超微半導體 (AMD) 2001 Q1 法說會逐字稿

AMD'S FIRST QUARTER EARNINGS CONFERENCE CALL

AMD 第一季度財報電話會議

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，謝謝你們的支持。歡迎參加 AMD 第一季度財報電話會議。在演示過程中，所有參與者都將處於只聽模式。之後，您將被邀請參加問答環節。屆時，如果您有任何問題，您需要在電話上按“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。我現在想將會議轉交給 AMD 高級副總裁兼首席財務官 Bob Rivet 先生。請先生繼續。

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.

謝謝羅伯特。下午好，歡迎參加 AMD 第一季度財報電話會議。我是首席財務官 Bob Rivet。今天和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首席執行官傑里桑德斯。出席會議的還有我們的總裁兼首席運營官 Hector Ruiz、執行副總裁兼首席營銷官 Bob Herb、我們的記憶集團高級副總裁兼總裁 Walid Maghribi 和對外事務副總裁 Ben Anixter。我將首先總結我們第一節的亮點，然後交給本，然後交給赫克托，最後交給傑里。今天，我們代表當時的媒體傾聽，但由於這次電話會議是針對金融分析師的，我們只會接受金融界成員的提問。在我們結束準備好的評論之前，請繼續提問。本次電話會議為現場直播，將通過互聯網重播，網址為 www.streetfusion.com 和 www.amd.com。北美的錄音電話重播號碼是 800-633-8284。在美國境外，請撥打 858-812-6440。訪問此呼叫的代碼對於兩者都是相同的，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，我們正在就管理層的計劃和期望做出前瞻性陳述。如您所知，半導體行業普遍波動。我們的產品和工藝技術開發項目以及我們的製造工藝都很複雜。

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.

當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存在重大差異，因此我鼓勵您查看我們提交給證券交易委員會的文件，我們在其中詳細討論了我們業務中的風險因素。您將在我們最近提交給 SEC 的 10-K 表格文件中找到詳細討論。我非常高興地報告 AMD 第一季度的財務亮點。第一季度的收入為 11.89 億美元，比 2000 年第一季度來自持續運營的收入增長 11.5%，比 2000 年第四季度增長 1%。為了清楚起見，當我提到持續運營時，我們不包括語音通信業務，現在從我們的歷史結果中稱為 Legerity。我們在 2000 年第三季度出售了這項業務。我們的微處理器業務在該季度創造了新的收入記錄，比去年第一季度和 2000 年第四季度增長了 17%。我們的內存業務收入增長了 26% 2000 年第一季度，但比第四季度下降 10%。隨著我們的收入同比和環比增長以及我們謹慎管理的費用，我們對我們的營業收入感到滿意。作為我們的非公認會計原則綜合運營報表，我們在新聞稿中顯示的備考營業收入包括我們與富士通的製造合資企業 FASL 的影響。本季度的營業收入為 1.9 億美元，佔收入的 16%，比 2000 年第一季度的持續經營收入增長了 16.5%。

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.

本季度的淨收入為 1.25 億美元，佔收入的 10.5%，比一年前減少了 6500 萬美元，這幾乎完全是由於我們當前季度業績中包含的 6300 萬美元的額外稅收準備金。去年第一季度，我們的稅收準備金為零。本季度完全攤薄後每股收益為 37 美分。本季度的備考毛利率為 41.8%，僅比 2000 年第一季度的持續經營下降了 1.2 個百分點。本季度研發支出為 1.58 億美元，佔收入的 13.3%。與去年第一季度相比，研發支出佔收入的百分比從 14.8% 下降到 13.3%。本季度營銷、一般和行政支出為 1.49 億美元，佔收入的 12.5%。與去年第一季度相比，我們的支出佔收入的百分比從 13.2% 下降到 12.5%。我們第一季度的稅率是 32%。我們的現金餘額增加到 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度基本持平，僅增加了 1100 萬美元的原材料。庫存天數降至 45 天。我們的微處理器和閃存業務的庫存都為我們的第二季度計劃做好了準備。第一季度的資本支出為 1.63 億美元，其中約一半來自德累斯頓，該季度的折舊費用為 1.53 億美元。

EBITDA was $320 million for the quarter. For your modeling for 2001, please consider the

本季度 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?

我們全年的稅率將保持在 32%。隨著我們完成 Fab 30 並安裝 130 納米產能，今年的資本支出將達到 10 億美元，比去年增加 2 億美元。預計今年折舊約為 6.7 億美元。最後，我們將繼續投資於研發活動，並將我們目前的研發支出範圍作為收入的百分比維持在 13.3% 至 13.5% 的年度。我現在想請 Ben Anixter 開始業務部門演示。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，即對 Vantis 和 Legerity 的支持，在第一季度繼續下降。我們現在預計這些服務將在整個 2001 年繼續呈下降趨勢。在 2001 年第二季度，這些收入將在 3500 萬美元範圍內。由於網絡嵌入式處理器需求受到通信市場部門低迷的影響，其他 IC 產品部分也呈下降趨勢。這些產品在第二季度的總銷售額將達到 1600 萬美元。因此，總體而言，全年每第二季度下降的約 1 億美元將來自這些細分市場。如您所知，我們除了增長將來自我們的旗艦產品、閃存和 PC 處理器。現在，我想把會議交給 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.

謝謝你，本。在討論我們的內存業務之前，我想花幾分鐘時間回顧一下我們運營的一些亮點。在整個第一季度，我們提高了產量以適應市場需要的效率，並繼續淘汰我們生產的所有 Athlon，正如 Bob 指出的那樣，我們在本季度結束時的淨庫存賬單為 0，原材料除外。相對於產量，我們所有的工廠在本季度的表現都達到了創紀錄的水平。此外，我們的 Fab 具有創紀錄的低週期時間，這明確代表了運營的健康和生產力。自去年 6 月開始生產以來，Fab 30 在第一季度末已經生產了超過 600 萬台 Athlon。 Fab 30 的生產量繼續按計劃進行，我們目前的晶圓庫存產能為 60%，如前所述，我們將在年底前實現滿負荷生產。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度開始生產，我們預計到年底所有產量將完全轉換為 0.13 微米明年的。此外，我們通過在 Fab 30 中以出色的良率製造 SRAM，展示了我們 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，我們的第一輪 0.18 微米工程正在進行中生產計劃在年底前完成。現在讓我切換到我們的內存業務。第一季度內存集團銷售額為 4.11 億美元，比去年第四季度下降 10%，但比去年同期增長 26%。

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.

單位出貨量較上一季度略有上升，而平均售價僅下降 2.4%。這反映了我們繼續推動轉向更高密度的產品，第一季度平均每單位出貨量接近 11 兆比特。亞洲的銷售額相對堅挺，僅比第四季度下降 2.4%。美洲的銷售額下降了近 11%，這反映了我們的分銷渠道的銷售額下降，該渠道主要服務於網絡和通信市場。在歐洲，主要由於蜂窩電話市場疲軟，銷售額下降了 14%。我們當前季度的能見度很弱，雖然我們的客戶仍然致力於接受談判的數量，但他們不願意提前下訂單，從而降低了我們展望的速度。我們預計本季度的銷售額將連續下降。然而，我們對下半年更加樂觀，因為蜂窩手機市場的根本性變化將開始出現在我們所服務的客戶的業務中。我現在想把討論交給 Jerry，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.

謝謝赫克托。 PC 處理器以 730 萬台和 6.61 億美元的銷售額創下新紀錄。收入同比和環比增長 17%。我們現在繼續獲得 21.5% 的市場份額。新興市場對 K6-2s 的持續需求產生了 800,000 台的出貨量，但僅占我們 PC 處理器收入的不到 5%。第七代處理器，Athlons 和 Durons 加起來，平均售價超過 95 美元，我們的 PC 處理器 ASP 整體超過 90 美元，比上一季度的 81 美元大幅上升。第七代處理器同比增長 126%，環比增長 27%。 Athlon 和 Duron 的銷售額在單位和美元方面均按順序增長。對高性能 Athlon 的需求尤其令人滿意，我們售出了超過 200 萬台 1 GHz 或更快的 Athlon，這幾乎是我們生產此類設備的全部。因此，鑑於兩個大型 Fab 的持續出色進展和晶體管性能的提高，我們現在計劃在本季度和下一季度繼續在德累斯頓的 Fab 30 和德累斯頓的 Fab 30 生產 Athlons 和 Fab 25。 Athlon 的全球生產現在完全是 1 GHz 和更快的設備。我們將同時保持 Fab 30 的積極增長，生產量為 1.4 GHz 的 Athlon 將在本季度推出。

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.

我們在上個季度末從 Fab 30 開始出貨第一代電源管理的 Athlon，代號為“Palomino”，目標是功能最引人注目的移動市場。正式的 Palomino 移動發布和 Palomino 驅動的筆記本電腦的可用性定於 5 月。鑑於移動機會和台式電腦近期總體持平的前景，我們將本季度將所有 Palomino 輸出分配給便攜式應用程序。我們計劃在下個季度以 1.5 GHz 的頻率推出桌面版 Palomino。再加上支持雙倍數據速率的芯片組，1.5 GHz 電源管理的 Athlon 應該可以提供市場上任何 PC 處理器的最高性能。我們計劃保持我們的領導地位和交付的業績。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、主流和高性能桌面空間，以及我們在入門級服務器中為高性能移動應用程序提供的第一個兼容產品，鼓勵我們相信我們可以維持接近創紀錄水平的 PC 處理器完全由第七代處理器組成。我們仍然相信我們今年的 PC 處理器 ASP 將在 90 美元到 100 美元之間。鑑於目前的市場狀況，我們預計這些平均售價將在本季度處於該範圍的最低端。正如新聞稿中所指出的，我們預計 PC 行業將在下半年實現高個位數增長，並在移動增長和即將推出的 Microsoft Windows XP 的推動下加速增長，我們認為 AMD 在這方面尤其處於有利地位。我們計劃繼續在 PC 處理器中獲得份額。

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.

最近芯片需求的暴跌導致行業增長的預測逆轉為 2001 年的急劇下降，這是通信行業泡沫破裂的直接結果。由於消費者和企業信心下降，個人電腦行業遭受了附帶損害。我們仍然堅信 PC 是有線的並且越來越多地以無線形式將在未來幾年繼續成為不斷擴大的數字世界的中心。由於去年出售 Legerity，我們目前認為 AMD 目前的業務主要限於我們的閃存產品的通信領域沒有任何改善。在經歷了去年的迅猛增長之後，我們預計閃存市場不會比持平好多少。我們在汽車市場的獨特定位、我們的長期協議以及限制我們在 2000 年增長的產能限制的緩解，應該使我們能夠在本季度和今年繼續獲得份額。總而言之，面對通信行業的持續疲軟以及我們的內存和其他 IC 產品業務與我們的 PC 處理器活動的令人鼓舞的前景形成鮮明對比，這可能足以或可能不足以抵消這種疲軟，收入可能下降比我們剛剛報告的接近創紀錄的銷售水平高出 10%。在市場下滑的一年中，我們預計 AMD 將適度增長，我們對第一次電話會議的共識估計每股攤薄收益 50 美元感到滿意。有了這個，我將把它交給 Bob Rivet 來主持問題。

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。

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，如果您有問題，此時您需要按“1”，然後按“4”。您將聽到確認您的請求的 3 聲提示音。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”。如果您使用的是免提電話，請在輸入您的請求之前拿起您的聽筒。請稍等一下第一個問題。 Scott Randall 與 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。 Jerry，對有關 AMD 在 Microsoft XP 下工作處於有利地位的評論有點感興趣，你能擴展一下嗎？

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，我們與微軟高管的對話希望我們將它作為一個主要應用程序，他們最期待的是以盡可能低的成本實現高性能 PC。 Rob 將評論我們認為我們可以在那裡做的事情。

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，特別是從消費者的角度來看，PC 基數的價值可能接近整個市場的 70%，也許不到 80。現在很明顯，AMD 在 Duron 與 Celeron 的處理性能方面處於優勢地位。現在，我們擁有時鐘對時鐘的優勢，我認為我們將能夠通過 Duron 技術將頻率帶入那些價值價格點，這應該讓我們與眾不同。因此，在 Jerry 談到的一些額外的成像應用程序上工作的兩個人都應該很好地將我們定位為運行 XP 的好盒子。

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

好的。還有 Rob，關於 Sledgehammer 的最新消息以及對英特爾的想法的看法？

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.

好吧，我仍然認為顯然錘子系列對 AMD 來說是一個更好的主意。我認為脫離 64 位的策略正在走上正軌。我認為我們看到越來越多的證據表明人們朝著我們前進的方向前進。因此，我非常有信心，隨著我們繼續前進，hammer 將成為 64 位 [_______________] ASIC 的正確解決方案，尤其是 64 位台式機的正確解決方案。

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

我們將率先使用 64 位技術的桌面。

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，這是我們應該期望繼續下去的事情，還是這種反常現象？

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

這可能是一個高水印。隨著我們前進，我預計它會比這少一點。

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）與桑福德·伯恩斯坦（Sanford Bernstein）。請繼續你的問題。

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，英特爾表示針對移動領域的戰略發生了一些變化。你能談談你在移動領域的策略嗎？您能否至少給我們一些粗略的指示，即您在該領域的盈利能力是高於正常的微處理器平均水平，還是平均售價明顯高於平均水平？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，這些問題很多。讓我們試試看。我們認為我們擁有移動領域最引人注目的解決方案。我們目前在移動領域的盈利能力為 0，因為我們幾乎沒有任何業務。憑藉將在下個月推出的代號為“Palomino”的電源管理 Athlon，我們相信我們擁有超越英特爾所擁有的自上而下的卓越解決方案。基本上，我們的移動解決方案 Palomino 的性能將優於英特爾的時鐘解決方案 Clock for clock，我們相信在未來幾年內，隨著他們遷移生產，我們可以在任何時鐘速度上匹配它們。因此，我們認為我們在移動領域提供了非常強大的產品，而且傳統上，移動價格一直較高，因此應該提高利潤率。相對於他們的定價策略，我想你是指他們的 P4 定價策略？

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

不，他們也一直在降低一些移動芯片的價格。

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，我認為基本上他們在移動芯片上的降價並沒有什麼不同尋常。除了 P4 即將到來的假定、預計和預測的大幅降價之外，我們沒有看到英特爾的非同尋常的降價。

Okay. Thank-you.

好的。謝謝。

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

加里·戈德斯坦 (Gary Goldstein) 與 Gilford Securities。請繼續你的問題。

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?

祝賀你們在一個真正艱難的環境中取得了一個偉大的季度。你能帶我們快速完成一些事情嗎？ Pro 處理器上的一個 - 如果您能給我們一些關於處理器價格的指示，以及一個 1 Gigahertz 和更快的處理器，即 200 萬個，那麼你們在本季度尋找什麼？那去哪兒了？

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.

實際上，我們出貨了超過 200 萬個 1 GHz 和更快的處理器。我們預計在本季度會顯著改善這一點，因為現在我們所有的 Athlon 產量都是 1 Gigahertz 或更快。正如我所說，在剛剛完成的那個季度中，我們的第七代處理器 Durons 和 Athlons 加起來超過了 95 美元。由於這 800,000 台 K6-2，整體 ASP 被拖低至 90 美元左右。展望未來，我們假設當前季度第二季度沒有 K6-2，但由於這些激進的定價舉措，我們持保守態度，並假設我們的第七代處理器的 ASP（這將包括我們所有的銷售額）將在我們 90 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。只有最後一個 - 我是否正確理解 200 的大部分資本支出都流向了德累斯頓工廠？

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

讓我回應一下。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，其中一半以上用於擴大我們在德累斯頓的產能並為其配備 130 nm。

Thank-you very much and congratulations again.

非常感謝，再次祝賀你。

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。您能否就整個處理器業務的季節性發表評論？而第二個問題——今年晚些時候0.13微米產品的入門速度PIII會是多少？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——第二季度永遠是最差的一個季度。這將是比較最艱難的一個季度，但我們非常樂觀，因為我們在第四季度沒有為渠道存貨，所以我們在第一季度沒有太多庫存可以減少，儘管行業有。我們相信 PC 行業現在的庫存狀況良好。因此，我們預計第二季度的機會不會急劇下降，但這將是最艱難的一個季度。當然，我們不會期望行業中的單位比持平好。所以，我們覺得，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一個季度。關於我們在 0.13 上的介紹性時鐘速度的第二個問題，我寧願說，我們計劃繼續每 18 個月將性能提高一倍，對於給定的架構，這意味著我們將每 18 個月將時鐘頻率提高一倍，也就是說將是明年初2GHz左右。

Great. Thanks a lot.

偉大的。非常感謝。

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

Jack Geraghty 與 Gerard Klauer Mattison。請繼續你的問題。

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，關於你剛剛提出的最後一個主題。我能否從您剛才所說的暗示您認為整個半導體行業可能會在第二季度觸底。我想，我理解這裡的語音通信商務，但你和其他人一樣多的周期。所以，如果我能聽到一些評論？

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，我認為我比大多數人經歷了更多的周期。我認為這就是發卡的好處。現實情況是，最大的問題是通信部門。只是有一個巨大的泡沫，是的，你理性地熱衷於給別人打電話，而我們剛剛有了網絡，這太貴了。通訊的東西，完全失控了，現在還是失控了。庫存過多。有產能過剩。在今年年底之前，我看不到任何清理工作。坦率地說，我們非常幸運。我們預計語音通信的收費會越來越高。我們不會暴露在語音通信中。我們正計劃用我們的閃存在很多網絡應用程序中，這是目前的曝光。我們還期望在芯片組上實現網絡和通信解決方案，但就我們而言，我們認為半導體行業一直在跟踪資本支出，並且隨著通信、資本支出的大幅削減，通信產品不會帶領我們走出這次低迷。因此，我預計通信將拖累第三季度，希望到第四季度有所緩解。我們有理由相信手機行業，一些新的機會將帶來一個好轉的機會。也許瓦利德想詳細說明這一點。

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，恢復了閃存的增長，這是一個可以阻止我們並使閃存在全年相對平穩的機會。

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?

有了這個，我認為我們肯定會看到儲備觸底，我當然認為下半年會比整個行業好，但我認為計算機行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?

下午好。有幾個問題 - 一個是，我沒有了解今年的折舊攤銷數字預期是多少？

670 million for the year depreciation.

年折舊6.7億。

Where should we expect at the yearend debt to be?

我們應該期望年終債務在哪裡？

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.

我認為重要的是要知道，我們真的只有兩個債務組成部分。一個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，我們將轉換所有這些。順便說一句，這些數字已經包含在我們完全攤薄的股票收益中。我們唯一的其他債務是德累斯頓設施的債務，如您所知，這是由薩克森州和德意志聯邦共和國擔保的非常優惠的利率，我們正在那裡獲得利息補貼。所以，我認為如果我們出於所有意圖和目的轉換這些債券，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?

然後我真正想說的是，如果你有多餘的現金，你打算用它做什麼？

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 或 3 倍，我們目前也沒有任何購買股票的打算。因此，如果我們有多餘的現金，它應該能讓我們支持我們自己反對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，最後一個快速的問題是 - 關於應收賬款，它有點上升，我們應該期待什麼？

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.

大概在同一個範圍內。我們有機會做生意，但要適當地管理風險。它略有上升，只是隨著第一季度的季節性變化，但在那種範圍內。

Thank-you very much.

非常感謝。

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

喬奧沙與美林證券。請繼續你的問題。

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！讓我在祝賀的合唱中加入我的聲音。漂亮的季度。傑瑞，你能談談地理需求援助嗎？關於歐洲弱化與非歐洲弱化的整個辯論？其次，我很好奇，很明顯你對企業和零售的了解要少一些，但是如果你能談談你在這兩個領域看到的趨勢，那也會有幫助嗎？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 Rob 對此有所了解，因為他每天都與這些軼事情況密切相關。

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。歐洲在第一季度仍然非常強勁。僅從季節性的角度來看，我們正處於歐洲趨於疲軟的時期。因此，我希望在第二季度末、第三季度初與歐洲的時間框架內看到一點點。當我們經歷第一季度時，亞洲剛剛為我們獲得支持。因此，它在亞洲也非常強大。在日本，整體市場還不錯，從個人電腦的角度來看，我們沒有在更大程度上參與移動和小型機領域，而這約佔該市場的 70%。我認為日本總體還可以。我們看到的最大弱點，我可以告訴你，我們認為消費者和商業的最大弱點可能是美國市場。我們在那裡做得相當不錯，但我認為總體市場仍然如此，我將其歸類為低迷，我預計這將持續到第二季度，從消費者的角度來看，這是一個 [_______________] 的季節，一個相當疲軟的時期.我認為 Jerry 早些時候評論過，我們預計整體 PC 市場可能大致持平。我認為第二季度可能會有一點上漲，但我認為這並不重要。因此，展望未來，我預計，您會看到歐洲的情況有所減弱。亞洲對我們來說可能會繼續是一個相當穩固的市場。日本為我們提供了巨大的機會，因為我們的電源管理 Athlon 系列提供了小尺寸和移動機會。相對於我們的份額，我們繼續在美國取得一些進步。整體市場有些低迷。

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，我們在企業市場上看到了一些令人鼓舞的跡象。我們確實收到了 NEC International 與我們在歐洲建立商業盒子的公告。您可能知道，富士通、西門子一直在向意大利政府市場銷售產品？

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.

其實是的。我將備份並覆蓋其中的一些。德國，MAX data，它是排名第三的商用 PC 生產商，並在 AMD 解決方案方面取得了相當大的成功。所有這些都是希望意大利政府競標的公司。正如 Jerry 提到的，NEC 已經圍繞一些商業解決方案做了一些工作，就在本週，富士通在日本宣布了他們針對商業領域的小型機箱。因此，您將所有這些以及日本的 Gateway Select SB 和 Gateway Select Pro 放在一起，相對於整個商業企業基礎，我們開始獲得一些動力。希望我們能在這一年的基礎上再接再厲。

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，低端服務器可能是我們的入門工具，因為我們的每美元解決方案具有令人信服的性能，而且我們現在看到了一些機會，並且應該會發布一些公告。如您所知，本季度將提供我們的 2P 芯片組。因此，我們也有適用於 2 處理器服務器的解決方案。所以，我們認為，總而言之，這將使我們能夠度過這個季節性疲軟的季度。

Thanks a lot gentlemen.

非常感謝先生們。

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。請繼續你的問題。

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

是的。下午好。我只是想澄清一下——本季度內存和微處理器都會下降約 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.

我們沒有說任何一個都會下降 10%。我們所說的總體而言，我們的業務可能會下降 10%，可能不會，但可能會。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。謝謝杰瑞。赫克托，你能給我們一些關於 Flash 中盈利能力下行風險的意義嗎？你的 Flash 有多少百分比是通過合資企業、合作夥伴，在某種程度上，我猜，這與你自己的損益表的盈利能力保持一致，儘管它已經通過了一次性的損益線。你能給我們一些感覺嗎，在 [_______________] 25 中已經生產了多少 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.

我們今天再次邀請 Memory Group 業務總裁 Walid Maghribi 今天與我們一起，我想讓他對你的問題發表一些評論，我很感激，然後如果我們需要，我會發表一些評論在他之後。

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.

我只想提醒大家，我們與富士通的合作是一家製造合資企業，我們閃存的所有密集用途100% 是在合資企業生產的，富士通銷售一半的產品，我們出售一半的產品。我們試圖管理業務，使製造活動不盈利，因為日本的稅率更高。這就是為什麼早些時候 Bob Rivet 說高水位線的原因。我們試圖讓製造業務保持盈虧平衡。我們賣的時候賺錢。考慮到這一點，Walid 可以評論它的進展情況。

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，我們現在不會在 Fab 25 中製造任何閃光。Fab 25 直到明年年中才會產生影響。我們正在以閃存的形式出售我們的產能，而我們所賺取的所有利潤都在 AMD 內部，正如 Jerry 所說，我們已經簽訂了協議，基本上是在 FASL 中實現盈虧平衡。我們繼續增加每家工廠的產能，目前我們在 2001 年和 2002 年的產能增加沒有變化。

Does that clarify or you are looking for more?

這是否澄清或您正在尋找更多？

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。我只是想，傑瑞，在下半年可能會有所改善的軟閃存市場中獲得一些下行風險，並且只是為了我自己的模型，只是試圖欣賞，你是如何即將 - ？

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，3 月份的數據確實還沒有出來，但是如果我們看看 1 月和 2 月，並預測 3 月發生的情況，我們認為第一季度的閃存市場運行速度約為 100 億美元，比去年。對於第二季度，我真的看不到閃存市場將如何增長。我相信它會在第二季度與第一季度相比下降，然後在第三季度和第四季度恢復，可能使整個閃存市場充其量持平，可能會略有下降。在這種市場條件下，我們肯定會獲得市場份額。因此，即使市場從第一季度到第二季度可能下跌 10%，因為我們正在獲得市場份額，我們預計將跑贏市場。

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

您希望您的混合 ASP 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.

那麼在第一季度，我們略有下降。我預計第二季度它會再次略有下降，通過移動到越來越高的密度來稍微緩解。

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，你有一些相當不錯的合同。這些仍然存在，但聽起來您的一些客戶不一定會根據這些合同下訂單？

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.

好吧，我認為我們必須記住的是，這些合同共有 26 份，我們並沒有在一天之內全部簽署。他們早在 2000 年就簽署了，最近的一份簽署是非常非常近期的。所以，根據這些合同的年限，它們都有修改價格和數量的規定，我們已經重新談判了其中的大部分，尤其是 2000 年上半年的那個。而現在，我認為客戶不下訂單的原因實際上是因為混合，市場變化非常快，由於市場的性質，很難確定混合。因此，他們一直等到最後一刻才從客戶那裡收到訂單，然後再向我們下訂單。

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.

這不僅僅是因為他們在否定或拒絕接受它，而是因為他們需要等待最後一刻才能決定組合。

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?

恭喜各位。很棒的季度。兩個非常簡單的問題 - 一個，假設您確實繼續使用敞篷車，您能否給我們一個估計，您估計到年底的現金是多少？第二，你有一個估計，我知道現在有點早，你認為你的銷售市場份額是多少？

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，但如果我們真的按照我們想要的方式獲得收益，可轉換債券的退休對現金沒有影響。所以，這只是一種損失。我們將從賬簿上扣除債務。我們將節省利息費用。稀釋效應今天已經在計算中。因此，人們將冒險其真實股票和股票。

And the question you were asking was on market share?

你問的問題是市場份額？

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

是的，正如本季度出售的那樣。你對此有估計嗎？

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

售出後，我不太確定您到底在說什麼處理器、閃存或？

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，我們估計第一季度的單位份額可能超過 21%，高於第四季度的 17% 左右。

That's great. Thanks guys.

那太棒了。多謝你們。

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

[_______________] 的史蒂夫 [_______________]。請繼續你的問題。

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 的 64 位服務器，特別是 Clawhammer 的關係有多密切？英特爾-惠普類型的安排是否有可能在該市場上使自己合法化？

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。正如公司政策一樣，在我們發布正式公告之前，我們不會談論客戶關係，我並不是暗示我們已經準備好正式公告。我們只是對這樣的事情沒有評論。我們當然將 IBM 視為 64 位錘子解決方案的潛在客戶，但我們目前不發表評論。

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 Drew Peck 和 SG Cowen。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?

下午好。有趣的是，英特爾仍然堅稱他們沒有失去任何市場份額。看起來，鑑於您提供的數據點，他們很難再否認這一點。我想知道，在那種衰落中，你認為他們的反應會是什麼？顯然，您現在一個季度一個季度地佔據市場份額。您顯然已經聽說過有關即將降價的傳言，我想知道您對此有何看法，如果英特爾確實在定價上變得更加激進，您可能會做出什麼反應？

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.

好吧，我們相信他們會在定價上變得更加激進。我們不認為會有價格戰，德魯，因為首先，就像蕭伯納所說的“不要和豬打架，你會弄髒的，豬喜歡這樣。”因此，我無意與英特爾進行價格戰。我想說的是——我們的做法和我們的政策將像英特爾所做的那樣，以具有競爭力的時鐘換時鐘。因此，在給定的時鐘速度下，我們將全面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，因為客戶希望在任何價位都能獲得最大的性能，而這正是我們目前擅長的地方。坦率地說，我們認為 P4 是個啞彈。他們真的別無選擇，只能降價，因為它在許多應用上的性能不如 PIII 的較低時鐘速度。所以，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。英特爾一直在通過其英特爾洞察計劃和其他市場開發基金以及其他保持其地位的嘗試以一種或另一種方式降價。我認為，事實是，一輛有回扣的爛車仍然是一輛爛車。

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?

但聽起來你是在說，即使他們因為破車而降價，你也會匹配他們的價格或擊敗它？

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匹配他們的定價。也就是說，我們 1 GHz 的價格將等於他們 1 GHz 的價格，我們將提供更多的交付性能。我們認為這是一個令人信服的價值主張，將使我們能夠繼續獲得市場份額。

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，您是否給出了今年處理器生產的總單位產能的數字？

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，我們沒有給 Drew，但我們要說的是，如您所知，我們 5 年來一直有一個長期目標，即到 2001 年底實現 30% 的單位份額。我們有一個計劃，以實現生產我們有能力獲得或擁有 30% 的單位份額，並且我們有一個未來幾年的持續計劃，以確保我們能夠在任何給定季度生產該行業 30% 的單位需求。在目前的市場條件下，我們認為我們不會在年底前獲得 30%，但我們將繼續朝著這個目標前進。

That's great. Thanks Jerry.

那太棒了。謝謝杰瑞。

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?

下午好。回到快訊，長期供應協議涵蓋了多少，想談談庫存水平？

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

目前，RCA 協議涵蓋了我們約 75% 的銷售額，即 [_______________] 銷售額。

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，可以說是在 AMD、製造商或 FASL，以及在渠道中，如果我們說在 OEM 處，你會如何描述那些桶裡的庫存？

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。好吧，我可以告訴你總體而言，從我們的製造，到整個渠道，整個 2000 年，每週，我們的庫存都在下降，因為我們在我們的位置，我們賣掉了我們能賣的每一件製作。一季度，庫存持平。在第二季度，我們預計庫存將恢復到維持客戶支持的預期正常水平。至於 Q3 和 Q4，這取決於市場的增長，市場恢復了，正如我們預期的那樣，我們會沒事的，否則我們可能會對我們的產能做一些調整，但現在，我們是全渠道不存在庫存過剩。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，當我們結束 2000 年時，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。就該庫存的組合而言，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，我們的大部分產品都是為一般市場而設計的。其中一些是針對那些特定客戶的半客戶產品。我們只有在有訂單時才生產產品。

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

好的。有什麼想法是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。我們的想法是繼續建立我們當前的計劃，如果市場處於當前水平，那麼我們預計將獲得市場份額。

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。請繼續你的問題。

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正在閱讀的 PIV 可能的降價，即 1.3、1.4 門處理器到 4 月底將下降到 195 美元的範圍內？

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，我們已經整合了所有這些，我認為還有一個與 PIV 定價相關的問題，這是你看到最激進的削減的地方，我同意 Jerry 的觀點，當你處於這些情況時，它不是僅從成本或價格來看，如果您查看平台，DDR 平台中的 Athlon 1.3、1.4、1.5 GHz 產品的 AMD 將顯著超越競爭對手，而且成本也會低得多。我認為今天 Athlon DDR 解決方案和 PIV 以太網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希望嘗試在 PIV 上更具侵略性，以在該產品上獲得一些吸引力。匯總並考慮到我們目前的預測所知道的最新情況。

Okay. Thanks.

好的。謝謝。

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

埃里克·羅斯德伊奇與羅伯遜·史蒂文斯。請繼續你的問題。

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。傑里，你能澄清一下速龍，你目前在德克薩斯州跑步。它們是 0.25 微米還是 0.18 微米？您認為處理器技術將走向何方？然後關於 Duron 的第二個問題是 - 您認為芯片組策略在哪些方面超越了 CAM 133？您是否期望有更多的芯片組支持毒龍？

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 Athlons 和 Durons 中製造的所有產品都是 180 nm。所以，德克薩斯州的一切都是 180 nm，正如我所說，即使在今天的德克薩斯州，由於我們在技術方面取得的進步，一切都是 1 GHz 或更快。我們計劃繼續生產 1 GHz 和更快的 Athlon。我們計劃在本季度和下一季度之後做的是，在德累斯頓的 Fab 30 製造 Duron 版本，並在德累斯頓的 Fab 30 製造 Athlon 和電源管理的 Athlon。總體計劃是隨著時間的推移將 Fab 25 遷移到閃存工廠，我們還有另一個計劃來確保我們能夠滿足未來對 Athlons 和 Durons 的全球需求。 Rob 將在之後評論芯片組...

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，市場上已經有一些芯片組在銷售，KL 和 KLE 都是我們專注於市場低端價值空間的低成本版本的芯片組。我們還期待我們的其他供應商（如 ALI、SIS 和其他一些正在研究芯片組的人）在今年餘下時間在這裡獲得一些芯片組條目。我認為它們將為 Athlon 和 Duron 的桌面和移動芯片組解決方案提供相當廣泛的支持和廣泛的價格點。

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

Rob，只是一個後續行動。移動 Palomino 芯片組是否與桌面 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.

他們可以。這不是唯一的解決方案。我們還有其他一些人提供不同的針對移動設備的解決方案。

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

它們最初或可能是相同的，但是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.

Doug Lee 與美國銀行證券公司的下一個問題。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！祝賀一個非常好的季度。如果可以的話，請澄清一下 - 你在處理器單元上輸入了很多數字，你有超過 200 萬個，1 GHz Athlon 等等。我不知道;您是否在本季度將 Duron 與 Athlon 單元分開？

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。我們把這 65 億美元分成了中間，Durons 比 Athlon 多幾個。

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。只是為了在你的路線圖上獲得一些色彩或澄清，我知道你現在將把所有的精力都集中在移動領域的 Palomino 上。我們應該期待第三季度的桌面 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，最後在移動市場的價值方面，我猜有一個摩根項目。

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

是的。摩根也將在第三季度上市。

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

那也將是第三季度，好吧，還有桌面摩根？

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.

丹·斯科維爾 (Dan Scovel) 與 Needham & Company。請繼續你的問題。

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，又是一個很好的季度。您能否評論一下微處理器和閃存在季度期間的訂單線性度以及周轉曲線？

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”。我要指出的是，直到本季度，我們才不必擔心我們已經售罄的 Flash 配置文件和轉折點。因此，我們認為對第二季度的預期保守的原因是，我們必須為 Flash 轉入業務。我不認為有任何區別。在處理器業務上，我們一直處於輪流模式。我們在那裡沒有看到任何實質性的變化。

Did you have steady turns throughout Q1 on processors?

您在第一季度的處理器上是否有穩定的轉變？

Yes.

是的。

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

好的。那麼，您是否假設它會在第二季度保持一致，就像您在第一季度看到的那樣？

We see no reason to think it will be different.

我們認為沒有理由認為它會有所不同。

Okay. Thank-you.

好的。謝謝。

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

特里·拉格斯代爾與高盛。請繼續你的問題。

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 Terry Ragsdale 的 [_______________]。我有幾個關於第四季度 Flash 性能的問題。你說你的單位出貨量略有上升？

I think you mean Q1, but...

我想你的意思是 Q1，但是...

Yes Q1.

是的 Q1。

Yeah. Unit ships were up slightly.

是的。單位船小幅上漲。

What was the big growth?

什麼是大的增長？

What was the big growth, about 4%.

什麼是大的增長，大約 4%。

We are making a quick calculation.

我們正在快速計算。

Sure.

當然。

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

我們認為大約是 4%，儘管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。我實際上有幾個面向數學的問題。你說你的平均售價下降了 2.4%。

Right.

正確的。

I am assuming that unit ASPs?

我假設單位 ASP？

That's correct.

這是正確的。

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

單位出貨量略有上升，單位平均售價僅下降 2.4%，您是如何連續下降 10% 的？

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，因為出貨量是有區別的，即 WSTS 報告和銷售量。在銷售完成之前，我們不計算銷售額。因此，4 億美元的銷售額是我們實際運送給 OEM 最終客戶的銷售額，而單位出貨量是這個數字加上運送到分銷渠道的數量。因此，在分銷渠道中，我們在第四季度完全耗盡，庫存極低。因此，在第一季度，我們確實向分銷渠道運送了更多單位，以重建庫存以達到其歷史水平。

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

您獲得的庫存歷史水平是多少？

I am sorry.

對不起。

What do you estimate the distributor inventory is right now?

你估計經銷商的庫存現在是多少？

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，因為我們不將分銷商出貨量和分銷商庫存作為銷售，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?

您運送的庫存是否在資產負債表中歸入某種遞延收入類別？

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

是的。這是正確的。在實際轉售給真正的客戶之前，我們不會將銷售算作分銷。

Okay. Thank-you very much.

好的。非常感謝。

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

這在兩種業務中都是如此，無論是處理器還是閃存。

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我們的微處理器報告中非常具體地指出我們售出了 730 萬台。我們的競爭對手有時會談論他們發貨的產品，但這些產品只是在中點進入某個分銷商的庫存，我們不認為，這不是銷售。

Understood. Okay. Thank-you.

明白了。好的。謝謝。

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

Scott [_______________] 和 [_______________]，請繼續您的問題。

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。也許我一開始就錯過了一些。您能否更清楚地說明您對第二季度的展望？我知道你談到收入可能下降 10%；你有任何增長利潤率前景或上利潤率前景嗎？

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，我想說一下 Q2。正如我們所談論的那樣，由於我們的產品組合和我們所取得的成功，我們實際上對我們的處理器機會相當樂觀，因為通信行業的閃存需求疲軟。我們還有一些其他的雜項業務，我們稱之為其他IC產品，一些比較好的設備，一些舊的網絡設備，一些零碎的東西，還有一些代工業務，這將是關閉的。因此，該業務肯定會關閉。處理器和閃存的結合是，我們的知名度較低，因此我們認為總體上我們的銷售額可能會下降 10%。他們可能不會，但他們可能會。就毛利率而言，我們傳統上不會談論未來的毛利率。

How about EPS?

EPS怎麼樣？

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

我們對每股收益所說的是，我們對今年的共識預測為 1.5 美元感到滿意。

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?

您是否仍然對增加感到滿意，或者我想，我的意思是，您必須有一些經營槓桿。那麼，銷售額下降，但每股收益可能會依次下降？

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，我預計我們的每股收益可能會下降。

Thanks.

謝謝。

[_______________] with Welch Capital. Please go ahead.

[_______________] 與 Welch Capital。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?

嘿伙計們，很棒的季度。我有 2 個簡單的問題。你能給我們一個大致的範圍，你在 1 級 OEM 和第 4 級廠商的白盒 OEM 之間的百分比分配是多少？以及您目前在企業和消費者之間的最終客戶方面的細分？

No.

不。

No, on both?

不，兩者都有？

No, on both.

不，兩者都有。

All right. Thanks.

好的。謝謝。

One more question please, Robert.

請再問一個問題，羅伯特。

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

謝謝你，先生。金城金融的羅伯特潘。請繼續。

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

[_______________] OEM [_______________] 閃存的降幅有多遠？

We are going to censor this.

我們將對此進行審查。

We got a background noise there.

我們那裡有背景噪音。

Try your question again.

再試一次你的問題。

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

公司的閃存佔多少百分比？然後你就阿爾卡特提起訴訟？

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

聽起來有人做了一個..分手。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.

此時，先生們，沒有進一步的問題。請繼續您的演講或任何結束語。

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，感謝您提出的深思熟慮的問題，我們將很快與您交談。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。你們都可以斷開連接並感謝您的參與。