超微半導體 (AMD) 2001 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to the AMD third 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 the question and answer session. At that time, if you have a question you will need to press the 1 followed by the 4 in your telephone. This conference call is being recorded Wednesday October 17, 2001. I would now like to turn the conference call over to 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 第三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。 那時，如果您有疑問，您需要在電話中按 1，然後按 4。 本次電話會議於 2001 年 10 月 17 日星期三錄製。現在，我想將電話會議交給 AMD 資深副總裁兼財務長 Robert J. Rivet。 先生，請繼續。

Thank you [Ron]. Good afternoon and welcome to AMD third quarter earnings teleconference call. I am Bob Rivet. With me here today in Sunnyvale and hosting this call was Jerry Sanders our Chairman and Chief Executive Officer. Also present are Mr. Hector de J. Ruiz, our President and Chief Operating Officer, MR. Walid Maghribi Senior Vice President and President of our Memory Group and Mr. Ben M. Anixter Vice President of External Affairs. I will begin by summarizing our third quarter highlights and then turn over it to Hector and finally to Jerry. This conference call is a live broadcast and we will replay via the Internet at www.streetfusion.com and www.AMD.com. The taped form replay number for North America is 800-633-8284. Outside the US dial 858-812-2375. The code to access the call is the same for both and that number is 197-26-232. Before we begin the conference call, I would like to caution everyone the we will be making forward-looking statements about managements goals, plans, and expectations as you know the semiconductor industry is volatile and in a severe downturn. Our product and process technology development projects and our manufacturing processes are complex. Current worldwide economic conditions make it especially difficult to forecast product demand. Because the actual results may differ materially from our plans and expectations today, I encourage you to review our filings with the SEC with the Securities and Exchange Commission where we discussed in detail the risk factors in our business. You will find detailed discussion on our most recent Form-10K filing with the SEC. Lets begin. Revenue for third quarter was $766 million down 22% from the second quarter of 2001 and down 36% from our record third quarter of 2000. In our microprocessor product line, we achieved record unit sales of AMD Athlon and AMD Duron processors in the quarter. Our home PC processor unit sales through the third quarter were in excess of 7.7 million units and remained at the record levels of the immediate prior quarter. We believe we held unit market share in the 22% range. Our microprocessor product revenues declined 21% from the second quarter of the current year due to lower average selling price and extremely aggressive competitive environment. Revenue in our Memory product line declined by 34%, from the second quarter of 2001, inline with our forecast. With our top line declining both year on year and sequentially, our ability to stand at length was obviously challenged. Pro forma operating income was a loss of a $135 million for the quarter, which results in $0.28 per share loss. Our pro forma operating statement exclusive of the fact of restructuring and other special charges that this will limit will our provisions associated with the fab 14 -15 closure and the effects to the charge for impaired investments. Total Pro forma adjustments were $118 million and $1890 million on a pretax and aftertax basis respectively. Net income including the one-time charge as mentioned above in accordance with generally accepted accounting principles for the quarter was a loss of $187 million or $0.54 cents per share. Gross margin on a pro forma basis was 23% for the quarter, down 14% points from the second quarter of 2001. Revenue declines in our Memory product line and the ASP pressures in our microprocessor business have significantly impacted the margins. Factory execution of both output and yield productivity was better than the second quarter. Research and development spending was on plan at $161 million for the quarter, down 6% from the second quarter of this year. Marketing general and administrative spending was also on plan at $152 million for the quarter, down 3% from the second quarter of this year. Switching to the balance sheet, we will talk about cash, inventory, and capital expenditures. First cash, during the third quarter we repurchased 6.3 million shares of our common stock at a cost of $76 million. In addition, we retired the remaining senior debenture notes resulting in a cash outflow of $43 million during the quarter. Cash flow from operations excluding capital additions was positive. Our cash balance into the quarter at $904 million, down a $153 million from the second quarter of 2001. We completed the quarter with $449 million of inventory, up $48 million from the second quarter. Inventories for both our microprocessor and Flash product lines or appropriate for our plans for the fourth quarter. Capital spending for the third quarter was a $164 million. More than half of which was addressed and depreciation expenses a $160 million for the quarter. For our modeling for the fourth quarter, please consider the following: Our tax schedule will continue at 27%, capital spending for the year will be somewhat less than our previously revised goal of $900 million of the year. W6e will complete fab 30 and install a 130-nm capacity on schedule this year. Depreciation expense for the year will be about $650 million. For your EPS calculations, use 348 million shares for the fourth quarter. Finally, R&D investments for the year will be about $660 million. I will now turn this over to Hector to start the business segment discussions. Hector?

謝謝你[羅恩]。 下午好，歡迎參加 AMD 第三季財報電話會議。 我是鮑伯·裡維特。 今天與我一起在桑尼維爾主持這次電話會議的是我們的董事長兼執行長傑瑞桑德斯。 出席的還有我們的總裁兼營運長 Hector de J. Ruiz 先生、MR。 Walid Maghribi 是資深副總裁兼記憶集團總裁，而 Ben M. Anixter 先生則是外部事務副總裁。 我將首先總結我們第三季的亮點，然後交給赫克托 (Hector)，最後交給傑瑞 (Jerry)。 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。 北美的錄音重播號碼是 800-633-8284。 美國境外請撥 858-812-2375。 兩次通話的代碼相同，都是 197-26-232。 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，因為你們知道半導體行業動盪不安，並且正處於嚴重的低迷之中。我們的產品和製程技術開發專案以及製造流程非常複雜。 目前的全球經濟狀況使得預測產品需求變得特別困難。 由於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 Form-10K 的詳細討論。 讓我們開始吧。 第三季的營收為 7.66 億美元，比 2001 年第二季下降 22%，比創紀錄的 2000 年第三季下降 36%。在我們的微處理器產品線中，本季我們實現了 AMD Athlon 和 AMD Duron 處理器的創紀錄銷售。 截至第三季度，我們的家用電腦處理器銷量超過 770 萬台，並保持了上一季的創紀錄水平。 我們相信我們的單位市佔率在 22% 左右。 由於平均售價較低以及競爭環境極為激烈，我們的微處理器產品營收較今年第二季下降了 21%。 我們的記憶體產品線的收入與 2001 年第二季相比下降了 34%，符合我們的預測。 由於我們的營業額逐年下降，並且環比下降，我們長期維持營運的能力顯然受到了挑戰。 本季預估營業收入虧損 1.35 億美元，每股虧損 0.28 美元。 我們的預期營運報表不包括重組和其他特殊費用，這將限制與晶圓廠關閉相關的準備金以及對受損投資費用的影響。稅前和稅後預計調整總額分別為 1.18 億美元和 18.9 億美元。 根據公認會計原則，本季包括上述一次性費用在內的淨收入為虧損 1.87 億美元，即每股 0.54 美分。 本季的毛利率為 23%，比 2001 年第二季下降了 14 個百分點。記憶體產品線的收入下降以及微處理器業務的平均售價壓力對利潤率產生了重大影響。 工廠的產量和產量生產率執行都比第二季好。 本季研發支出按計畫為 1.61 億美元，較今年第二季下降 6%。 本季行銷總務及行政支出也按計畫為 1.52 億美元，較今年第二季下降 3%。轉到資產負債表，我們將討論現金、庫存和資本支出。 首先是現金，在第三季度，我們以 7,600 萬美元的成本回購了 630 萬股普通股。 此外，我們贖回了剩餘的優先債券，導致本季現金流出 4,300 萬美元。 不包括資本增加的經營活動現金流為正。 本季我們的現金餘額為 9.04 億美元，比 2001 年第二季減少了 1.53 億美元。本季我們的庫存為 4.49 億美元，比第二季增加了 4,800 萬美元。 我們的微處理器和快閃記憶體產品線的庫存適合我們第四季度的計劃。 第三季的資本支出為1.64億美元。 其中一半以上的問題已解決，本季折舊費用為 1.6 億美元。 對於我們對第四季度的建模，請考慮以下幾點：我們的稅收計畫將繼續保持在 27%，全年資本支出將略低於我們先前修改的 9 億美元的年度目標。 W6e 將於今年按計劃完成 fab 30 並安裝 130 奈米產能。 全年折舊費用約6.5億美元。 對於 EPS 計算，請使用第四季的 3.48 億股。 最後，今年的研發投資將達到約 6.6 億美元。 現在我將把這個交給赫克託來開始業務部門的討論。 赫克托？

Thank you Bob. Supplies market continues to be weak and general. Although all market segments appeared to have stabilized, the communications and networking segments are at their lowest level in two years. It is now believed that at this time in Flash could be down as much as 30% this year over the last year and our expectations are our R&D will be down around 25% for the year, thus out performing the market. This quarter as previously guided our Flash revenue was down 33% from the previous quarter. We have begun to see moderate business activity in Flash as result of new products introduced, which address new applications and provide at its feature looking cell phones, particularly those dealing with GPRS protocol. We expected new product activity and the bottoming out of the rest of the market to lead to moderate revenue growth in the fourth quarter. Jointly with our partners with Dukes, we continued to invest in new products, new technology, and new state of the art capacity as evidenced by the beginning of production shipments out of our latest fab JB 3 in [Isowakamatsa] Japan this quarter. This will potential on FASL the joint venture between Fujitsu and AMD to continue to be the market leader in this important segment as it recovers. In the microprocessor business, we shipped over 7.7 million units this quarter ... the same record unit ship and level of the second quarter. We believe that in an aggressive pricing environment, we were able to hold our unit share around 22%. Fab 30 continues to ramp to full capacity in terms of way for stocks and we expect the fab to reach this goal by year-end as previously noted. The performance of this factory continues to be outstanding and we continued to sell out its output. As planned, we will begin conversion to a 130-nm technology before the end of this year, and we expect to be totally converted by the end of 2002. We are thrilled about our progress in this area, as microprocessor telecom from this fab at 130-nm it is exhibiting great yields and outstanding of robust mix. The introduction of Athlon XP has been greatly successful and the demand for this product is currently robust. We are positioning our product mix and manufacturing plans to take advantage of this anticipated strong demand for the product. We played significant emphasis on cost and capital reductions this quarter and we will continue to do so in the months ahead. Although, incurring an operating loss this quarter we are on plan on cost management programs and expect it to be at somewhat less than $900 million of capital expenditure previously anticipated. We are doing things without impacting our key new product and technology. Our foundry support business the greatest significantly here as a result of continuous deterioration of the communication business of our customers. Thus, leading to the accelerated shut down of our older fab ... fab 14 and fab 15 in Austin, Texas by the end of the second quarter of next year. We are confidently positioning our products, technology, and our business models to return to profitability as the markets recovers. We have the strongest position in the history of the company relative to product and technology competitiveness and we are confident that our business model will lead to profitable growth. With that I would turn this to Jerry for further comments and outlooks.

謝謝你，鮑伯。 供給市場持續疲軟，行情一般。 儘管所有細分市場似乎都已趨於穩定，但通訊和網路細分市場卻處於兩年來的最低水準。 現在人們認為，今年 Flash 的銷售量可能比去年下降 30%，而我們預計今年的研發支出將下降 25% 左右，從而跑贏大盤。 正如先前預測的那樣，本季我們的 Flash 收入較上一季下降了 33%。 由於新產品的推出，我們已經開始看到 Flash 的適度商業活動，這些新產品針對新應用程式並提供其功能手機，特別是那些處理 GPRS 協議的手機。 我們預計新產品的活動和其他市場的觸底反彈將導致第四季營收溫和成長。 我們與 Dukes 的合作夥伴一起，繼續投資新產品、新技術和新的最先進產能，本季我們位於日本 [Isowakamatsa] 的最新晶圓廠 JB 3 開始生產出貨就證明了這一點。 這將使富士通和 AMD 的合資企業 FASL 有可能在這一重要領域的復甦過程中繼續保持市場領先地位。在微處理器業務方面，我們本季的出貨量超過 770 萬台......與第二季創下的出貨量和水平相同。 我們相信，在激進的定價環境中，我們能夠將單位份額保持在 22% 左右。 Fab 30 繼續以庫存方式達到滿載生產，我們預計該工廠將在年底前達到這一目標，正如之前所述。 該工廠的業績持續出色，我們的產品持續銷售一空。 按照計劃，我們將在今年年底前開始向 130 奈米技術轉換，並預計在 2002 年底前完全轉換。我們對這一領域的進展感到非常興奮，因為這家工廠生產的 130 奈米微處理器電信表現出了很高的產量和出色的穩健組合。 Athlon XP 的推出獲得了巨大的成功，目前該產品的需求十分強勁。 我們正在調整我們的產品結構和製造計劃，以利用預期的對該產品的強勁需求。 本季我們非常重視成本和資本削減，未來幾個月我們將繼續這樣做。 儘管本季出現了營業虧損，但我們正在製定成本管理計劃，預計虧損額將略低於先前預期的 9 億美元資本支出。 我們所做的事不會影響我們的關鍵新產品和技術。由於我們客戶的溝通業務持續惡化，我們的代工支援業務在這裡受到了最大程度的影響。 因此，導致我們位於德克薩斯州奧斯汀的老工廠…第 14 工廠和第 15 工廠將於明年第二季末加速關閉。 隨著市場復甦，我們滿懷信心地定位我們的產品、技術和商業模式，以恢復獲利能力。 我們在產品和技術競爭力方面擁有公司歷史上最強的地位，我們相信我們的商業模式將帶來獲利成長。 因此，我想把這個問題交給 Jerry 來徵求進一步的評論和展望。

Thanks Hector. I just like down that in PC processors we believe that in most we lost $0.7 of a percent of market share last quarter. With the industry shipments of processors estimated at about 37 million units, $0.7 of a percent in market share is only a few 100,000 units. We think that maintaining market share in the 22% range and the extremely weak market in the phase of extraordinary competitive practices is a noteworthy achievement and a testament to the competitiveness of our product offering. Sales of power managed Athlon IV and Duron for the mobile market more than doubled in the quarter and we are on track to meet our goal of 50% share of market in US retail mobile PC sales by year-end. We gained traction in the multiprocessor, server, and workstation market with our Athlon NP. The key to our future success will be those products and most importantly the Athlon XP that we just introduced with ringing endorsements from third parties on the performance superiority of Athlon XP over Pentium IV even running in clock speed higher than we position the Athlon XP the challenge be optimistic we can arrest the precipitous decline in ASPs, which is the overwhelming reason for our disappointing results. Going forward, we see continuing strength in Europe, new opportunities in Asia, and recovery in the US driven by our new product offerings. Japan is weak and the overall competitive environment remains intense. Under such conditions, the ability to forecast is challenging to say the least. Nevertheless, we believe we will achieve record unit sales of PC processors in Q4, and I would be extremely disappointed if our PC unit sales numbers don't start of with an 8. The wild card in projecting revenues is of course twice and this leads us to plan on revenues for PC processors in a wide range from flat with the just completed quarter the sales growth as much as 10%. With the company as a whole, in light of the lack of visibility, we project revenues for the fourth quarter in a broad range from flat to the last quarter to a high single digit growth. We are monitoring economic developments closely and exploring several initiatives to improve our cost structures while noting that our strong balance sheet should enable us to weather the downturn, which most likely has been extended several quarters by declining consumer confidence resulting from recent events. Thank you. I will open it for questions. [Ron] would you please arrange the Q&A?

謝謝赫克托。 我只是喜歡說，在 PC 處理器方面，我們認為上個季度我們損失了 0.7% 的市場份額。 預計整個產業的處理器出貨量約為 3,700 萬台，而 0.7% 的市佔率僅相當於幾十萬台。 我們認為，在異常激烈的競爭環境下，在市場極度疲軟的環境下，仍能維持22%左右的市場份額，是一項值得注意的成就，也證明了我們產品的競爭力。 本季度，針對行動市場的低功耗 Athlon IV 和 Duron 的銷量成長了一倍多，我們有望實現到年底佔據美國零售行動 PC 銷售 50% 市場份額的目標。 我們憑藉 Athlon NP 在多處理器、伺服器和工作站市場中獲得了吸引力。 我們未來成功的關鍵在於這些產品，最重要的是我們剛推出的 Athlon XP，它得到了第三方的強烈支持，證明了 Athlon XP 的性能優於 Pentium IV，即使運行在更高的時脈速度下，我們對 Athlon XP 的定位仍然是挑戰，我們對 Athlon XP 充滿樂觀，我們可以阻止 ASP 的急劇下降，這是我們結果令人失望的主要原因。 展望未來，我們預計歐洲將繼續保持強勁勢頭，亞洲將迎來新的機遇，而美國也將在我們新產品的推動下實現復甦。日本實力較弱，整體競爭環境仍激烈。 在這種情況下，預測能力至少可以說是具有挑戰性的。 儘管如此，我們相信第四季 PC 處理器的銷量將創歷史新高，如果我們的 PC 銷量沒有達到 8，我會非常失望。當然，預測收入的不確定因素是兩倍，這導致我們計劃將 PC 處理器的收入範圍擴大到與剛結束的季度持平到成長 10% 左右。 就整個公司而言，鑑於缺乏可見性，我們預測第四季度的營收將在與上一季持平至高個位數成長的範圍內。 我們正在密切關注經濟發展情況，並探索多項措施來改善我們的成本結構，同時注意到我們強勁的資產負債表應該使我們能夠渡過經濟衰退，由於近期事件導致消費者信心下降，經濟衰退很可能已經持續了幾個季度。 謝謝。 我將開放它來回答問題。 [Ron] 你能安排問答環節嗎？

Thank you ladies and gentleman if you wish to register a question for today's question and answer session, 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 phoning 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 Chris Caso with Wit Sound View Group. Please go to the question.

謝謝女士們先生們，如果您想在今天的問答環節中提出問題，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，並且您希望撤回您的通話請求，您可以按 1 然後按 3。如果您使用的是免持電話，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 Group 的 Chris Caso。 請轉到問題。

Hi, this Chris Caso for Scott Randall. I am just wondering if you could provide some color on how your shipments tracked sequentially through the quarter ... if you saw a seasonal, I guess, typical seasonality and what sort of a fact you might have seen from the September 11th events.

大家好，我是 Scott Randall 的 Chris Caso。 我只是想知道您是否可以提供一些關於您們的貨運量在整個季度中如何連續跟踪的詳細信息...如果您看到了季節性，我想，典型的季節性以及您可能從 9 月 11 日事件中看到的事實。

Well as usual the third quarter was the most back end lowly of any of the quarters. That was not different this year than any other year. We shipped an awful lot in the very last week of the quarter because of the disruptions in the transportation system with the air traffic issues. Nevertheless, we managed to meet our customer's entire requirement and I am very, very pleased with the operational performance of the company and that we did not have any impact on our shipments for the quarter as a result of the terrorist attacks.

嗯，和往常一樣，第三季是所有季度中最低的。 今年的情況與往年並沒有什麼不同。 由於空中交通問題導致運輸系統中斷，我們在本季最後一周出貨量非常大。 儘管如此，我們還是設法滿足了客戶的全部要求，我對公司的營運表現非常滿意，而且恐怖攻擊並沒有對我們本季的出貨量造成任何影響。

Okay thank you.

好的，謝謝。

Tim Mahon from CS First Boston. Please go ahead with your question.

來自 CS First Boston 的 Tim Mahon。 請繼續提問。

Thanks ... Walid I think this might be targeted towards you. Can you tell us what the capacity utilization is at FASO?

謝謝...Walid，我想這可能是針對你的。 您能告訴我們 FASO 的產能利用率是多少嗎？

It depends on the technology. We have three different kind of fabs ... the [CS- 59] or the 0.32 micron. The capacity is very long it is in the 50%. Whereas on the quarter our micron capacities utilization is 100% and on the [CS-59] to 0.18 micron as you know our fab just was released of production and we will start shipping the product this quarter from that fab, so beginning of a new fab. Technology on that [_____].

這取決於技術。 我們有三種不同類型的晶圓廠…[CS-59] 或 0.32 微米。 容量很長，在50%左右。 而本季我們的微米產能利用率為 100%，在 [CS-59] 0.18 微米方面，如您所知，我們的晶圓廠剛剛投入生產，我們將於本季從該晶圓廠開始出貨產品，因此這是一個新晶圓廠的開始。 關於該 [_____] 的技術。

Great and then just a followup on that ... you know may be you can give us an idea of what percentage of your Flash units in revenues come from, lets call low density versus high density and low density being four Meg and below?

太好了，然後只是跟進一下......您知道嗎，您可以告訴我們閃存單元收入中有多少百分比來自低密度與高密度，低密度是 4Meg 及以下？

Four Meg and below out of the 200 in the 10 million ... I would say less that 10%.

在 1000 萬中的 200 個中，有 4M 及以下的...我想說少於 10%。

Okay. Given some of the strength from one your competitors in the low-density market ... can you see you guys split 50% capacity utilization at one fab, kind of, getting more aggressive may be in the low density market?

好的。 考慮到你們競爭對手在低密度市場中的一些實力...你們是否認為你們在一家晶圓廠的產能利用率達到 50%，在低密度市場可能會採取更積極的舉措？

I will answer that on that Walid. I am very proud to say that while we have maintained profitability in the memory group, which he deserves [_____] and he is managing for profitability and chasing a lot of low-density business at low margins ... it is probably not too smart.

我將就此問題作出回答。 我很自豪地說，雖然我們內存部門保持了盈利能力，這是他應得的[_____]，而且他正在管理盈利能力並以低利潤率追逐大量低密度業務......但這可能不太明智。

I think the numbers reflect exactly the strategy that we have implemented it is the Flash sale was down 33% and the unit shipment was only down by 29%. Though our ASP has increased and that is very usual in the current market situation and that is mainly because we have walked away with some very, very low-density product at prices that does not even the cover the variable cost.

我認為這些數字準確地反映了我們所實施的策略，即閃購下降了 33%，而單位出貨量僅下降了 29%。 雖然我們的平均售價已經上漲，但這在當前市場情況下是很正常的，主要是因為我們推出了一些密度非常低的產品，其價格甚至無法覆蓋變動成本。

Okay great. Last one that I promise ... in addition to Samsung, can you tell us who all supplies you [_____] for stocked devices?

好的，太好了。 我保證的最後一個...除了三星，您能告訴我們誰都為您提供 [_____] 庫存設備嗎？

I prefer at this moment not to say because we are in the process of negotiating contracts and fact that Samsung on is our major supplier.

我現在不想說，因為我們正在談判合同，而且三星是我們的主要供應商。

Great thanks Walid.

非常感謝 Walid。

[Stephen Wise] from Wiseman associates. Please go ahead with your question.

[史蒂芬懷斯] 來自懷斯曼聯合公司。 請繼續提問。

Good afternoon and my wishes on a good quarter. Jerry, I have a couple of questions for you. Right now as companies are looking to change the way they handle their manufacturing facilities with the soft economy is the demand changing at the mandate changing ... a lot of your competitors are moving towards a more demand-driven manufacturing model. How is the AMD looking to move towards a model like this if they have already have not done so and what is your IT strategy as support to stopping model?

下午好，祝福本季一切順利。 傑瑞，我有幾個問題想問你。 目前，由於經濟疲軟，企業正在尋求改變其處理製造設施的方式，而需求隨著授權而改變……許多競爭對手正在轉向更需求驅動的製造模式。 如果 AMD 尚未這樣做，他們如何考慮轉向這樣的模式？您的 IT 策略是什麼來支援停止這種模式？

Let me answer the first part of the question and let Hector comment on our IT strategy and something we are doing to have a demand model. First and foremost, we have a magnificent factory in fab 30, which is ramping to full production and we are converting it over to a 130 nanometer technology. We think this is our secret weapon if you will. It can produce over 50 million units a year and in the 130-nm technology, I will remind you we have an extremely small dye on the Athlon product. Only 80 square millimeters, which is dramatically different than our competitors dye. So, our issue there is ramp that production as quickly as we can, move it to 130-nm, try and use all of our products, and we are very happy with that factory. Our major factory fab 25 ... we are converting to a flash factory with leading edge technology to give us a better balance with the opportunities. So, I think that we feel comfortable that we got an extraordinary asset in fab 30, which will enable us to successfully prosecute the PC processor market and even in the most competitive environment and we are going to improve our cost structures over all by moving fab 25 into Flash. Hector, do you want to comment on the IC stuff and the ERP?

讓我回答問題的第一部分，讓赫克托評論我們的 IT 策略以及我們為建立需求模型所做的一些事情。 首先，我們在 fab 30 擁有一座宏偉的工廠，該工廠正在全力生產，我們正在將其轉換為 130 奈米技術。 我們認為這是我們的秘密武器。 它每年可生產超過 5000 萬台，採用 130 奈米技術，我要提醒您，我們在 Athlon 產品上使用了極小的染料。 僅 80 平方毫米，這與我們的競爭對手的染料有很大不同。 因此，我們的問題是盡快提高產量，將其轉移到 130 奈米，嘗試使用我們所有的產品，我們對工廠非常滿意。 我們的主要工廠 fab 25......我們正在轉型為擁有領先技術的快閃記憶體工廠，以便我們更好地平衡機會。 因此，我認為我們對 30 號晶圓廠獲得的非凡資產感到滿意，這將使我們能夠成功地進入 PC 處理器市場，即使在競爭最激烈的環境中也是如此，而且我們將通過將 25 號晶圓廠遷移到 Flash 來全面改善我們的成本結構。 赫克托，你想對 IC 和 ERP 做出評論嗎？

Sure. We have embarked on the ... approximately now a little over a year on a fairly major proxy on the company to be more, I guess, yield-driven if I can use that expression for running our company and what we have done and perhaps may be giving you a little more background that you might want is we have taken full-time executives and senior managers which are very receivable function in the company from finance to sales, manufacturing etc to form a people that is actually in excess of 200 full-time employees on a project based on an SAP package, which will result in over the next two years and not a cliff occurrence at the end of two year, but it occurred monotonically between now and another two years ... it will have a full implementation on the ERP program that will be closely tied to our customers. I do not think we are appropriate to give some of the specific ideas we have in mind on what to do, but the bottom line is that we intend to provide a service to our customers that will be unique and very powerful and the feedback from the customer that we have talked to on what we intend to do is extremely positive, and of course in which we could have gotten there a year ago, and we are working hard to do that.

當然。 我們已著手...現在大約一年多一點的時間，公司將更加註重收益，如果我可以使用收益驅動來描述我們公司的運營和我們所做的事情，也許可以為您提供更多您可能需要的背景信息是，我們已經聘請了全職高管和高級經理，他們在公司中從財務到銷售、製造等各個職能部門都非常負責，組成了一個全職高管和高級經理軟體包的項目，這將導致未來兩年內，而不是兩年末出現斷崖式增長，而是從現在到未來兩年單調地發生...它將全面實施與我們的客戶緊密相關的 ERP 計劃。 我認為我們不適合透露一些我們心中的具體想法，但底線是，我們打算為客戶提供獨特且非常強大的服務，而且我們與客戶溝通後得到的關於我們打算做什麼的反饋非常積極，當然，我們一年前就可以實現這個目標，我們正在努力做到這一點。

Jerry what are you also looking to do as you aggressively time inventories currently right now to try to reduce the inventory left in the quarter?

傑瑞，您目前正積極盤點庫存，試圖減少本季剩餘的庫存，您還想做什麼？

It looks to me like our inventories are in good line; as though Bob pointed out we do not think we have it. We are selling virtually everything we are making in fab 30. So as we move to the new products we are selling everything out. So, any inventory build are ramping up the new product ... so I feel very comfortable with that.

在我看來我們的庫存狀況良好；就好像鮑勃指出我們不認為我們擁有它。 我們銷售的幾乎都是 fab 30 生產的所有產品。因此，隨著我們轉向新產品，所有產品都銷售一空。 因此，任何庫存的建立都會增加新產品......所以我對此感到非常滿意。

Okay and final question. What would you say your top three initiatives are for either 2002 and how you do plan to go back on presenting those?

好的，最後一個問題。 您認為 2002 年您的三大措施是什麼？您計劃如何再次提出這些措施？

Hammer, Hammer, and Hammer. Hammer is the future we got an extraordinary opportunity here to break into markets we have never been in ... hammering in bodies all of the important initiatives. Number one, it moves us into ... top to bottom from servers all the way to laptop that family does, it gives us the opportunity to go to silicon-ion-insulator, and it gives us the chance to have a truly differentiated solution so that our customers are going to have the only opportunity to compete against the Dell model. Finally, I would be [_____] if I did not point out that while hammer, hammer, hammer are my top 3 there is a number 4 and that four is narrow bit technology from flat, which will allow us to offer with no compromise on reliability or performance have the costs and double the density. So, we feel that when the upturn comes we are going to kick ass.

錘子、錘子、錘子。 錘子代表著未來，我們在這裡獲得了一個非凡的機會，可以打入我們從未進入過的市場......錘擊所有重要的舉措。 首先，它使我們從伺服器到家庭使用的筆記型電腦從上到下都進入了這一領域，它使我們有機會使用矽離子絕緣體，它使我們有機會獲得真正差異化的解決方案，以便我們的客戶擁有與戴爾模式競爭的唯一機會。 最後，如果我不指出，雖然 hammer、hammer、hammer 是我最喜歡的 3 個，但還有 4 個，而且 4 是來自平面的窄位技術，這將使我們能夠在不影響可靠性或性能的情況下提供價格實惠且密度加倍的產品，那麼我就是 [_____]。 因此，我們覺得，當經濟好轉時，我們將會大獲成功。

Great, thank you very much.

太好了，非常感謝。

Eric Ross with Thomas Weisel Partners. Please go ahead with your question.

艾瑞克羅斯 (Eric Ross) 與 Thomas Weisel Partners 合作。 請繼續提問。

Yes, I got a couple of questions. When are you going to ramp up fab 25 with the 0.13 micron copy you talked about doing that after fab 30 ... is that on the word now?

是的，我有幾個問題。 您何時會在晶圓廠 25 號上採用您之前談到的 0.13 微米複製品，在晶圓廠 30 號之後這樣做...現在是這樣嗎？

Somewhere along line you are misinformed or misunderstood. We have no intentions as ever of putting copper into fab 25. Fab 25 will become a flash fab ... flash does not use copper and it does not have that many layers of connect net committed. So, fab 25 will become a flash fab by the end of next year.

在某些方面，你可能被誤導或誤解了。 我們從來沒有打算將銅放入晶圓廠 25。晶圓廠 25 將成為快閃記憶體晶圓廠......快閃記憶體不使用銅，也沒有那麼多層連接網路。 因此，到明年年底，fab 25 將成為快閃記憶體工廠。

I apologize about that and just two other really quick questions ... is SOI is that on time in your roadmap as well?

我對此表示歉意，還有另外兩個非常簡單的問題......SOI 是否也按時出現在您的路線圖中？

Hector, do you want to comment?

赫克托，你想發表評論嗎？

Yeah, SOI is an interval part of our plans from hammer and as Jerry said hammer, hammer, hammer ... that product is based totally on SOI and we expect that over time, our whole product line will migrate to SOI. Therefore by definition, it is on target, it is on sometime, and we are very pleased with the results we have seen so far.

是的，SOI 是我們從 hammer 開始計劃的一個階段，正如 Jerry 所說的 hammer、hammer、hammer......該產品完全基於 SOI，我們預計隨著時間的推移，我們的整個產品線都將遷移到 SOI。 因此，根據定義，它是符合目標的，它是在某個時間點，我們對迄今為止所看到的結果非常滿意。

One last question. With full utilization of fab 30 ... is that going to significantly reduce your cost going forward in the outline as you especially run this?

最後一個問題。 透過充分利用 fab 30...這是否會在您運行的過程中顯著降低您的成本？

Absolutely, it turns that the dye size of the Athlon and the 130 Nm only 80 square millimeters. I just point out that this gives us some 315-dye candidates for wafer Intels North wood will be no more than 180 dye candidates per wafer. So, we think we got a real edge on them on cost structure here. So, they could not continue to increase revenues and reduce their operating profits, but I think that is a full variant. With no worthy to me that their revenues went up $266 million sequentially in processors and their operating process went down $118 million. Normally, in a leverage business when your revenues go up ... your profits go up. So, it is pretty clear that this desire to cut off our air supply is not painless to them.

當然，事實證明 Athlon 和 130 Nm 的染料尺寸只有 80 平方毫米。 我只是指出，這為我們提供了大約 315 種可用於晶圓的染料候選物，英特爾北木每片晶圓的染料候選物不會超過 180 種。 因此，我們認為我們在成本結構方面確實比他們有優勢。 因此，他們無法繼續增加收入並減少營業利潤，但我認為這是一個完整的變體。 對我來說毫無價值的是，他們的處理器收入連續增加了 2.66 億美元，而其營運流程卻下降了 1.18 億美元。 通常，在槓桿業務中，當您的收入增加時...您的利潤也會增加。 因此，很明顯，切斷我們空氣供應的願望對他們來說並非毫無痛苦。

I appreciate it. Thank you.

我很感激。 謝謝。

[Dan Scovo] from Newman Company. Please go ahead with your question.

[Dan Scovo] 來自 Newman Company。 請繼續提問。

With regards to microprocessors ... where all of your processor shipment Athlon and Duron or was there any sort of legacy hanging around that?

關於微處理器...你們所有的處理器都是 Athlon 和 Duron，還是有其他遺留問題？

100% seventh generation. Last quarter, we actually shipped less than 1% for K62 that were 0, actually 0000 everything we shipped in Q3 with Athlon and Duron.

100% 第七代。 上個季度，我們 K62 的出貨量實際上不到 1%，即第三季度 Athlon 和 Duron 出貨量的 0，實際上是 0000。

With regards to looking out next year, obviously, you do not want to give a whole lot of details, but I was just wondering if you could probably revive something like some tax rate looking into the next year or so?

關於明年的展望，顯然您不想提供太多細節，但我只是想知道您是否可以恢復一些關於明年左右的稅率之類的政策？

I would like to actually put that off until November 08, 2001 when we have our analyst meeting. We expect to be a much better position to give you guys some real guidance on what next year is going to be all about. We have got off side meetings next week among the top management; we expect that after that we are going to get some of our details out to you guys.

我實際上想將其推遲到 2001 年 11 月 8 日我們召開分析師會議的時候。 我們期望能夠更好地為大家提供一些關於明年將要發生什麼的真正指導。 下週我們將與高階主管舉行場外會議；我們期望在此之後向你們公佈一些細節。

Also, can you give us status with the regards to the future manufacturing facilities after fab 25 is converted to Flash and after fab 30 is ramped up and converted to 0.13?

此外，您能否向我們介紹晶圓廠 25 轉換為 Flash 以及晶圓廠 30 擴大規模並轉換為 0.13 之後未來製造設施的狀況？

That is an interesting question though as I pointed out when we go to 130 nm, we will be 100% converted to 130 nm by the end of next year. We can produce more than 50 million units a year in that fab. I point out that, that would be more than the 30% market share that everyone says we will never get to except us. So, I think the question is interesting but irrelevant. Meanwhile, we do have plans so that when we have to more than 50 million units a year we will be target and I think we will have some more comments on that also on November 8th.

這是一個有趣的問題，正如我指出的那樣，當我們進入 130 奈米時，到明年年底我們將 100% 轉換為 130 奈米。 該工廠每年可生產超過 5,000 萬台。 我指出，這將超過所有人說我們永遠無法達到的 30% 的市場份額，除了我們自己。 所以，我認為這個問題很有趣但無關緊要。 同時，我們確實有計劃，這樣當我們每年的產量超過 5000 萬台時，我們就會達到目標，我想我們也會在 11 月 8 日對此發表更多評論。

Also with regards to some of your other businesses ... the communication product and foundry services, I guess, how should we profile that ... should we assume that it will, kind of, go away after a couple of quarters or less?

另外，關於你們的其他一些業務......通訊產品和代工服務，我想，我們應該如何描述它們......我們是否應該假設它會在幾個季度或更短的時間內消失？

I would say it is finally going to go of the foundry business should be gone by the third quarter of next year as our chief financial officer says. I hope that is true. The other business is just is going to be a steady decline going forward, but I do not think it will go away. It is currently running around 40-50 million a quarter.

我想說，正如我們的財務長所說，代工業務最終將在明年第三季消失。 我希望這是真的。 其他業務未來將會穩定下滑，但我認為它不會消失。 目前每季的營運規模約為4000萬至5000萬。

Thank you very much.

非常感謝。

Mark Edelstone from Morgan Stanley. Please go into your question.

摩根士丹利的馬克·埃德爾斯通。 請深入探討您的問題。

Thank you. This is Gerry Chif for Mark ... a couple of questions if I could. First of all on something that you might have a little more control over, could you talk about what the operating expenses is going to be like in the fourth quarter and how that may trend in the next one or two quarters. Second of all, Gerry I am pretty sure you did not talk about the exact time frame for the eighth generation launch that ... would you care to know that range a little bit, for us here?

謝謝。 我是 Gerry Chif，代表 Mark...如果可以的話，我有幾個問題想問。 首先，關於您可能有更多控制權的事情，您能否談談第四季度的營運費用狀況以及未來一兩個季度的趨勢如何。 其次，格里，我很確定你沒有談論第八代產品推出的具體時間範圍......你想知道這個範圍嗎？

I will answer the second part. We are targeting the late next year for the launch of the hammer family ... we are sticking with that. As far as the operating expenses, we are in a very tight cost control kind of environment with the lack of visibility. I would anticipate, kind of, as I said if you do the math, kind of the same as we have had in the third quarter and fourth quarter with a slightly little bit better cost control.

我來回答第二部分。 我們計劃在明年年底推出錘子系列產品......我們會堅持這個目標。 就營運費用而言，我們處於非常嚴格的成本控制環境中，並且缺乏可見性。 我預計，就像我說的，如果你算一下，你會發現情況和第三季和第四季差不多，只是成本控制會稍微好一點。

Okay, would you expect that to be the case in the fist half of next year as well?

好的，您預計明年上半年也會出現這種情況嗎？

I am sorry repeat the question?

抱歉，請重複這個問題？

Would you expect that expense control level to be about the same in the first half of next year?

您預計明年上半年的費用控制水準會大致相同嗎？

Yes, we will adjust accordingly to the business environment we are in. We will not go and sacrifice any R&D expenditures. We will continue to try to work to lower our break-even point, which currently is around the $950 million level.

是的，我們會根據所處的商業環境做出相應調整。我們不會犧牲任何研發支出。 我們將繼續努力降低損益平衡點，目前約為 9.5 億美元。

Okay, thank you very much.

好的，非常感謝。

Ladies and gentleman if you do have an additional question at this time, please press the 1 followed by the 4 on your telephone. John Joseph from Salomon Smith Barney please go ahead with your question.

女士們、先生們，如果您此時還有其他問題，請在電話上按 1，然後按 4。 請 Salomon Smith Barney 的 John Joseph 繼續提問。

Hi good afternoon, this is [Romesh Mishra] for John Joseph. I had a question in regards to your mobile Athlon ... the Palameno product ... you haven't talked too much about this on this call ... what is the outlook over there and how is the competitive landscape in that place and also are our ASPs in the mobile space holding up any better?

大家下午好，我是 John Joseph 的 [Romesh Mishra]。 我有一個關於你們的移動 Athlon...Palameno 產品的問題...您在這次電話會議上沒有談論太多這個...那裡的前景如何，那裡的競爭格局如何，我們在移動領域的平均銷售價格是否有所提高？

The answer is that we are very pleased with the progress we are making there. You might have missed, but I pointed out that we expect to have 50% share of market in US retail mobile by the end of this year. That is not the strength of the Athlon for and the power managed Duron. So, that is going extremely well. We are very pleased with that and the ASPs are of course better than desktops. So, that is one of the reason we hope that we can attenuate this price attrition that that we have been seeing.

答案是，我們對在那裡取得的進展感到非常滿意。 您可能錯過了，但我指出我們預計到今年年底將佔據美國零售行動市場 50% 的份額。 這不是 Athlon 的強項，也不是 Duron 的強大之處。 所以，一切進展非常順利。 我們對此非常滿意，ASP 當然比桌上型電腦更好。 所以，這就是我們希望能夠減輕我們所看到的價格下滑的原因之一。

And in the competitive landscape especially in light of the new product introductions from [Transmet] and of course Intel.

在競爭激烈的環境中，尤其是考慮到 [Transmet] 和英特爾推出的新產品。

[Transmet] is not relevant. It turns out Intel has effectively kept them out of the market the market place we serve ... the full function PC ... the mobile PC and going to thin in light next quarter and into next year as we get to the 130-nm versions of Athlon IV. Intel is the only competition.

[Transmet] 無關。 事實證明，英特爾已有效地將它們排除在我們所服務的市場之外......全功能 PC......行動 PC，並且隨著我們推出 130 奈米版本的 Athlon IV，下個季度和明年將會更加輕薄。 英特爾是唯一的競爭對手。

Okay, thanks very much.

好的，非常感謝。

John O'Neil from UBS Warburg please go into the question.

請瑞銀華寶的約翰‧歐尼爾深入探討這個問題。

Couple of question. I was wondering if you can accomplish through the product mix for breakdown of performance versus value in your processors this quarter and the second question will be a break down of mobile versus desktops.

幾個問題。 我想知道您是否可以透過本季的產品組合來細分處理器的效能與價值，第二個問題是行動裝置與桌上型電腦的細分。

Okay, first of all really the Duron for the value space, the Athlons for the performance base, it is about 50-50. Frankly, we are having a better time selling Athlon because of the superior performance against anything that is out there and we expect that our growth in Athlon will probably exceed our growth in Durons in the current quarter. We are doing extremely well. Athlon XP is hot ... the customers like it I am very excited about that. Athlon IV as we said is good. Still our molder business is only about 5% of our total sales ... so there is a lot of upside there. What was the second part of the question?

好的，首先，從價值空間來看，Duron 與 Athlon 的效能基礎差不多，比例大約是 50-50。 坦白說，由於 Athlon 的性能優於其他任何產品，因此我們的 Athlon 銷售情況更好，我們預計本季 Athlon 的成長可能會超過 Durons 的成長。 我們做得非常好。 Athlon XP 很熱門...客戶喜歡它，我對此感到非常興奮。 正如我們所說，Athlon IV 很好。 儘管如此，我們的模具業務僅佔總銷售額的 5% 左右......因此還有很大的上升空間。 問題的第二部分是什麼？

Well, I think you can address more questions when you address mobile purchases to be about 5% of the sales.

嗯，我認為當您提到行動購買佔銷售額的 5% 左右時，您可以回答更多問題。

Okay.

好的。

Thank you.

謝謝。

Joseph Osha from Merrill Lynch please ahead with your question.

請美林證券的 Joseph Osha 提出您的問題。

Good after noon gentleman this is [Mat Chin] calling your for Osha. I would like to followup on the question just asked what percentage is server and what percentage is that you could provide that.

先生，中午好，我是 [Mat Chin]，為您找 Osha。 我想繼續回答剛才的問題，其中伺服器佔比是多少，以及您能提供的伺服器佔比是多少。

Okay, I guess the only guidelines this year is that we are just getting into the server space. We are shipping nearly tens of thousands currently of Athlon MT. Reception has been fantastic ... it is a very low-cost solution and we are very excited about it. But right now it is a minor part of our business and the ten of thousands.

好的，我想今年唯一的指導方針就是我們剛剛進入伺服器領域。 我們目前正在運送近數萬台 Athlon MT。 接待效果非常好......這是一個非常低成本的解決方案，我們對此感到非常興奮。 但目前它只是我們業務以及數萬業務的一小部分。

What type of reception are you getting for the Athlon XP in the server segment?

在伺服器領域，Athlon XP 受到了什麼樣的歡迎？

The Athlon XP is not targeted at the server segment, the Athlon NT for multiprocessing is and there we are getting great response. As far as the mobile bills, as I said, mobile is about 5% of our business, the desktop is about 95% with a diminished amount obviously tens of thousands out of 7.7 million is not a very large percentage.

Athlon XP 的目標客戶不是伺服器領域，而 Athlon NT 則面向多處理領域，並且我們在那裡獲得了熱烈的反響。 就行動帳單而言，正如我所說，行動帳單約占我們業務的 5%，桌上型電腦約佔 95%，而數量顯然有所減少，在 770 萬中，只有幾萬並不是一個很大的比例。

Great ... I would like to ask some more questions on the operating line. You mentioned that fab 14 and 15 would be phased out by the end of next year. Do you have any estimates as to when we can expect that to materially better the operations line?

太好了...我想再問一些有關手術方面的問題。 您提到 14 號和 15 號晶圓廠將於明年年底逐步關閉。 您是否可以預估何時我們能夠預期這將顯著改善營運狀況？

First all of all, fab 14 to fab 15 should be phased out by the end of the second quarter. So, clearly the second half will have no negative impact as a result of fab 14 and fab 15. The more important thing on gross margin is one issue only ASP, ASP, ASP. Operationally, we are doing great, yields are terrific, quality is superb, costs around our control, and the ASPs are really ugly.

首先，晶圓廠 14 至晶圓廠 15 應該會在第二季末逐步關閉。 因此，顯然下半年不會因為晶圓廠 14 和晶圓廠 15 而受到負面影響。毛利率方面更重要的問題只有一個：ASP、ASP、ASP。 從營運角度來看，我們做得很好，產量很高，品質很好，成本在我們的控制範圍內，而且平均售價確實很低。

Finally, if I may ...are you running on the fab shutdown programs for either your factories or micro-processing factories at all in the next quarter?

最後，如果可以的話...你們下個季度是否會對你們的工廠或微處理工廠實施停工計劃？

No current plans as I say fab 30 is our star ... it is generating outstanding new products and in those products we are seeing strong demand for. Obviously, in fab 25 we have excess capacity. What we are trying to do is ramp down the demand for processors as we ramp up the Flash that is the challenge ahead of us, and clearly we are working out a number of new ways to find ways to minimize the cost impact.

目前沒有計劃，正如我所說，fab 30 是我們的明星......它正在生產出色的新產品，並且我們看到對這些產品的強勁需求。 顯然，第 25 工廠的產能過剩。 我們正在嘗試做的是減少對處理器的需求，同時增加閃存，這是我們面臨的挑戰，顯然我們正在研究許多新方法來尋找將成本影響降至最低的方法。

Great thank you very much.

非常好，非常感謝。

Douglas Lee from Bank of America securities please go ahead with your question.

請美國銀行證券部的道格拉斯·李繼續提問。

This [Sumit Danda] calling here for Douglas Lee. A couple of quick questions. First, could you comment on sales out of your distribution channel, which is the direct sales for your OEM ... if you could give the percentages roughly for both of them and also if saw expense in one versus the other and the second question is I, sort of, missed the numbers on R&D projections and depreciation if you could give back to me again.

這是 [Sumit Danda] 打電話給 Douglas Lee。 幾個簡單的問題。 首先，您能否評論一下您的分銷管道的銷售額，也就是您的 OEM 的直接銷售額...您是否可以給出兩者的大致百分比，以及其中一個與另一個的費用情況，第二個問題是，我有點錯過了研發預測和折舊的數字，您是否可以再次回复我。

I will tell those numbers first. First, the R&D number we set for the year and the R&D would come in around $660 million.

我先告訴您這些數字。 首先，我們設定了今年的研發數字，研發費用約 6.6 億美元。

Depreciation?

折舊？

Depreciation was $600 million for the year. Relative to your other question, I would like to point out that we had extraordinary strength in the international markets. We did some 68% of our revenues during the international that is where the strength was for us because our competitive management freezes out pretty well in the US as major accounts for the quarter. We are pleased we could make up for that. We expect to do better with those guys as we go forward because of the XP and because of the Athlon IV. I don't have any specific numbers here for distribution.

當年折舊額為 6 億美元。 關於您的另一個問題，我想指出的是，我們在國際市場上擁有非凡的實力。 我們的收入有 68% 是在國際市場實現的，這是我們的優勢所在，因為我們的競爭管理在美國市場表現相當出色，而美國是本季的主要客戶。 我們很高興能夠彌補這一點。 由於 XP 和 Athlon IV，我們期望在未來與這些傢伙一起做得更好。 我這裡沒有任何可供分發的具體數字。

Okay, thank you.

好的，謝謝。

[Steve John] from A mutual funds. Please go ahead with your question. Mr. John your line is now open.

[史蒂夫約翰]來自 A 共同基金。 請繼續提問。約翰先生，您的線路現已開通。

Apparently, we have taken this quarter into view ... do you anticipate any further impairment be taken in the future and also if you can will those be public or private health companies?

顯然，我們已經考慮到了本季的情況…您是否預計未來還會出現進一步的減損？另外，如果可以的話，這些公司是公共醫療公司還是私人醫療公司？

Well. It is hard to anticipate what is going to happen in the market place. One was we had two write-downs that took place in the process ... one was public and one was private.

出色地。 很難預測市場會發生什麼事。 一是，我們在過程中進行了兩次減記……一次是公開的，一次是私人的。

And just as a followup ... I wanted to confirm your cash flow from operations ... was that a negative 43 million, I doubt, how did you say that previously ... is that correct?

作為後續問題......我想確認一下您的經營現金流......是不是負 4300 萬，我懷疑，您之前是怎麼說的......對嗎？

Cash flow from operation was positive if you exclude the capital addition.

若不計入資本增加，經營現金流為正。

Thank you.

謝謝。

Eric Ross please go ahead with your followup question.

埃里克·羅斯，請繼續你的後續問題。

I have got a quick question. End force is obviously we don't want to talk out there would that be a driver for a very low-end unit?

我有一個簡單的問題。 最終力量顯然是我們不想談論的，這會成為低端單位的驅動力嗎？

We had a driver for all our units. I think it looks like a pretty attractive product.

我們所有的單位都有一名司機。 我認為它看起來是一款非常有吸引力的產品。

Do you see it end being a major contributor may be a 20% contributor to your revenues?

您是否認為它最終會成為主要貢獻者，甚至可能為您的收入貢獻 20%？

I would be hesitant to guess which of our chip set partners is going to be the most successful. We will leave that for our customers.

我很難猜測我們的哪個晶片組合作夥伴將會取得最大的成功。 我們將把它留給我們的客戶。

And you had mentioned your US customers are really frozen up by your main competitor ... how does that tie in with your ability to reach 50% of the US newport market by the end of the year?

您曾提到，您的美國客戶確實被主要競爭對手所冷落……這與您在年底前佔據美國紐波特市場 50% 份額的能力有何關係？

I guess we won't be frozen out this quarter.

我想我們本季不會被排除在外。

So, do you really think that is a temporary thing?

那麼，您真的認為這只是暫時的嗎？

Yes.

是的。

Okay, do you have a sense of what percentage of your shipments is going into corporate PC versus consumer lines?

好的，您是否知道您的出貨量中，企業 PC 和消費 PC 所佔的比例是多少？

We have a number; I think we said 27% of our business at the US was with small business and medium business that is corporations. I do not have a better number than that.

我們有一個數字；我想我們說過，我們在美國 27% 的業務是與小型企業和中型企業（即大企業）合作。 我沒有比這更好的數字。

Do you have worldwide number?

您有全球號碼嗎？

I do, but I don't have it in my head and I don't have my fingers on it and we probably get back to you outlined with the number. It is in that same range.

我知道，但我腦子裡沒有這個數字，也不知道具體數字，我們可能會用數字概括地告訴你。 它處於同一範圍內。

Terrific and then one other question. There has been some talk about the compatibility of hyper transport with the 3G IO ... may be you can comment on that?

太棒了，還有一個問題。 有人討論過超級傳輸與 3G IO 的兼容性......您可以對此發表評論嗎？

These things ... as a matter of fact ... we will be delighted to have our competitor implement hyper transport in some form in any other products they choose to, because they are protocols that can be comparable. Normally, hyper transport will start of inside of chip where a 3G IO is. It is something that can be viewed more as a replacement for a current BCI standard. And as you, we through a consortium we have made hyper transport totally open and of course available to anybody who would like to license.

這些事情......事實上......我們很高興我們的競爭對手在他們選擇的任何其他產品中以某種形式實現超級傳輸，因為它們是可以比較的協議。 通常，超級傳輸將從 3G IO 所在的晶片內部啟動。 它可以被視為當前 BCI 標準的替代品。 和你們一樣，我們透過一個聯盟使超級運輸完全開放，當然任何想要獲得許可的人都可以使用。

Thank you very much.

非常感謝。

Eric Chen from J. P Morgan please go ahead with your question.

請摩根大通的 Eric Chen 繼續提問。

Thanks and I apologize to you if this has already been asked as I got on the conference call late. My understanding has been that you will ramp 0.13-micron processes sometime in December, is that still on track at this point?

謝謝，如果您已經問到這個問題，我深感抱歉，因為我參加電話會議遲到了。 我的理解是，你們將在 12 月的某個時候推出 0.13 微米工藝，目前這個進度還順利嗎？

Yes it is. We are on plan to begin production before the end of the year.

是的。 我們計劃在今年年底前開始生產。

Okay. Could you also give us an update on any efforts on the 300 mm?

好的。 能否向我們介紹一下 300 毫米的最新進展？

We are very aware of the progress that we made on 300 mm. We believe that both in Flash Memory as well as microprocessors we will be in 300 mm capability sometime in the year 2004 timeframe. So, we are pretty committed to that. The progress we have made is good and we are pleased with it.

我們非常清楚我們在 300 毫米方面取得的進展。 我們相信，無論是快閃記憶體還是微處理器，我們都將在 2004 年左右達到 300 毫米的生產能力。 所以，我們非常致力於此。 我們取得的進展很好，我們對此感到滿意。

Okay and also would you care to characterize even just qualitatively the yield level that you are experiencing ... the adjustments side ... specifically those processes utilizing a low key process?

好的，您願意從品質上描述您正在經歷的產量水平......調整方面......特別是那些採用低調流程的流程嗎？

I think that the only comment I would like to make is that we are thrilled with a yield and productivity numbers on our fab 30 and based on the experience that all of us have in the industry, I would classify them as world class numbers, but I would want to give you any more on that.

我想我唯一想說的是，我們對 30 號晶圓廠的產量和生產率數字感到非常興奮，並且根據我們所有人在行業中的經驗，我會將它們歸類為世界級的數字，但我想就此向您提供更多資訊。

I understand. Thanks a lot.

我明白。 多謝。

Ladies and gentlemen, if you have any additional questions at this time, please press the 1 followed by the 4 on your telephone. Gentlemen, I am sure there is no further questions, please continue with your presentation or any closing remarks you may have.

女士們、先生們，如果您此時還有其他問題，請在電話上按 1，然後按 4。 先生們，我相信沒有其他問題了，請繼續您的演講或做結束語。

Bob, we will just close it down. Thank you very much. We will talk to you soon. One last comment I would make ... we do have our annual analysts conference meeting on November 8th here in Sunnyvale California. Please attend or listen in on the video stream.

鮑勃，我們就把它關閉吧。 非常感謝。 我們很快會和您聯絡。 我最後要說的是......我們確實將於 11 月 8 日在加利福尼亞州桑尼維爾舉行年度分析師會議。 請參加或收聽視訊串流。

Ladies and gentlemen, this does conclude our conference call for today. You may all disconnect. Thank you for participating.

女士們、先生們，我們今天的電話會議到此結束。 你們都可以斷開連線。 感謝您的參與。