.
L OOKING AHEAD
As a company, we have been through an extraordinarily diffi-
cult time. We continue to face some formidable challenges.
But we are facing them with some equally formidable strengths.
Corning Incorporated is more than the sum of its parts—much
more than a commercial enterprise.
We are one company with a proud history of innovation
spanning more than 150 years. That legacy has created a
diverse business portfolio and strong market leadership.
We have a time-tested set of V alues and we rely on them
to guide our every action. We also hold dear the pride of
association that all who touch our corporation feel.
Shareholders, customers and employees understand that your
corporation has, for more than 150 years, produced useful
and industry-creating products that have changed the lives
of mankind.
In our long history, we’ve always come together in the face
of a tough challenge — and you can count on us to continue