After a modest gain in our summer report, the FOCUS Communications Service Provider Index (CSPI) swooned along with the broader market in this most recent three- month period. The CSPI dropped 6.7% in the last three months, putting it roughly on par with the S&P 500 (which dropped 6.9%) and slightly ahead of the NASDAQ (which dropped 7.4%). For the full year period, the CSPI continues to trail the broader indices. The CSPI lost 5.3% over the past 12 months, which does not compare favor- ably to the 2.6% loss in the S&P 500 or the 2.8% gain in the NASDAQ over the comparable time period. Even with the declines in stock prices, sector multiples have actually increased. The sector revenue multiple went from 2.3x a year ago to 2.4x currently, while the EBITDA mul- tiple jumped from 6.6x to 8.5x in the same time frame. The combination of falling stock prices and higher multiples indicates an overall deterioration in financial performance for the sector over the past 12 months.