Nice to
see you all here today. Welcome. The Annual Meeting of Corning's shareholders of Corning Incorporated will please come to order. I'm Wendell Weeks, Chairman of the Board of Directors, Chief Executive Officer Seated to my left are Linda Jolly, Secretary of the Corporation and Deborah Bass, the Inspector of Election. Today's meeting will include our official business as well as my reflections on the state of the company.
Following the meeting, we'll have a special presentation from Michael Bell, our Senior Vice President and General Manager of Optical Connectivity Solutions. You have the printed agenda for this meeting, but let me review the formal action that we will be taking today. Ms. Jolly will report the number of shares being voted and confirm that the meeting has been properly called. I will introduce the Board of Directors.
I'll call for a motion for the election of 13 directors. I'll call for a motion for the advisory vote on executive compensation. I'll call for a motion to ratify the appointment of PricewaterhouseCoopers as Corning Incorporated's independent registered public accounting firm for 2018. Finally, I'll call for a vote on all three motions. After this formal action is completed, I will discuss the state of the company.
Some of you may have questions not covered in my formal remarks. Company officers will be available in the lobby immediately following the meeting to answer your questions or guide you to the best people to address your concerns. They'll be wearing white badges to help you identify. There will also be an opportunity to ask questions following my remarks. Just to note, any valid ballots handed in at today's meeting won't be in this morning's preliminary vote totals, but they will be included in the official vote tally reflected in Corning's SEC filing.
Now I'll start the formal part of the meeting. Madam Secretary, may we have your report on the number of shareholders represented here today?
Mr. Chairman, as of February 27, 2018, the record date for this meeting, the company had 849,000,230,000 726 shares of common stock outstanding and the same number of shares entitled to vote. The Inspector of Election has determined that 736,000,567,639,000 shares 639 shares outstanding and entitled to vote are represented and in person or by proxy at this meeting. This is 87% of the shares entitled to vote and represents a quorum for purposes of this meeting.
So as you've heard, a quorum is present. May we now have a report on the proof of call and notice of the meeting?
Mr. Chairman, this meeting is being held pursuant to a notice mailed on March 16, 2018 to shareholders of record as of February 27, 2018. A list of shareholders entitled to vote is available for inspection.
Thank you. Please file the documents with the meeting records. It is not our practice to have the secretary read last year's meeting minutes. However, if anyone wishes to examine last year's minutes, they should see Ms. Jolly after the meeting.
I will now introduce the Board of Directors and ask them to stand when I say their name. Please hold your applause until everyone has been introduced. Mr. Donald Blair, Retired Executive Vice and Chief Financial Officer of Nike Doctor. Stephanie Burns, Retired Chairman, President and Chief Executive Officer of Dow Corning Corporation Mr.
John Canning, Chairman of Madison Dearborn Partners our Lead Director, Mr. Richard Clark, Retired Chairman, Chief Executive Officer and President of Merck Mr. Robert Cummings, Retired Vice Chairman of Investment Banking for JPMorgan Chase Ms. Deborah Henrietta, Retired Group President of Global E Business at Procter and Gamble Company Doctor. Daniel Huttenmacher, Dean and Vice Provost at Cornell University's New York City Tech Campus Mr.
Kurt Landgraf, President of Washington College Mr. Kevin Martin, Vice President, Mobile and Global Access Policy at Facebook Doctor. Deborah Rehman, Retired Executive Chairman of MetaMarkets Group Mr. Hansel Tookes, retired Chairman and Chief Executive Officer of Raytheon Aircraft Doctor. Mark Wright, Chancellor and Professor of Chemistry at Washington University in St.
Louis and most of you know 2 of our former directors who are here today, Jim Floss, Vice Chairman and CFO and Emil Houghton, who served as Chairman and CEO. We're honored to have them with us today, and we appreciate their ongoing participation. The first business of the day is to elect each of the 13 directors to a 1 year term. I now call for nominations for directors.
Mr. Chairman, I move the following be elected directors of the corporation to serve a 1 year term or until their successors have been elected: Donald Blair, Stephanie Burns, John Canning, Richard Clark, Robert Cummings, Deborah Henretta, Daniel Huttenlacher, Curt Landgraf, Kevin Martin, Deborah Rehman, Ansel Tookes, Wendell Weeks and Mark Wrighton.
I second that motion.
Is there any discussion? The second proposal calls for an advisory vote of shareholders approving the corporation's executive compensation as disclosed in the proxy statement. I'll now entertain a motion and resolution for that approval.
Mr. Chairman, I move the adoption of the following resolution. Resolved that on an advisory basis, the total compensation paid to the company's named executive officers as the CEO, the CFO and the 3 other most highly compensated executives. As disclosed in the proxy statement for the 2018 Annual Meeting of Shareholders and pursuant to the SEC's executive compensation disclosure rules, including the compensation discussion and analysis, the summary compensation table, and the supporting tabular and related narrative disclosure on executive compensation is hereby approved. I second the motion.
Is there any discussion? The 3rd proposal calls for ratification of the audit committee's appointment of Pricewater will now entertain a motion in resolution to that ratification. Will now entertain a motion in resolution for that ratification.
Mr. Chairman, I move adoption of the following resolution. Resolve that the shareholders of the corporation ratify the audit committee's reappointment of PricewaterhouseCoopers LLP as the corporation's independent registered public accounting firm for the fiscal year ending December 31, 2018.
I second the motion.
Is there any discussion? Now it's time to review the voting procedures for the 3 pending motions. Under the corporation's bylaws and SEC rules, the election of 13 directors, the advisory vote on executive compensation and the ratification of the independent registered public accounting firm will be voted by ballot. Most shareholders have already voted. If you previously voted by mail, the Internet or telephone, there is no need for you to vote again today.
Any shareholder who waited and needs to vote now should use the ballot that you received at home. Then raise your hand and an usher in a red coat will collect it. You can also obtain a ballot from an usher by raising your hand. The ushers will collect any ballots and then give them to the Inspector of Election at the end of the meeting to be included in the final vote count. I now ask the Inspector of Election to report the results to the meeting.
Mr. Chairman, I report that each of the 13 director nominees was elected to the company's Board of Directors by a majority of votes cast. The advisory shareholder vote approved the company's executive compensation program and the majority of votes cast also were in favor of the ratification of the audit committee's appointment of PricewaterhouseCoopers LLP as the company's independent registered public accounting firm for the fiscal year ending December 31, 2018.
Thank you. I declare that all 13 nominees for Director are elected. The company's executive compensation program is approved and the appointment of PricewaterhouseCoopers as the company's independent registered public accounting firm for 20 18 is ratified. As I said earlier, today's vote results are preliminary. Final detailed numbers will be filed with the SEC in a Form 8 ks in just a few days.
Is there any further business to come before this meeting? If not, I will entertain a motion for adjournment.
I so move. Second.
All in favor, say aye. Aye. So ordered, I declare this meeting adjourned. That concludes the formal part of the meeting. Now I'd like to talk to you a little bit about how your company is doing.
Today's remarks will include some forward looking statements and actual results may differ materially. You can find detailed risk factors in our most recent 10 ks and also on Corning's website. You should also be aware that we use certain non GAAP financial measures and performance indicators to assess Corning's financial and operating performance. You can find a reconciliation between GAAP and non GAAP measures on our website. And now it's my pleasure to report that your company is strong.
Since I addressed you last year, we have delivered solid financial results, strengthened Corning's portfolio with strategic acquisitions and advanced key innovation programs. Most importantly, we have continued to live the values that make Corning such a special company. Let's begin with a quick review of our financial performance. In 2017, core sales were $10,500,000,000 up 8%. Core earnings were 1,800,000,000 dollars and core earnings per share were $1.72 up 11% year over year.
All of our businesses contributed to these outstanding results. On Tuesday, we announced our 1st quarter results, which provided a solid start to what we expect to be a very strong year. We are investing in capacity to meet demand for our products and we expect to see the benefits of our investments for growth through the end of 2018 beyond. Financial results of course only tell part of the story. We are extremely excited about our ongoing execution of our strategy and capital allocation framework, which we introduced in 2015.
As you know, this is Corning's plan to create significant value for shareholders by focusing our portfolio and leveraging our financial strength. Under our framework, we expect to generate between $26,000,000,000 $30,000,000,000 in cash through 2019. We plan to return more than $12,500,000,000 to our shareholders through share repurchases and annual dividend increases of at least 10%. And we're making good on that commitment. The framework focuses our portfolio on a set of capabilities with strong interconnections.
We are the best in the world in 3 core technologies, 4 manufacturing and engineering platforms and 5 market platforms. We direct 80% of our resources to opportunities that draw from at least 2 of these 3 capability sets. We believe this approach increases the likelihood of success, reduces the cost of innovation and creates higher barriers to entry for our competitors. Since introducing the framework, we've reduced outstanding shares by 30% and we've increased our annual dividend by 50%. In less than 3 years, we have returned $10,000,000,000 to shareholders.
We are also proud of continuing our track record of innovation. Last year, Corning scientists earned more than 5 60 U. S. Patents. That is a new record for us.
And we advanced key innovation programs across our market access platforms. Here are just a few examples. We increased the adoption of Gorilla Glass 5, which has enabled new smartphone designs with glass on both the front and the back. We captured a new customer opportunity in Gorilla Glass for automotive. We recorded our first commercial sales of gasoline particulate filters or GPS, which reduce emissions in gasoline direct injection engines.
And we introduced Valor Glass, our remarkable new pharmaceutical glass packaging solution that helps protect patients. We supplemented those growth initiatives with strategic acquisitions to strengthen our product portfolio, extend our global reach and increase our market access. These acquisitions combined with research and development and capital spending are all part of our $10,000,000,000 investment to extend our leadership and deliver growth over the long term. In addition, we are undertaking one of the largest expansions in Corning's history. In order to meet the demand for our solutions, we have 23 capital expansion projects underway, including construction of 11 new plants.
Last year, we began adding capacity in North Carolina and Poland for optical communications products. We're expanding manufacturing in China to produce Gen10.5 LCD glass and gas particulate filters. And in order to produce Valor Glass, we're constructing a new high volume manufacturing facility in North Carolina and we're expanding our Big Plats plant. Our investment in Ballard Glass will create 500 new U. S.
Jobs and 185 of them will be in big flats. It will also support more than 380 jobs right here in the Southern Tier. We're grateful to have such a dedicated workforce in this community to help bring Valor Glass to the market where it can help protect patients all around the world. Of course, how we do things is as important as what we achieve. We're proud that we've continued to live Corning's values and honor our commitment to sustainability and good corporate governance.
Here are just a few highlights from the past year. Starting with our effective energy management strategy to help protect this planet that we all share. Over the past decade, we've increased our energy efficiency by more than 36%. Our continuous improvement earned Corning the prestigious Sustained Excellence Award from the U. S.
Environmental Protection Agency for the past 3 years. And a couple of weeks ago, we were named an Energy Star Partner of the Year for the 5th consecutive year. As you all know, Corning is committed to strengthening the communities where we live and work by investing in education, cultural programs, health and human services and economic development. Our people are also generous with their time and talent. Here are some of the ways they made a difference in 2017.
They volunteered at nursing homes and hospices. They led mentoring and training programs and they participated in blood drives, donated to food pantries and held other fundraising events to help people in need. I can't possibly list every example, but when you look at all the ways that our people made a difference last year, it's stunning. When you add all that up, I think you'll agree that Corning is not only a company that delivers strong results, but also one you can be proud of. Now let's look at the opportunities that are in front of us in our market access platforms.
In optical communications, we are the only true end to end supplier of optical solutions and we are continuing to innovate for the rapidly evolving applications of fiber to the home hyperscale data centers and in building networks, we are growing at more than twice the rate of the communications infrastructure market. And we are confident in our ability to reach our goal of 5 $1,000,000,000 in annual sales by 2020. Now you're going to hear more about this from Mike Bell in today's special presentation. In Mobile Consumer Electronics, we continue making progress on our goal to double sales over the next several years by delivering best in class products, capturing more value per device, winning share in new markets and innovating for new product categories such as augmented reality. In display, we expect to maintain stable returns due to our strong share position, low cost manufacturing and more favorable pricing environment.
We also continue to leverage our fusion assets, glass science and optical physics to take those capabilities and drive the next round of display innovations. These include better images, ubiquitous touch and new form factors. In automotive, Corning is benefiting from the industry's trend to cleaner, safer and more connected cars. 1st, we're building on our leadership in clean air technology with a new business for gasoline particulate filters. We expect the sales of GPS to ramp quickly, driven by new regulations in Europe and China.
And we believe this could be a $500,000,000 new business for Corning. 2nd, we are building capacity to supply Gorilla Glass for automotive. More customers are recognizing the potential of Gorilla Glass to reduce vehicle weight, increase fuel efficiency and transform car interiors through tough, beautiful interactive displays. While our current sales are small, we believe the opportunity is large. Finally, in life science vessels, we're building on our leadership positions in solutions for cell culture, bioprocessing, cell therapy and genomics.
And we're in the process of building a long term multibillion dollar business, the Gallo Glass. Although this industry moves at a deliberate pace, we believe this innovation has the potential to power Corning's growth for the next decade and beyond. So as you can see, we've got a robust set of near term and long term growth opportunities. And our opportunities are balanced. Optical solutions, Gorilla Glass and GPS are driving growth in the near term, while Valor Glass and Gorilla Glass for automotive have the potential to drive growth long term.
Furthermore, our customers believe in us and our opportunities. As you saw in our opening video, industry leaders like Apple, Verizon, Merck and Pfizer continue to turn to us to solve problems and help realize their own vision. We are confident in Corning's ability to deliver sustainable growth. We're also confident that we can continue doing what Corning does best, transforming industries, enhancing people's lives and delivering innovations that create value for decades. In closing, I want to underscore our commitment to earning your trust every day with our performance and our actions.
All of us on the management committee know that it is a privilege as well as a responsibility to lead this great institution, to build on the hard work of those who came before us and ensure that we lead the company in good shape for those who follow in our footsteps. Corning has succeeded for more than 165 years because its leaders always take the long deal. We manage not just for each year, but for another 165 years of innovation and independence. That means capturing opportunities in today's businesses while investing to create tomorrow's growth drivers. It means making strategic choices to ensure sustainable success in a very competitive global marketplace.
And it means living our values in order to continually make Corning a better version of itself. We hope you share our pride in the company's achievements and our excitement about the future. Thank you for being on this journey with us. Thank you all. Now I hope my remarks address some of the topics on your mind.
As I noted earlier, company officers will be available to answer any questions you have in the lobby following Mike Bell's presentation. However, if you're not able to stay, please feel free to ask your question now. Please, sir. So your question is with the advent of new U. S.
Tax policy and the reduction in tax rates in the U. S, what are we doing with that money, right? That's an excellent question. So that is all part of our $10,000,000,000 investment in our R and D, our capital expansion projects and acquisitions. And we had that plan before the tax cuts, right?
And we're going to continue to execute on that. What we're able to do though is more efficiently move some of the money between overseas locations and the U. S. So it certainly makes that investment a lot easier. And I think more importantly for us, it increases the long term value of manufacturing in the U.
S. We've always been a strong manufacturer here and it's really, I think, a good thing that now it's a more competitive tax base, so that we're not penalized for choosing to manufacture our product where our customers are. Other questions? If not, I'd like to thank you again for joining us today. Please stay seated for Mike's presentation, which will begin shortly.
Have a wonderful day.
Now please welcome Senior Vice President and General Manager of Optical Connectivity Solutions, Mike Bell.
Good morning. I'm Mike Bell, Senior Vice President and General Manager of Optical Connectivity Solutions Division. We're responsible for developing all the I'm sorry, we're responsible for developing solutions for all the different applications where we use optical fiber, like fiber to the home, data centers and in building networks. I'm in my 27th year with Corning, following 5 years of serving our country as a Submarine Warfare Officer. My entire Corning career has been spent in optical communications, headquartered in North Carolina in operations, product line and general management.
Today, I'm proud to share what's happening in the Corning optical communications sector, a significant contributor to Corning's overall growth. Imagine you're in your living room on a typical evening at home with your family. At my house, the TV may be on, but my wife is probably on Facebook, my son is surfing Reddit, and my daughter-in-law is creating a new Snapchat story. Everyone is a power user, and this continues to drive ever more bandwidth demand. In fact, global Internet traffic is growing at 20% per year, and over 70% of that traffic is video.
Netflix and YouTube make up 50% of peak hour usage. This causes 2 problems for network providers like Spectrum or Verizon. 1st, peak hour usage is getting much bigger than average usage. And second, these stress networks have to carry much higher bandwidth the whole way to users at the edge of the network. Because of all of our multitasking and online gaming and the addition of all kinds of network gadgets like Nest Thermostats or Ring Video Doorbells, connected devices will grow from 15 to 27,000,000,000 by 2021 or the equivalent of 3 devices for every person on earth.
If increasing video and connected devices weren't enough, we're also demanding all this bandwidth as we move around. Mobile devices will pass fixed devices, consuming 60% of all Internet traffic by 2021. That means that network operators have to build networks for where people live and for where we happen to be anytime during the day. Network operators are challenged to keep pace with all that video, connected devices and mobility. And we feel it.
Have you ever had a good signal, but couldn't send a text message? How about trying to use Waze or Google Maps, but not getting a network signal? Imagine being 80% finished downloading a file, but still having 1 minute and 21 I'm sorry, 1 hour and 21 minutes left to wait. We're trying to watch a movie on your Apple TV and seeing it'll be ready to play in just 26 hours 27 minutes. All these things lead to one conclusion.
We need more fiber. Let me explain why. We use a model we call the electrical to optical divide. This describes the point where the economics of carrying photons over fiber outweigh the economics of carrying electronics over copper. We start by looking at how much bandwidth is needed for travel in meters, which we call link lengths.
When we multiply the data rate by the link length, we see that if the product is greater than 100 gigabit meters per second, fiber is best fit to carry that demand. Now this has been validated by all of our customers and virtually every industry standard for the past 40 years. Let's look at a few specific examples of where the networks are stressed. Since mobility is growing, network operators will be starting to deploy 5 gs networks. These new networks will have to carry much higher data rates up to 10 gigabits per second over a distance of 1 kilometer.
So we see that fiber will be necessary to meet that need. With all the growth in video and mobility, data stored in data centers, will grow 5x and traffic within that data center will grow 3x by 2021. This will require higher data rates and longer link lengths between data center racks and buildings. Connections from the top of the data center rack to each of the computers within that rack will continue to grow in data rate from 10 to 40 to 100 gigabits per second and beyond. And as this happens, these connections will become optical.
At the end of the day, it just doesn't matter whether you're deploying 5 gs or building a data center. Copper will no longer economically meet these needs. This means we need fiber and we need more of it. Let's look a little more closely at these two applications. 1st, cellular networks require fiber to carry data to and from the antenna.
To drive higher bandwidth for each user, wireless operators will install more antennas, so fewer people will share each antenna. That's why 5 gs with its higher data rates will require at least 10 times more fiber than legacy cellular networks. To handle all that video and computing power needed in the future, data center operators will shift from traditional 3 tier architectures to large scale or hyperscale spine and leaf architectures. This allows shorter paths for computers to talk to each other, creating much faster response times. And these new data centers will require least 5 times more fiber and connections than traditional data centers.
All this new demand for fiber is super exciting for all of us because Corning has the best optical solutions. Let's take a look. In 1970, we invented the 1st low loss optical fiber. We enjoy the number 1 global fiber position. And just last year, we produced the 1,000,000,000 fiber kilometer, enough fiber to wrap the earth 25,000 times.
We invented the 1st loose tube optical cable. We enjoy the number one global cable position. And earlier this year, we introduced our 3,456 fiber, rocket rimmed, extreme density cable designed to connect these hyperscale data center buildings much faster. We invented the first hardened outside plant connector, the OptiTab, which made connecting fibers as easy as plugging cable into the back of your TV. We enjoyed the number one global fiber to the home position, and we've adapted our proprietary FlexSnap solution for wireline and wireless networks.
And finally, we invented the 1st modular data center solution. We enjoy the number 1 global data center position. And last year, we received multiple data center product of the year awards for our Edge 8 solution. In addition to all this organic fuel for growth, we're adding 2 key strategic acquisitions. We evaluate companies to acquire based on 2 objectives.
1st, expanding market access and second, growing our product portfolio with new technologies. Over the past year, we've had an example of each I'd like to walk you through. Corning plans to buy a significant portion of 3 ms Communication Markets division later this year. This will add significant new market access in Europe and Latin America. Last year, we purchased SpiderCloud Wireless, adding new small cell products and a unique signal source technology, the only one of its kind approved at all U.
S. Major wireless carriers and international carriers like Vodafone and America Movil. We're using all these capabilities to co innovate with our customers. Let me start with the Spider Cloud example. Last December,
Sprint
announced the availability of a new small cell solution from Spider Cloud as part of its strategy to densify its network and improve service at enterprises and public venues across the country. To quote Robert Kingsley, Director of Small Cell and Wi Fi Development at Sprint, This innovative LTE small cell literally clips onto existing Cisco Wi Fi infrastructure and can be deployed in less than 30 minutes, providing a very cost effective way to rapidly improve indoor service. AT and T has announced their plan to deliver 1 gigabit service to residential customers. They're in the process of building an ultrafast fiber to the home platform and Corning is helping build this 100% optical network, which will reach more than 12,000,000 homes and 75 of the largest cities across the U. S.
We're seeing these large scale deployments overseas as well. For example, Saudi Telecom is part of a nationwide fiber to the home build that will connect more than 1,000,000 households. To demonstrate the value AT and T sees in our FlexNAP access solution, we filmed a side by side comparison of FlexNAP versus spliced terminal deployment speed. First, you can see the FlexNet solution is much cleaner and simpler than traditional splice. And the FlexNet cables are installed exactly the same way we install a typical distribution cable.
You can see the access point now passing over the pulley, the tether and now a multi fiber connector. It passes through the lashing machine to be connected to the messenger just like a cable would. And then we install a multi port terminal for connecting each of the users to the pole. And the final step is simply to plug in that multi fiber connector to the FlexSnap and it's ready for service. In the meantime, in the splice scenario, we're accessing the cable, installing the cable into the splice closure, routing all the fiber subunits, adding the tether to connect to a terminal, accessing that cable, picking out the 2 fiber sub units that will be spliced together and put into a splice housing.
And we've already completed our 2nd FlexNet terminal deployment. Then we go through the painstaking field splice process of connecting each fiber to each other. And as they're splicing, the 3rd FlexNet terminal has already been deployed. Removing coating, cleaning the fibers and splicing each one and the 4th FlexNet terminal has been deployed. And about that time, that splice closure finally comes out of the van, taken up on the bucket truck, attached to the messenger and the 1st splice terminal is placed after 5 FlexNet terminals have already been installed.
So as you saw, our FlexSnap solution is 5 times faster to install. And now the technician is going to take that famous OptiTek connector and plug it in just as easily as you would plug a cable into the back of your TV, screw it in place and then provide service to a business or a residential customer. Our FlexMap access solution is 5 times faster to install than splice solutions and we saved AT and T 15% in first installed cost. Now let's talk about a data center example. As data rates within computers grow from 40 to 100 gigabits per second and beyond, these connections will become optical.
And in anticipation of this, we are reapplying Corning's expertise in fusion glass manufacturing and optical physics technology to develop the fiber to chip connections necessary. You may know that Microsoft is also working on this challenge today. They're leading a consortium to develop optical modules that can be mounted in a device to decrease power consumption and increase bandwidth density. As I'm sure you've heard, last April Verizon announced a 3 year agreement to purchase more than $1,000,000,000 of gear from Corning. And in an interview with CNBC, Verizon CEO, Lowell McAdam said that fiber is the cornerstone building block of our next generation network.
But you don't have to believe me, let's listen to the words of Mr. McAdam himself.
Welcome back to Squaw
from The Street. I'm David Faber at the NASDAQ market site with 2 guests this morning. Lowell McAdam is the Chairman and CEO of Verizon. Wendell Weeks, the Chairman and CEO of Corning. Together, the 2 companies announcing this morning a new pact under which Verizon has agreed to pay $1,050,000,000 for a 3 year minimum purchase agreement with Corning for the next generation of what they call optical solutions.
What does that mean?
Well, it means an awful lot of fiber to help improve Verizon's 4 gs LTE coverage and perhaps most importantly, speed the deployment of 5 gs services. And that's what we're here to talk about in part, gentlemen. Thanks for being
here. Good morning.
Why are you buying all this fiber?
Well, David, we viewed fiber as the cornerstone building block for the network, the next generation network. And that network is going to look very different than what we've built in the past. If you look at 2 gs and 3rd generation and 4th generation of wireless, it was about capacity and throughput. 5th generation is about those things. We're going to see a 100 times faster throughput, but we're going to see things like latency of a network that the network will go out and come back and respond in less than the time it takes to blink your eye.
We're going to see 10 times the battery life that we've seen in the past. That opens up a whole new set of applications for consumers and enterprise, but you can't do it if you don't have fiber deep into the network compared to what we've done in the past.
So we know that growing demand for video, connected devices and mobility will drive even higher Internet traffic. Network operators will turn to fiber instead of copper to build their networks and these new networks will take 5 to 10 times more fiber than those of the past. And Corning is the best at optical solutions and we co innovate with our customers to meet their needs. That's why Corning Optical Communications will grow double digits in 2018 and achieve $5,000,000,000 by 2020. Corning has delivered for power users for the past 167 years.
Corning will continue to deliver for power users in the future.
Thank you.
Thank you for attending Corning's Annual Meeting. On your way out, don't forget to pick up a handout with a Chamber of Commerce gift card. If you'd like to dine here for lunch today, the gift card is accepted at the Museum's Cafe. Thank you.