超微半導體 (AMD) 2001 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to the AMD second quarter earnings release 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 1 followed by 4 on your telephone. As a reminder, this conference is being recorded, Thursday, July 12, 2001. I would now wish to turn the conference over to Mr. Robert J. Rivet, Senior Vice President, and Chief Financial Officer with AMD. Please go ahead sir.

女士們、先生們，感謝你們的支持。 歡迎參加 AMD 第二季財報發布電話會議。 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，您需要在電話上按 1，然後按 4。 提醒一下，本次會議正在錄製中，時間為 2001 年 7 月 12 日，星期四。現在，我想將會議交給 AMD 資深副總裁兼財務長 Robert J. Rivet 先生。 先生，請繼續。

Thank you Robert. Good afternoon and welcome to AMD's second quarter earnings teleconference call. With me here today in Sunnyvale and hosting this call is Mr. W. J. Sanders, our Chairman and Chief Executive Officer. Also present are Mr. Hector de J. Ruiz, our President and Chief Operating Officer, Mr. Robert R. Herb, Executive Vice President and Chief Marketing Executive, Mr. Walid Maghribi, Junior Vice President and President of our Memory Group and Mr. Benjamin M. Anixter, Vice President of External Affairs. I will begin by summarizing our second quarter highlights, and then turn over to Hector, and finally to Jerry. Today, we have representatives from the media listening in, but since this call is for financial analysts, we will only take questions from members of the financial community. Please hold all questions until we conclude our prepared remarks. This conference call is a live broadcast and we will replay via the Internet at www.streetfusion.com and www.amd.com. The telephone replay number for North America is 800-633-8284, and outside the US, dial 858-587-5842. The code to access the call is the same for both and that number is 191-51-508. Before we begin the conference call, I would like to caution everyone that we will be making forward-looking statements about management's goals, plans, and expectations. As you know, it is generally volatile. Our product and process technology development projects and our manufacturing process 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 Securities and Exchange Commission where we discuss in detail the risk factors in our business. You'll find detailed discussion on our most recent form 10K filings with the SEC. Lets begin. Revenue. Revenue for the second quarter was 985 million, down 11% from the second quarter of 2000 for continuing operations, and down 17% from the first quarter of 2001. For clarity, when I mention continuing operations, we are excluding the voice communications business, now called Legerity from our historical results. We sold this business in the third quarter of 2000. In our microprocessor product line, we shipped in the second quarter an excess of 7.7 million units, a new company record, and aiding this business to grow revenues by 1% from the second quarter of last year. However, our microprocessor revenues did decline by 11% from the record levels in the first quarter. Revenues in our memory business declined by 13% over the second quarter of 2000 and it was down 23% from the first quarter. With our top line declining both year-on-year and sequentially, our [bill years] data block was challenged, but I am pleased to report that we made money in the quarter. ProForma operating income was 34 million or 3.5% revenue for the quarter as shown in our press release as our non-gap consolidate statement of operations, which includes the impact of FASL, our manufacturing joint venture with Fujitsu. This represents a decline of a 155 million from the first quarter, driven principally by lower revenues in our memory product line and greater than 50% ASP decline in our microprocessor product line. Net income for the quarter was 70 million or 1.8% of revenue. Fully diluted earnings per share was $0.5 for the quarter. Gross margin on a ProForma basis was 36.7% for the quarter, down 11% points from the second quarter of 2000 from continuing operations. As stated previously, margins were significantly impacted by the revenue declines in our memory product line and the ASP pressure in our microprocessor business. Factory execution in both output and new productivities were better than the first quarter. Research and Development study was on plan at 171 million for the quarter, up 10% from the second quarter of last year. Marketing in general and administrative spending was also on plan at 156 million, up 3% from the second quarter of last year. Our cash balance ended the quarter at 1.1 billion, down 200 billion from the yearend, over half of this decrease, which were non-recurring investments in our FASL joint venture. We completed the quarter with $401 million of inventory, up 46 million from the first quarter. Inventories for both our microprocessors and Flash product lines are well positioned for our plans for the balance of the year. Capital spending for the second quarter was 215 million, about half of which was for Dresden and depreciation expense was 159 million for the quarter. EBITDA was 181 million for the quarter and finally, we are pleased to report that we retired 517 million of convertible debt in the quarter, which brings our debt-to-debt plus equity ratio to 20%. For your modeling for 2001, please consider the following. Assume that our tax rate will be 27% for the year. We have reduced our capital spending to 900 million for the year, down 100 million from our previous guidance as we moderate our back end capacity needs. We will complete Fab 30 and instal 130-nanometer capacity on schedule this year. Depreciation expense for the year has been reduced to about 630 million for the year, down from our previous guidance by 40 million. We project our cash balances to remain at $1 billion for the balance of the year. For your EPS calculations, use 350 million shares for the third quarter. Finally, R&D investment will continue with the second quarter spend rate for the balance of the year investing in both our future technologies and products. I would now like to turn it over to Hector to start the business segment discussions. Hector.

謝謝你，羅伯特。 下午好，歡迎參加 AMD 第二季財報電話會議。 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 W. J. Sanders 先生。 出席會議的還有我們的總裁兼營運長 Hector de J. Ruiz 先生、執行副總裁兼首席行銷長 Robert R. Herb 先生、我們的記憶體集團初級副總裁兼總裁 Walid Maghribi 先生以及外部事務副總裁 Benjamin M. Anixter 先生。 我將首先總結我們第二季的亮點，然後交給赫克托，最後交給傑瑞。 今天，我們有媒體代表在旁邊聽，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。 請保留所有問題，直到我們結束準備好的演講。 本次電話會議將進行現場直播，我們將透過網路在 www.streetfusion.com 和 www.amd.com 上重播。 北美地區的電話重播號碼為 800-633-8284，美國境外請撥 858-587-5842。 兩次通話的代碼相同，都是 191-51-508。 在我們開始電話會議之前，我想提醒大家，我們將對管理層的目標、計劃和期望做出前瞻性的陳述。 如您所知，它通常是不穩定的。我們的產品和製程技術開發專案以及製造流程非常複雜。 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美國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。 您將找到有關我們最近向美國證券交易委員會 (SEC) 提交的 10K 表格的詳細討論。 讓我們開始吧。 收入。 第二季的營收為 9.85 億美元，比 2000 年第二季下降了 11%，比 2001 年第一季下降了 17%。為了清楚起見，當我提到持續經營時，我們將語音通訊業務（現在稱為 Legerity）排除在我們的歷史表現之外。 我們在 2000 年第三季出售了這項業務。在我們的微處理器產品線中，我們在第二季度的出貨量超過了 770 萬台，創下了該公司的新紀錄，並幫助該業務的收入比去年第二季度增長了 1%。 然而，我們的微處理器收入確實比第一季的歷史最高水準下降了 11%。 我們的記憶體業務收入比 2000 年第二季下降了 13%，比第一季下降了 23%。 由於我們的營業額同比和環比均下降，我們的[帳目年]數據塊受到了挑戰，但我很高興地報告，我們在本季度實現了盈利。 正如我們的新聞稿中所示，本季 ProForma 營業收入為 3,400 萬美元，佔收入的 3.5%，這是我們的非差距合併經營報表，其中包括與富士通的製造合資企業 FASL 的影響。這比第一季下降了 1.55 億美元，主要原因是我們的記憶體產品線收入下降以及微處理器產品線平均售價下降 50% 以上。 本季淨收入為 7,000 萬美元，佔營收的 1.8%。 本季每股完全攤薄收益為 0.5 美元。 本季的 ProForma 毛利率為 36.7%，較 2000 年第二季的持續經營毛利率下降 11 個百分點。 如前所述，利潤率受到記憶體產品線收入下降和微處理器業務平均售價壓力的嚴重影響。 工廠產出和新生產力的執行情況均優於第一季。 本季研發費用按計畫完成 1.71 億美元，較去年第二季成長 10%。 行銷總務及行政開支也按計畫達到 1.56 億美元，較去年第二季成長 3%。 本季末，我們的現金餘額為 11 億，比去年年底減少了 2000 億，其中超過一半的減幅來自我們對 FASL 合資企業的非經常性投資。 本季我們的庫存總額為 4.01 億美元，較第一季增加了 4,600 萬美元。 我們的微處理器和快閃產品線的庫存都非常適合我們今年剩餘的計劃。 第二季的資本支出為 2.15 億，其中約一半用於德勒斯登，本季的折舊支出為 1.59 億。本季的 EBITDA 為 1.81 億，最後，我們很高興地報告，我們在本季度償還了 5.17 億可轉換債務，這使我們的債務與債務加股權比率達到 20%。 對於 2001 年的建模，請考慮以下內容。 假設我們今年的稅率為27%。 由於我們調整了後端容量需求，我們已將今年的資本支出削減至 9 億美元，比先前的預期減少了 1 億美元。 我們將在今年按計畫完成Fab 30並安裝130奈米產能。 全年折舊費用已減少至約 6.3 億，較我們先前預期的低 4,000 萬美元。 我們預計今年餘下的現金餘額將維持在 10 億美元。 對於 EPS 計算，請使用第三季的 3.5 億股。 最後，研發投資將繼續以第二季的支出率在今年剩餘時間內投資於我們未來的技術和產品。 現在我想把時間交給赫克託來開始業務部門的討論。 赫克托爾。

Thank you Bob. I would like to make a few comments about our operations. Our execution across our factories continues to be excellent. We continued our ramp of Fab 30 in Dresden, Germany and expect to achieve full capacity in terms of wafer stocks by the end of the year. The demand for our Athlon products has being strong and we've sold out the output of Fab 30 in the second quarter. We have successfully made several product transitions as evidenced by nearly a quarter of a million 1.4-gigahertz parts that were shipped in the second quarter. Our plans continue on target for the beginning of the 0.13-micron conversion in the fourth quarter for both bulk and SOI based technologies. We are very encouraged by the progress of this transition as evidenced by the continued grade results in the fabrication of SDRAMs as precursor to the conversion. Before the end of the year, we will begin the conversion of Fab 25 to a Flash factory. The speed of the conversion will be dictated by the return of demand for our Flash products. This along with our manufacturing and partnering strategy and our current planned backhand and test capability will result in having ample capacity for both Flash and microprocessors for us to continue to gain share. Now, I am going to talk about our product lines. Memory Group sales declined 13% from the second quarter of 2000, and 23% from the previous quarter. Networking and communication segments of some of the market remained very weak with some apparent stability in the set-top box and automotive markets. These conditions exist across all regions of the world. Flash memory density increased from the first to the second quarter by 17.4% or to 12.8 megabits and as customers move towards feature rich products in a lower unit environment. Our capability to continue to offer our customers increased density in Flash will be further enhanced by the recently announced technology innovation called [_____] bit architecture. The continued weakness in most market segments of these product lines make it very difficult to accurately forecast demand going forward. We currently expect that sales in the third quarter could be down as much as 30%. In the microprocessor business, virtually all of our sales this quarter were our seventh generation products. Both Athlon and Duron product lines established record unit sales in the quarter with the aggregate shipment being in excess of 7.7 million units. We expanded our portfolio there in the quarter with the introduction of the AMD Athlon IV processor for mobile PCs, which is the segment with great opportunity for us because our products offer unequal performance. We also introduced the AMD Athlon MP with its companion AMD-760 MP chipset for workstation and server applications. Additionally, higher performance Athlon and Duron processors were also introduced during the quarter. The 950 MHz Duron is the industry's highest performance processor for the value segment. The 1.4 GHz AMD Athlon offers more delivered performance than any other processor as evidenced by industry benchmarks. Pricing pressures in the quarter resulted in ASPs declining significantly from the first quarter to the second quarter. While we do not expect the rate of decline to continue, we don't see an environment where flights and pressures will continue and ASPs could be lower sequentially in the second half of the year. We are prepared to adjust our cost structure and continue offering the best value for delivery performance so that we continue to gain share. I would now like to turn the discussion over to Jerry Sanders.

謝謝你，鮑伯。 我想對我們的營運發表一些評論。 我們各個工廠的執行情況依然出色。 我們繼續擴大位於德國德勒斯登的 Fab 30 產能，預計今年底將實現晶圓庫存的滿載生產。 我們的 Athlon 產品需求一直很強勁，第二季 Fab 30 的產量已經全部售罄。 我們已經成功完成了幾項產品轉型，第二季出貨的近 25 萬個 1.4 千兆赫零件就是明證。 我們的計劃繼續按計劃進行，即在第四季度開始針對體矽和 SOI 技術進行 0.13 微米轉換。 我們對這項轉變的進展感到非常鼓舞，因為作為轉變的先導，SDRAM 製造的持續等級結果就證明了這一點。 年底前，我們將開始將 Fab 25 改造為 Flash 工廠。 轉換的速度將取決於我們 Flash 產品需求的報酬。 這與我們的製造和合作策略以及我們目前計劃的反手和測試能力相結合，將使我們擁有足夠的快閃記憶體和微處理器容量，從而繼續獲得份額。 現在，我要談談我們的產品線。記憶集團的銷售額比 2000 年第二季下降了 13%，比上一季下降了 23%。 部分市場的網路和通訊領域仍然非常疲軟，而機上盒和汽車市場則明顯穩定。 這些情況存在於世界各地。 隨著客戶在較低單位環境中轉向功能豐富的產品，快閃記憶體密度從第一季到第二季增加了 17.4% 或達到 12.8 兆位元。 我們最近宣布的名為 [_____] 位元架構的技術創新將進一步增強我們繼續為客戶提供更高密度快閃記憶體的能力。 這些產品線的大多數細分市場持續疲軟，使得準確預測未來的需求變得非常困難。 我們目前預計第三季的銷售額可能會下降 30%。 在微處理器業務中，本季我們幾乎所有的銷售都是第七代產品。 Athlon 和 Duron 產品線在本季均創下了銷售記錄，總出貨量超過 770 萬台。 我們在本季度擴大了該領域的產品組合，推出了用於行動電腦的 AMD Athlon IV 處理器，由於我們的產品提供了無與倫比的性能，因此該領域對我們來說是一個充滿機會的領域。 我們也推出了適用於工作站和伺服器應用的 AMD Athlon MP 及其配套 AMD-760 MP 晶片組。 此外，本季還推出了效能更高的 Athlon 和 Duron 處理器。 950 MHz Duron 是業界價值領域中效能最高的處理器。業界基準測試證明，1.4 GHz AMD Athlon 提供的效能比其他處理器都要高。 本季的定價壓力導致平均售價從第一季到第二季大幅下降。 雖然我們預計下降速度不會持續，但我們也不認為航班和壓力會持續下去，而且下半年平均售價可能會較上季下降。 我們準備好調整我們的成本結構，並繼續提供最佳的交付績效價值，以便我們繼續獲得份額。 現在我想把討論交給傑瑞·桑德斯。

Thanks Hector. Well, today AMD is all about PC processors, which are 60% of our business and Flash memory, which was 32% of our business in the quarter. Accordingly, I will spend the time discussing our other IC businesses or the Foundry services we provide to some businesses, which we sold, and which are now operating as separate unaffiliated companies. Those businesses in the aggregate are less than $100 million a quarter and decline with the industry. That will continue. In the just completed quarter, our biggest disappointment was the absence of any recovery in the Flash memory market. Our revenue decline was twice of what we had expected. We were premature in believing that the second quarter was the tough quarter for Flash memories. Q3 Flash sales declined in dollars, as expected to approximate the decline we just experienced in Q2. On the strength of seasonal effects and new product cycles, we are confident that our Flash memory sale will resume growth in Q4. We continue to outperform in the market and are gaining market share. The second part of our strategy of defend and expand in Flash memory will be evident in 2002 with the advent of [____] bit technology and greater participation in the enhanced sector. Our customer relationships are excellent and we continue to win awards, the most recent coming from the Robert Bausch Co. We are very well positioned, both customer wise and product wise to benefit disproportionately in an upturn. In PC processors as reported, we shipped a record 7.7 million Athlon and Duron processors with each setting individual records. Latest industry market research indicates we continue to gain market share reaching a level in excess of 22%. An unprecedented number of price moves in the quarter by Intel in an attempt to stall our market share progress was successfully countered, but impacted ASPs severely. ASPs for microprocessors, PC processors were down to about $75 in change. I remind you that on 7.7 million units, the $15 drop in ASP compared to the prior quarter cost us a $115 million in revenues most of which would have dropped to our bottom-line. In today's PC environment, price is particularly an important determinant in product choice. We plan to continue to offer superior delivery performance at a competitive price to that of Intel. In the value desktop space, our Duron products are clearly superior to the alternative by any measure. In the performance space, our superior delivery performance and substantially lower manufacturing costs have us well positioned to compete against Intel. Demand for our new mobile Athlon IV processors is strong and we are maintaining our maximum ramp in the Dresden sale. In a weak PC market in Q3, we expect AMD processor unit sales to remain at record levels in the face of continuing aggressive price competition. Our working hypothesis is that ASPs will be no better than that in Q2 even on the richer mix. In Q4, we expect seasonal effects, the advent of Microsoft Windows XP, and a greater supply of power managed Athlon and Duron from mobile applications to enable us to increase PC processor revenues significantly. We remain on track to commence production of 130 nanometer Athlon thoroughbred devices in Q4 with samples available at yearend. In summary, AMD overall is executing exceptionally well in an exceptionally weak market. As indicated in the press release, if current business conditions prevail, our revenues could decline by more than $100 million in the current quarter, and we would report an operating loss. In this environment, we are intensifying our cost containment efforts where appropriate, in reducing or eliminating costs which will impact our near term outlook without affecting our strategy. We continue to make the necessary product and process technology investments that will position as well for the upturn. Our internal goal through a combination of cost control and aggressive selling is to breakeven in Q3 and return to solid profitability in Q4. Thank you and now I will turn it over to Bob for questions.

謝謝赫克托。 嗯，今天 AMD 專注於 PC 處理器，占我們業務的 60%，快閃記憶體占我們本季業務的 32%。 因此，我將花時間討論我們的其他 IC 業務或我們向某些業務提供的代工服務，這些業務我們已出售，現在作為獨立的非關聯公司運作。 這些業務合計每季營業額不足 1 億美元，並且隨著產業的發展而下滑。 這種情況將會持續下去。 在剛結束的這個季度，我們最大的失望是快閃記憶體市場沒有任何復甦。 我們的營收下降幅度是我們預期的兩倍。 我們過早認為第二季是快閃記憶體市場艱難的一個季度。 第三季 Flash 銷售額以美元計算出現下滑，預計與第二季經歷的下滑幅度大致相同。 憑藉季節性因素和新產品週期，我們有信心快閃記憶體銷售將在第四季度恢復成長。 我們在市場上的表現持續優異，市佔率也不斷擴大。我們的快閃記憶體防禦和擴展策略的第二部分將在 2002 年隨著 [____] 位元技術的出現和增強型領域的更多參與而顯現。 我們的客戶關係非常好，我們也不斷贏得獎項，最近一次獲獎來自羅伯特·鮑施公司 (Robert Bausch Co.)。無論是從客戶角度還是產品角度來說，我們都處於非常有利的地位，能夠在經濟好轉時獲得不成比例的利益。 據報道，在個人電腦處理器方面，我們的 Athlon 和 Duron 處理器出貨量達到了創紀錄的 770 萬台，每台都創下了個人紀錄。 最新的行業市場研究表明，我們的市場份額繼續增長，達到 22% 以上的水平。 本季度，英特爾為阻止我們市場份額的成長而採取了前所未有的價格調整措施，這一舉措雖然被成功抵制，但卻嚴重影響了平均售價。 微處理器、PC處理器的平均售價下降至約 75 美元。 我提醒您，在 770 萬台的銷量中，與上一季相比，平均售價下降了 15 美元，這導致我們的收入損失了 1.15 億美元，其中大部分都計入了我們的底線。 在當今的 PC 環境中，價格是產品選擇的一個特別重要的決定因素。 我們計劃繼續以比英特爾更具競爭力的價格提供更卓越的交付性能。 在價值型桌上型電腦領域，無論以何種標準衡量，我們的 Duron 產品都明顯優於其他產品。 在性能領域，我們卓越的交付性能和大幅降低的製造成本使我們在與英特爾的競爭中佔據有利地位。 我們的新型行動 Athlon IV 處理器的需求非常強勁，我們在德勒斯登的銷售中保持了最大的成長。在第三季 PC 市場疲軟的情況下，我們預計 AMD 處理器銷量在持續激烈的價格競爭下仍將保持在創紀錄的水平。 我們的工作假設是，即使組合更加豐富，平均售價也不會比第二季更好。 在第四季度，我們預計季節性影響、Microsoft Windows XP 的出現以及行動應用程式對功耗管理型 Athlon 和 Duron 的更多供應將使我們能夠大幅增加 PC 處理器收入。 我們仍計劃於第四季開始生產 130 奈米 Athlon 純種設備，並在年底提供樣品。 總而言之，AMD 在異常疲軟的市場中整體表現非常出色。 正如新聞稿中指出的，如果目前的商業狀況持續下去，我們本季的收入可能會下降 1 億美元以上，並且我們將報告經營虧損。 在這種環境下，我們正在適當地加強成本控制力度，以降低或消除那些會影響我們短期前景但又不影響我們策略的成本。 我們將繼續進行必要的產品和製程技術投資，為經濟復甦做好準備。 我們的內部目標是透過成本控制和積極銷售相結合的方式在第三季度實現收支平衡，並在第四季度恢復穩健的盈利能力。 謝謝，現在我將把問題交給鮑伯。

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 sir. Ladies and gentleman, if you wish to register for a question, you will need to press the 1 followed by the 4 on your telephone. You will hear a three-tone prompt to acknowledge 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 3. If you are on a speakerphone, please pick up your handset before entering your request. One moment please for the first question.... the first question comes from Scott Randall with Wit Sound View. Please go ahead.

謝謝您，先生。 女士們，先生們，如果您想註冊提問，您需要在電話上按 1，然後按 4。 您將聽到三聲提示音來確認您的要求。 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。如果您使用免持電話，請在輸入請求之前拿起聽筒。請稍等片刻，回答第一個問題...第一個問題來自 Wit Sound View 的 Scott Randall。 請繼續。

Great thank you. Two questions...first, on the transition of [alpha] towards Intel. Does that change any of the requirements on the bus licensing either currently or for the future roadmaps?

非常感謝。 兩個問題...首先，關於 [alpha] 向英特爾的轉變。 這是否會改變目前或未來路線圖上公車牌照的要求？

No, none whatsoever.

沒有，一點也沒有。

Okay. Future roadmaps, how would that work is that?

好的。 未來的路線圖將如何運作？

Well, our strategy for processors, it is to differentiate and plan. As you probably know, we do not have a compatible bus with Intel Pentium IV. We have our own bus and we intend to continue to improve the performance of that bus and offer an alternative platform to the Intel platform. When we go to our next generation, eighth generation Hammer family, again we have a new proprietary AMD technology, hyper transport, which again is the differentiated solution. It is our intention to compete with Intel not on a pin-per-pin basis, but as a superior alternative platform.

嗯，我們針對處理器的策略是差異化和規劃。 您可能知道，我們沒有與 Intel Pentium IV 相容的匯流排。 我們有自己的總線，我們打算繼續提高該總線的效能，並為英特爾平台提供替代平台。 當我們進入下一代，第八代 Hammer 系列時，我們再次擁有了新的專有 AMD 技術，超級傳輸，這再次是一種差異化解決方案。 我們的目的不是在引腳逐個引腳的基礎上與英特爾競爭，而是作為更優越的替代平台。

I understand and secondly, relative to the pricing and also given that you folks have done a good job of defending market share, but at a pretty big cost impact there. Is the flossy still to defend market shares sort of independent of pricing?

我理解，其次，相對於定價，也考慮到你們在捍衛市場佔有率方面做得很好，但成本影響相當大。 Flossy 是否仍能以某種方式獨立於定價來捍衛市場份額？

Pretty much. We are not going to be pushed out of the ring by a sumo wrestler. Basically, we've got a lower cost structure on our products than they have on theirs. When it comes to Duron, we've got a clearly superior solution, so the only differentiator is that we are compared to meet the pricing, we get the business. So, it is in our intention that whatever it takes in Duron. As Hector mentioned, we are selling out the production of the Dresden pay up. We are ramping at the maximum rate and so, what we are doing there is to negotiate on a customer-by-customer basis to optimize our product line. We are frankly a little surprised by the aggressiveness and the number of price changes that Intel have implemented last quarter, because they are really not doing nearly as well with Pentium IV as they had hoped. So, they are trying to push the Pentium IV down into the mainstream space where AMD is prepared to offer a competitive alternative. We've been giving the business, but there is no question about, it puts some pricing pressures on. The pricing though on Athlon is still in excess of a 100 bucks. The Duron pricing is substantially lower.

差不多。 我們不會被相撲選手推出拳擊場。 基本上，我們產品的成本結構比他們的產品低。 說到 Duron，我們有一個明顯更優越的解決方案，因此唯一的區別在於，我們與同行相比能夠滿足定價，從而獲得業務。 因此，我們的目標是在 Duron 中實現一切目標。 正如赫克托 (Hector) 所提到的，我們正在銷售德勒斯登 (Dresden) 的製作成果。 我們正在以最大速度提高產量，因此，我們正在做的就是根據每個客戶的情況進行協商，以優化我們的產品線。 坦白說，我們對英特爾上個季度實施的價格調整的力度和次數感到有些驚訝，因為他們在奔騰 IV 方面的表現確實不如他們所希望的那樣好。 因此，他們正試圖將奔騰 IV 推向主流市場，AMD 準備提供具有競爭力的替代品。 我們一直在開展業務，但毫無疑問，它帶來了一些定價壓力。 不過 Athlon 的定價仍然超過 100 美元。 Duron 的定價明顯較低。

Great thank you.

非常感謝。

Tim Mahon with Credit Suisse First Boston. Please go ahead with your question.

瑞士信貸第一波士頓的 Tim Mahon。 請繼續提問。

Thanks. Congratulations on the market share gains, Jerry, I was curious if you could give us a rough break up of Athlon versus Duron on a unit basis during the quarter. Was there a significant difference in the two?

謝謝。 恭喜您的市佔率成長，傑瑞，我很好奇您是否可以給我們本季 Athlon 和 Duron 在單位數量上的粗略比較。 兩者之間有顯著差異嗎？

We are reluctant to do that for competitive reasons and so, as much as I would like to give you everything you want, I can't really give you that. I can say that they are pretty evenly split at this point in time. Going forward, we expect obviously to sell more Durons and especially when we now have the power-managed, the mobile Duron, which we expect is going to be driving. Our target there is at 50% share of the US retail mobile market by yearend.

由於競爭原因，我們不願意這樣做，因此，儘管我很想給你想要的一切，但我實際上無法給你。 我可以說，目前他們的分歧相當均勻。 展望未來，我們顯然希望銷售更多的 Duron，特別是當我們有了電源管理的行動 Duron 時，我們預計它將起到推動作用。 我們的目標是到年底佔據美國零售行動市場的 50% 份額。

Great and then may be, Jerry you if you could help us out here, maybe some thoughts on, you know, what percentage of the process of shipments in Q3 you would expect roughly once again to be mobile processors?

太好了，那麼傑瑞，如果你能幫我們一下，也許你可以想一下，你預計第三季的出貨量中大約有多少比例會再次是行動處理器？

Well, that's not something that I am prepared to give, may be Robert Rivet could help me out there. Basically, I believe that virtually all of our palominos are still being directed towards mobile, although we will be introducing a 1.5 GHz desktop palomino. That is the new version. So, the bulk of our units shipments from palomino will be for mobile and as far as Morgans go, which is the mobile Duron, I don't have a good answer. Rob can you help me here.

好吧，這不是我願意給予的東西，也許羅伯特·裡維特可以幫助我。 基本上，我相信我們幾乎所有的 Palomino 仍然針對行動設備，儘管我們將推出一款 1.5 GHz 桌面 Palomino。 這是新版本。 因此，我們從 Palomino 發貨的大部分產品將用於行動設備，至於 Morgans，即行動版 Duron，我沒有好的答案。 羅布，你能幫我嗎？

Yeah overall on the question of what percentage will be in mobile, less than 10% of our total shipment in Q3 will be for mobile market.

是的，關於行動市場將佔多大比例的問題，第三季我們總出貨量中不到 10% 將用於行動市場。

Great. Thanks Robin and finally, I do not know if you guys can give this out just kind of the linearity of the quarter for processor unit shipments? Thank you very much.

偉大的。 謝謝羅賓，最後，我不知道你們是否可以給出處理器單位出貨量本季的線性情況？ 非常感謝。

It was awful. It was the most nonlinear quarter in my memory. The customers were in a constant state of negotiation, re-negotiation, reallocation, redistribution, when, where, what and if to ship. It was much more than 50% of the year that we shipped in the final for a month.

這太可怕了。 這是我記憶中最非線性的一個季度。 客戶不斷處於談判、重新談判、重新分配、重新分配的狀態，確定何時、何地、運送什麼以及是否運送。 我們在一個月內完成的出貨量遠遠超過了全年出貨量的 50%。

Okay. Thanks Jerry.

好的。 謝謝傑瑞。

Eric Rothdeutsch with Robertson and Stephens. Please go ahead with your question.

Eric Rothdeutsch 與 Robertson 和 Stephens 在一起。 請繼續提問。

Can you give an idea of your speed roadmap on Athlon's review at the end of the year. I was wondering if you will be shipping the 1.7 GHz Athlon and faster versions?

您能否在年底的 Athlon 評測中介紹一下您的速度路線圖？ 我想知道您是否會推出 1.7 GHz Athlon 及更快的版本？

As I said, we reduced the 1.5 GHz in the current quarter, the 1.733 is the next major speed rate and we are targeting the end of the fourth quarter for that product.

正如我所說，我們在本季降低了 1.5 GHz，1.733 是下一個主要速率，我們計劃在第四季末推出該產品。

Thank you.

謝謝。

Next question comes from Mark Edelstone of Morgan Stanley Dean Witter. Please go ahead.

下一個問題來自摩根士丹利添惠公司的馬克‧艾德爾斯通。 請繼續。

Yeah Jerry. A couple of questions, If I could, first one is the overall census to the health of the PC market, both as you went through Q2 and then kind of your observations here going into Q3, and then based on your comments about the non-linearity of Q2. How do you think Q3 looks from a linearity point of view versus the way we just had in Q2?

是的，傑瑞。 我有幾個問題，如果可以的話，第一個問題是對 PC 市場健康狀況的總體普查，包括您在第二季度的情況以及您對第三季度的觀察，然後基於您對第二季度非線性的評論。 從線性角度來看，您認為 Q3 與 Q2 有何不同？

I will let Rob answer that since I am holding him responsible for these aggressive sales figures.

我會讓羅布來回答這個問題，因為我要他對這些激進的銷售數據負責。

Yeah Mark. As far as the overall PC market, you know, we are to believe now that the PC market for 2001 can be roughly flat than what it was in 2000. I think most of data vendors are still looking at 2% or 3% growth that continued to deteriorate you know month after month here. So, I think what we are looking at right now is a roughly flat PC market for the year. Relative to linearity for the quarter, Q3 is typically a fairly backhand loaded quarter because you obviously get ready for a very strong Q4 PC selling season and a lot of processors are shipped in September into that. In addition with the Window XP timings, I expect that to be even more sold this year. So, I think we would have another quarter where we are fighting the linearity well and we are going to be relatively backhand loaded.

是的，馬克。 就整個 PC 市場而言，我們現在認為 2001 年的 PC 市場與 2000 年的水準大致相當。我認為大多數數據供應商仍然預計成長率為 2% 或 3%，而且這種成長率還在逐月下降。 所以，我認為我們現在看到的是今年的個人電腦市場大致持平。 相對於本季度的線性，第三季度通常是一個相當緊張的季度，因為你顯然要為非常強勁的第四季度 PC 銷售季做好準備，而且很多處理器都是在 9 月份發貨的。 此外，考慮到 Windows XP 的上市時間，我預計今年的銷售量會更多。 因此，我認為我們將在另一個季度中很好地對抗線性，並且我們將相對地採取反手策略。

Robert, as you read that based on the rate of shipments running in Q2 that channel inventories are in relatively good shape here going into the third quarter?

羅伯特，根據第二季的出貨率，您是否認為進入第三季後通路庫存狀況相對較好？

Yeah, I think that the channel has got very sensitive on our managing inventories. I also made the channel while watching Q3 very closely because of course they also want to make sure that they are prepared with [___] based on XP as early as possible so that means monitoring closely what happened this quarter. I believe if you look at the US retail, the largest single segment to look at from a consumer standpoint you know, I think that we are planning Q3 year-on-year to be down probably in the 30-35% range which I think is a little bit pessimistic, but I will say that I think there is a lot to be returned to managed inventories prior to the XP launch.

是的，我認為通路對我們的庫存管理非常敏感。 我也在密切關注第三季的同時創建了這個頻道，因為他們當然也想確保儘早準備好基於 XP 的 [___]，這意味著密切關注本季發生的事情。 我相信，如果你看一下美國零售業，從消費者的角度來看最大的單一細分市場，我認為我們計劃第三季度的同比下降可能在 30-35％ 的範圍內，我認為這有點悲觀，但我想說，我認為在 XP 推出之前，有很多東西可以返回到管理庫存中。

Thanks a lot.

多謝。

Next Question comes from [Tay Kim from Welch Capital]. Please go ahead

下一個問題來自[Welch Capital 的 Tay Kim]。 請繼續

Mr. Kim, your line is now open for questions.

金先生，您的熱線現在可以接受提問了。

My question is up on the geographic breakout, rising in Europe related to the US in terms of enduser demand?

我的問題是關於地理分佈的突破，就最終用戶需求而言，歐洲相對於美國是否有成長？

Yeah, basically Europe was, and you have got to put into both businesses... so I will first talk primarily about key business. So Europe was actually strong as it went through Q1. In Q2, you know, clearly I think European economy slowed a little bit. I know that the professional part of European market was down. I think it has also caught up in consumer market a little bit. So, clearly have seen a slowing in Europe, although I still don't think it's a nearly as bad as what we've seen in the US. Relative to the Flash business, I think it's safe to say that we still are slowing in all segments to the world and in all market segments.

是的，基本上是歐洲，你必須投入這兩項業務......所以我首先主要談論關鍵業務。 因此，歐洲在第一季表現實際上非常強勁。 在第二季度，我顯然認為歐洲經濟有所放緩。 我知道歐洲市場的專業部分有所下滑。 我認為它在消費市場上也已經有點趕上了。 因此，我們顯然看到歐洲經濟放緩，儘管我仍然認為它不像我們在美國看到的那麼糟糕。 相對於Flash業務，我認為可以肯定地說，我們在全球各個領域和各個細分市場中的發展仍在放緩。

Yeah... Great thanks.

是的...非常感謝。

Hans Mossesmann with Prudential Securities. Please go ahead with your question.

保誠證券的 Hans Mossesmann。 請繼續提問。

Yeah, thanks. Can you, Jerry, give us an update on your 300 mm strategy? Thanks.

是的，謝謝。 傑瑞，你能向我們介紹一下你的 300 毫米戰略的最新情況嗎？ 謝謝。

Well, as I said many times what counts is the die cost or the ultimate cost. Our view is with our very small guide sizes and moving to a 130-nanometer technology, we have adequate volume for the next several years to achieve our 30% world market share of units. So, our 300 mm strategy really ties with the comment that Hector made earlier today when he said our manufacturing partnering strategy. We have a number of discussions that are ongoing so we are not at liberty to talk about it at this time, which will also going to result, I am sure, in our 300 mm announcement, but for the near term be it in the next year or two we think that we are going to have a lower cost on our current 200 mm wafers with our die sizes, with our technology, than our competitors, and that's what really counts.

嗯，正如我多次說過的，重要的是模具成本或最終成本。 我們認為，憑藉我們非常小的導向尺寸和向 130 奈米技術的轉變，我們在未來幾年內將擁有足夠的產量，以實現 30% 的全球市場份額。 因此，我們的 300 毫米策略與 Hector 今天稍早所說的製造合作策略非常吻合。 我們正在進行一些討論，因此我們目前不方便談論它，我相信這也將影響我們的 300 毫米公告，但就短期內，無論是在未來一兩年內，我們認為，以我們的晶片尺寸和技術，我們目前的 200 毫米晶圓的成本將低於我們的競爭對手，這才是真正重要的。

Okay, and as a followup, you mentioned [NAND] Flash in 2002. Is that mean that you are coming out the [NAND] architecture or is it your near bid that is going to allow you to go up to those guys?

好的，作為後續問題，您提到了 2002 年的 [NAND] Flash。這是否意味著您將推出 [NAND] 架構，還是說您的接近出價將使您能夠與那些公司競爭？

I do not, but Walid Maghribi will the answer that but those are two very different market opportunities that Walid will already discuss.

我不知道，但 Walid Maghribi 會回答，但那是兩個非常不同的市場機會，Walid 已經討論過了。

Actually we've had [NAND] products for a long time and the reason we did not push them in the market it is because we were totally sold out in the year 2000 and even in the first quarter of 2001. Now, what we are coming out with is a more advanced technology and higher density and the first product will be introduced very, very soon, we thought shipping probably in Q4. The [NAND] product is geared towards data storage where the [____] bit architecture, which also gave us a very high density, is geared towards cost reduction of node where the code shadowing is utilized such as networking. Then, we will have three products that address three different segments to execute in place, the code shadowing, and in the data storage.

實際上，我們推出 [NAND] 產品已經很長時間了，我們之所以沒有在市場上推廣它們，是因為 2000 年甚至 2001 年第一季我們的產品就已經全部售罄。現在，我們推出的是更先進的技術和更高的密度，第一款產品很快就會推出，我們認為可能在第四季度發貨。 [NAND] 產品面向資料存儲，其中 [____] 位元架構也為我們提供了非常高的密度，面向利用程式碼陰影的節點（例如網路）的成本降低。 然後，我們將有三種產品，分別針對三個不同的部分進行執行，即程式碼陰影和資料儲存。

Okay, great thanks a lot.

好的，非常感謝。

Hans, there is one thing I would like to add to that is up until now we've really had the most effective counter to [Strata] Flash. [_____] bit directly attacks [Strata] Flash and that it is competitive cost and there is no compromise in reliability or endurance. The customer has to make a big compromise and use [Strata] flash and he does not get the one-million-cycle endurance that AMD guarantees. [ _____] bit will give him that. So, we think that you might know the 28% Intel's Flash business [Strata] Flash. So, there is a 28% of market that we haven't been able to go for. So, [___] bit gives us a part of our extension strategy.

漢斯，我想補充一點，到目前為止，我們確實擁有對抗 [Strata] Flash 最有效的方法。 [_____] 位元直接攻擊 [Strata] Flash，而且它具有競爭力的成本，並且在可靠性和耐用性方面沒有任何妥協。 客戶必須做出很大的妥協並使用 [Strata] 閃存，而且無法獲得 AMD 保證的百萬次循環耐用性。 [ _____] 位會給他這個。 因此，我們認為您可能了解英特爾 28% 的快閃記憶體業務 [Strata] Flash。 所以，還有 28% 的市場我們未能佔領。 因此，[___] 位為我們提供了擴展策略的一部分。

Thanks.

謝謝。

Dan Niles with Lehman Brothers. Please go ahead with your question.

雷曼兄弟公司的丹‧奈爾斯。 請繼續提問。

Great. Thank you... couple of questions, if I could.... the first one Jerry, is to try and understand or maybe, for you, Rob, what your views are on inventory and I know you said that you thought that they were in good shape. It gets a little bit confusing, at times like you shipped about 50% of your microprocessors in the last month and it sounds like Intel's quarter was pretty back end-loaded as well, from what I can tell, yet on the PC shipment side, it seems as though shipments kind of fell off pretty, or they were fairly non-linear in terms of, third month didn't ramp that well for names like Compaq and other companies who are yet to report. So it would seem as though inventories have actually essentially increased and I am trying to figure out when it might be just connected there?

偉大的。 謝謝...如果可以的話，我有幾個問題....第一個問題，傑瑞，是想嘗試了解，或者也許，對於你，羅布，你對庫存的看法是什麼，我知道你說過你認為庫存狀況良好。 這有點令人困惑，有時你們上個月出貨了大約 50% 的微處理器，而且聽起來英特爾本季度的出貨量也相當落後，據我所知，但在個人電腦出貨量方面，似乎出貨量下降了很多，或者說它們是相當非線性的，對於康柏和其他尚未報告的公司來說，第三個月的出貨量並沒有那麼好。 因此看起來好像庫存實際上已經大幅增加，我想弄清楚什麼時候可能只是與此相關？

Yeah. Couple of comments, first of all on the AMD front which I can speak a little more confident on, because I do quite know what Intel did at the end of their quarter and what they did, but from an AMD front, if you will remember, we are still fairly heavily rated in the consumers space, and if you take a look at what was traditionally the refreshers in the string, we were pretty much nonexistent in US retailing, and we did almost no business there. So, it is not unusual that our early part of the quarter was lower than normally would have been expected by the factories out in that business. We think we're very strongly positioned in the back school starting seasons for a lot of our shipments, again of CPUs happen in June and going into July, August, and September selling season. So for us it was a big month because we went from being virtually not at all engaged to being in a very strong position in this upcoming PC zoning season. That's the case of processors linking PC sales from an AMD perspective and very good involvement. Besides that I feel a little less confident, let us go on to the commercial world and see what are the CPU shipments into the enterprise space versus the PC shipments look like. It has been clear to me that our competitive ships roughly have been able to do a, say roughly, 26 million PCs a quarter; that is 2 millions a week, and you know, shuffling around pulling here and pushing out a couple of week worth inventories, in CPUs. So we would regard our efficiency depending on your strategy on what number we are trying to make out there.

是的。 幾點評論，首先是關於 AMD 方面，我可以更有信心地談論它，因為我確實很清楚英特爾在其季度末做了什麼以及他們做了什麼，但是從 AMD 方面來看，如果你還記得的話，我們在消費者領域仍然享有相當高的評價，如果你看一下傳統上在字符串中提到的複習內容，你就會發現我們在美國零售業幾乎不存在，我們幾乎沒有做生意。 因此，本季初我們的業績低於該行業工廠的正常預期，這並不奇怪。 我們認為，對於我們的許多出貨量來說，我們在開學季處於非常有利的地位，CPU 的出貨時間再次出現在 6 月份，然後進入 7 月、8 月和 9 月的銷售旺季。 所以對我們來說這是一個重要的月份，因為我們從幾乎沒有參與到在即將到來的 PC 分區季節中處於非常強勢的地位。 從 AMD 的角度來看，處理器與 PC 銷售之間的聯繫非常緊密，參與度也很高。 除此之外，我感覺有點不太有自信，讓我們繼續進入商業世界，看看企業領域的 CPU 出貨量與 PC 出貨量相比如何。 我很清楚，我們的競爭對手每季大約能夠生產 2600 萬台 PC；也就是說，每周有 200 萬個 CPU 庫存，我們在這裡拉來拉去，然後推出價值幾週的庫存。 因此，我們會根據您的策略來評估我們的效率，看看我們試圖實現多少目標。

Okay another question, I guess, I don't know if there is an ASP associated with this but the commentary I think you made, Jerry, is that may potentially revenues could decline 100 million in Q3 relative to Q2. How much of that is driven by Flash versus processors and tied into that are you anticipating in that number losing share to Intel processors, I guess?

好的，我想還有一個問題，我不知道這是否與 ASP 相關，但我認為你所做的評論，傑瑞，是第三季的收入可能相對於第二季下降 1 億美元。 我猜，其中有多少是由 Flash 而不是處理器推動的，與此相關，您是否預計在這個數字中，市場份額會輸給英特爾處理器？

I am glad you asked that question. Let me clarify. Our press release said 10-15% decline in revenues, my safe bet would be 10% of $985 million is 98 million. Therefore, I was giving you a range of $100 million. Flash declined $95 million Q1-Q2 and I said we expected the same kind of decline in Q3 over Q2. Therefore, the first 95 to 100 million comes from Flash. That maybe the only decline we get if we can maintain our revenue base on microprocessors. Since we plan to hold our units at record levels that would say that any decline in revenues coming from processors would come from a decline in ASPs. I am not prepared to commit that we will have a decline in ASP. We've got a great mix and it depends a lot on what the market place is like. We are trying to be very, very conservative there. We are going to sell our heads off, if you will, to optimize our pricing. We've got a good line up for the Mobile markets that we didn't have in the past. We are ramping the Palomino, that is the power line of Athlon as fast as we can. We will be introducing a 1 GHz Duron this quarter. So we expect to get some shipments of that at the end of the quarter. So I think that the answer to your question is the softest market out there is the Flash market. That is just the top. We got blind sided last quarter; it just didn't recover at all. We are just assuming it is not going to recover this quarter and sales could be down at another 95 million.

我很高興你問了這個問題。 讓我澄清一下。 我們的新聞稿說收入下降了 10-15%，我敢肯定 9.85 億美元的 10% 是 9,800 萬美元。 因此，我給你的範圍是 1 億美元。 Flash 第一季至第二季下滑了 9,500 萬美元，我說我們預計第三季的下滑幅度將與第二季相同。 因此，前 9,500 萬到 1 億來自 Flash。 如果我們能夠維持微處理器的收入基礎，這可能是我們唯一遇到的下降。 由於我們計劃將我們的單位保持在創紀錄的水平，這意味著來自處理器的任何收入下降都將來自 ASP 的下降。 我不准備承諾我們的平均售價會下降。 我們擁有出色的組合，但很大程度上取決於市場情況。 我們正努力在那裡採取非常非常保守的態度。 如果你願意的話，我們將賣掉我們的腦袋，以優化我們的定價。 我們在行動市場上擁有過去所沒有的良好陣容。 我們正在盡快提升 Palomino，這是 Athlon 的動力線。 本季我們將推出 1 GHz Duron。 因此我們預計本季末將收到一些貨物。 所以我認為你問題的答案是，最疲軟的市場是 Flash 市場。 這還只是頂部。 上個季度我們被蒙蔽了雙眼；它根本就沒有恢復。 我們只是假設本季銷量不會恢復，並且可能再下降 9,500 萬。

Okay and a final question, I may?

好的，我可以問最後一個問題嗎？

You will not lose market share.

你不會失去市場佔有率。

Okay. Congratulations on the job you have done, by the way. I guess the final question is just sort of on a margin question. Your big competitor out there is, and you know, obviously this quarter, they sort of guided margins for Q2, they were, sort of reported somewhat in the 48-49% range, but the guidance for the full year is 50. So, there is a sort of, anticipating an upward trend in gross margins at least if you believe the last guidance they gave. Your margins have gone from about 48% middle of last year to 40 in Q1 to, I don't know to what it got to....

好的。 順便說一句，祝賀你所做的工作。 我想最後一個問題只是一個邊緣問題。 您最大的競爭對手是，您知道，顯然本季度，他們預計第二季度的利潤率將在 48-49% 左右，但全年的預期利潤率是 50。因此，如果您相信他們給出的最新預期，那麼至少可以預期毛利率會呈上升趨勢。 你們的利潤率從去年年中約 48% 下降到了第一季的 40%，我不知道結果如何…

35, I think in this quarter. Yes it is pretty ugly.

35，我認為是在本季。 是的，它確實很醜。

Right. So I guess, how do we do we sort of view some of the discussion here around pricing versus you are saying you have a lower cost processor and then sort of the margin differential potentially going in opposite directions where Intel potentially gets better and for you guys, I guess, it probably is a little bit worse.

正確的。 所以我想，我們如何看待這裡關於定價的一些討論，而你說你有一個成本更低的處理器，然後利潤差異可能會朝著相反的方向發展，英特爾可能會變得更好，而對於你們來說，我想，情況可能會更糟一些。

I don't see how Intel can get better, frankly, so lets see how the results actually commit. It seems to me that if Intel is going to try to take the Pentium IV with its cost structure down and compete with the Athlon, they are going to get hurt in their margins.

坦白說，我看不出英特爾如何變得更好，所以讓我們看看結果實際上如何。 在我看來，如果英特爾試圖降低奔騰 IV 的成本結構並與 Athlon 競爭，那麼他們的利潤率將會受到損害。

How much more cost structure do you think is in Pentium IV versus Athlon.

您認為 Pentium IV 的成本結構比 Athlon 高出多少？

I'd rather not answer that off the cuff, I can tell you, die cost is almost twice as large. So the difference in cost is pretty huge.

我不想即興回答這個問題，但我可以告訴你，模具成本幾乎是原來的兩倍。 因此成本差異相當大。

And even when you go to 0.13, what is the difference?

即使達到 0.13，又有什麼差別呢？

Yes, even when we got to 0.13 it is still 70% larger.

是的，即使我們達到 0.13，它仍然大 70%。

Thank you very much.

非常感謝。

Your next question comes from Doug Lee with Banc of American Securities. Please go ahead.

您的下一個問題來自美國證券銀行的 Doug Lee。 請繼續。

Thanks. Two questions. First, with respect to relative profitability of Flash between Flash and end-microprocessors, is it safe to assume that Flash is now operating at a loss?

謝謝。 兩個問題。 首先，就 Flash 與終端微處理器之間的相對獲利能力而言，是否可以安全地假設 Flash 目前處於虧損狀態？

Not yet.

還沒有。

Is the profitability about the same between the two at this point?

目前兩者的獲利能力大致相同嗎？

That's more information than we are prepared to reveal.

這些資訊比我們準備透露的還要多。

Okay, that's fine. Thank you for that. And then on the operating expense side, just maybe a question for Bob there. Bob, I think you mentioned in your remarks that R&D should be about flat sequentially. Did you make a comment on SG&A spending cut to think about that for mileage purposes?

好的，沒問題。 謝謝你。 然後關於營運費用方面，也許我只是想問鮑勃一個問題。 鮑勃，我想你在評論中提到研發應該保持連續持平。 您是否對銷售、一般及行政開支削減做出評論，以考慮里程數問題？

I did not specifically comment, but in this environment you can assume kind of the same.

我沒有特別評論，但在這種環境下你可以假設類似的事情。

Okay about flat, on a dollar basis?

好的，以美元計算，是平價嗎？

Yes.

是的。

Okay. Thank you very much.

好的。 非常感謝。

[Jim Tentori] with IBC. Please go ahead with your question.

[Jim Tentori] 與 IBC 合作。 請繼續提問。

Yes. Could you further explain just how [_______] bit compares to [Strata] Flash, or is it really just the same type of product with two bits per cell?

是的。 您能否進一步解釋一下 [_______] 位元與 [Strata] Flash 相比如何，或者它實際上只是每個單元有兩類型的相同類型的產品？

It is two bits per cell, but it is a very different product, Walid will you...

每個單元有兩位，但它是一種非常不同的產品，Walid 會嗎…

Okay. So, in [Strata] Flash, you get one fixed charge divided into two bits and that's the affected liability in the speed of the product. We are using the [____] bit architecture. We have two individual bits in one cell. Each one has the same charge. So, we are able to ship twice as many bits per unit of silicon. So our cost structure is at least as competitive to [Strata] Flash, and in addition to that there is a process simplification with this architecture that adds somewhere in the 15-20% of process cost reduction. This is a major difference between the [_____] bits and MLC or [Strata] Flash is that in [____] bit architecture there is no compromise on product performance or reliability, it is therefore pin-compatible and software compatible with existing node product.

好的。 因此，在 [Strata] Flash 中，您將獲得一個分為兩個位元的固定電荷，這就是產品速度受影響的責任。 我們正在使用 [____] 位元架構。 一個單元中有兩個單獨的位元。 每一個都有相同的電荷。 因此，我們能夠透過每單位矽片運送兩倍的位元數。 因此，我們的成本結構至少與 [Strata] Flash 一樣具有競爭力，此外，這種架構還簡化了流程，從而將流程成本降低了 15-20%。 [_____] 位元與 MLC 或 [Strata] Flash 之間的主要區別在於，[____] 位元架構不會對產品效能或可靠性造成任何影響，因此它與現有節點產品引腳相容且軟體相容。

Thank you.

謝謝。

[Vincent Bernadette] with [_____]. Please go ahead with your question.

[Vincent Bernadette] 與 [_____]。 請繼續提問。

Thanks. [Eric Rudolf Vincent]. If you can provide any followup to Mark Edelstone's on general conditions in the PC market. Can you provide any anecdotal information that would lead us to see any uptake for further September, back to school selling season?

謝謝。 [艾瑞克·魯道夫·文森特]。 如果您能對 Mark Edelstone 關於 PC 市場整體狀況的報告提供任何後續資訊。 您能否提供一些軼事信息，讓我們看到 9 月份返校銷售旺季的銷售量有所增長？

I cannot, maybe Rob can.

我不能，也許羅布可以。

Is he still there? Hello?

他還在那裡嗎？ 你好？

Sir, I am sorry. He just disconnected his line. We will go ahead and proceed with the next question. [Steve Allen] with [Hobartech Pomeranz]. Please go ahead with your question.

先生，對不起。 他剛剛斷掉了電話。 我們將繼續討論下一個問題。 [史蒂夫艾倫] 與 [Hobartech Pomeranz]。 請繼續提問。

Yes. My question is regards to your investment in SOI. Is AMD going to develop their own internal SOI fabrication capability or they are going to rely on the likes of IBM?

是的。 我的問題是關於您對 SOI 的投資。 AMD 會發展自己的內部 SOI 製造能力，還是會依賴 IBM 之類的公司？

This is Hector answering the question. We have had now for sometime the technology alliance with Motorola where these two companies have jointly developed the SOI technology and what we are primarily putting in production in Fab 30, which will start production at the end of the year, is based on this technology that was done between these two companies. In addition to that, you may remember that in the last six months or so we made a public announcement that we also license the design kits from IBM for SOI. So, we can have a combination of capability on the design side coming from IBM, some help and on the technology side the manufacturing fees is actually coming from the alliance between Motorola and AMD and that is what is being implemented in Dresden and we are currently running pilot production from that technology.

這是赫克托 (Hector) 在回答這個問題。 我們與摩托羅拉已經建立了技術聯盟，這兩家公司共同開發了 SOI 技術，而我們主要在 Fab 30 投入生產的產品將於今年年底開始生產，該產品正是基於這兩家公司共同研發的技術。 除此之外，您可能還記得，在過去六個月左右的時間裡，我們公開宣布我們也獲得了 IBM 的 SOI 設計套件授權。 因此，我們可以將來自 IBM 的設計能力和一些幫助結合起來，在技術方面，製造費用實際上來自摩托羅拉和 AMD 之間的聯盟，這就是德累斯頓正在實施的，我們目前正在利用該技術進行試生產。

Is this likely to be a large-scale production or is this likely to be just a small niche?

這可能是大規模作品嗎？還是可能只是一部小眾作品？

100% of our production will be going to SOI.

我們的 100% 產品將供應給 SOI。

A 100%?

100%？

100%.

100%。

Is this Jerry?

這是傑瑞嗎？

Yes.

是的。

Jerry that's freaking huge.

傑瑞，這真是太大了。

That's freaking huge guys. We are going for 30% market share. We are going to get there by offering a superior value. Our HiP-7 technology is the 130-nanometer SOI, that's where we are spending the money in Fab 30. That's why we built Fab 30 and that will be 100% capacity in Fab 30 by the end of this year. We are ramping to a 100% SOI capacity as soon as we can, in 2002 and in 2003.

這真是一群了不起的傢伙。 我們的目標是佔據 30% 的市佔率。 我們將透過提供卓越的價值來實現這一目標。 我們的 HiP-7 技術是 130 奈米 SOI，我們在 Fab 30 上投入了大量資金。這就是我們建造 Fab 30 的原因，到今年年底，Fab 30 的產能將達到 100%。 我們將在 2002 年和 2003 年盡快將 SOI 產能提高到 100%。

Well, I am glad I stuck around long enough to ask that question.

好吧，我很高興我堅持了足夠長的時間來問這個問題。

Well, we believe SOI technology is crucial for high performance microprocessors. We don't see how you could get to where we need to without it.

嗯，我們相信 SOI 技術對於高效能微處理器至關重要。 如果沒有它，我們就不知道如何到達我們需要去的地方。

Thank you very much.

非常感謝。

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

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

Yeah, a couple of questions. You've done very well in the market share side now. Obviously, there is, the selling prices are sort of denying a savory win here. What are you doing on a platform basis, I guess to either save costs or combat any price aggression? Is there anything you can do in the short or mid term?

是的，有幾個問題。 現在你們在市場佔有率方面已經做得很好了。 顯然，售價在某種程度上否定了這種豐厚的勝利。 我猜你們在平台上做了什麼，是為了節省成本還是為了抵制價格侵略？ 您在短期或中期可以做些什麼嗎？

Yeah, clearly, we continue to work the platform issue. If you look at the low end space and the value space of Duron, we now have a wide availability of unified memory architecture platform, which are the lowest cost platforms to do that in. If you look on the Athlon side, the DDR prices that continue to have DDR Memory prices, continue to come down to the point there are virtually at parity or very slight premium to sequence the round today and all of our Athlon products are capable of running on DDR platforms. So not only do you get a very high performance platform, but you get a performing space, you get a very cost competitive platform. And as Jerry mentioned earlier, the course on the silicon is probably the most directly controlled. We believe that our die sizes are more than competitive and can give us an advantage in both the value and the performance space.

是的，顯然，我們會繼續解決平台問題。 如果您看一下 Duron 的低端空間和價值空間，我們現在擁有廣泛可用的統一記憶體架構平台，這是實現這一目標的最低成本平台。如果您看一下 Athlon 方面，DDR 價格繼續保持 DDR 記憶體價格，繼續下降到幾乎與今天的序列持平或略有溢價的程度，並且我們所有的 Athlon 產品都能夠在 DDR 平台上運行。 因此，您不僅可以獲得一個性能非常高的平台，還可以獲得一個表演空間，獲得一個成本極具競爭力的平台。 正如傑瑞之前提到的，矽片上的進程可能是最直接控制的。 我們相信，我們的晶片尺寸非常具有競爭力，並且可以在價值和性能領域為我們帶來優勢。

Can you expect to see incremental advantage on the UMA and the DDR in the next few months over what we've seen in the last few months?

與過去幾個月相比，您是否預計未來幾個月 UMA 和 DDR 將出現增量優勢？

Yeah. The DDR memory prices in the year are down at the platform levels. That is an incremental gain, you know, month in and month out as we go forward. On the UMA stage, you know, there were limited amount of motherboards available in the beginning of the year, we pretty much have a full range of motherboards available now, and I expect that the Duron sales will ramp considerably as a result of the competitiveness of our products and the platform competitiveness from the cost standpoint as we go forward.

是的。 今年DDR記憶體價格在平台層級呈現下降趨勢。 你知道，隨著我們不斷前進，這是一個逐月遞增的收益。 在 UMA 階段，您知道，年初可用的主機板數量有限，而現在我們幾乎擁有全系列的主機板，並且我預計，隨著我們產品的競爭力以及從成本角度來看的平台競爭力的提高，Duron 的銷量將大幅增長。

Are you constrained by Durons sold by motherboards at this point?

目前您是否受到主機板銷售的 Duron 的限制？

No, I wouldn't say we are constrained by motherboards at this point.

不，我不會說我們目前受到主機板的限制。

Okay. Moving to cost cutting internally. Can you give us a few anecdotes that make us comfortable that you are going to hold the rein on internal costs or cuts in cost? I know that the head count went up quarter to quarter.

好的。 轉向內部削減成本。 您能否為我們講一些讓我們放心的軼事，讓您控制內部成本或削減成本？ 我知道員工人數每季都在增加。

Let me first of all say that it is the time latency involved in any of the decisions we make. We began actually containing costs late last year in the fourth quarter and we have intensified, as Jerry pointed out in his remarks at the end, we have intensified our cost containment measures. And we are, whether it makes sense, either canceling or totally delaying things that we think we can live with without sacrificing our strategy and long-term vision. We are basically not hiring, except for key things that we need to keep position. The one thing that we have alive and we are strongly in pursuing is our college program because we think that is the key to our futures. So, we are not sacrificing that. As Bob pointed out in his introductory remarks, we are cutting capital of $100 million from the previous guidance that we gave you, and in addition to that, we have an internal goal of cutting capital further if we can. So, we may go even further than that. There are a number of things that we believe are going to have an impact in helping us get through this difficult quarter coming up and as also Jerry pointed out in his remarks, we don't have any internal goal of accomplishing enough of those and perhaps it is doing slightly better on the ASPs and sales to have an internal goal of breaking even in third quarter.

首先我要說的是，我們所做的任何決定都涉及時間延遲。 我們實際上從去年第四季末就開始控製成本，並且我們已加大力度，正如傑瑞在最後的發言中指出的那樣，我們已加強控製成本。 無論是否合理，我們都會取消或完全推遲那些我們認為可以接受的事情，而不會犧牲我們的策略和長期願景。 我們基本上不招人，除非是需要保住職位的關鍵人物。 我們活著並且堅決追求的一件事就是我們的大學課程，因為我們認為這是我們未來的關鍵。 所以，我們不會犧牲這一點。 正如鮑勃在開場白中指出的那樣，我們將在之前給您的指導上削減 1 億美元的資本，除此之外，我們還有一個內部目標，如果可以的話，進一步削減資本。 因此，我們甚至可能走得更遠。 我們相信有很多事情將會對我們度過即將到來的這個困難季度產生影響，正如傑瑞在他的演講中指出的那樣，我們沒有任何內部目標來實現足夠的目標，也許在平均銷售價格和銷售額方面做得更好，所以我們有在第三季度實現收支平衡的內部目標。

Finally, can you talk about progress in developing the commercial markets?

最後，可以談談商業市場拓展的進展嗎？

I guess the first thing I would say is that in an environment like we have today, you don't see too many people sticking their heads up and trying to do something new and aggressive. So when you say the commercial market, you mean Dell, Compaq, HP, and IBM were making little progress, and people like Fujitsu and Siemens are making progress, people like NEC were making progress, and people outside the United States are making progress. And that's part of our differentiate-and-flank strategy. Basically, if everybody is offering the same product, they have only got one weapon and that's price; and that's basically what is going to be happening to these commercial providers if they don't offer some alternative. We believe that we can offer better solutions through these flanking strategies, certainly outside the United States initially, and then making progress in the United States. We do have one or two commercial design wins, which we think will go into production, but our experience has been that our enemy continues to make them an offer they cannot refuse and when profitability is so difficult to obtain for the PC maker, Intel has been subsidizing a few of those deals, but I think that if pricing pressures continue on Intel, there is going to be a limit to how long they are going to support the entire infrastructure.

我想說的第一件事是，在當今這樣的環境下，你不會看到太多人昂首闊步，試著做一些新的、正面的事情。 所以當你說商業市場時，你的意思是戴爾、康柏、惠普和 IBM 進展不大，而富士通和西門子等公司正在取得進展，NEC 等公司正在取得進展，美國以外的公司也在取得進展。 這是我們差異化側翼進攻策略的一部分。 基本上，如果每個人都提供相同的產品，那麼他們就只有一種武器，那就是價格；如果這些商業供應商不提供其他選擇，他們就會面臨這樣的情況。 我們相信，透過這些側翼戰略，我們可以提供更好的解決方案，當然首先是在美國以外，然後在美國取得進展。 我們確實贏得了一兩個商業設計訂單，我們認為這些訂單將會投入生產，但我們的經驗是，我們的敵人不斷向他們提出他們無法拒絕的報價，而當個人電腦製造商很難獲得盈利時，英特爾一直在補貼其中一些交易，但我認為，如果英特爾繼續面臨價格壓力，那麼他們對整個基礎設施的支持時間將有限。

One comment I would make on the commercial space. As we mentioned earlier, we think we just have a superior product offering in the mobile space and even HP has recognized that. HP has announced a commercial mobile product for sale in Japan. We are hoping to extend it to other parts of the world of course, but I clearly think the mobile products, the Athlon IV and the Duron for mobile are going to be our best chance to break down the barriers relative to the enterprise space.

我想對商業空間發表一點評論。 正如我們之前提到的，我們認為我們在行動領域擁有卓越的產品，甚至惠普也意識到了這一點。 惠普宣佈在日本銷售一款商用行動產品。 當然，我們希望將其擴展到世界其他地區，但我清楚地認為，行動產品、Athlon IV 和行動版 Duron 將是我們打破企業領域障礙的最佳機會。

I guess can you just, sort of, itemized what those barriers are and when you would expect that we should be able to see some you know meaningful design wins there?

我想您能否逐一列舉這些障礙是什麼，以及您預計我們何時能夠看到一些有意義的設計勝利？

The barriers are called Intel Monopolistic Practices. Packaging deals, buying deals, advertising collaborative deals, and the Intel Inside Program, that's the only barrier. Intel uses us a lot of money to throw at any place where our products are getting close to a win.

這些壁壘稱為英特爾壟斷行為。 打包交易、購買交易、廣告合作交易以及英特爾內部計劃，這是唯一的障礙。 英特爾向我們投入了大量資金，用於我們的產品即將成功的任何地方。

We were there, we held our first formal CIO conference this past quarter and was very successful conference, a very well received by all of the IT folks who have joined us from [____] and almost unanimously acceptance that they certainly are willing to both look at and if we live up to our promises, purchase AMD PCs. So now it is a matter of getting our OEM partners to a step up to the place and put those products in the market.

我們在那裡，我們在上個季度舉行了第一次正式的 CIO 會議，這是一次非常成功的會議，受到了來自 [____] 的所有 IT 人員的熱烈歡迎，並且幾乎一致接受，他們當然願意關注 AMD PC，如果我們履行我們的承諾，他們就會購買 AMD PC。 所以現在的問題是讓我們的 OEM 合作夥伴更進一步，將這些產品推向市場。

Have you imagined NEC does have a server, which is for the professional market that uses the AMD processors and the reasoning primarily, we have an opportunity with our flanking strategy is that they can't effectively gain any market share against Intel's favorite customers if they don't have an alternative and a differentiated solution. So I believe that the pressure that we put on by offering an alternative is going to cost some of these other guys to move more toward us and as Rob pointed, out the mobile space, we have clearly the superior solution.

你有沒有想過 NEC 確實有一款伺服器，它是針對使用 AMD 處理器的專業市場，主要原因是，我們的側翼策略有機會，如果他們沒有替代方案和差異化解決方案，他們就無法有效地從英特爾最喜歡的客戶那裡獲得任何市場份額。 因此，我相信，我們透過提供替代方案所施加的壓力將迫使其他一些公司更多地向我們靠攏，正如 Rob 指出的那樣，在行動領域，我們顯然擁有更優越的解決方案。

Again thank you and congratulations on your market share and good luck.

再次感謝您，並祝賀您取得的市場份額並祝您好運。

Thank you.

謝謝。

Next question is from Adam Horowitz from Ulysses Management. Please go ahead.

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

Good afternoon, two quick questions. One is, can you just give us some heads up what you intend to do with head counts and another two was up than the three. It is actually very difficult. The second one is, I don't know if I missed this earlier, but what is the utilization of your plans currently.

下午好，有兩個快速問題。 一是，您能否提前告訴我們您打算如何處理人數，二是人數比三是多。 這實際上非常困難。 第二個問題是，我不知道我之前是否錯過了這一點，但是您的計劃目前的利用率如何。

Well, let me try to answer the first part and then let Hector ponder the second part on utilization if he wants to answer that. Our head count is going up because we are ramping production in Dresden. We haven't reduced head count elsewhere because this is a very short-term phenomenon that we are currently undergoing. We are obviously going to be looking at all of our call up centers but the realities are, we need the people in Dresden, and people in Dresden are not intangible with people in Texas or California, kind of a long commute. So we are going to certainly freeze hiring. We certainly are not going to be adding to personnel and I think that you will definitely see a flattening out of the hiring situation. Obviously, we are of the opinion that the five or six rate reductions of the FED, the tax relief programs that are in are going to have some beneficial macro effects, as that with the Christmas selling season for personal digital systems, improvement in cell phone demand, new products GPRS that what we've got here is one or two quarter phenomenon with difficulty and 2002 should be a much more normal year. So, we don't think that we have a disproportionate excess of employees, but we are probably little ahead of ourselves.

好吧，讓我試著回答第一部分，然後讓赫克托思考第二部分關於利用率的問題，如果他願意回答的話。 由於我們正在擴大德累斯頓的產量，我們的員工人數正在增加。 我們沒有在其他地方裁員，因為這只是我們目前正在經歷的一個非常短期的現象。 我們顯然會關注我們所有的呼叫中心，但現實是，我們需要德勒斯登的人，而德勒斯登的人與德州或加州的人是不可分割的，通勤時間很長。 所以我們肯定會凍結招募。 我們肯定不會增加人員，而且我認為你肯定會看到招聘情況趨於平穩。 顯然，我們認為聯準會五到六次降息、正在進行的減稅計劃將會產生一些有益的宏觀效應，因為隨著聖誕節個人數位系統銷售旺季的到來、手機需求的改善、新產品 GPRS 的出現，我們現在遇到的只是一兩個季度的困難現象，而 2002 年應該是一個更加正常的年份。 因此，我們並不認為我們的員工數量過多，但我們可能有點超前了。

Back to utilization, FAB 30 in Germany is 100% utilized as per the ramp. What I mean by that is, we are ramping it as we fast physically and possibly we can. And as we've said in the call earlier, we are selling out all the output of FAB 30 and we believe that we will continue and so we are ramping that as we are able to do in a prudent manner with high yields, good productivity, and good cost. That we will continue and for that factor it is fully utilized and it will stay that way from as far as we can tell for a long time. In Fab 25, where we build practically totally all our Durons and will be the Internet Flash conversion is that were slowing down and traveling back somewhat, as a matter of fact, we are asking our employees to take one week per quarter of vacation between last quarter and the end of the year, a total three weeks, roughly speaking that will help us throttle back that factor at this point in time. It is still running at fairly high efficiency because it was a full-loaded factory and so one week out of thirteen gives you nineteen other, and we will continue to do that if necessary we will throttle even further. Other than that we are very confident that our strategy for utilizing our factory is manageable as the market recovered since flash, and the CPU production continues.

回到利用率問題，根據預期，德國 FAB 30 的使用率為 100%。 我的意思是，我們正在透過身體上的快速活動以及盡可能快的速度來提高它。 正如我們之前在電話會議中所說的那樣，我們正在銷售 FAB 30 的所有產出，我們相信我們會繼續這樣做，因此，我們正在以審慎的方式提高產量，實現高產量、良好的生產率和良好的成本。 我們將繼續這樣做，並且由於這個因素，它被充分利用，而且據我們所知，它將在很長一段時間內保持這種狀態。 在 Fab 25，我們幾乎生產了所有的 Duron，並且將進行互聯網閃存轉換，我們的生產速度正在減慢，並且有所回落，事實上，我們要求員工在上個季度到年底之間每季度休假一周，總共三週，粗略地說，這將幫助我們在目前這個時間點上控制這一因素。 由於工廠滿載運轉，因此它仍然以相當高的效率運行，因此十三週中的一周可以帶來另外十九週的產量，我們將繼續這樣做，如有必要，我們將進一步節流。 除此之外，我們非常有信心，隨著快閃記憶體市場復甦以及 CPU 生產的持續進行，我們利用工廠的策略是可行的。

You know our objective is to outperform the industry, I would like to point out that our revenues in the first half of this year versus the first half of last year in microprocessors were up 5.9% and our memory revenues were 5.5% over last year, while both of those sectors were down through the industry. So, we think we have got the right strategies. We are going through a weak market environment right now. We think we are very well positioned for the upturn, which we think is forthcoming in the fourth quarter in to next year.

你知道我們的目標是超越整個行業，我想指出的是，今年上半年我們的微處理器收入與去年上半年相比增長了 5.9%，內存收入比去年同期增長了 5.5%，而這兩個部門在整個行業中都處於下滑狀態。 所以，我們認為我們的策略是正確的。 我們目前正處於疲軟的市場環境。 我們認為我們已經為經濟好轉做好了充分的準備，我們認為經濟好轉將在明年第四季出現。

Thank you very much.

非常感謝。

The next question comes from David Blue with David Blue Associates. Please go ahead.

下一個問題來自 David Blue Associates 的 David Blue。 請繼續。

Yes. I just wanted to clarify two things. #1. When you talk about the fourth quarter/recovery, is that based on the assumption that OEM customers have finished the elementary liquidation by ahead Q3 and that GPRs stones actually get going by Q4 in Europe at least. Second part is on the situation regarding the back-to-school season, shouldn't AMD get better unit demand than flat sequentially, given your high exposure to the consumer segment. I know this is a funny year where Windows XP might delay some business from Q3 to Q4, but I was little surprised about the flat unit volume.

是的。 我只是想澄清兩件事。 #1. 當您談論第四季度/復甦時，是基於這樣的假設：OEM 客戶已在第三季度前完成基本清算，並且 GPR 石頭至少在第四季度在歐洲真正開始運作。 第二部分是關於返校季的情況，考慮到 AMD 在消費市場的高度關注，其單位需求不應該比上一季更好嗎？ 我知道今年的情況有些奇怪，Windows XP 可能會將一些業務從第三季度推遲到第四季度，但我對銷量持平並不感到驚訝。

Well, I think, I will let Walid Maghribi answer the Flash question. Perhaps, he will comment on the processor business.

好吧，我想，我會讓 Walid Maghribi 回答 Flash 問題。 或許，他會對處理器業務發表評論。

Well, what you mentioned is correct. First of all, our customer basically bought nothing in Q1; bought a little in Q2, and we are counting on that they are going to buy very little in Q3. That is what we have in our current forecast. So by Q4, we believe that some of the customer inventory will be depleted, that is #1. #2. There are some new products that are requiring new flat architecture such as GPRs, for example, which require totally different Flash. Thirdly, Q4 is typically a strong quarter for cellular, telephone, and for PDA. So because of all these reasons, we believe that Q4 should be significantly higher than Q3.

嗯，您說的是正確的。 首先，我們的客戶在第一季基本上沒有購買任何東西；他們在第二季購買了少量產品，我們預計他們在第三季的購買量也會非常少。 這就是我們目前的預測。 因此，到第四季度，我們相信部分客戶庫存將會耗盡，這是第一點。 #2. 有些新產品需要新的平面架構，例如 GPR，它需要完全不同的 Flash。 第三，第四季通常是手機、電話和 PDA 表現強勁的季度。 因此，由於所有這些原因，我們認為第四季應該明顯高於第三季。

Let me answer the thing on, I think, as far as the processors, David you know, we didn't say flat, we said they will be at record levels. That means that they will be at least at 7.7 millions units presumably. I remind you that 5% of 7.7 will fetch you about 8.1 million units. This is certainly within the realm of possibility. So, when you look at what the market is likely to do, what is the seasonal difference between Q2 and Q3, when you consider the fact that lot of our businesses are also in Europe and Europe is traditionally a slow market in the September quarter, what we try to put together is the conservative view of what is going to happen in Q3 after the disappointment of pricing pressures in Q2. So, we think that if we can maintain ASPs no worse than in the range what they were in the last quarter and get the units at the record levels that will be of superior performance and we will gain market share.

讓我來回答這個問題，我認為，就處理器而言，大衛，你知道，我們並沒有說持平，我們說它們將達到創紀錄的水平。 這意味著它們的數量至少會達到 770 萬台。 我提醒你，7.7 的 5% 將為你帶來約 810 萬個單位。 這當然是有可能的。 因此，當您觀察市場可能的表現時，當您考慮到我們的許多業務也在歐洲，而歐洲在 9 月份季度通常是一個緩慢的市場時，我們試圖總結出在第二季度定價壓力令人失望之後，對第三季度將會發生什麼的保守看法。 因此，我們認為，如果我們能夠將 ASP 保持在不低於上一季的水平，並使單位數量達到創紀錄的水平，那麼我們將獲得卓越的性能，並獲得市場份額。

Thank you.

謝謝。

John Joseph with Solomon Smith Barney. Please go ahead with your question.

約翰‧約瑟夫 (John Joseph) 與所羅門‧史密斯‧巴尼 (Solomon Smith Barney)。 請繼續提問。

Yeah, good afternoon. Sorry, if this has been asked, I got dropped, but with regard to the notebook win 60% of the US notebook market by the end of the year that should mean that you have got some pretty locked in design wins. Do you have a very high degree of confidence in those wins and then the second is, the Asian market, how are you penetrating in the Asian market in the notebooks space?

是的，下午好。 抱歉，如果有人問到這個問題，我就不回答了，但考慮到這款筆記型電腦到今年年底將贏得美國筆記型電腦市場 60% 的份額，這應該意味著你已經鎖定了一些設計勝利。 您對這些勝利有很高的信心嗎？第二個問題是亞洲市場，您如何在筆記型電腦領域滲透亞洲市場？

Okay, let me answer, may be I misheard you John but what we said was our goal was 50%, I thought I heard you say 60%. I am not ready as yet to commit to 60%. We are looking for 50% of the US retail mobile market by yearend. That is based on discussions with our customers and with the channel. Robert, you want to take it from there?

好的，讓我來回答，也許我聽錯了，約翰，但我們說的目標是 50%，我以為我聽到你說的是 60%。 我還沒準備好承擔 60%。 我們的目標是在今年年底佔據美國零售行動市場的 50%。 這是基於我們與客戶和通路的討論。 羅伯特，你想從那裡拿走它嗎？

Yeah, obviously, we got a very successful launch of the mobile stuff in US with three very strong partners; selling with the first partner was Duron-based mobiles, both Compaq and HP has been selling mobile-based on the new Athlon core products and I think if we look at our wind up through the balance of the year, we have the opportunity to continue expand our presence and to grow our shares. So, I think it is a very aggressive goal, but we are able to gain market share, I certainly think it's something that we can accomplish.

是的，顯然，我們與三個非常強大的合作夥伴在美國成功推出了行動產品；與第一個合作夥伴一起銷售的是基於 Duron 的移動設備，康柏和惠普都一直在銷售基於新 Athlon 核心產品的移動設備，我認為，如果我們回顧今年的業績，我們就有機會繼續擴大我們的影響力並增加我們的份額。 所以，我認為這是一個非常激進的目標，但我們能夠獲得市場份額，我當然認為這是我們可以實現的。

We are going to introducing 1.1 GHz and 1.2 GHz Athlon for this quarter, which is in very good shape by yearend.

我們將在本季推出 1.1 GHz 和 1.2 GHz Athlon，到年底時其狀態會非常好。

Jerry, I just got off the phone with one of your peers who has been in the business for 40 years. He said that this is the sharpest downturn that he has ever seen. Can you reflect a little bit on this downturn and 1985 downturn and where your position was and how fast or how slow the inventory and the return to growth might be?

傑瑞，我剛和你的一位同事通完電話，他在這個行業已經工作了 40 年。 他說，這是他所見過的最嚴重的經濟衰退。 您能否稍微回顧一下這次經濟衰退和 1985 年的經濟衰退，以及您的處境以及庫存和恢復成長的速度有多快或多慢？

Well, I am not old enough to have a peer within the business for many years, but I am close. In any event, this is the sharpest downturn I have ever seen. In my view, all is laid at the feet of the communications bubble. It is all about the communications bubble. All of the over investment in communications networks, all of the entire fiberoptics, all of that put tremendous demand on the semiconductor industry or that put demand for servers and PCS. All of this could be laid to that, and that is going to take the work its way through. I don't think it is the same kind of downturn as in 1985. I wouldn't say in 1985 revenues in the industry dropped, I think, about 30%. I think the industry revenues will drop in that range in this year. So, I guess in that regard, it is very similar, but the reasons are very different. I think that the communication scene is not going to get well fast and I would say, as you know, our strategy is the lowest cost solutions. For the market opportunities there, we are going to be the guys that are standing on the other end of it.

好吧，我的年齡還不夠大，在業內找不到可以與我並肩作戰多年的對手，但我已經很接近了。 無論如何，這是我見過的最嚴重的經濟衰退。 在我看來，這一切都是通信泡沫造成的。 這一切都與通信泡沫有關。 所有對通訊網路、整個光纖的過度投資都對半導體產業產生了巨大的需求，或對伺服器和 PCS 產生了需求。 所有這一切都可以歸因於此，並且這將需要工作來完成。 我認為這與 1985 年的衰退不同。我認為 1985 年該行業的收入沒有下降，但下降了約 30%。 我認為今年行業收入將下降到這個範圍內。 所以，我猜從這個方面來說，它們非常相似，但原因卻非常不同。 我認為通訊領域不會很快好轉，我想說，正如你所知，我們的策略是成本最低的解決方案。 對於那裡的市場機會，我們將成為站在另一端的人。

So, do you think that the impact on the PC market was a sort of collateral damage from the excesses in the comp space?

那麼，您是否認為對 PC 市場的影響是電腦領域過度行為造成的附帶損害？

Totally, collateral damage. I think that the PC market got ahead of itself because of lot of companies buying PCs and servers that would not normally should even have in their mind to buy anything with, just say, the biggest, you know transfer well into the history of mankind. As a result, I think that we have got some top comparisons and so, we are still talking about a 150 million-unit PC market. That's nothing to be ashamed of, you know, 30% of that 45 million unit can make a lot of money. And then one thing that I would like to say is that we are not really happy with our current opportunity for profit in this quarter. Our long-term profitability, our profit making capability is unimpaired. We still have the leading edge technology, lowest cost die, great products lined up. There is a great product lined up there, just a market there and I think the reason is not just the inventory liquidation, it is a question of you know the people didn't start buying because there is no new opportunities those companies are going.

完全是附帶損害。 我認為，個人電腦市場之所以發展過度，是因為許多公司購買了個人電腦和伺服器，而這些公司通常根本不會想到要購買任何具有人類歷史上最大規模的產品。 因此，我認為我們已經進行了一些頂級比較，因此，我們仍在談論 1.5 億台 PC 市場。 這沒有什麼好羞恥的，你知道，4500萬單位中的30%可以賺很多錢。 我想說的是，我們對本季目前的獲利機會並不滿意。 我們的長期盈利能力和盈利能力不受損害。 我們仍然擁有領先的技術、最低的成本晶片和優質的產品。 那裡有很棒的產品，那裡有市場，我認為原因不僅僅是庫存清算，而是因為這些公司沒有新的機會，所以人們沒有開始購買。

Do you think that the recent pricing pressure is mostly a weakness in the PC market or is it a change in relationship between Intel and AMD?

您認為最近的定價壓力主要是由於 PC 市場的疲軟還是英特爾和 AMD 之間關係的變化？

I think the reason for product pricing is that the P4 is a dud. I think that the P4 is a lousy product and they get a price at much lower that they have ever priced a new product before and there is no advantage to the user. On top of that, they made a lot of noise that they wont give up any market shares. So between these two things, having a second rate product and a wrong call on the memory technology for high-cost solution in a market place that wants lower cost solutions. Remember there are two things that always have recovered in the semiconductor industry. First and foremost is the new product cycle and second is economics, driving lower and lower cost. AMD is at a very good position with Duron to do that with our Athlon product line; Pentium 4 is a loser and the only hope they have with Pentium 4 is to invest the tremendous amount of money to build capacity for a 130 nanometer. So, they will only be marginally uncompetitive. They are basically, you know, it is the world's worse return on incremental capital since the communications we had for the last year. You have to tell them that. You have to send them home.

我認為產品定價的原因是 P4 是一款啞彈。 我認為 P4 是一款糟糕的產品，其定價比以前新產品的定價低得多，對用戶沒有任何好處。 除此之外，他們還大肆宣揚不會放棄任何市場份額。 因此，在這兩件事之間，在需要低成本解決方案的市場中，存在著二流產品和對高成本解決方案的記憶體技術的錯誤判斷。 請記住，半導體產業有兩件事一直在復甦。 首先是新產品週期，其次是經濟因素，推動成本越來越低。 AMD 憑藉 Duron 在我們的 Athlon 產品線上佔據了非常有利的地位； Pentium 4 是一個失敗者，而他們對 Pentium 4 的唯一希望就是投入巨額資金來建設 130 奈米的產能。 因此，他們的競爭力只是稍微下降。 你知道，這基本上是自去年我們進行溝通以來世界上最糟糕的增量資本回報率。 你必須告訴他們這一點。 你必須送他們回家。

Okay I'll do that. Question, earlier in a conference call three months ago, you have said that the second half was going to be up from the first half year you are implying, sequential increase may be slight flat to slightly up in Q3, probably seasonally up in Q4. Are you reiterating that claim and what kind of growth do you think we are going to expect in 2002?

好的，我會這麼做。 問題，早在三個月前的一次電話會議中，您就說過下半年的銷售額將比上半年有所增長，您暗示的是，第三季度的環比增長可能略有持平或略有上升，第四季度可能會出現季節性增長。 您是否重申了這項說法？您認為 2002 年我們將期待什麼樣的成長？

Well, it turns out with the industry, the industry just continues to get worse it seems, and so, I think currently you know the estimates are that the industry could be down 30% for the year. I don't think that anybody knows what the industry is going to do the next year at this point in time. I think that's how we should be in a much better position to answer at the next conference call, but I think at this point in time that anybody is making forecasts for 2002 is highly suspect.

嗯，事實證明，這個行業的情況似乎還在繼續惡化，所以，我認為目前的估計是，今年該行業可能會下降 30%。 我認為目前沒有人知道明年這個行業會發生什麼。 我認為這樣我們在下次電話會議上就能更好地回答這個問題，但我認為此時此刻任何人對 2002 年做出預測都是非常可疑的。

Okay thanks.

好的，謝謝。

Next question is from [Zaheer Monazadein] with Bear Sterns. Please go ahead with your question.

下一個問題來自貝爾斯登的 [Zaheer Monazadein]。 請繼續提問。

My question has been answered. Thanks.

我的問題已得到解答。 謝謝。

Robert, two more questions please.

羅伯特，請再問兩個問題。

Thank you sir. Matthew Greg with [_____] Associates. Please go ahead with your question.

謝謝您，先生。 馬修‧格雷格 (Matthew Greg) 與 [_____] 同事。 請繼續提問。

In looking at Q4, I am wondering what your assumptions are for Flash revenue growth and the microprocessor units and ASPs to get you to solidly profitable, which I think, the wording you used in the press release?

在回顧第四季度時，我想知道您對 Flash 收入成長、微處理器單元和平均銷售價格的假設是什麼，以使您獲得穩定的盈利，我認為，這是您在新聞稿中使用的措辭？

Well, I think as Walid had mentioned earlier, many of our customers are coming out with new products and are going to use more of our Flash. There is a seasonal upturn in both processors and in Flash memory in the case of Latin America, it is the PDAs and cell phones relative to our processors, as I said, in the fourth quarter we will have a much more abundant supply of our Dresden manufacturing, Athlon force with the mobile space, as well as a substantial amount of mobile Durons and we think that they could be substantial contributors. So, to answer that, Windows XP, we think that there is every indication that we have high degree of confidence that revenues will grow in Q4.

嗯，我認為正如 Walid 之前提到的，我們的許多客戶正在推出新產品，並且會更多地使用我們的 Flash。 在拉丁美洲，處理器和快閃記憶體都出現了季節性上漲，相對於我們的處理器，PDA 和手機的需求也出現了上漲，正如我所說的，在第四季度，我們的 Dresden 製造、移動領域的 Athlon 力量以及大量的移動 Duron 的供應將更加充足，我們認為它們可能成為重要的貢獻者。 因此，回答這個問題，Windows XP，我們認為有充分的跡象表明我們高度有信心第四季度的收入將會成長。

Just a followup, Jerry. Am I, in the ballpark when I am using roughly up 10% on microprocessor revenues and same thing on Flash as a normal seasonal upturn in Q4?

這只是後續問題，傑瑞。 當我將微處理器收入和快閃記憶體收入分別視為第四季度正常的季節性成長時，我的預測是否準確？

That's a good question. We are all trying to figure out if that's a good number. But days and days, we are talking about, and I don't feel uncomfortable with that number.

這是個好問題。 我們都在試圖弄清楚這是否是一個好數字。 但是我們每天都在談論，而且我對這個數字並不感到不舒服。

Okay could I, I am still getting a mild loss in Q4. I am just wondering what you guys assumptions are to say, to be profitable.

好的，我在第四季度仍然遭受了輕微的損失。 我只是想知道你們的假設是什麼，才能獲利。

No what I think is probably you are underestimating our diligence at reducing our cost.

不，我認為您可能低估了我們降低成本的努力。

Okay and thanks.

好的，謝謝。

Next question comes from Eric Ross with Thomas Weisel Partners. Please go ahead.

下一個問題來自 Thomas Weisel Partners 的 Eric Ross。 請繼續。

Thanks guys, actually a followup to Matt's question. As far as reducing cost you are not going to be reducing your R&D cost, but you will be reducing SG&A and gross margins. Is that an assumption I should be making?

謝謝大家，這實際上是對 Matt 問題的跟進。 就降低成本而言，你不會降低研發成本，但會降低銷售、一般及行政費用和毛利率。 這是我該做的假設嗎？

This is probably a reasonable assumption. R&D, we said would continue at the current spend rate and we will moderate SG&A appropriately.

這可能是個合理的假設。 我們表示，研發支出將繼續按照目前的水平進行，並且我們將適當調整銷售、一般和行政開支。

Okay, and as far as some more target operating margins in the next couple of couple of years, can we assume that you'll ever get back to the mid to high 40% gross margins in the next couple of years?

好的，至於未來幾年的目標營業利潤率，我們是否可以假設您在未來幾年內會回到 40% 左右的毛利率？

Absolutely. Our long term earning potential is undiminished.

絕對地。 我們的長期獲利潛力並未減弱。

Your mobile Athlon 4 margins. I am assuming that there is a much better than your desktop margins, even in the performance side.

您的行動 Athlon 4 利潤。 我假設它比你的桌面利潤要好得多，即使在性能方面也是如此。

Yes, in general that is true to say that.

是的，總的來說確實如此。

Okay. Last question, depreciation, I didn't catch that.

好的。 最後一個問題，折舊，我沒聽清楚。

For the current quarter?

本季的情況如何？

For the current quarter and expectations for the rest of the year?

對於本季以及今年剩餘時間的預期如何？

Current quarter was $159 million, it is in our press release, and the total year number is $640 million.

本季為 1.59 億美元，這在我們的新聞稿中，全年總額為 6.4 億美元。

Thank you so much.

太感謝了。

Thank you so much everyone for listening in and asking a lot of good questions.

非常感謝大家的聆聽並提出許多好問題。

Ladies and gentleman that concludes your conference for today. You may all disconnect and thank you all for participating.

女士們、先生們，今天的會議到此結束。 大家可以斷開連線並感謝大家的參與。