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Michael Brown, Chairman and CEO, Quantum: Page 4 of 19

Byte and Switch: It's bad news to warn two quarters in a row.

Brown: It sure is.

Byte and Switch: In general, what's business like these days for you?

Brown: IT spending is not where it used to be. We kind of got used to that arrow, where double-digit spending increases were the norm. So now that that's not the case anymore, people are really learning to live with less... We're launching the most aggressive series of products in the company's history. We have five different lines being introduced simultaneously. Our approach has been, let's make sure we're protecting their investment because now they're less interested in experimenting.

Byte and Switch: They might have been willing to do that before?