超微半導體 (AMD) 2001 Q1 法說會逐字稿

AMD'S FIRST QUARTER EARNINGS CONFERENCE CALL

AMD 第一季財報電話會議

Ladies and gentlemen, thank-you for standing by. Welcome to the AMD's first quarter earnings conference call. During the presentation, all participants will be in a listen-only mode. Afterwards, you will be invited to participate in a question and answer session. At that time, if you have a question, you will need to press the '1' followed by the '4' on your telephone. As a reminder, this conference is being recorded Wednesday, April 18th, 2001. I would now like to turn the conference over to Mr. Bob Rivet, Senior Vice-President and Chief Financial Officer at AMD. Please go ahead Sir.

女士們、先生們，感謝你們的支持。 歡迎參加 AMD 第一季財報電話會議。演示期間，所有參與者將處於僅聆聽模式。 之後，我們將邀請您參加問答環節。 屆時，如果您有疑問，您需要按電話上的“1”，然後按“4”。 提醒一下，本次會議將於 2001 年 4 月 18 日星期三錄製。現在，我想將會議交給 AMD 高級副總裁兼財務長 Bob Rivet 先生。 先生，請繼續。

Thank-you Robert. Good afternoon and welcome to AMD's first quarter earnings teleconference call. I am Bob Rivet, the Chief Financial Officer. With me today in Sunnyvale and hosting this call is, Jerry Sanders, Our Chairman and Chief Executive Officer. Also present are Hector Ruiz, Our President and Chief Operating Officer, Bob Herb, Executive Vice-President and Chief Marketing Executive, Walid Maghribi, Senior Vice-President and President of Our Memory Group, and Ben Anixter, Vice-President of External Affairs. I will begin by summarizing our first quarter highlights and then turn it over to Ben, then to Hector, and finally to Jerry. Today, we are represented from the media listening then, but since this call is for financial analysts, we will only take questions from members of the financial community. Please hold on questions until we conclude our prepared remarks. This conference call is a live broadcast and will replay via the Internet at www.streetfusion.com and www.amd.com. The tape phone replay number for North America is 800-633-8284. Outside the US, dial 858-812-6440. The code to access this call is the same for both and that number is 182-99-631. Before we begin the conference call, I would like to caution everyone that we are making forward-looking statements about managements plans and expectations. As you know, the semiconductor industry is generally volatile. Our product and process technology development projects, and our manufacturing processes are complex. Current economic conditions make it especially difficult to forecast product demand. Because our actual results may differ materially from our plans and expectations today, I encourage you to review our filings with the Security and Exchange Commission, where we discussed in detail the risk factors in our business. You will find the detailed discussion in our most recent Form 10-K filing with the SEC. I am extremely pleased to report the financial highlights for AMD's first quarter. Revenue for the first quarter was $1.189 billion, up 11.5% over the first quarter of 2000 from continuing operations, and up 1% from the fourth quarter of 2000. For clarity, when I mention continuing operations, we are excluding the voice communication business, now called Legerity from our historical results. We sold this business in the third quarter of 2000. Our microprocessor business set a new revenue record in the quarter and grew by 17% over the first quarter of last year and the fourth quarter of 2000. Revenue in our memory business grew by 26% over the first quarter of 2000, but was down 10% from the fourth quarter. With our top line growing both year-on-year and sequentially and our prudently managed expenses, we are pleased with our operating income. Pro forma operating income as displayed in our press release as our non-GAAP consolidated statement of operations includes the impact of FASL, our manufacturing joint venture with Fujitsu. Operating income was $190 million or 16% of revenue for the quarter, up 16.5% from the first quarter of 2000 from continuing operations. Net income for the quarter was $125 million, was 10.5% of revenue, down $65 million from a year ago due almost entirely to additional tax provisions of $63 million which is included in our current quarter results. In the first quarter of last year, we had 0 tax provision. Fully diluted earnings per share were ¢37 for the quarter. Gross margin on a pro forma basis was 41.8% for the quarter, only down 1.2 percentage points from the first quarter of 2000 from continuing operations. Research and Development spending was $158 million or 13.3% of revenue for the quarter. Compared to the first quarter of last year, R&D spending has declined as a percent of revenue from 14.8% to 13.3%. Marketing, general, and administrative spending was $149 million or 12.5% revenue for the quarter. Compared to the first quarter of last year, our spending has declined as a percent of revenue from 13.2% to 12.5%. Our tax rate for the first quarter was 32%. Our cash balance increased to $1.6 billion, up $300 million from December 2000. We held our inventories essentially flat from the fourth quarter, only increasing $11 million in raw material. Days of inventory declined to 45 days. Inventories for both our microprocessor and flash business are well positioned for our second quarter plan. Capital spending for the first quarter was $163 million, about half of which was from Dresden, and depreciation expense was $153 million for the quarter. EBITDA was $320 million for the quarter. For your modeling for 2001, please consider the

謝謝你，羅伯特。 下午好，歡迎參加 AMD 第一季財報電話會議。 我是財務長鮑伯‧裡維特 (Bob Rivet)。 今天與我一起在桑尼維爾主持這次電話會議的是我們的董事長兼執行長傑瑞桑德斯。 出席會議的還有我們的總裁兼營運長 Hector Ruiz、執行副總裁兼行銷長 Bob Herb、資深副總裁兼我們的記憶集團總裁 Walid Maghribi 以及外部事務副總裁 Ben Anixter。 我將首先總結我們第一季的亮點，然後將其交給本，然後交給赫克托，最後交給傑瑞。 今天，我們有媒體代表在場聆聽，但由於這次電話會議是針對金融分析師的，因此我們只會回答金融界成員的問題。 請等我們結束準備好的發言後再提問。 本次電話會議將進行現場直播，並將透過網路在 www.streetfusion.com 和 www.amd.com 上重播。 北美的錄音電話重播號碼是 800-633-8284。 美國境外請撥 858-812-6440。 存取此呼叫的代碼對於兩者是相同的，並且該號碼是 182-99-631。 在我們開始電話會議之前，我想提醒大家，我們正在對管理層的計劃和期望做出前瞻性的陳述。 眾所周知，半導體產業整體波動較大。我們的產品和工藝技術開發專案以及製造流程都很複雜。目前的經濟狀況使得預測產品需求變得特別困難。由於我們的實際結果可能與我們今天的計劃和預期有重大差異，我鼓勵您查看我們向證券交易委員會提交的文件，我們在其中詳細討論了我們業務中的風險因素。 您可以在我們向美國證券交易委員會提交的最新 10-K 表格中找到詳細的討論。我非常高興地報告 AMD 第一季的財務亮點。 第一季的營收為 11.89 億美元，比 2000 年第一季的持續經營業務成長 11.5%，比 2000 年第四季成長 1%。為清楚起見，當我提到持續經營業務時，我們將語音通訊業務（現稱為 Legerity）排除在我們的歷史業績之外。 我們在2000年第三季出售了這項業務。我們的微處理器業務在該季度創下了新的收入記錄，比去年第一季和2000年第四季成長了17％。我們的記憶體業務收入比2000年第一季成長了26％，但比第四季下降了10％。 由於我們的營業收入逐年和逐季增長，並且我們的費用得到審慎管理，我們對我們的營業收入感到滿意。 我們的新聞稿中顯示的備考營業收入作為我們的非 GAAP 合併經營報表，包括了 FASL（我們與富士通的製造合資企業）的影響。 本季營業收入為 1.9 億美元，佔營收的 16%，較 2000 年第一季持續經營收入成長 16.5%。本季淨收入為 1.25 億美元，佔營收的 10.5%，比去年同期下降 6,500 萬美元，幾乎完全是由於本季業績中包含的 6,300 萬美元的額外稅收準備金。 去年第一季度，我們的稅務準備金為 0。本季每股完全攤薄收益為 37 美分。 本季的備考毛利率為 41.8%，僅比 2000 年第一季的持續經營毛利率下降 1.2 個百分點。 本季研發支出為 1.58 億美元，佔營收的 13.3%。 與去年第一季相比，研發支出佔營收的比例從 14.8% 下降到 13.3%。 本季行銷、一般和行政支出為 1.49 億美元，佔營收的 12.5%。與去年第一季相比，我們的支出佔收入的百分比從 13.2% 下降到 12.5%。 我們第一季的稅率是32%。 我們的現金餘額增加了 16 億美元，比 2000 年 12 月增加了 3 億美元。我們的庫存與第四季基本持平，僅增加了 1,100 萬美元的原料。 庫存天數下降至45天。 我們的微處理器和快閃記憶體業務的庫存都非常適合我們的第二季計劃。 第一季的資本支出為 1.63 億美元，其中約一半來自德勒斯登，本季折舊支出為 1.53 億美元。本季的 EBITDA 為 3.2 億美元。對於 2001 年的建模，請考慮

Our tax rate will remain at 32% for the year. Capital spending will be $1 billion for the year, up $200 million from last year as we complete Fab 30 and install 130-nm capacity. Depreciation is forecasted to be about $670 million for the year. Finally, we will continue to invest in R&D activities and maintain our current range of R&D spending as the percent of revenue to 13.3% to 13.5% for the year. I would now like to turn the floor over to Ben Anixter to start the business segment presentation. Ben?

我們今年的稅率將維持在32%。 由於我們完成了 Fab 30 並安裝了 130 奈米產能，今年的資本支出將達到 10 億美元，比去年增加 2 億美元。預計全年折舊約 6.7 億美元。 最後，我們將繼續投資研發活動，並將今年的研發支出佔收入的比例維持在目前的13.3％至13.5％之間。 現在我想把發言權交給 Ben Anixter 開始業務部門的演講。 本？

Thanks Bob. Our ongoing foundry and other service activities, which is support for Vantis and Legerity, continue to decline in Q1. We now expect these services to continue trending down throughout 2001. In Q2 of 2001, these revenues will be in the $35 million range. The other IC product segment also trended down as networking embedded processor demand suffered from the communications market sector downturn. These products in aggregate will produce sales in the $16 million range in Q2. So, in total, about $100 million per Q2 trending down throughout the year will come from these segments. As you know, we except growth will come from our flagship products, flash memories, and PC processors. Now, I would like to turn the meeting over to Hector, who will cover our memory group.

謝謝鮑勃。 我們正在進行的代工和其他服務活動（對 Vantis 和 Legerity 的支持）在第一季繼續下滑。 我們現在預計這些服務在 2001 年將繼續呈下降趨勢。 2001 年第二季度，這些收入將在 3,500 萬美元左右。 由於通訊市場低迷，網路嵌入式處理器需求受到影響，其他 IC 產品領域也呈現下降趨勢。 這些產品合計將在第二季產生約 1,600 萬美元的銷售額。 因此，總體而言，全年每個第二季約有 1 億美元的收入將來自這些領域。 如您所知，我們的成長將來自我們的旗艦產品、快閃記憶體和 PC 處理器。 現在，我想將會議交給赫克托 (Hector)，他將負責我們的記憶小組。

Thank-you Ben. Before I discuss our memory business, I want to take a few minutes and go over some highlights of our operations. Throughout the first quarter, we improved our output to market need efficiency and continued to fell out all the Athlons that we produced, and as Bob pointed out, we ended the quarter with a 0 net inventory bill except for raw materials. All of our factories performed at record levels in the quarter relative to yield productivity. In addition, our Fabs had record low cycle times, which are in unequivocal representation of the health and productivity of the operations. Since the beginning of production last June, Fab 30 has produced over 6 million Athlons at the end of first quarter. Fab 30-production ramp continues on plan, and we are currently at 60% on capacity in wafer stocks and we will achieve full capacity by yearend, as previously indicated. It is significant to note that the conversion of Fab 30 to 0.13 microns is on plan, and we intend to begin production to start in the fourth quarter of this year and we expect that all production output to be totally converted to 0.13 microns by the end of next year. In addition, we have demonstrated the robustness of our 0.13-micron SOI technology by fabricating SRAM's at excellent yields in Fab 30. Our JV3 Flash-Fab was completed and fitted in record time in Japan and our first 0.18-micron engineering rounds are in process with production scheduled before yearend. Now let me switch to our memory business. Memory group sales for the first quarter were $411 million, down 10% from the fourth quarter of last year, but up 26% from the same quarter last year. Unit shipments were up slightly from the preceding quarter while ASP's were lower by only 2.4%. This was a reflection of our continued push to move to higher density products, which averaged nearly 11 megabit per unit shipped in the first quarter. Sales in Asia were relatively firm and down only 2.4% from the fourth quarter. Sales in the Americas were down nearly 11% reflecting lower sales through our distribution channel, which largely serves the networking and communication markets. In the Europe, sales were down 14% primarily due to weakness in the cellular-telephone market. Visibility for our current quarter is weak and while our customers remain committed to take the volume negotiated, they are reluctant to place orders ahead of time, thus reducing the quickness of our outlook. We anticipate sales in the current quarter to be sequentially down. We are, however, more optimistic about the second half of the year as fundamental changes in the cellular handset market will start to emerge in the businesses of those customers that we serve. I would like to now turn the discussion over to Jerry who will discuss our microprocessor business and the corporate outlook.

謝謝你，本。在討論我們的記憶體業務之前，我想花幾分鐘時間回顧我們經營的一些亮點。 在整個第一季度，我們提高了產量以滿足市場需求的效率，並繼續淘汰我們生產的所有 Athlon，正如鮑勃指出的那樣，本季度結束時，除原材料外，我們的淨庫存費用為 0。 本季度，我們所有工廠的產量生產率都達到了創紀錄的水平。 此外，我們的晶圓廠擁有創紀錄的低週期時間，這明確表明了營運的健康和生產力。 自去年 6 月開始生產以來，截至第一季末，Fab 30 已生產了超過 600 萬台 Athlon。 Fab 30 的產能提升仍在按計劃進行，目前我們的晶圓庫存產能已達到 60%，我們將在年底前實現滿載生產，正如之前所說。 值得注意的是，Fab 30 向 0.13 微米的轉換正在計劃中，我們打算在今年第四季開始生產，我們預計到明年年底所有產量將完全轉換為 0.13 微米。 此外，我們已透過在 Fab 30 中以優異的產量製造 SRAM 證明了我們的 0.13 微米 SOI 技術的穩健性。我們的 JV3 Flash-Fab 在日本以創紀錄的時間完成並安裝完畢，我們的第一輪 0.18 微米工程正在進行中，計劃在年底前投入生產。 現在讓我轉到我們的記憶體業務。 第一季記憶體集團銷售額為4.11億美元，較去年第四季下降10%，但較去年同期成長26%。單位出貨量較上一季略有上升，而平均售價僅下降 2.4%。 這體現了我們不斷努力向更高密度產品轉型，第一季平均每台產品出貨量接近 11 兆位元。 亞洲的銷售相對堅挺，僅比第四季下降2.4%。美洲地區的銷售額下降了近 11%，這反映了我們分銷管道的銷售額下降，該通路主要服務於網路和通訊市場。 在歐洲，銷售額下降了 14%，主要原因是手機市場疲軟。 我們目前季度的可見性較弱，雖然我們的客戶仍然承諾接受協商的數量，但他們不願意提前下訂單，從而降低了我們前景的敏捷性。 我們預計本季的銷售額將季減。 然而，我們對下半年更加樂觀，因為蜂窩手機市場將開始在我們所服務的客戶的業務中出現根本性變化。 現在我想把討論交給傑瑞，他將討論我們的微處理器業務和公司前景。

Thanks Hector. With sales of 7.3 million units and $661 million, PC processors set new records. Revenues grew 17% both year-on-year and sequentially. We continue to gain market share now at 21.5%. Continued demand in emerging markets for K6-2s generated shipments of 800,000 units, but produced less than 5% of our PC processor revenues. Seventh-generation processors, Athlons and Durons combined, had an ASP in excess of $95, and overall our PC processor ASP was over $90, up sharply from last quarter's $81 on the richer mix. Seventh-generation processors grew a 126% year-on-year and 27% sequentially. Athlon and Duron sales were each up sequentially in both units and dollars. Demand for high-performance Athlons was particularly gratifying and we sold more than 2 million 1 gigahertz or faster Athlon, virtually our entire production of such devices. Accordingly, and in light of continuing excellent progress and enhancing transistor performance in both mega Fabs, we now plan to continue production of Athlons and Fab 25 in Texas, in addition to Fab 30 in Dresden for the current and next quarter. Global production of Athlon is now exclusively 1 gigahertz and faster devices. We will simultaneously maintain our aggressive ramp in Fab 30 generating production volumes of 1.4 gigahertz Athlons to be introduced in the current quarter. We commence shipments from Fab 30 of the first power-managed Athlons, code-named 'Palomino', at the end of last quarter targeted at the mobile market where features are most compelling. The official Palomino mobile launch and availability of Palomino powered laptops is set for May. In light of the mobile opportunity and a generally flat near term outlook for desktop PCs, we will allocate all Palomino output this quarter to portable applications. We plan to launch the desktop version of Palomino at 1.5 gigahertz next quarter. Coupled with a double-data-rate enabled chipset, a 1.5-gigahertz power-managed Athlon should result in the highest delivered performance of any PC processor available in the market. We plan to maintain our leadership and delivered performance. Going forward, in the current quarter, our improving solution provision capabilities and the value desktop space, the mainstream and performance desktop space, and our first compatible offering for performance mobile applications in entry level servers, encourages us to believe we can maintain unit sales of PC processors at near record levels comprised entirely of seventh-generation processors. We continue to believe that our PC processor ASP for the year will be in the $90 to $100 range. In light of current market conditions, we expect those ASP's to be at the lowest end of the range this quarter. As indicated in the press release, we expect high single-digit PC industry growth with accelerating growth in the second half driven by mobile growth and the forthcoming Microsoft Windows XP, where we believe AMD is particularly at vantage. We plan to continue to gain share in PC processors. The recent collapse in demand for chips precipitating a reversal of forecast in industry growth to a sharp decline for 2001 is the direct result of the bursting of the bubble in the communications sector. The PC industry suffered collateral damage aggravated by diminished consumer and business confidence. We remain convinced that the PC is in wired and increasingly in wireless form will remain the hub of an expanding digital universe for years to come. We currently see no improvement in the communications sector where AMD'S current exposure is limited primarily to our flash products as a result of last year's sale of Legerity. After last year's torrid growth, we expect the flash market to be no better than flat. Our unique positioning in automotive markets, our long-term agreements, and relief of the production capacity constraints that limited our growth in 2000, should enable us to continue to gain share this quarter and this year. In summary, in the face of continuing weakness in the communications sector and pasting our memory, and other IC product businesses contrasted with an encouraging outlook for our PC processor activities, which may or may not be sufficient to offset that weakness, revenues could decline by as much as 10% sequentially from our just reported near record sales level. For the year as a whole in a declining market, we expect AMD to grow modestly and we are comfortable with the first call consensus estimate of a dollar fifty per diluted share. And with that, I will turn it over to Bob Rivet to host questions.

謝謝赫克托。個人電腦處理器銷售 730 萬台，銷售額達 6.61 億美元，創下新紀錄。 營收年比及季均成長 17%。 我們的市佔率持續成長，目前已達到 21.5%。 新興市場對 K6-2 的持續需求帶來了 80 萬台的出貨量，但產生的收入不到我們 PC 處理器收入的 5%。第七代處理器（Athlon 和 Durons 組合）的平均售價超過 95 美元，而我們的整體 PC 處理器平均售價超過 90 美元，較上一季的 81 美元大幅上漲。 第七代處理器年增126%，季增27%。 Athlon 和 Duron 的銷量和銷售額均連續上升。 市場對高性能 Athlon 的需求尤其令人欣喜，我們銷售了 200 多萬台 1 千兆赫或更快的 Athlon，幾乎占我們此類設備總產量的一半。因此，鑑於這兩家大型晶圓廠繼續取得優異進展並不斷提高晶體管性能，我們目前計劃在本季度和下一季繼續生產 Athlon 和位於德克薩斯州的 Fab 25，以及位於德累斯頓的 Fab 30。 目前，全球生產的 Athlon 均為 1 千兆赫及更快的設備。 同時，我們將保持 Fab 30 的積極成長勢頭，實現本季推出 1.4 千兆赫 Athlon 的產量。我們在上個季度末開始從 Fab 30 出貨第一批代號為「Palomino」的功耗管理型 Athlon 處理器，目標市場是功能最引人注目的行動市場。 Palomino 行動版的正式發布和 Palomino 筆記型電腦的上市時間定於 5 月。 鑑於行動領域的機會和桌上型電腦近期的整體平穩前景，我們將本季的所有 Palomino 產量分配給便攜式應用。 我們計劃在下個季度推出 1.5 千兆赫的 Palomino 桌面版。 結合雙倍資料速率晶片組，1.5 千兆赫功率管理的 Athlon 應該能夠提供市場上任何 PC 處理器中最高的效能。 我們計劃保持我們的領導地位和出色的業績。 展望未來，在本季度，我們不斷改進的解決方案提供能力和價值桌面空間、主流和性能桌面空間，以及我們首次兼容入門級伺服器中的性能移動應用程序的產品，使我們相信我們可以將個人電腦處理器的單位銷量維持在接近創紀錄的水平，完全由第七代處理器組成。 我們仍然相信，今年我們的 PC 處理器平均售價將在 90 至 100 美元之間。 鑑於目前的市場狀況，我們預計本季的平均售價將處於最低水準。 正如新聞稿中指出的，我們預計 PC 行業將保持高個位數成長，下半年受行動成長和即將推出的 Microsoft Windows XP 的推動，成長將加速，我們認為 AMD 在這方面尤其具有優勢。 我們計劃繼續擴大個人電腦處理器的份額。最近晶片需求的暴跌導致2001年產業成長預測逆轉為急劇下降，這是通訊產業泡沫破裂的直接結果。 個人電腦產業遭受的附帶損害因消費者和企業信心的下降而加劇。 我們仍然堅信，未來幾年，有線和無線形式的個人電腦仍將是不斷擴展的數位世界的中心。 我們目前沒有看到通訊領域有任何改善，由於去年出售了 Legerity，AMD 目前在該領域的業務主要限於快閃記憶體產品。 在經歷了去年的迅猛成長之後，我們預計快閃記憶體市場今年的表現不會比去年更好。 我們在汽車市場的獨特定位、我們的長期協議以及 2000 年限制我們成長的生產能力限制的緩解，將使我們能夠在本季度和今年繼續獲得市場份額。 總而言之，面對通訊產業持續疲軟，以及我們的記憶體和其他 IC 產品業務與我們令人鼓舞的 PC 處理器活動前景形成鮮明對比（這可能足以或不足以抵消這種疲軟），收入可能會比我們剛剛報告的接近創紀錄的銷售水平下降 10%。 在市場下滑的整個年度中，我們預計 AMD 將實現溫和成長，並且我們對首次電話會議的普遍預期即每股 1.5 美元感到滿意。 接下來，我將把提問時間交給 Bob Rivet。

Thank-you Jerry. Robert would you organize the Q&A please.

謝謝你，傑瑞。羅伯特，請你組織問答環節。

Thank-you. Ladies and gentlemen, if you do have a question, you will need to press the '1' followed by the '4' at this time. You will hear a 3-tone prompt acknowledging your request. If your question has been answered and you wish to withdraw your polling request, you may do so by pressing the '1' followed by the '3'. If you are using a speakerphone please, pick up your handset before entering your request. One moment please for the first question. Scott Randall with Wit SoundView. Please go ahead.

謝謝。女士們，先生們，如果您有疑問，請先按“1”，然後按“4”。 您將聽到 3 聲提示音，確認您的要求。 如果您的問題已得到解答，並且您希望撤回投票請求，您可以按“1”然後按“3”來實現。 如果您使用揚聲器，請在輸入請求之前拿起聽筒。 請稍等片刻回答第一個問題。 斯科特·蘭德爾 (Scott Randall) 和 Wit SoundView。 請繼續。

Great. Thank-you. Jerry, kind of intrigued about the comment about AMD being at vantage working under Microsoft XP, can you expand that a bit?

偉大的。 謝謝。傑瑞，我對 AMD 在 Microsoft XP 下佔優勢的評論很感興趣，你能詳細解釋一下嗎？

Yeah, it turns out that our understanding of Microsoft XP is that they are incorporating some new application such as photo processing, and conversations we have had with Microsoft executives want us it to be a major application and what they are looking forward is the highest possible performance PC at the lowest possible cost. Rob will comment on what we think we can do there.

是的，事實證明，我們對 Microsoft XP 的理解是，他們正在整合一些新的應用程序，例如照片處理，並且我們與微軟高管的對話希望它成為一個主要的應用程序，他們期待的是以盡可能低的成本實現性能最高的 PC。 羅布會評論我們認為我們可以在那裡做什麼。

Yeah. I think especially in the value PCs base were from a consumer standpoint, it's something approaching probably 70% of the total market maybe it's less than 80. Now clearly, AMD is at vantage with the processing performance in Duron versus Celeron. Now, that we have an advantage clock-for-clock, I think we are going to be able to bring frequencies into those value price points with the Duron technology that should set us apart. So, both of those working on some of the additional imaging applications Jerry talked about should position us nicely as a good box to run XP on.

是的。 我認為，尤其是在價值型 PC 領域，從消費者的角度來看，它可能佔據了整個市場的 70% 左右，甚至可能不到 80%。現在很明顯，AMD 在 Duron 和 Celeron 的處理效能上佔優勢。現在，我們擁有時鐘頻率優勢，我認為我們將能夠利用 Duron 技術將頻率帶入那些價值價格點，這將使我們脫穎而出。因此，Jerry 談到的那些致力於開發一些附加成像應用程式的人應該能夠讓我們成為運行 XP 的良好機器。

Okay. And also Rob, any update us on Sledgehammer and thoughts vis-à-vis what Intel's up to?

好的。 另外，Rob，您可以向我們介紹 Sledgehammer 的最新進展嗎？您對英特爾的計畫有何看法？

Well, I still think that clearly the hammer family is a better idea for AMD. I think out of 64-bit strategy is on track. I think we are seeing growing evidence of people lighting in the direction we are headed. So, I am quite confident that as we go forward here that hammer will be the right solution for a 64-bit [_______________] ASIC, and in particular it is going to be the right solution for 64 bit for desktops.

嗯，我仍然認為錘子家族對 AMD 來說顯然是一個更好的主意。 我認為 64 位元策略正在步入正軌。 我認為，我們看到越來越多的證據表明人們正在照亮我們前進的方向。因此，我非常有信心，隨著我們不斷前進，Hammer 將成為 64 位元 [_______________] ASIC 的正確解決方案，特別是它將成為 64 位元桌上型電腦的正確解決方案。

We are going to be first in the desktop with 64-bit technology.

我們將在桌面領域率先採用 64 位元技術。

Okay. One last question if I could, the $13 million of JV income, is that something that that we should expect to continue or is that kind of an anomaly?

好的。 如果可以的話，最後一個問題是，1300 萬美元的合資收入是我們應該預期會繼續下去的事情嗎，還是說這是一種異常現象？

That's probably a high watermark. I would anticipate it to be a little bit less than that as we go forward.

這可能是一個高水位線。 我預計，隨著我們繼續前進，這個數字會比這少一點。

Great. Thank-you.

偉大的。 謝謝。

Vadim Zlotnikov with Sanford Bernstein. Please go ahead with your question.

瓦迪姆·茲洛特尼科夫 (Vadim Zlotnikov) 和桑福德·伯恩斯坦 (Sanford Bernstein)。 請繼續提問。

Just recently, Intel indicated some changes in strategy vis-à-vis the mobile segment. Could you talk a little bit about your strategy in the mobile? And also could you give us at least some rough indications whether your profitability in that segment is above normal microprocessor average or the ASP's meaningfully above the average? And what you intend to do to respond to Intel's price reductions?

就在最近，英特爾表示其在行動領域的策略將會發生一些變化。 您能否稍微談談您在行動領域的策略？ 另外，您能否至少粗略地告訴我們，貴公司在該領域的盈利能力是否高於正常的微處理器平均水平，或者 ASP 是否明顯高於平均水平？ 您打算如何應對英特爾的降價？

Well, those are a lot of questions. Let's try them. We think we have the most compelling solutions for the mobile segment. Our profitability in the mobile segment currently is 0, because we have virtually no presence whatsoever. With the power managed Athlons, code-named 'Palomino', which will be launched next month, we believe we have a superior solution top to bottom over what Intel has. Basically, our mobile solution, the Palomino will outperform the Intel's solution Clock for clock, and we believe that we can match them on any clock speeds going forward for the next several years as they migrate their production. So, we believe that we have a very strong offering in the mobile space, and traditionally, mobile prices have been higher and so the margin should be enhanced. Relative to their pricing strategy, I presume you mean their P4 pricing strategy?

嗯，有很多問題。 我們來嘗試一下吧。 我們認為我們擁有針對行動領域最引人注目的解決方案。 目前我們在行動領域的獲利能力為 0，因為我們幾乎沒有任何存在感。 隨著代號為「Palomino」的低功耗 Athlon 處理器將於下個月上市，我們相信，我們的解決方案將完全優於英特爾現有的解決方案。 基本上，我們的行動解決方案 Palomino 的性能將優於英特爾的解決方案，我們相信，在未來幾年內，隨著他們的生產遷移，我們可以在任何時脈速度上與他們匹敵。 因此，我們相信我們在行動領域擁有非常強大的產品，而且傳統上移動價格較高，因此利潤率應該會提高。 相對於他們的定價策略，我猜你指的是他們的 P4 定價策略？

No. They have also been cutting prices on some of the mobile chips as well.

沒有。他們也一直在降低一些行動晶片的價格。

Well, I think that basically their price reductions on mobile chips are not out of the ordinary. We have seen no extraordinary price cuts from Intel other than the supposed, projected, and forecasted dramatic price reductions that are forth coming on P4.

嗯，我認為基本上他們對行動晶片的降價並不奇怪。 除了 P4 即將進行的假定、預計和預言的大幅降價之外，我們並未看到英特爾採取任何特別的降價措施。

Okay. Thank-you.

好的。 謝謝。

Gary Goldstein with Gilford Securities. Please go ahead with your question.

吉爾福德證券公司的加里‧戈德斯坦 (Gary Goldstein)。 請繼續提問。

Congratulations guys on a great quarter in a real tough environment. Could you walk us through just a couple of quick things? One on the Pro Processor - what are you guys looking for this quarter if you could give us some indication as far as price for Processor goes and one the 1 Gigahertz and faster that was 2 million units? Where did that go?

恭喜大家在如此艱難的環境中取得如此出色的成績。能簡單介紹一下幾件事嗎？ 一個是 Pro 處理器 - 如果您能就處理器的價格給我們一些提示，那麼本季你們在尋找什麼？一個是 1 千兆赫或更快的處理器，也就是 200 萬台？ 那它去哪了？

We shipped over actually 2 million 1 Gigahertz and faster processors. We expect to improve that rather dramatically in this quarter, since now all of our production of Athlons is 1 Gigahertz or faster. For the quarter just completed, as I said, our seventh-generation processors, Durons and Athlons combined, was over $95. The overall ASP was dragged down to around $90 because of these 800,000 K6-2s. Going forward, we are assuming no K6-2s in Q2, our current quarter, but because of these aggressive pricing moves, we are being conservative and assume that our ASP for seventh-generation processors, which will comprise all of our sales will be at the low end of our $90 to $100 range.

我們實際上已經交付了超過 200 萬個 1 千兆赫及更快的處理器。 我們預計本季這一情況將得到顯著改善，因為現在我們生產的所有 Athlon 都達到了 1 千兆赫或更快。 正如我所說，在剛結束的季度，我們的第七代處理器 Durons 和 Athlons 的總價格超過 95 美元。 由於這 80 萬台 K6-2，整體平均售價被拉低至 90 美元左右。 展望未來，我們假設第二季度（當前季度）不會推出 K6-2，但由於這些激進的定價舉措，我們持保守態度，並假設第七代處理器的平均銷售價格（將構成我們所有的銷售）將處於 90 美元至 100 美元範圍的低端。

Okay. Great. And just one last one - did I understand correctly that the majority of the capex of the 200 is going towards the Dresden facility?

好的。 偉大的。 最後一個問題——我是否理解正確，200 的大部分資本支出都用於德勒斯登工廠？

Let me respond. It's $1 billion capex.

讓我來回應一下。這是10億美元的資本支出。

I am sorry, 1 billion.

對不起，10億。

$200 million increase and more than half is targeted for expanding our capacity in Dresden and equipping it for 130 nm.

增加 2 億美元，其中超過一半用於擴大我們在德累斯頓的產能並為其配備 130 奈米設備。

Thank-you very much and congratulations again.

非常感謝，再次恭喜。

Thank-you.

謝謝。

Your next question is from Hans Mosesmann with Prudential Securities. Please go ahead.

您的下一個問題來自 Prudential Securities 的 Hans Mosesmann。 請繼續。

Yes, Jerry. Can you comment regarding the seasonality of the overall processor business? And the second question - what will be the entry speed PIII of 0.13-micron product later this year? Thanks.

是的，傑瑞。 您能否評論一下整個處理器業務的季節性？ 第二個問題是，今年稍後 0.13 微米產品的入門速度 PIII 是多少？ 謝謝。

The answer to the first question is - the second quarter is always the worst quarter. This is going to be the toughest quarter for comparisons, but we are pretty optimistic, because we did not stock the channel in Q4, so we didn't have inventories so much to work down in Q1, although the industry did. We believe the PC industry has now got their inventories in pretty good shape. So, we don't expect a precipitance fall off in opportunities in Q2, but this is going to be the toughest quarter. Certainly, we wouldn't expect units in the industry to be better than flat. So, we feel that if we hold flat, we will actually gain a little market share, but this is always the toughest quarter. The second question relative to our introductory clock speeds on 0.13, I'd rather just say, we plan to continue to double performance every 18 months and for a given architecture that means we will double clock frequency every 18 months, and that say will be around 2 gigahertz at the beginning of next year.

第一個問題的答案是──第二季度永遠是最糟糕的季度。 這將是比較困難的一個季度，但我們非常樂觀，因為我們在第四季度沒有庫存管道，所以在第一季我們並沒有那麼多庫存需要處理，儘管整個行業都有庫存。 我們相信，個人電腦產業目前的庫存狀況相當良好。 因此，我們預計第二季機會不會急劇下降，但這將是最艱難的一個季度。 當然，我們不會期望該行業的單位表現會比持平更好。因此，我們認為，如果我們保持不變，我們實際上會獲得一點市場份額，但這始終是最艱難的季度。 第二個問題與我們在 0.13 上的介紹性時脈速度有關，我寧願說，我們計劃每 18 個月繼續將效能翻一番，對於給定的架構，這意味著我們每 18 個月將時脈頻率翻一番，也就是說，明年年初將達到 2 千兆赫左右。

Great. Thanks a lot.

偉大的。 多謝。

Jack Geraghty with Gerard Klauer Mattison. Please go ahead with your question.

傑克·傑拉蒂 (Jack Geraghty) 和傑拉德·克勞爾·馬蒂森 (Gerard Klauer Mattison)。 請繼續提問。

Hi! Jerry, on that last subject you just raised. Can I imply from what you just said that you think the semiconductor industry as a whole perhaps might be bottoming in the second quarter. I understand that, I guess, voice communications commerce here, but you have been around for as many cycles as anybody else. So if I just could hear a few comments?

你好！傑瑞，關於你剛才提出的最後一個話題。 我是否可以從您剛才所說的暗示出，您認為整個半導體產業可能在第二季觸底。 我猜我明白，這裡是語音通訊商務，但你已經和其他人一樣經歷了很多周期。那我能聽聽一些評論嗎？

Actually, I think I have been around for more cycles than most people. I think that's the benefit of cards issue. The realities are, the big problem is the communications sector. There was just a huge bubble, yes, you are rationally exuberant to call somebody else, and we have just got networks, which is terribly over billed. The communications thing, which is totally out of control, it's still out of control. There is too much inventory. There is over capacity. I can't see any of that clearing up before the end of this year. Frankly, we are very fortunate. We anticipated that voice communications were getting over billed. We are not exposed in voice communications. We are planning to be in obviously a lot of network applications with our flash, that's an exposure currently. We also expect to have networking and communications implemented solutions on chipsets going forward, but as far as we are concerned, we see the semiconductor industry as always tracking capital expenditures, and with communications, capital expenditures being severely curtailed, communication products are not going to lead us out of this downturn. So, I would expect communications will be a drag through the third quarter with hopefully some relief by the fourth quarter. We have reason to believe in the mobile phone sector, that some new opportunities will present a chance for an upturn there. Maybe Walid will like to elaborate on that.

實際上，我認為我經歷的周期比大多數人都要多。 我認為這就是發卡的好處。 事實是，最大的問題在於通訊領域。 是的，確實存在著巨大的泡沫，你理智地興奮地給別人打電話，而我們剛剛擁有的網路卻被嚴重高估了。 通訊問題已經完全失控，而且仍然失控。 庫存太多。 產能過剩。 我認為今年年底前這些問題都不會解決。 坦白說，我們非常幸運。 我們預計語音通訊費用將會過高。 我們在語音通訊中沒有暴露。 我們計劃將我們的快閃記憶體融入到許多網路應用中，這是目前的一個亮點。 我們也希望未來在晶片組上實現網路和通訊解決方案，但就我們而言，我們認為半導體產業始終在追蹤資本支出，而隨著通訊、資本支出受到嚴重削減，通訊產品不會帶領我們走出低迷。 因此，我預計通訊業在第三季會受到拖累，但希望在第四季能得到一些緩解。 我們有理由相信，在手機領域，一些新的機會將為該領域帶來復甦的機會。 也許瓦利德願意詳細闡述這一點。

Yeah, I think for Q3 and Q4, switch to EPRS system we enabled, resumed a growth in flash and that's an opportunity that could prevent us and render the flash relatively flat for the whole year.

是的，我認為對於第三季度和第四季度，切換到我們啟用的 EPRS 系統，恢復了快閃記憶體的成長，這是一個可以阻止我們並使全年快閃記憶體相對平穩的機會。

With that, I think that we definitely see reserve scratching the bottom here, and I certainly think that the second half is going to be better than the industry as a whole, but I think the computer industry is going to lead us out. Next question?

由此，我認為我們肯定會看到儲備在這裡觸底，我當然認為下半年將比整個行業更好，但我認為電腦產業將引領我們走出困境。 下一個問題？

The next question is from Adam Horowitz with Ulysses Management. Please go ahead.

下一個問題來自 Ulysses Management 的 Adam Horowitz。 請繼續。

Good afternoon. A couple of questions - one was, I did not catch what the depreciation amortization number expectation from this year is going to be?

午安. 有幾個問題 - 一個是，我不明白今年的折舊攤銷數字預期是多少？

670 million for the year depreciation.

年度折舊為6.7億。

Where should we expect at the yearend debt to be?

我們預計年底債務規模將達到多少？

Lower than now.

比現在低。

I think it is important to know, we really only have 2 components of debt. One is our convertible debentures which have an early call provision, and if we maintain our current stock price, we will convert all those. By the way, those numbers are already included in our fully diluted share earnings. The only other debt we have is, the debt on the Dresden facility, which as you know, is at very favorable rates guaranteed by the state of Saxony and the Federal Republic of Germany, and we are getting interest subsidies for the payment there. So, I think if we convert these debentures for all intents and purposes, we are debt fee.

我認為了解這一點很重要，我們的債務實際上只有兩個組成部分。 一類是我們的可轉換債券，它有提前贖回條款，如果我們維持目前的股價，我們將把這些債券全部轉換。 順便說一句，這些數字已經包含在我們的完全稀釋股票收益中。 我們唯一的其他債務是德累斯頓工廠的債務，如您所知，該債務的利率非常優惠，由薩克森州和德意志聯邦共和國擔保，而且我們正在獲得那裡的償還利息補貼。 因此，我認為如果我們從所有意圖和目的上轉換這些債券，我們就是債務費用。

And then what I am really getting at is if you have excess cash what you intend to do with it?

那麼我真正想知道的是，如果你有多餘的現金，你打算拿它做什麼？

That's an excellent question. We have talked about buyback of our shares, but I think even though our stock is undervalued by 2 or 3, we don't currently have any intentions of buying stock. So, if we have excess cash, it should just enable us to buttress ourselves us against any foolish moves from our competitor.

這是一個很好的問題。 我們已經討論過回購我們的股票，但我認為即使我們的股票被低估了 2 到 3 倍，我們目前也沒有購買股票的意圖。 因此，如果我們有多餘的現金，它應該能夠讓我們抵禦競爭對手的任何愚蠢舉動。

Okay, and the last quick question is - on accounts receivable, it was up a bit, what should we expect moving forward?

好的，最後一個快速問題是 - 應收帳款增加，我們對未來的發展應該有何期待？

Probably in that same range. We are opportunistic to take business, but manage risk appropriately. It's moved up a little bit, just with the seasonality of the first quarter, but in that kind of range.

可能在同一範圍內。 我們抓住機會開展業務，但適當管理風險。 由於第一季的季節性因素，它略有上升，但也在這樣的範圍內。

Thank-you very much.

非常感謝。

Joe Osha with Merrill Lynch. Please go ahead with your question.

美林證券的 Joe Osha。 請繼續提問。

Hi! Let me add my voice to the chorus of congratulation here. Nice quarter. Can you talk a little bit, Jerry, about demand aid by geography, there has been this whole sort of Europe weakening versus non-Europe weakening debate? And secondly, I am curious, obviously you have got a little less visibility into enterprise versus retail, but if you can talk about the trends you are seeing in those 2 segments that would be real helpful as well? Thanks.

你好！ 讓我在這裡加入祝賀的行列。 不錯的季度。 傑瑞，您能否談談依地域劃分的需求援助，是否有歐洲弱化與非歐洲弱化的爭論？ 其次，我很好奇，顯然您對企業領域與零售領域的了解較少，但如果您能談談您在這兩個領域看到的趨勢，這也會很有幫助嗎？謝謝。

I'm going to let Rob take a crack on that since he is intimate with those anecdotal situations on a day-by-day basis.

我打算讓羅布來嘗試一下，因為他每天都熟悉這些軼事情況。

Okay.

好的。

We will tell you from our perspective. Europe remained very strong through the first quarter. We are coming in a period of time where Europe tends to weaken just from the seasonality standpoint. So, I would expect to see that a little bit in the late Q2, early Q3 timeframe with Europe. Asia was just gaining buttress for us as we went through Q1. So, it was very strong in Asia as well. In Japan, the overall market was okay, we didn't participate from a PC standpoint in the mobile and small-form-factor sectors to any greater degree and that makes up roughly about 70% of that market. I think overall Japan was okay. The biggest weakness we saw, and I can tell you that we believe was both consumer and commercial was probably the US market. We did reasonably well there, but overall the market, I think is still, I would classify it sluggish, and I expect that to continue through Q2, which is a season of [_______________] from a consumer's standpoint, a fairly weak period of time. I think Jerry commented earlier, we expect the overall PC market to be maybe roughly flat. I think there may be a little bit upside in Q2, but I don't think it's anything significant. So, looking forward, I would expect, you will see a little bit of weakening in Europe. Asia will probably continue to be, a pretty solid market for us. Japan has a huge opportunity for us because of both the small-form-factor and mobile opportunities with our power-managed Athlon family. And we continue to make some strides here in the US relative to our share. The overall market is somewhat sluggish.

我們將從我們的角度告訴你。 歐洲在第一季依然保持強勁勢頭。 我們正處於一個從季節性角度來看歐洲趨於疲軟的時期。 因此，我預計歐洲在第二季末和第三季初會看到這種情況。 當我們進入第一季時，亞洲正在為我們贏得支撐。因此，它在亞洲也非常強大。 在日本，整體市場還可以，從 PC 的角度來看，我們在行動和小型化領域的參與度並不高，而這兩個領域約佔該市場的 70%。 我認為日本整體來說還不錯。我們看到的最大弱點，我可以告訴你，我們認為無論是消費者或商業，可能都是美國市場。 我們在那裡做得相當不錯，但我認為整體市場仍然處於低迷狀態，我預計這種情況將持續到第二季​​度，從消費者的角度來看，這是一個 [_______________] 的季節，一段相當疲軟的時期。 我認為傑瑞之前曾評論過，我們預計整體 PC 市場可能大致持平。 我認為第二季可能會有一點上漲，但我認為這並不是什麼重大的事情。 因此，展望未來，我預期你會看到歐洲經濟稍微走弱。 亞洲可能仍將是我們的一個相當穩固的市場。由於我們的功率管理型 Athlon 系列具有小型化和行動化的優勢，日本對我們來說是一個巨大的機會。 相對於我們的份額，我們在美國繼續取得一些進展。 整體市場略顯低迷。

Relative to your other comment of, we are seeing some encouraging signs in the enterprise market. We did get an announcement of NEC International building a commercial box with us in Europe. You may know, that Fujitsu, Siemens has been selling into the government market in Italy?

相對於您的其他評論，我們在企業市場看到了一些令人鼓舞的跡象。 我們確實收到了 NEC International 與我們在歐洲共同打造商用機箱的公告。 您可能知道，富士通、西門子已經向義大利政府市場銷售產品了？

Actually yeah. I will backup and cover a few of them. Germany, MAX data, which is the #3 producer of commercial PCs launched and has been reasonably successful with an AMD solution. All of that is the company that wants an Italian Government bid. NEC, as Jerry mentioned, International has done some work around some commercial solutions, and just this week in Japan, Fujitsu announce their small-form-factor box targeted at commercial segment as well. So, you put all that together as well as the Gateway Select SB and the Gateway Select Pro in Japan, we are starting to get some momentum relative to the overall commercial enterprise base. Hopefully, we can build on that as we go throughout the year.

實際上是的。 我將備份並介紹其中的一些。 德國 MAX 數據是全球第三大商用 PC 生產商，其採用 AMD 解決方案取得了相當大的成功。 所有這些都是希望獲得義大利政府競標的公司。 正如 Jerry 所提到的，NEC International 已經圍繞一些商業解決方案做了一些工作，而就在本週，富士通在日本也宣布了針對商業領域的小型機箱。 因此，將所有這些以及日本的 Gateway Select SB 和 Gateway Select Pro 放在一起，我們開始相對於整體商業企業基礎獲得一些動力。 希望我們能夠在全年的發展中繼續保持這一勢頭。

Interestingly enough the low-end server might be our entry vehicle, because we have a compelling performance per dollar solution, and we are now seeing some opportunities, and there should be some announcements forthcoming. And as you know, this quarter will have our 2P chipset available. So, we have a solution for the 2-processor servers as well. So, what we think, that all in all, this will enable us to ride through this seasonally soft quarter.

有趣的是，低端伺服器可能是我們的入門工具，因為我們擁有引人注目的性價比解決方案，而且我們現在看到了一些機會，並且應該會有一些公告即將發布。 如您所知，本季我們將推出 2P 晶片組。 因此，我們也為雙處理器伺服器提供了解決方案。 所以，我們認為，總的來說，這將使我們能夠度過這個季節性疲軟的季度。

Thanks a lot gentlemen.

非常感謝各位先生。

John Joseph of Salomon Smith Barney. Please go ahead with your question.

所羅門史密斯巴尼的約翰約瑟夫。 請繼續提問。

Yeah. Good afternoon. I just want to clarify - will both memory and microprocessors be down by about 10% this quarter?

是的。 午安. 我只是想澄清一下——本季記憶體和微處理器的銷量都會下降約 10% 嗎？

We didn't say that either one would be down by 10%. What we said was in the aggregate, our business could be down as much as 10%, probably it won't, but it could be. That doesn't say anything about what either one will do.

我們並沒有說其中任何一個都會下降 10%。 我們說的是，總體而言，我們的業務可能會下降 10%，也許不會，但也有這種可能。 這並沒有說明任何一方會做什麼。

Okay. All right. Thanks Jerry. Hector, can you give us some sense with regards to downside risk in profitability within the Flash. What percent of your Flash is going through joint venture, partners, and to some degree, I guess, that's at arms length for profitability there from your own P&L though it has run through the onetime gain loss line. Can you give us some sense of that, how much Flash have been produced say in [_______________] 25?

好的。 好的。 謝謝傑瑞。 赫克托，您能否向我們介紹 Flash 獲利能力的下行風險？ 您的 Flash 中有多少百分比是透過合資企業、合作夥伴獲得的，並且在某種程度上，我想，儘管它已經通過了一次性損益線，但這對於從您自己的損益表中獲利是相當有利的。 您能否告訴我們，在 [_______________] 25 年內生產了多少 Flash？

We re-invited today to have Walid Maghribi, the President of Memory Group business with us today, and I would like to let him make some comments on your question, and I appreciate that and then if we need to, I will make some comments after him.

今天，我們再次邀請了 Memory Group 總裁 Walid Maghribi 來參加我們的會議，我想讓他對您的問題發表一些評論，我對此表示感謝，如果需要的話，我會在他之後發表一些評論。

I just want to remind everybody that what we had with Fujitsu is a manufacturing joint venture, 100% for all intensive purposes of our flash is manufactured in the joint venture and Fujitsu sells half of the output, and we sell half of the output. We try to manage the business so that the manufacturing activity doesn't make a profit, because the tax rates are higher in Japan. That's why earlier Bob Rivet said the high watermark. We tried to hold the manufacturing operation at breakeven. We make the money when we sell it. With that in mind, Walid can comment on how it's going.

我只是想提醒大家，我們與富士通是一家製造合資企業，我們所有密集用途的快閃記憶體都是在合資企業生產的，富士通銷售一半的產量，我們銷售一半的產量。 我們盡力管理業務，使製造活動不會獲利，因為日本的稅率較高。這就是為什麼早些時候 Bob Rivet 說過高水位線。 我們努力使製造業保持損益平衡。 當我們賣出它時我們就賺錢了。 考慮到這一點，瓦利德可以評論一下事情的進展。

Okay. As Jerry said, we are not making any flash right now in Fab 25. Fab 25 will not have an impact till the middle of next year. We are selling our capacity in flash, and all the profits that we are making is within AMD, as Jerry said, we've contracted the agreement basically with a breakeven in FASL. We continue to grow our capacity per plant, and right now there is no change in our capacity addition in 2001 and 2002.

好的。 正如 Jerry 所說，我們目前沒有在 Fab 25 中製作任何快閃記憶體。 Fab 25 直到明年年中才會產生影響。 我們正在銷售快閃記憶體容量，我們所賺取的所有利潤都在 AMD 內部，正如傑瑞所說，我們簽訂的協議基本上是在 FASL 中實現盈虧平衡。 我們持續提高每個工廠的產能，目前 2001 年和 2002 年的產能增加沒有改變。

Does that clarify or you are looking for more?

這樣說清楚了嗎？或者您還想了解更多？

Yeah. I am just trying to, Jerry, get some sense of downside risk for in a bit of a soft flash market that could improve a little bit in the second half, and just for my own model, to just try to appreciate, how you are going to --?

是的。 傑瑞，我只是想了解一下快閃記憶體市場在下半年可能略有改善的下行風險，僅從我自己的模型來看，你打算如何—？

Okay. Now I understand your question fully. Okay, March data is really not out yet, but if we look at the January and February, and forecast what's happening in March, we believe that the flash market in Q1 is running about $10 billion run rate, which is down a little bit from last year. For Q2, I really don't see how the flash market is going to grow. I believe it's going to be down in Q2 versus Q1 and then recover in Q3 and Q4 holding probably the overall flash market flat at best, maybe slightly down. During this market condition, we are definitely gaining market shares. So, even though the markets may be down 10% from Q1 to Q2, because we are gaining market share, we anticipate to outperform the market.

好的。 現在我完全理解你的問題了。 好的，三月的數據實際上還沒有出來，但是如果我們看一下一月份和二月份的數據，並預測三月份的情況，我們認為第一季度閃存市場的運行率約為 100 億美元，比去年略有下降。 對於第二季度，我真的不知道快閃記憶體市場將如何成長。我認為第二季相對於第一季會有所下降，然後在第三季和第四季回升，整個快閃記憶體市場最多會保持平穩，甚至可能略有下降。 在這種市場條件下，我們的市佔率肯定在不斷成長。 因此，即使市場從第一季到第二季可能下跌 10%，但由於我們的市佔率正在擴大，我們預計表現將優於市場。

Would you expect your blended ASP's to be flat or down slightly?

您預計混合 ASP 會持平還是略有下降？

Well in Q1, we were down slightly. I expect it to be down slightly again for Q2, mitigated a little bit by moved to higher and higher density.

嗯，在第一季度，我們的業績略有下滑。 我預計第二季度該數字會再次略有下降，透過提高密度可以稍微緩解這一情況。

Okay. And then, with regard to long-term contracts, you had some pretty good contracts lined up. Those are still in place, but it sounds like that some of your customers are not necessarily placing orders against those contracts?

好的。 然後，關於長期合同，你已經簽訂了一些相當不錯的合約。 這些仍然有效，但聽起來您的一些客戶不一定會根據這些合約下訂單？

Well, I think what we have to keep in mind is that these contracts and there's 26 of them, we have not signed all in one day. They were signed as early in the year 2000, and the latest one was signed just very, very recently. So, depend on how old these contracts are, they all have a provision for revision in both prices and the quantity, and we have renegotiated the majority of them, especially the one in the first half of the year 2000. And right now, I think the reason customers are not placing order is really because of the mix, and the market is changing very fast and because of the nature of the market it is very hard to determine the mix. So, they wait till the last moment until they get their orders from their customers before they place order on us.

嗯，我認為我們必須記住的是，這些合約共有 26 份，我們並不是在一天之內全部簽署的。 這些協議最早是在 2000 年簽署的，而最新的協議也是最近才簽署的。 所以，取決於這些合約有多舊，它們都包含修改價格和數量的條款，我們已經重新談判了其中的大部分合同，特別是 2000 年上半年的合同。現在，我認為客戶不下訂單的原因實際上是因為產品組合，而市場變化非常快，而且由於市場的性質，很難確定產品組合。 因此，他們等到最後一刻，直到收到客戶的訂單後才向我們下訂單。

All right.

好的。

It's not just because that they are negating or they refuse to take it's just because they need to wait for the last moment before they decide on the mix.

這不僅是因為他們否定或拒絕接受，而是因為他們需要等待最後一刻才能決定混合方式。

Okay. All right. Thanks Walid.

好的。 好的。 謝謝瓦利德。

Next.

下一個。

The next question is from Dave Nadig with MetaMarkets. Please go ahead.

下一個問題來自 MetaMarkets 的 Dave Nadig。請繼續。

Congratulations guys. Great quarter. Two very quick questions - one, could you give us an estimate assuming that you do go ahead with the convertible, what your estimated cash would be at the end of the year? And second, do you have an estimate, I know it's a little early, on what you think your sold market share was for the quarter?

恭喜你們。 很棒的一個季度。 兩個非常簡單的問題 - 第一，您能否給我們一個估計，假設您確實繼續進行轉換，您預計年底的現金是多少？ 其次，我知道現在還為時過早，您對本季的銷售市佔率有什麼估計嗎？

First comment, we won't forecast cash, but if we actually get earnings works the way we want, the retirement of the convertible debt has no impact on cash. So, that's just a loss. We will take debt off the books. We will save the interest expense. The dilution effect is already in the computation today. So, people will risk its real shares and stock.

第一條評論，我們不會預測現金，但如果我們確實按照我們想要的方式獲得收益，那麼可轉換債務的償還就不會對現金產生影響。 所以，這只是一個損失。 我們將取消帳簿上的債務。 我們將節省利息支出。 稀釋效應今天已在計算中。 因此，人們會冒險使用其真實股份和股票。

And the question you were asking was on market share?

您問的問題是關於市場佔有率嗎？

Yeah, as sold in the quarter. Do you have an estimate on that yet?

是的，本季的銷量是如此。 您對此有估計嗎？

As sold, I am not quite sure what exactly you are talking processors, flash or?

出售時，我不太清楚您所說的處理器、快閃記憶體還是什麼？

Processors.

處理器。

Yeah, for processors standpoint, we'd estimate that unit share in Q1 probably exceeded 21%, which was up from something around 17% in Q4.

是的，從處理器的角度來看，我們估計第一季的單位份額可能超過 21%，高於第四季的 17% 左右。

That's great. Thanks guys.

那太棒了。 謝謝大家。

Steve [_______________] of [_______________]. Please go ahead with your question.

[_______________] 的史蒂夫 [_______________]。 請繼續提問。

Yes. This one is for Jerry. I am just curious how close your relationship might be with IBM for 64-bit servers, specifically the Clawhammer? Is it any potential for an Intel-HP type arrangement legitimize yourselves in that market?

是的。 這是給傑瑞的。 我只是好奇您與 IBM 在 64 位元伺服器（特別是 Clawhammer）方面的關係有多密切？ 英特爾和惠普之間的類似合作是否有可能使你們在該市場合法化？

I thought we were legitimate. Just as a company policy, we don't talk about customer relationships until we have some formal announcement to make, and I don't mean to imply that we have a formal announcement at the ready. We just have no comment on things like that. We certainly look at IBM as a potential customer for 64-bit hammer solutions, but we have no comment to make at this time.

我以為我們是合法的。 正如公司的政策一樣，我們只有在正式宣布之前才會談論客戶關係，而且我的意思並不是說我們已經準備好了正式的公告。 我們對這樣的事情不予置評。 我們當然將 IBM 視為 64 位 hammer 解決方案的潛在客戶，但目前我們還不便發表評論。

Okay. Thank-you very much.

好的。非常感謝。

Your next question is from Drew Peck with SG Cowen. Please go ahead.

您的下一個問題來自 SG Cowen 的 Drew Peck。 請繼續。

Good afternoon. It's interesting that Intel is still maintaining that they are not losing any market share. It seems like, given the data points that you are providing, it will be hard for them to deny that any further. I am wondering, in that wane, what you think their reaction is going to be? Obviously, you now have been taking market share quarter after quarter. You evidently have heard the rumors about the price cuts that are coming, I'm wondering what you make of that and what your likely response would be if Intel does get much more aggressive on the pricing?

午安. 有趣的是，英特爾仍然堅持認為他們沒有失去任何市場份額。 看起來，根據您提供的數據點，他們很難進一步否認這一點。 我想知道，在這種情況下，您認為他們的反應會是什麼？顯然，你們現在已經逐季佔領市場。 您顯然已經聽說了即將降價的傳聞，我想知道您對此有何看法？如果英特爾確實在定價方面採取更激進的措施，您可能會如何反應？

Well, we believe that they are going to get much more aggressive on the pricing. We don't think that there is going to be a price war, Drew, because first of all, like George Bernard Shaw said "Don't fight with pigs, you get dirty, and the pigs like it." So, I have no intention of getting into a price war with Intel. I would say this - our practice and our policy will be to price competitively Clock for clock what Intel does. So, across the board, at a given clock speed, we will offer a competitive price and we will offer superior performance. We think the current market conditions favor us, because the customers want the maximum performance they can get at any price point and that's where we currently excel. Frankly, we think the P4 is a dud. They really have no choice except to cut the price, because it doesn't perform as well on many applications as lower clock speeds of PIII's. So, from our point of view, we think we have taken into consideration what Intel can do. Intel has been cutting prices one way or another with their Intel insight program and other market development funds and other attempts to maintain their position. I think, the truth is, that a crummy car with a rebate is still a crummy car.

嗯，我們相信他們會在定價上採取更積極的措施。 我們認為不會發生價格戰，德魯，因為首先，就像蕭伯納所說的那樣「不要與豬打架，你會變得很髒，但豬喜歡這樣。」所以，我無意與英特爾展開價格戰。 我想說的是 - 我們的做法和政策是針對英特爾所做的時鐘制定具有競爭力的價格。 因此，在給定的時脈速度下，我們將提供具有競爭力的價格和卓越的性能。 我們認為當前的市場條件對我們有利，因為客戶希望以任何價格獲得最佳性能，而這正是我們目前的優勢所在。坦白說，我們認為 P4 是失敗品。 他們除了降低價格之外別無選擇，因為它在許多應用程式上的表現不如時脈速度較低的 PIII。 因此，從我們的角度來看，我們認為我們已經考慮到了英特爾可以做什麼。 英特爾一直透過英特爾洞察計畫和其他市場開發基金以及其他嘗試以某種方式降低價格，以維持其地位。 我認為，事實是，一輛破舊的汽車即使有折扣仍然是一輛破舊的汽車。

But it sounds like you are saying that even if they do cut prices because of the crummy car that you will match their pricing or beat it?

但聽起來你的意思是，即使他們因為車子品質差而降價，你也會匹配他們的價格甚至低於他們的價格？

We will match their pricing for a given clock speed. That is to say, our price for 1 gigahertz will equal their price for 1 gigahertz, and we will offer more delivered performance. We think that's a compelling value proposition that will allow us continue to gain market share.

我們將根據給定的時鐘速度來匹配他們的定價。 也就是說，我們的 1 千兆赫價格將等於他們的 1 千兆赫價格，而且我們將提供更高的交付性能。 我們認為這是一個引人注目的價值主張，它將使我們繼續獲得市場份額。

Right. And then one final question, have you given a number for what your total unit capacity for processor production is going to be this year?

正確的。 最後一個問題，您是否給出今年處理器生產的總單位產能是多少？

No, we have not given that Drew, but we would say this, as you know, we have had for 5 years a longstanding goal of achieving 30% unit share by the end of 2001. We have a plan to have in place the productive capacity to gain or to have 30% unit share, and we have an ongoing plan for the next several years to make sure that we could produce 30% of the units demand in the industry in any given quarter. With current market conditions, we don't think we will get the 30% by yearend, but we will continue to make progress towards it.

不，德魯，我們沒有給出這個答案，但是我們可以這麼說，正如你所知，我們五年來一直有一個長期目標，即到 2001 年底實現 30% 的單位份額。我們計劃擁有足夠的生產能力來獲得或擁有 30% 的單位份額，並且我們在未來幾年有一個持續的計劃，以確保我們能夠在任何一個季度生產出滿足行業 30% 的單位需求。 在目前的市場條件下，我們認為到年底我們無法實現 30% 的目標，但我們會繼續朝著這個目標努力。

That's great. Thanks Jerry.

那太棒了。 謝謝傑瑞。

Your next question is from John Cross with Morgan Stanley. Please go ahead.

您的下一個問題來自摩根士丹利的約翰克羅斯。請繼續。

Good afternoon. Back to the flash, how much is covered by long-term supply agreements and wanted to talk about inventory levels?

午安. 回到閃存，長期供應協議涵蓋了多少，想談談庫存水準嗎？

Currently, about 75% of our sales, [_______________] sales is covered by RCA agreements.

目前，我們約 75% 的銷售額，[_______________] 銷售額都受到 RCA 協議的約束。

Okay. And the inventory situation, if I could describe it as kind of three locations, kind of would say, at AMD, the manufacturers or at FASL, and kind of out in the channel, and should we say at the OEMs, how would you characterize inventory in those buckets?

好的。 庫存情況，如果我可以將其描述為三個位置，可以說，在 AMD，製造商或 FASL，以及渠道中，我們應該說在 OEM 中，您如何描述這些桶中的庫存？

Okay. Well, I could tell you overall, from all away from our manufacturing, all away throughout the whole channel, throughout 2000, every single week, we were down in inventory, because we were on our location and we sold every single unit that we could make. In Q1, inventory remained flat. In Q2, we expect to regrow inventory to the predicted normal level of maintaining customer support. As far as the Q3 and Q4, it depends on the growth in the market, and the market was recovered, as we expected, that we will be fine, otherwise we may do some adjustment to our production capacity, but right now, we are not facing any excess inventory in the whole channel. We were very lucky during last year and we kept our eyes very close on who is maintaining inventory and who is building inventory, and when we ended 2000, our inventory level was at a historically low levels, the lowest in our history.

好的。 嗯，我可以告訴你，總體而言，從我們所有的製造環節，從整個渠道，在整個 2000 年，每週我們的庫存都在下降，因為我們在自己的位置，我們賣掉了我們能生產的每一個單元。 第一季度，庫存保持穩定。 在第二季度，我們預計庫存將恢復到維持客戶支援的預測正常水準。 至於第三季和第四季，這取決於市場的成長情況，正如我們預期的那樣，市場已經復甦，我們會沒事的，否則我們可能會對產能做一些調整，但目前，我們在整個通路中沒有面臨任何庫存過剩的情況。去年我們非常幸運，我們密切關注誰在維持庫存、誰在建立庫存，當 2000 年結束時，我們的庫存水平處於歷史最低水平，是我們歷史上的最低水平。

Okay. And in terms of mix about that inventory is in pretty good balance as well?

好的。 就庫存組合而言，是否也處於相當好的平衡狀態？

Yes Sir. As you know, most of our product is built for a general market. Some of them are for semi-customer product for those particular customers. We only build the product when we have orders for them.

是的，先生。 如您所知，我們的大多數產品都是面向大眾市場打造的。 其中一些是針對特定客戶的半客製化產品。 我們只有在接到訂單時才會生產產品。

Okay. Any idea would be to continue to grow wafer stocks and the manufacturing plant during the remainder of the year?

好的。 有什麼想法可以在今年剩餘時間內繼續增加晶圓庫存和製造工廠嗎？

Yes, Sir. The idea is to continue to build our current plan, and if the market was at the current level, then we anticipate to gain market share.

是的，先生。 我們的想法是繼續實施我們目前的計劃，如果市場處於當前水平，那麼我們預計會獲得市場份額。

Okay. Right. Thanks very much.

好的。 正確的。 非常感謝。

Paul Jackson of Wellington Management. Please go ahead with your question.

惠靈頓管理公司的保羅·傑克遜。 請繼續提問。

Hi! Is your forecast, revenue guidance, for the processor business including likely price cuts on the PIV that I am reading about, which is for the 1.3, 1.4 Gate Processors to be down in the $195 range by the end of April?

你好！ 您對處理器業務的預測和收入指導是否包括我所讀到的 PIV 可能降價的情況，即到 4 月底，1.3、1.4 門處理器的價格將降至 195 美元左右？

Yeah. According to our projections we have incorporated all of that, and I think there is another question relative the PIV pricing, which is where you are seeing the most aggressive cuts, and I would agree with Jerry, when you are in these situations it is not just the cost or price alone, if you look at the platform, an AMD in Athlon 1.3, 1.4, 1.5 gigahertz product in a DDR platform is going to significantly outperform the competition, and it is also going to be a much lower cost. I think the platform cost difference today between an Athlon DDR solution and a PIV ethernet solution is probably in the neighborhood of $60 to $70. So, it's clear to me why Intel is looking to try to get more aggressive on PIV, to get some traction with that product. Rolled up and factored into date with what we know into our current projections.

是的。根據我們的預測，我們已經將所有這些都考慮在內了，我認為還有一個與 PIV 定價相關的問題，也就是你們看到的最大幅度的降價，我同意 Jerry 的觀點，當你處於這些情況時，這不僅僅是成本或價格的問題，如果你看一下平台，AMD 在 DDR 平台上的 Athlon 1.3、1.4、1.5 競爭對手會大大低得多，而且成本也將大大低於千兆。 我認為目前 Athlon DDR 解決方案和 PIV 乙太網路解決方案之間的平台成本差異可能在 60 到 70 美元左右。因此，我很清楚為什麼英特爾試圖在 PIV 上採取更積極的行動，以使該產品獲得一些關注。 將我們所知道的資訊匯總並納入我們當前的預測中。

Okay. Thanks.

好的。 謝謝。

Eric Rothdeutsch with Robertson Stevens. Please go ahead with your question.

Eric Rothdeutsch 和 Robertson Stevens。 請繼續提問。

Thank-you. Jerry, could you just clarify the Athlons, you are currently running in Texas. Are they at 0.25 micron or 0.18? And where do you see the processor technology going there? And then a second question on the Duron is - where do you see the chipset strategy going beyond the CAM 133? Do you expect there to be additional chipsets supporting the Duron?

謝謝。 傑瑞，你能解釋一下 Athlons 的情況嗎？你們目前正在德克薩斯州跑步。 它們的尺寸是 0.25 微米還是 0.18 微米？ 您認為處理器技術將如何發展？ 關於 Duron 的第二個問題是 - 您認為晶片組策略在 CAM 133 之後會如何發展？ 您是否希望有更多晶片組支援 Duron？

Yeah, let me answer the first part. First of all, everything we make in Athlons and Durons is 180 nm today. So, everything in Texas is 180 nm, and as I said, even in Texas today, because of the progress we made in our technology everything is 1 gigahertz or faster. We plan to continue production of Athlons of 1 gigahertz and faster. What we plan to do after the current quarter and the next quarter is, have the Duron versions made in Texas and with the Athlons and the power-managed Athlons being made in Fab 30 in Dresden. The overall plan is to migrate Fab 25 into a Flash factory over time, and we have another plan to ensure that we can meet the worldwide demand for Athlons and Durons going forward. Rob will comment on the chipsets after...

是的，讓我回答第一部分。 首先，我們今天在 Athlon 和 Durons 中生產的所有產品都是 180 nm。因此，德克薩斯州的所有東西都是 180 奈米，正如我所說，即使在今天的德克薩斯州，由於我們技術上的進步，所有東西都是 1 千兆赫或更快。 我們計劃繼續生產 1 千兆赫或更快的 Athlon。 我們計劃在本季和下一季之後在德州生產 Duron 版本，並在德勒斯登的 Fab 30 生產 Athlon 和電源管理 Athlon。 總體計劃是隨著時間的推移將 Fab 25 遷移到 Flash 工廠，我們還有另一個計劃來確保我們能夠滿足未來全球對 Athlon 和 Durons 的需求。 Rob 將在之後對晶片組進行評論…

Actually, a couple of chipsets are already selling in the market, both the KL and KLE are our cost-reduced versions of the chipsets focused on the low end value space in the market. We are also expecting some chipset entries here in the balance of the year from our other providers, people like ALI, SIS, and a few others that are working on chipsets. I think they are going to be a pretty broad range of support and a broad range of price points for both the desktop and mobile chipset solutions for Athlon and Duron.

實際上，市場上已經有幾款晶片組在銷售，KL 和 KLE 都是我們針對低端市場價值空間推出的晶片組的成本降低版本。 我們也期望在今年餘下時間裡，我們的其他供應商（例如 ALI、SIS 和其他一些致力於晶片組的供應商）能夠推出一些晶片組產品。 我認為它們將為 Athlon 和 Duron 的桌上型電腦和行動晶片組解決方案提供相當廣泛的支援和廣泛的價格點。

And Rob, just a followup. Will the mobile Palomino chipsets be identical to the desktop Athlon?

Rob，這只是一個後續問題。 行動 Palomino 晶片組是否與桌面 Athlon 相同？

They can be. That's not the only solution. We have some other people providing mobile-targeted solutions that would be different.

可以。 這不是唯一的解決方案。 我們還有一些其他人提供不同的針對行動裝置的解決方案。

They are initially or probably be the same, but then you would migrate to newer version?

它們最初或可能相同，但您會遷移到較新的版本嗎？

Correct.

正確的。

Okay. Thank-you.

好的。 謝謝。

The next question from Doug Lee with Banc of America Securities. Please go ahead.

下一個問題來自美國銀行證券公司的 Doug Lee。 請繼續。

Hi! Congratulations on a very good quarter. Just a couple of clarifications if I could - you threw a lot of numbers Jerry, on the processor units where you had over 2 million, 1 gigahertz Athlon etcetera. I am not sure; do you give a breakup between the Duron versus Athlon units in the quarter?

你好！ 恭喜您本季取得了非常好的成績。 如果可以的話，我只想澄清幾點——傑瑞，你提到了很多數字，例如處理器單元數量超過 200 萬個、1 千兆赫的 Athlon 等等。我不知道;本季度，您如何對 Duron 和 Athlon 部門進行細分？

No, we didn't, but they were pretty close to one another. We split the $6.5 billion pretty much down in the middle, few more Durons than Athlons.

不，我們沒有，但它們彼此非常接近。 我們將這 65 億美元大致平分，Duron 的數量比 Athlon 的數量多一些。

Okay. Terrific. And just to get somewhat color or clarification say on your road map looking forward, I understand you are going to focus all the effort on the Palomino right now in the mobile segment. We should expect the desktop Palomino in the third quarter?

好的。 了不起。 為了更清楚地說明您未來的路線圖，我了解到您現在將把所有的精力集中在行動領域的 Palomino 上。 我們應該在第三季期待桌面版 Palomino 嗎？

Yes.

是的。

Okay, and then finally on the value side of the mobile market, I guess there was a Morgan project.

好的，最後在行動市場的價值方面，我想有一個摩根專案。

Yes. The Morgan is coming out in the third quarter as well.

是的。 摩根大通也將在第三季上市。

That will be the third quarter as well, okay, and also for the desktop Morgan?

那也將是第三季度，好嗎，對於桌面摩根來說也是如此？

Same timeframe.

相同的時間範圍。

It's terrific. Thank-you.

太棒了。謝謝。

Dan Scovel with Needham & Company. Please go ahead with your question.

Needham & Company 的 Dan Scovel。 請繼續提問。

Yeah, again a good quarter. Can you comment on the linearity of orders as well as the profile of turns during the quarters for both microprocessors and Flash?

是的，又是一個好季度。您能否評論一下微處理器和快閃記憶體的訂單線性以及季度內的轉變情況？

I guess, the short answer is 'no'. I would point out that until this quarter, we never had to worry about the profile and turns with Flash that we have been sold out. So, the reason we are somewhat conservative that we believe are conservative on our expectations for Q2 is, we have to get turns in business in for Flash. I don't think there is any difference. We have always been in turns mode on the processor business. We don't see any material change there.

我想，簡短的回答是「不」。 我想指出的是，直到本季度，我們從未擔心過 Flash 的形象和轉折，擔心我們已經賣光了。 因此，我們對第二季的預期有些保守，我們認為保守的原因是，我們必須讓 Flash 業務出現轉機。 我認為沒有什麼區別。 我們在處理器業務上一直採取輪流模式。 我們沒有看到任何實質的改變。

Did you have steady turns throughout Q1 on processors?

你們在第一季的處理器方面表現穩定嗎？

Yes.

是的。

Okay. So, you are assuming it will stay consistent through Q2 as you see in Q1?

好的。 那麼，您假設它會像在第一季看到的那樣在第二季度保持一致嗎？

We see no reason to think it will be different.

我們認為沒有理由認為情況會有所不同。

Okay. Thank-you.

好的。 謝謝。

Terry Ragsdale with Goldman Sachs. Please go ahead with your question.

高盛的 Terry Ragsdale。 請繼續提問。

Yes. This is a [_______________] for Terry Ragsdale. I've got a few questions on the Flash performance in Q4. You said your unit shipments were up slightly?

是的。 這是給 Terry Ragsdale 的 [_______________]。 我對第四季的 Flash 表現有幾個疑問。您說您的單位出貨量略為上升？

I think you mean Q1, but...

我認為你的意思是 Q1，但是......

Yes Q1.

是的 Q1。

Yeah. Unit ships were up slightly.

是的。 單位艦船數量略有增加。

What was the big growth?

什麼是巨大的成長？

What was the big growth, about 4%.

成長幅度有多大？大約 4%。

We are making a quick calculation.

我們正在進行快速計算。

Sure.

當然。

We think it was about 4%, though we probably should confirm that number.

我們認為大約是 4%，但我們可能應該確認這個數字。

That's great. I have actually got a couple of math-oriented questions. You said your ASP's were down 2.4%.

那太棒了。 我實際上有幾個與數學相關的問題。您說您的 ASP 下降了 2.4%。

Right.

正確的。

I am assuming that unit ASPs?

我假設單位 ASP？

That's correct.

沒錯。

With unit shipments up slightly and unit ASP's down only 2.4%, how did you get to a 10% sequential decline?

在單位出貨量略有上升且單位平均售價僅下降 2.4% 的情況下，為什麼會出現連續 10% 的下降？

Okay, because there is a difference between shipment, which is WSTS report and sales. We don't count sales until the sale is through. So, $400 million of sales is what we actually shipped to the OEM end customers, and the shipment of units is that number plus what shipped to the distribution channel. So, in the distribution channel, we were totally depleted in Q4, and inventories was extremely low. So, during Q1, we did ship more units into the distribution channel in order to rebuild the inventory to reach its historical levels.

好的，因為出貨量（即 WSTS 報告）和銷售額之間存在差異。 銷售未完成時我們不會計算銷售額。 因此，4 億美元的銷售額是我們實際發給 OEM 最終客戶的金額，而實際出貨量則是這個數字加上發送到分銷管道的金額。 因此，在分銷通路中，我們在第四季已經完全耗盡，庫存極低。 因此，在第一季度，我們確實向分銷管道運送了更多產品，以重建庫存，使其達到歷史水平。

And what is that historical level that you got for the inventory?

您獲得的庫存歷史水準是多少？

I am sorry.

對不起。

What do you estimate the distributor inventory is right now?

您估計目前經銷商的庫存是多少？

I think it is irrelevant. I don't understand the question, because we don't take distributor shipments and distributor inventory as a sale, but we do use total unit ship for the purpose of calculating market shares because that is the way that WSTS reports.

我認為這無關緊要。 我不明白這個問題，因為我們不把分銷商的出貨量和分銷商的庫存作為銷售額，但我們確實使用總單位出貨量來計算市場份額，因為這是 WSTS 報告的方式。

And that inventory that you shipped is put into some sort of deferred revenue category in the balance sheet?

您所運送的庫存是否被歸類在資產負債表中的某種遞延收入類別？

Yes it is. That's correct. We don't count sale to distribution till it's actually resold to a real customer.

是的。 沒錯。 我們不計算分銷銷售量，直到它真正轉售給真正的客戶。

Okay. Thank-you very much.

好的。 非常感謝。

That's in both businesses, both to the processors or Flash.

這涉及兩個行業，包括處理器和閃存。

That's why we are very specific in our microprocessor reports that we sold 7.3 million units. Our competitors sometimes talked about the units they shipped, but those are just going into inventories at some distributor at midpoint, we don't consider, that's not a sale.

這就是為什麼我們在微處理器報告中明確指出我們銷售了 730 萬台。 我們的競爭對手有時會談論他們運送的單位，但這些單位只是在中途進入某個分銷商的庫存，我們不認為這是銷售。

Understood. Okay. Thank-you.

明白了。 好的。謝謝。

Scott [_______________] with [_______________], please go ahead with your question.

史考特 [_______________] 和 [_______________]，請繼續提問。

Yeah. Hi. Maybe I miss some in the beginning. Can you give me a little more clarity on your outlook for 2Q? I know you talked about revenues down possibly 10%; do you have any growth margin outlook or upper margin outlook?

是的。 你好。也許一開始我會錯過一些。 您能否更清楚地說明一下您對第二季的展望？我知道您談到收入可能下降了 10%；您有任何成長利潤前景或上限利潤前景嗎？

Firstly, I would like to say about Q2. As we are talking about the weakness is in Flash demand because of the communications sector we are actually rather sanguine about our processor opportunities because of our product mix and the successes we have had. We also have some other miscellaneous business, which we call other IC products, which are somewhat better devices, some old networking devices, some odds and ends, and some foundry business, which is going to be off. So, that business is going to be off for sure. The combination of processors and Flash is, we have less visibility on so we think that overall our sales could be down up to 10%. They probably won't be, but they could be. As far as gross margins go, we traditionally don't talk about gross margins going forward.

首先我想談談Q2。 正如我們所討論的，由於通訊產業對 Flash 的需求疲軟，但實際上，由於我們的產品組合和所取得的成功，我們對我們的處理器機會相當樂觀。 我們還有一些其他雜項業務，我們稱之為其他 IC 產品，這些是一些更好的設備、一些舊的網路設備、一些零碎的東西，還有一些代工業務，這些業務將會停止。 所以，那項業務一定會停止。 我們對處理器和快閃記憶體的組合了解較少，因此我們認為整體銷售額可能會下降 10%。 他們可能不會，但有可能。 就毛利率而言，我們傳統上不會談論未來的毛利率。

How about EPS?

每股收益如何？

What we said for EPS was that we are comfortable with the consensus forecast for the year with a dollar and a half.

對於每股收益，我們所說的是，我們對今年每股收益 1.5 美元的普遍預測感到滿意。

Are you still comfortable with the ramp up or I guess, I mean, you must have some operating leverage. So, down sales, but possibly it's going to be lower EPS sequentially?

您是否仍然對這種增長感到滿意，或者我猜，我的意思是，您必須擁有一些經營槓桿。 那麼，銷售額下降，但每股盈餘可能也會隨之下降嗎？

If we have down sales, I would expect that we would probably have down EPS.

如果我們的銷售額下降，我預期我們的每股盈餘也可能會下降。

Thanks.

謝謝。

[_______________] with Welch Capital. Please go ahead.

[_______________] 與韋爾奇資本合作。 請繼續。

Hey guys, great quarter. I have 2 quick questions. Can you give us a ballpark range of what you are percent split is between Tier 1 OEMs and kind of white box OEMS for the third-fourth tier guys? And also for your present breakdown in terms of end customer between corporate and consumer?

嘿，大家好，這是一個很棒的季度。 我有兩個簡單的問題。 您能否給我們一個大概的範圍，即針對第三、第四級廠商，一級 OEM 和白牌 OEM 之間的分成比例是多少？ 您目前對企業和消費者之間的最終客戶的細分情況如何？

No.

不。

No, on both?

不，兩者都有嗎？

No, on both.

不，兩者都有。

All right. Thanks.

好的。 謝謝。

One more question please, Robert.

請問還有一個問題，羅伯特。

Thank-you Sir. Robert Poon with Golden City Financial. Please go ahead.

謝謝您，先生。 金城金融 (Golden City Financial) 的 Robert Poon。請繼續。

How far the range [_______________] OEM [_______________] Flash memory be coming down?

[_______________] OEM [_______________] 快閃記憶體的範圍會縮小到多大？

We are going to censor this.

我們將對此進行審查。

We got a background noise there.

我們聽到了那裡的背景噪音。

Try your question again.

再嘗試回答你的問題。

What percentage of the flash memory for the company? And then your law suit in regard to Alcatel?

該公司的快閃記憶體佔比是多少？ 那麼你們針對阿爾卡特的訴訟呢？

It sounds like somebody has done a .. breaking up. Can we go to the next question?

聽起來好像有人已經分手了。 我們可以進入下一個問題嗎？

At this time gentlemen, there are no further questions. Please continue with your presentation or any closing remarks.

先生們，現在沒有其他問題了。請繼續您的演講或結束語。

Well, thank-you very much everyone for listening and, thank-you for the thoughtful questions, and we will talk to you soon. Bye.

好吧，非常感謝大家的聆聽，也感謝你們提出的深思熟慮的問題，我們很快就會與你們交談。 再見。

Ladies and gentlemen, that does conclude your conference for today. You may all disconnect and thank-you for participating.

女士們、先生們，今天的會議到此結束。 你們都可以斷開連結並感謝你們的參與。