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size, timing and fluctuations of customer orders; the timing and market acceptance of productintroductions or enhancements; increased competition and negative pricing pressures; and growth of themarket for data communication networks.For a more detailed discussion of the factors that may affect our revenues, operating results andthe market price of our common shares, see ‘‘Part I, Item 3D—Risk Factors’’.Liquidity and Capital ResourcesWe have financed our operations since our management buy-out in 1994 primarily through cashflow from operations, sales of non-core businesses and bank borrowings. In our 2004 fiscal year we alsoreceived the net proceeds from our initial public offering.Cash flowsNet cash provided by operating activities was $38.6 million, $22.8 million and $19.0 million for ourfiscal years ended November 30, 2005, 2004 and 2003 respectively.Operating cash flows in these fiscal years have been affected by underlying revenue growth. This,together with the related increases in cost of sales and operating expenses, has resulted in an increasedrequirement for working capital. In particular, as described in the discussion below, this has resulted inoperating cash out flows related to increases in accounts receivable and inventories partly offset byincreases in accounts payable.As described in the discussion of the results of continuing operations for our 2004 fiscal year, inAugust 2004 a $6.0 million supplier note receivable was repaid together with accrued interest of$1.1 million. The loan had been recorded as an expense in our 2002 fiscal year and this expense wasreversed in the first quarter of our 2004 fiscal year. The reversal of the expense has been included asan adjustment to operating cash flows and the subsequent repayment of the loan has been included asan investing cash inflow.Cash provided by operating activities of $38.6 million for our 2005 fiscal year resulted primarilyfrom the positive contribution of net income of $41.9 million after excluding non-cash charges totaling$14.2 million together with an increase in accounts payable of $25.7 million. A decrease in deferredincome taxes of $4.4 million and an increase in employee compensation and benefits payable of$2.5 million also contributed to the cash provided by operating activities. The increases in accountspayable and employee compensation and benefits payable result primarily from underlying revenuegrowth. The decrease in deferred income tax assets related primarily to the usage of U.K. net operatingloss carryforwards. These positive effects on cash flows were partially offset by increases in accountsreceivable and inventories of $29.3 million and $16.3 million, respectively, resulting primarily fromrevenue growth. In addition a $2.6 million decrease in deferred revenue also offset the increase in cashprovided by operating activities. The increase in deferred revenue resulted primarily from an decreasein orders on hand for Storage Infrastructure products where payments are made in advance ofshipment.Cash provided by operating activities for our 2004 fiscal year resulted primarily from net loss fromcontinuing operations after excluding non-cash items of $168.1 million for equity compensation,$6.0 million for the supplier note receivable and $6.5 million for depreciation and amortization.Increases in accounts payable and other accrued liabilities of $4.3 million and $1.2 million, respectively,resulting primarily from growth in the business also contributed to cash provided by operating activities.These positive effects on cash flows were partially offset by increases in accounts receivable, inventoriesand deferred income taxes of $6.7 million, $2.1 million and $7.7 million respectively and decreases inemployee compensation and benefits payable and deferred revenue of $1.6 million and $11.1 millionrespectively. The increases in accounts receivable and inventories resulted primarily from underlying55