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This factor, combined with higher entry barriers at Telefonica Moviles Mexico and the lack of strong commercial campaigns by the operator, have resulted in a slowdown in the pace of growth of net adds compared to 2Q05.
As discussed above, the consolidated net loss resulted mainly from the expansion of the Company's clinical development programs.
This adjustment resulted from an analysis of the investment portfolio that was made by the Company with the assistance of the Company's then newly appointed investment manager, Conning Asset Management Company ("Conning").
McDATA's Q4 04 non-GAAP tax rate was two percent, and resulted in a benefit to non-GAAP net income of approximately $2 million, or $0.
The activities of KOMPAN A/S, which are also regarded as discontinuing, resulted in a net result of DKK 50m, mainly from divestment of shares.
Based upon the work done to date, these adjustments have resulted in a net reduction in revenue of approximately US$430 million and US$2.