超微半導體 (AMD) 2003 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to the AMD Q3 earnings announcement conference call. (operator instructions) As a reminder, this conference is being recorded Thursday, October 16th, 2003. I would now like to turn the conference over to Michael Haas, the Director of Investor Relations. Please go ahead, sir.

女士們、先生們，感謝你們的支持。歡迎參加 AMD 第三季財報公告電話會議。 （操作員指示）提醒一下，本次會議將於 2003 年 10 月 16 日星期四進行錄音。現在我想將會議交給投資者關係總監 Michael Haas。先生，請繼續。

Thank you and Good afternoon, everyone. The format of the call today will include prepared comments followed by Q and A. The participants are Hector Ruiz, our President and CEO, Robert Rivet, our CFO, and Henri Richard our Senior Vice President of World Wide Sales and Marketing. This call is a live broadcast and will be replayed at www.amd.com and www.streetevents.com. Telephone replay is 800-633-8284. Outside of the United States the number is 402-977-9140. The access code for both is 21161730.

謝謝大家，下午好。今天的電話會議形式將包括準備好的評論，然後是問答環節。參與者包括我們的總裁兼執行長 Hector Ruiz、我們的財務長 Robert Rivet 和我們的全球銷售和行銷資深副總裁 Henri Richard。本次電話會議為現場直播，將在 www.amd.com 和 www.streetevents.com 上重播。電話回放號碼為 800-633-8284。美國境外的電話號碼是 402-977-9140。兩者的存取代碼都是 21161730。

The telephone replay will be available for the next 10 days starting at approximately 6 p.m. pacific time tonight. We are planning purposes I'd also like to take this opportunity to remind you that we will be hosting the 2003 Analyst day, the morning of Thursday, November 6th in the Sunnyvale headquarters. If you have not RSVP please contact either Ruth or myself. Our contact information is on today's press release. Before we begin the call I would like to caution everyone we will be making forward-looking statements about management's goals, plans and expectations.

電話重播將於接下來的 10 天內從下午 6 點左右開始提供。今晚太平洋時間。我們正在規劃目的，我也想藉此機會提醒您，我們將於 11 月 6 日星期四上午在桑尼維爾總部舉辦 2003 年分析師日。如果您尚未回复，請聯絡 Ruth 或我本人。我們的聯絡資訊在今天的新聞稿上。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。

As you know the semiconductor industry is generally volatile. Our product and process technology development projects and our manufacturing processes are complex. Current worldwide economic and industry conditions make it especially difficult to forecast product demand at this time, because our actual results may differ materially from our plans and expectations. I encourage you to review filings with the SEC where we discuss in detail our risk factors and our business. You will find detailed discussions in our most recent SEC filings, including the annual report on form 10-K and our second quarter form 10-Q. With that, I would like to introduce Hector Ruiz, AMD's President and CEO.

眾所周知，半導體產業總體上是波動的。我們的產品和製程技術開發專案以及製造流程非常複雜。當前全球經濟和產業狀況使得預測產品需求變得特別困難，因為我們的實際結果可能與我們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，其中詳細討論了我們的風險因素和我們的業務。您可以在我們最近提交給美國證券交易委員會 (SEC) 的文件中找到詳細的討論，包括 10-K 表格年度報告和第二季 10-Q 表格。接下來，我想介紹 AMD 總裁兼執行長 Hector Ruiz。

Thank you, Mike. I will start by reporting on strong progress to profitability and then I'm going to ask Bob to disclose the financials from the past quarter and our prospects for the fourth quarter. And once again, I will close with comments on our longer-term prospects going forward before taking your questions. Our progress this past quarter was an excellent example of what I hope you would recognize as a new AMD. At AMD that will consistently demonstrate a winning strategy of customer innovations, innovating with customer needs in mind, continued world-class design and manufacturing performance and a strong discipline of operational flexibility. I would like to take a moment to comment on each of these as a way to put our third quarter in a proper context for you.

謝謝你，麥克。我將首先報告盈利方面的強勁進展，然後我將請鮑勃披露上一季的財務狀況以及我們對第四季度的前景。在回答大家的提問之前，我將再次就我們未來的長期前景發表評論。我們在上個季度的進步是一個很好的例子，我希望你們能夠認識到這是一個全新的 AMD。AMD 將始終如一地展示客戶創新的成功策略，以客戶需求為中心進行創新，繼續保持世界一流的設計和製造性能，並嚴格遵守營運靈活性原則。我想花點時間對每個問題進行評論，以便讓您了解我們第三季的正確背景。

Starting with operational flexibility. You can see that we are putting in place a strong cost-management discipline, holding operating cost in the quarter to $984 million. Please note this includes the cost previously associated with Fujitsu Flash memory operations and now consolidating in our global Flash business. In short, we managed to hold our baseline business to Q2 cost levels while both absorbing our new operations from the consolidation of access of the Flash side and growing the top line significantly in both of our core businesses. Going forward we expect to capture even more efficiencies as we integrate the major elements of our Flash business. We finished the quarter with over $1 billion in cash and now begin the strongest quarter of the year with our most competitive product portfolio in recent history. We believe after our aggressive value chain inventory management in our process of business that we have arrived at steady levels. We have improved the stability in to our value chain, which will allow for tighter efficiency and more realtime responsiveness to market dynamics.

從營運靈活性開始。您可以看到，我們正在實施強有力的成本管理紀律，將本季的營運成本控制在 9.84 億美元。請注意，這包括先前與富士通快閃記憶體營運相關的成本，現在已合併到我們的全球快閃記憶體業務中。簡而言之，我們設法將基準業務保持在第二季的成本水平，同時從 Flash 端的存取整合中吸收新業務，並大幅提高我們兩個核心業務的營收。展望未來，隨著我們整合 Flash 業務的主要元素，我們期望獲得更高的效率。本季結束時，我們的現金超過 10 億美元，現在我們憑藉近年來最具競爭力的產品組合，開啟了今年最強勁的一個季度。我們相信，透過我們在業務過程中積極的價值鏈庫存管理，我們已經達到了穩定的水平。我們提高了價值鏈的穩定性，這將提高效率並能更即時地響應市場動態。

In design and manufacturing, AMD continues to demonstrate world-class operating performance in both our Flash and processor business. In September, we sampled a highest density NOR flash memory product to date at 512 megabit expansion flash memory device. Once again we shipped a record number of units out of Flash facilities in the last quarter and we are poised for continued demand growth in the coming quarter. In processors, we continue to demonstrate world-class manufacturing performance in our resident facility and are particularly pleased with our SOI yields. As a result AMD 64 processor (inaudible) will exceed 50% of the total start doing (inaudible) in the first quarter of 2004. We continue our steep ramp to 90-nanometer technology, remaining on track for production wafer starts in the first half of 2004.

在設計和製造方面，AMD 在快閃記憶體和處理器業務中持續展現出世界級的營運表現。9月份，我們對迄今為止密度最高的NOR快閃記憶體產品進行了採樣，即512兆位元擴展快閃記憶體設備。上個季度，我們再次從快閃記憶體設施發貨了創紀錄數量的產品，並且我們準備在下一季繼續滿足需求成長。在處理器方面，我們繼續在我們的常駐工廠展示世界一流的製造性能，並且對我們的 SOI 產量特別滿意。因此，AMD 64 位元處理器 (聽不清楚) 將在 2004 年第一季超過整體開機 (聽不清楚) 的 50%。我們繼續向 90 奈米技術快速邁進，並預計在 2004 年上半年開始生產晶圓。

I mentioned our strategy of customer centric innovation and this approach continues to produce a strong drawing portfolio of customer relationships and improved top-line performance across our businesses. Customer acceptance of our Spansion brand of Flash memory solution has been outstanding. In fact, in our first quarter of operations the Spansion brand is now the leading, NOR Flash memory brand in the world. And we are well positioned to achieve our strategic goals of being the number one provider of Flash memory solutions worldwide. Asian markets were healthy this past quarter leading to strong wireless segment growth and solid customer demand for our high-density Spansion products and solutions. We believe Spansion devices are now in roughly 40% of all the cell phones shipped worldwide. More specifically, we continue to see record growth in unit shipments of devices based on our innovative MirrorBit technology as we expand its footprint beyond the original success in wireless applications.

我提到了我們以客戶為中心的創新策略，這種方法將繼續產生強大的客戶關係組合，並提高我們業務的營收表現。客戶對我們 Spansion 品牌快閃記憶體解決方案的接受度一直很高。事實上，在我們營運的第一個季度，Spansion 品牌現在是全球領先的 NOR 快閃記憶體品牌。我們已做好準備，實現成為全球第一大快閃記憶體解決方案供應商的策略目標。上個季度亞洲市場表現健康，帶動無線領域強勁成長，客戶對我們的高密度 Spansion 產品和解決方案的需求強勁。我們相信，目前全球出貨的所有手機中約有 40% 採用 Spansion 的裝置。更具體地說，隨著我們將其覆蓋範圍擴展到無線應用領域的最初成功之外，我們繼續看到基於我們創新的 MirrorBit 技術的設備的出貨量創下紀錄的增長。

In our processor business I'm very pleased to report that we generated operating profit in the third quarter based on increased demand in each of our major businesses in all geographic regions, as well as an improved product mix. Success in our processor business is in large part a reflection of the strength of our AMD (inaudible) franchise. As an example of continued success with enterprise customers, H&R Block, a Fortune 500 corporation announced plans to standardize 15,000 plus units desktop platform on Athlonxp(ph) systems from Hewlett-Packard. Demand for AMD Athlon processors continues to exceed expectations among OEMs.and partners.

在我們的處理器業務中，我很高興地報告，由於所有地理區域的主要業務需求增加以及產品組合改善，我們在第三季度實現了營業利潤。我們的處理器業務的成功在很大程度上反映了我們的 AMD（聽不清楚）特許經營權的實力。作為企業客戶持續成功的範例，財富 500 強企業 H&R Block 宣布計劃將惠普的 Athlonxp(ph) 系統上的 15,000 多台桌上型電腦平台標準化。OEM 和合作夥伴對 AMD Athlon 處理器的需求持續超出預期。

For instance, IBM continues its support by selecting our AMD Opteron 246 processor for its E-Server 325 product line and announced availability of their DB2 database for the AMD 64 platform. Microsoft released a better version of Windows XP 64 edition, designed specifically to support the AMD 64 platform. Los Alamos National Laboratory in the University of Utah selected AMD Opteron processor as basis for their next-generation super-computing cluster system. In China, the Dawning Information Industry Corporation announced plans to launch a comprehensive series of AMD Opteron processor based 1 and 2-H servers.

例如，IBM 繼續提供支持，為其 E-Server 325 產品線選擇了我們的 AMD Opteron 246 處理器，並宣佈為 AMD 64 平台提供其 DB2 資料庫。微軟發布了更好的Windows XP 64位元版本，專門設計用於支援AMD 64平台。猶他大學洛斯阿拉莫斯國家實驗室選擇 AMD Opteron 處理器作為其下一代超級運算叢集系統的基礎。在中國，曙光資訊產業公司宣布計劃全面推出基於AMD Opteron處理器的1-H和2-H伺服器系列。

Oracle announced plans for its 64-bit version of Oracle9i database on the AMD 64 platform. And we are pleased Sun Microsystems recently announced plans for Java support for the AMD 64 platform and disclosed plans for developing a version of their Solaris operation system for AMD 64, as well. In the first two quarters of availability, AMD Opteron processors continue to outshift our main competitors 64-bit processor by a wide margin. In September, as promised, we introduced the world's first and only Windows XP compatible 64 bit PC processor family our AMD Athlon 64 processor. The launch was supported by over 100 third party hardware software partners, Fujitsu, Fujitsu Siemens, Hewlett-Packard and NEC Packard Bell presented systems based on the new processors and all of them will be shipping in the fourth quarter.

Oracle 宣布計劃在 AMD 64 平台上推出 64 位元版本的 Oracle9i 資料庫。我們很高興 Sun Microsystems 最近宣布了為 AMD 64 平台提供 Java 支援計劃，並披露了為 AMD 64 開發 Solaris 作業系統版本的計劃。在上市後的前兩個季度中，AMD Opteron 處理器的銷售量繼續以較大優勢超越我們的主要競爭對手 64 位元處理器。9 月份，我們按照承諾推出了世界上第一個也是唯一一個與 Windows XP 相容的 64 位元 PC 處理器系列——AMD Athlon 64 處理器。此次發布得到了超過 100 家第三方硬體軟體合作夥伴的支持，富士通、富士通西門子、惠普和 NEC Packard Bell 展示了基於新處理器的系統，所有系統都將在第四季度出貨。

Perhaps as exciting was our introduction of AMD 64 FX brand designed to introduce a new wave of innovation around what we call the cinematic computing experience. The AMD Athlon 64 FX processor has stirred among gamers, enthusiasts and digital content creators and it represents a continued commitment to the discipline of creating and sustaining the strong premium product brand at AMD. First with AMD Opteron processors, then with Spansion Flash memory and now with the AMD Athlon 64 and Athlon 64 FX processors. The AMD Athlon 64 processor family is a totally differentiated product and represents a great value to our customers and their customers.

同樣令人興奮的是我們推出的 AMD 64 FX 品牌，旨在圍繞我們所謂的影院計算體驗掀起新一輪創新浪潮。AMD Athlon 64 FX 處理器在遊戲玩家、愛好者和數位內容創作者中引起了轟動，它代表了 AMD 對創建和維護強大的高階產品品牌的持續承諾。首先是 AMD Opteron 處理器，然後是 Spansion 閃存，現在是 AMD Athlon 64 和 Athlon 64 FX 處理器。AMD Athlon 64 處理器系列是一款完全差異化的產品，對我們的客戶及其客戶來說具有巨大的價值。

We are seeing increased confidence among our growing portfolio of customers about AMD and our leadership role in driving the pervasive adoption of 64-bit computing around the AMD 64 platform. In fact, we shipped tens of thousands of AMD 64 processors in the third quarter and we are confident that this will go out to hundreds of thousands of processors in this quarter. We are taking our rightful place as the leading NOR Flash brand in the world. We are taking our rightful place as the only supplier of tomorrow's industry standard 64-bit processors. At this point, I would like to ask Bob to review current quarterly financial results. Can upon bob.

我們看到，越來越多的客戶對 AMD 以及我們在推動 AMD 64 平台廣泛採用 64 位元運算方面的領導地位越來越有信心。事實上，我們在第三季出貨了數萬個 AMD 64 處理器，我們有信心本季的出貨量將達到數十萬個。我們正在成為全球領先的 NOR Flash 品牌。我們正在成為未來行業標準 64 位元處理器的唯一供應商。現在，我想請鮑伯回顧一下目前的季度財務結果。可以靠鮑伯。

Thanks, Hector. A year ago we outlined our operational flexibility plan for the investment community, an ambitious and aggressive plan to get AMD back to financial stability. Since then we have made significant progress both reengineering our operating model and investing in areas that build sustainable, competitive advantage for ourselves and our customers.

謝謝，赫克托。一年前，我們向投資界概述了我們的營運靈活性計劃，這是一項雄心勃勃、積極的計劃，旨在讓 AMD 恢復財務穩定。自那時起，我們在重塑營運模式和投資為我們自己和客戶打造可持續競爭優勢的領域方面取得了重大進展。

Our third quarter results are a clear demonstration of our progress in these areas. I'd like to remind you that AMD began consolidating FASL LLC financial results at beginning of the third quarter. The minority interest reflected in our statement shows Fujitsu 40% share of the new subsidiaries financials and our second quarter 2003 numbers did not include FASL LLC. Starting with top line, our third quarter sales were $954 million, up 88% compared to last year and up 48% compared to the second quarter of this year. Top line growth was a reflection of increased demand in each of the major businesses in all geographic regions.

我們的第三季業績清楚地證明了我們在這些領域的進展。我想提醒您，AMD 從第三季初開始合併 FASL LLC 的財務表現。我們的聲明中反映的少數股權表明富士通在新子公司的財務中佔有 40% 的份額，並且我們的 2003 年第二季度數據不包括 FASL LLC。從營業收入開始，我們第三季的銷售額為 9.54 億美元，比去年同期成長 88%，比今年第二季成長 48%。營業收入的成長反映了各個地理區域各主要業務的需求成長。

The combination of top-line growth and our operational flexibility measures resulted in a $30 million operating loss in the quarter, down 76% from the second quarter. Gross margin was 34% for the quarter, flat compared to the second quarter. Consistent with our prior guidance, our total operating cost structure was $984 million in the third quarter. Our net loss for the third quarter dropped sharply to $31 million or 9 cents per share and 88% reduction from a year ago and 78% reduction from the second quarter. We generated positive cash flow from operations this quarter and grew third quarter EBITDA to $277 million, greater than 100% improvement over the second quarter performance. Now, switching to business overview for the quarter. I'd like to start with computation group computational product group or CPG, which consists of our microprocessor and chipset businesses. Third quarter sales and CPG were $503 million, 91% increase over the same period a year ago and 24% increase over the second quarter.

營業收入成長和營運彈性措施的結合導致本季營運虧損 3,000 萬美元，較第二季下降 76%。本季毛利率為34%，與第二季持平。與我們先前的預期一致，第三季我們的總營運成本結構為 9.84 億美元。我們第三季的淨虧損大幅下降至 3,100 萬美元或每股 9 美分，比去年同期減少 88%，比第二季減少 78%。本季度，我們的經營活動產生了正現金流，第三季的 EBITDA 成長至 2.77 億美元，比第二季的業績成長了 100% 以上。現在，轉到本季度的業務概覽。我想從計算組計算產品組或CPG開始，它由我們的微處理器和晶片組業務組成。第三季銷售額和 CPG 為 5.03 億美元，比去年同期成長 91%，比第二季成長 24%。

Increased sales were due to solid growth across processor product lines and improved product mix and increased sale to our largest OEM customers. We shipped more units and improved ASP significantly compared to the second quarter. As a result, the CPG business, you know, was profitable in the third quarter with an operating income of $19 million. In the third quarter Flash memory sales grew to $424 million, up 125% from the third quarter of 2002, and up 101% over the second quarter. This performance is a result of the consolidation of FASL LLC operations and the strong organic growth. The memory group's operating loss was $49 million in the third quarter.

銷售額的成長是由於處理器產品線的穩定成長、產品結構的改善以及對我們最大的 OEM 客戶的銷售額的增加。與第二季相比，我們的出貨量有所增加，平均售價也顯著提高。因此，CPG 業務在第三季實現了盈利，營業收入達到 1,900 萬美元。第三季閃存銷售額成長至4.24億美元，較2002年第三季成長125%，較第二季成長101%。這一業績是 FASL LLC 業務整合和強勁有機成長的結果。內存集團第三季​​的營運虧損為4900萬美元。

As Hector mentioned, devices based on our MirrorBit technology are becoming a bigger piece of AMD's Flash memory portfolio, achieving record growth in the third quarter. Turning to the balance sheet. Cash balances ended this third quarter at over a billion dollars, up $370 million from last quarter. This includes security of $238 million of new capital leasing financing in the quarter. Capital expenditures were $138 million in the third quarter compared to $103 million in the second quarter. Accounts receivables days sales outstanding were at 54 days, up slightly from second quarter levels of 52 days. AMD head count at end of the third quarter was approximately 14,400 up 2700 people from the second quarter due to consolidation of FASL LLC operation. Now, I'd like to discuss the outlook.

正如赫克託所提到的，基於我們的 MirrorBit 技術的設備正在成為 AMD 快閃記憶體產品組合中越來越重要的組成部分，並在第三季度實現了創紀錄的成長。轉向資產負債表。第三季末現金餘額超過 10 億美元，比上一季增加 3.7 億美元。其中包括本季 2.38 億美元新資本租賃融資的擔保。第三季的資本支出為 1.38 億美元，而第二季為 1.03 億美元。應收帳款未償銷售天數為 54 天，略高於第二季的 52 天。由於 FASL LLC 業務的合併，AMD 第三季末的員工總數約為 14,400 人，比第二季增加了 2700 人。現在，我想討論一下前景。

AMD believes that sales in the fourth quarter will increase based upon the following. Microprocessor sales are expected to increase based on normal industry seasonality and growing demand for the company's enhanced portfolio of AMD 64 microprocessors. Flash memory sales are expected to increase based on normal seasonality, and increased customer acceptance of MirrorBit technology. AMD anticipates this fourth quarter operating cost to remain at approximately $1 billion, depending on volume and mix. In summary, we are very pleased with our progress in the third quarter as we increase sales and continue to tightly manage our cost structure. With improving fundamentals going forward, we are pushing to return to sustainable profitability as quickly as possible. Now I turn it back over to Hector.

AMD 認為，基於以下因素，第四季的銷售額將會成長。基於正常的行業季節性以及對公司增強型 AMD 64 微處理器產品組合不斷增長的需求，微處理器銷量預計會增加。基於正常的季節性因素以及客戶對 MirrorBit 技術的接受度不斷提高，快閃記憶體銷售量預計會增加。AMD 預計第四季度的營運成本將維持在 10 億美元左右，具體取決於產量和產品組合。總而言之，我們對第三季的進展感到非常滿意，因為我們增加了銷售並繼續嚴格管理我們的成本結構。隨著未來基本面的改善，我們正努力盡快恢復可持續獲利能力。現在我把它交還給赫克托。

Thank you, Bob. Over the past few quarters we have been beating a steady drum on the significant and very difficult disciplines that are the basis for what we call the new AMD. First, establishing an operationally flexible business model. Our cost management performance is a demonstration of that discipline. Second, advancing our world-class design in manufacturing capabilities. Our AMD 64 platform and leading edge Flash memory technology are demonstrations of that discipline. And since our continued world class manufacturing performance in our 5, 25 and 30, as well as assembly and test sites in Singapore (inaudible) Bangkok and Sujo.

謝謝你，鮑伯。在過去的幾個季度中，我們一直在大力推廣那些意義重大且難度很高的學科，這些學科正是我們所謂的新 AMD 的基礎。一是建立營運靈活的商業模式。我們的成本管理績效就是這項紀律的展現。第二，提升我們世界一流的設計製造能力。我們的 AMD 64 平台和領先的快閃記憶體技術就是這項原則的體現。並且由於我們在 5、25 和 30 以及新加坡（聽不清楚）、曼谷和 Sujo 的組裝和測試基地繼續保持世界一流的製造性能。

Third, delivering customer centric innovation. Our processor, Spansion Flash memory and AMD Athlon 64 and 64-FX brands are a demonstration of that discipline. But perhaps a more important demonstration is the growing portfolio of top-tier companies who we are honored to say are choosing to partner with us as we move to a leadership roll in the markets we choose to serve, Which with acquisition of the Geode processor family of integrate solutions helps us expand our exceeded fixed footprint into new growth segments including sink lines, smart displays and set-top boxes, among others. At AMD we see our role in the industry in very simple terms. We're here to work with our customers to help them deliver on their dreams, to help them create differentiating value for their customers and to create sustaining successful businesses. We know that our customer success is our success, and that this discipline has been missing in our industry.

第三，實現以客戶為中心的創新。我們的處理器、Spansion 快閃記憶體以及 AMD Athlon 64 和 64-FX 品牌就是這種紀律的體現。但也許更重要的證明是，越來越多的頂級公司選擇與我們合作，讓我們倍感榮幸，因為我們將在所服務的市場中佔據領導地位。透過收購 Geode 處理器系列整合解決方案，我們可以將超出固定範圍的業務擴展到新的成長領域，包括接收器線路、智慧顯示器和機上盒等。在 AMD，我們以非常簡單的方式看待我們在行業中的角色。我們致力於與客戶合作，幫助他們實現夢想，幫助他們為客戶創造差異化價值，並創造持續成功的業務。我們知道客戶的成功就是我們的成功，而我們的產業一直缺乏這種原則。

With our commitment to the discipline of customer centric innovation, we believe we are bringing it back. We are a new AMD and we are very proud of the progress we have made and over the leadership opportunities we have created with and for our customers. I want to recognize and thank the thousands of AMD employees who continue to do millions of amazing things everyday to transform our company into the earnings machine that we're working so hard to become, the new AMD. Their rewards and yours are soon to come. We hope you can join us on November 6th, either in person in Sunnyvale or the Web for our annual financial Analyst briefing where we will look forward to sharing more of our addition of the future of the semiconductor industry. We thank you for your attention and I would like to turn back to Michael Haas for Q and A.

我們相信，憑藉我們對以客戶為中心的創新的承諾，我們將會重新獲得這種優勢。我們是全新的 AMD，我們為我們所取得的進步以及與客戶共同創造的領導機會感到非常自豪。我要表彰並感謝數以千計的 AMD 員工，他們每天堅持做著數百萬件令人驚嘆的事情，將我們的公司轉變為我們正在努力成為的盈利機器，即新的 AMD。他們的獎勵和您的獎勵即將到來。我們希望您能於 11 月 6 日親自到桑尼維爾或透過網路參加我們的年度財務分析師簡報會，我們期待在會上分享更多有關半導體產業未來的資訊。感謝您的關注，我想請邁克爾·哈斯進行問答。

Thanks, Hector. Let's start the Q and A, please.

謝謝，赫克托。讓我們開始問答環節。

Thank you. Ladies and gentlemen, if you would like to register a question, press the "1" followed by "4" on your telephone. You will hear a three tone to constitute to acknowledge your request. If your question has been answered and you would like to withdraw your registration arbitration press the "1" followed by the "3". If you are using a speakerphone, please lift the handset before entering your request. One moment please for the first question. Our first question comes from the line of John Barton of Wachovia Securities. Please proceed with your question.

謝謝。女士們，先生們，如果您想提出問題，請在電話上按“1”，然後按“4”。您將聽到三個音調來確認您的請求。如果您的問題已得到解答，並且您想撤回註冊仲裁，請按“1”，然後按“3”。如果您使用揚聲器電話，請在輸入請求之前拿起聽筒。請稍等片刻回答第一個問題。我們的第一個問題來自美聯銀行證券公司的約翰巴頓。請繼續您的問題。

Good afternoon. Thank you. Hector, it seemed like you went out of your way in your prepared comments to make the comment that, you know, Spansion is the number one supplier NOR Flashand then well positioned to be the number one Flash supplier worldwide. How should I be interpreting that with respect to, you know, NAND Or NOR? Does the company get into NAND Flash? Do you think NOR out grows NAND or am I trying to read too much into the statement?

午安.謝謝。赫克托，在你準備好的評論中，你似乎特意指出，Spansion 是 NOR Flash 的頭號供應商，並且完全有能力成為全球頭號 Flash 供應商。我應該如何解釋 NAND 或 NOR？該公司是否涉足NAND Flash領域？您是否認為 NOR 比 NAND 發展得更快，還是我對此說法進行了過度解讀？

I probably guessed all of the above. But let me be more specific in the following sentence. We know that in the NOR Flash side of the house, just based on all of the reports that have come out already that we are the number one NOR Flash brand already. And expect to continue to stay that way. We are committed to the Flash memory business. We think the storage solution that Flash provides, are incredibly helpful and pervasive to so many products, not only wireless, but across a huge plethora of applications. And if that demands some changes in our technology and product strategy, we are alert and prepared to make those changes. But at this point in time, we do not plan to make an announcement relative to anything beyond NOR.

我大概已經猜到以上所有內容了。但請讓我在下面的句子中更具體地說明。我們知道，在 NOR Flash 領域，僅根據已經發布的所有報告，我們就已經成為第一大 NOR Flash 品牌。並希望繼續保持這種狀態。我們致力於閃存業務。我們認為 Flash 提供的儲存解決方案非常有用且普及，不僅適用於無線產品，也適用於大量應用程式。如果這需要我們在技術和產品策略上做出一些改變，我們會保持警惕並做好準備。但目前，我們還沒有計劃發布有關 NOR 以外的任何消息。

OK. Lets dig in further into the numbers for expansion, and probably for Bob. You know looking through it, it looked like $49 million operating loss and if you kind of reverse calculate your $25.4 million minority interest, you know, take the 40% backward calculations that would imply a net loss of $63 million or non-operating increase of $14 million there. Am I looking at those numbers right? If so, where is the $14 million coming from, Interests expenses et cetera?

好的。讓我們進一步深入研究擴張的數字，可能還有鮑伯的數字。你知道，仔細看一下，它看起來像是 4900 萬美元的營業虧損，如果你反向計算 2540 萬美元的少數股東權益，你知道，按照 40% 的反向計算，這意味著淨虧損 6300 萬美元或非營業性增加 1400 萬美元。我看的這些數字正確嗎？如果是這樣，那麼這 1,400 萬美元是從哪裡來的？利息支出等等？

Yes, you got the detail. The Minority interest is in full P&L, which would include interest expense, taxes, et cetera. They are also is cross-charges between the parents that will take place. Obviously those get eliminated, but they are in the FASL LLC. So there we will get exactly we would be able to take the operating income times 40% and get the number. It will be always relatively close, but not perfect.

是的，你了解細節了。少數股東權益包含在全部損益表中，其中包括利息支出、稅金等。這也是父母之間即將發生的交叉指控。顯然這些都被淘汰了，但它們仍在 FASL LLC 中。因此，我們將得到準確的數字，即營業收入乘以 40%。它總是相對接近，但並不完美。

And last question. If I - Could you just comment on Flash ASP?

最後一個問題。如果我 - 您能評論一下 Flash ASP 嗎？

You know, I will ask Henri Richard, our Overall Sales and Marketing executive to make a comment. But, I'd like to say that the market has become strong and as a result of that, prices have stabilized.

你知道，我會請我們的整體銷售和行銷主管亨利·理查德 (Henri Richard) 發表評論。但我想說的是，市場已經變得強勁，價格也趨於穩定。

Our Flash memory ASPs continue to remain strong, actually grew quarter-to-quarter and it is across all regions.

我們的快閃記憶體平均售價持續保持強勁，實際上呈現逐季成長，並且遍及所有地區。

And growth driven by mix?

成長是由混合驅動的嗎？

Absolutely, particularly driven by high-end devices and MirrorBit technology.

絕對如此，尤其是在高階設備和 MirrorBit 技術的推動下。

And if you were to look at constant density quarter-on-quarter, you know, basic slight erosion there?

如果您看一下季度環比的恆定密度，您知道那裡基本上有輕微的侵蝕嗎？

There was a slight erosion in density but that is due to the addition of the Fujitsu business to the overall operation.

密度略有下降，但這是由於富士通業務加入整體營運所造成的。

Great thank you very much

非常好非常感謝

Fujitsu had a very strong presence in the embedded market space.

富士通在嵌入式市場領域佔有非常強的地位。

Thank you.

謝謝。

The next question comes from John Lau of Banc of America Securities.

下一個問題來自美國銀行證券公司的 John Lau。

Thank you. In terms of the Athlon 64, I was wondering if you can give us more color on how the Athlon 64 designs are going on a geographical basis and also how it is positioned for the higher-end corporate market? So in other words where is the adoption rate growing the faster before the for the highs for the new high-end Athlon 64? Thank you.

謝謝。關於 Athlon 64，我想知道您是否可以向我們詳細介紹 Athlon 64 的設計在地理分佈上的情況，以及它如何定位於高端企業市場？那麼換句話說，在新的高階 Athlon 64 達到頂峰之前，哪裡的採用率成長得更快？謝謝。

I would like to maybe just make a -- some general comments and ask Henri again to comment further. First of all we have made assumptions in the introduction of Athlon 64, which of course is at the highest end of the performance of the client side, and as anticipated, you know, our demands given the assumptions we made relative to all the customers, and we under-anticipated demand there. The reception and acceptance of the client has been very strong. And as a matter of fact, we are ramping as fast as we can to try to improve on that for this quarter. Henri, could you a little elaborate?

我可能只是想發表一些一般性的評論，然後再次請亨利發表進一步的評論。首先，我們在推出 Athlon 64 時做出了假設，這當然是客戶端效能的最高端，正如預期的那樣，我們的需求是根據我們針對所有客戶所做的假設得出的，而我們低估了那裡的需求。客戶的接受度和接受度非常高。事實上，我們正​​在盡快提高速度，爭取在本季取得進步。亨利，你能詳細說明一下嗎？

Sure. John, we have a demand that is really across all regions, but principally driven by regions where you have Pc enthusiasts and gamers to start with, regions like Korea, Europe, the U.S., Japan. As far as the corporate market, and the partners have announced platforms, they have essentially announced consumers' platform for the time being. We expect to see enterprise platforms announce sometimes in the beginning of 2004.

當然。約翰，我們的需求實際上遍佈所有地區，但主要由擁有電腦愛好者和遊戲玩家的地區驅動，例如韓國、歐洲、美國、日本等地區。就企業市場而言，合作夥伴已經宣布了平台，他們暫時基本上已經宣布了消費者平台。我們預計在 2004 年初會看到企業平台的發表。

So, a lot has to do with the highest performance you think utilizing the graphics for the gaming? (inaudible)

那麼，您認為利用圖形進行遊戲與實現最高效能有很大關係嗎？ （聽不清楚）

You have to remember, that this is the fastest 32-bit platform in the marketplace. And, of course, today most of the applications are still 32-bit. However, we've had support from numerous software vendors, particularly in the gaming space that have already announced and pre-announced availability of 64 bit version of their leading games for the Christmas season. So, it's not only, you know, high-end graphics performance, its high end CPU performance, it is memory bandwidth and all of the above that drives the really the cinematic computing experience that if you have ever experienced, it is second to none on that platform.

您必須記住，這是市場上最快的 32 位元平台。當然，今天大多數應用程式仍然是 32 位元的。然而，我們得到了許多軟體供應商的支持，特別是遊戲領域的供應商，他們已經宣布或預先宣布將在聖誕節期間推出其主要遊戲的 64 位元版本。因此，您知道，它不僅是高端圖形性能、高端 CPU 性能，而且是內存頻寬以及上述所有因素，它們推動了真正的影院級計算體驗，如果您曾經體驗過，您就會發現它在該平台上是首屈一指的。

Great. Thank you.

偉大的。謝謝。

The next question comes from Michael Masdea of Credit Suisse First Boston.

下一個問題來自瑞士信貸第一波士頓的麥可馬斯迪亞。

Thanks a lot everbody. And I would like the new AMD better than the old one. Keep it up. In terms of pricing first you talked about empty your strength and pricing is that on an apples to apples basis or is it more of a mix shift?

非常感謝大家。我比較喜歡新款 AMD，而不是舊款。繼續努力吧。在定價方面，首先您談到了您的優勢和定價，是基於蘋果對蘋果的基準，還是混合轉變？

Again, if Henri wants to add at the end of my comments is that we have worked very hard with our customers to try to ensure we understand exactly what they expect from us, and that we can deliver the mix that they would like to see from us. And in the last quarter in particularly, our customers have been pushing us up towards the performance side and we have been responding and as a result of that, the mix in the quarter was richer than in previous quarters and as a result it improved ASP.

再說一次，如果亨利想在我的評論結束時補充一點，那就是我們已經非常努力地與客戶合作，試圖確保我們準確了解他們對我們的期望，並且我們可以提供他們希望從我們這裡看到的組合。特別是在上個季度，我們的客戶一直在推動我們提高效能，我們也一直在做出回應，因此，本季的產品組合比前幾季更加豐富，從而提高了平均售價。

Hector, and just to add that we have obviously introduced with the Athlon 64 FX and Athlon 64 products new price points in the marketplace, where AMD traditionally didn't participate and that of course helped the ASP.

赫克托，我還要補充一點，我們顯然已經在市場上推出了 Athlon 64 FX 和 Athlon 64 產品的新價格點，而 AMD 傳統上並沒有參與其中，這當然有助於 ASP。

Thanks, and speaking of pricing for a second, there is always the concern that when your large competitors looses share in flash but prices can go south east, seeing that or is that not having traction or have you not seen that yet?

謝謝，說到定價，總是擔心當你的大型競爭對手在閃存中失去份額但價格卻會下降時，你看到了嗎？還是說這沒有吸引力？還是你還沒看到這種情況？

Flash market continues to be very competitive. There are a number of players besides just number one and number two. We haven't seen the rather deep and broad price erosion that we saw a year ago, but they are stabilized. However, it is very competitive, you looked at pricing per bit, it continues to go down.

Flash 市場競爭仍十分激烈。除了一號和二號球員之外，還有很多其他球員。我們還沒有看到像一年前那樣深度和廣度的價格下跌，但價格已經穩定下來。然而，競爭非常激烈，看看每比特的價格，它還在繼續下降。

Fair enough, on the manufacturing side, any update on your thoughts on manufacturing partnerships for 300 millimeter and what are your thoughts for '04 in terms of need for 300 millimeter?

公平地說，在製造方面，您對 300 毫米製造合作夥伴關係有什麼看法？您對 2004 年 300 毫米需求有何看法？

In '04 we don't anticipate needing 300 millimeter. We think that it's their cross-over point for us at least in 300 millimeter will be at the 6500 nanometer node, which means that we need to have a factory in place, ready to ramp in 2005 for production in 2006. As far as the partnership and our plans, as I said before is we will be able to be public, as to how are going to that and the details surrounding that before the endo of the year.

2004 年我們預計不需要 300 毫米。我們認為，對我們來說，至少 300 毫米的交叉點將在 6500 奈米節點，這意味著我們需要建立一個工廠，準備在 2005 年實現量產，並在 2006 年實現量產。至於合作關係和我們的計劃，正如我之前所說，我們將在今年年底之前公開我們將如何進行以及相關細節。

Right, thanks and final questions from the cross-restro side, obviously impressed at what you guys have done so far but we always want more, just curious as to the consolidation of said before, we will be able to be public as to how we're going to do that and details surrounding that before the end of the year.

好的，謝謝，最後一個問題來自跨 restro 方面，顯然你們迄今為止所做的事情給我們留下了深刻的印象，但我們總是想要更多，只是對之前所說的合併感到好奇，我們將能夠公開我們將如何做到這一點以及有關細節在年底之前。

Great. Thanks. Final question on cost structure side. Obviously impressed with what you have done so far. We always want more. Just curious as to what consolidation of FASL LLC, any more room there now you had a little time about this to take a look at the overlap?

偉大的。謝謝。關於成本結構方面的最後一個問題。顯然，你迄今為止所做的一切給我留下了深刻的印象。我們總是想要更多。只是好奇 FASL LLC 的合併情況如何，現在還有時間看看重疊部分嗎？

Yes, actually it is 90 days since the transaction took place. We have actually spent the first 90 days making sure we can get the team completely integrated and operating. We have found some synergies and some opportunities which will be executed in the next six months to take out those redundancies, in a lot of cases implementing best in class from the two different partners as we pull it together.

是的，實際上交易已經發生 90 天了。事實上，我們已經花了前 90 天的時間來確保我們能夠讓團隊完全整合並投入運作。我們已經發現了一些協同效應和機會，這些效應和機會將在未來六個月內實現，以消除這些冗餘，在許多情況下，我們將結合兩個不同的合作夥伴，實施最佳方案。

Thanks a lot. Congratulations.

多謝。恭喜。

The next question comes from Krishna Shankar of JMP Securities.

下一個問題來自 JMP Securities 的 Krishna Shankar。

Yes, nice quarter folks. When we strengthen ASPs and the better performance in profits was driven both by desktop and servers, can you give us some sense or whether notebooks and service contributed materially to the increased revenues in ASPs?

是的，大家真棒。當我們加強 ASP 並且利潤的更好表現是由桌上型電腦和伺服器推動的時，您能否告訴我們筆記型電腦和服務是否對 ASP 收入的成長做出了實質的貢獻？

I won't comment on the nexus as to what each section contributed to ASP mix. I do want to point out that in the quarter that just ended we had the largest shipment of mobile units into the marketplace. There is definitely a healthy uptick on mobile segment of the market.

我不會評論每個部分對 ASP 組合的貢獻之間的關係。我想指出的是，在剛結束的這個季度，我們向市場推出了最多的行動裝置。行動市場確實呈現健康成長態勢。

In mobile are you seeing acceptance of the Athlon XP mobile both in the full-size notebook as well as thin and light, Can you talk about efforts in the faster growing thin and light notebook market?

在行動領域，您是否看到 Athlon XP 行動處理器在全尺寸筆記型電腦和輕薄筆記型電腦中都受到歡迎，您能談談在快速成長的輕薄筆電市場中的努力嗎？

Sure. I am going to ask (inaudible) to comment on the 64 mobile portion of it. Let me just make a general statement on mobile. I think we've been fortunate to have a strong offering that has resulted in record units in this quarter for mobile shipments that based on Athlon XP. It turns out to be the product and technology that customers are looking forward on the Athlon 64 size has gotten pretty exciting. We are anticipating a very strong reception for that.

當然。我將要求（聽不清楚）對其中的 64 個移動部分進行評論。讓我就行動裝置做一個概括性的陳述。我認為我們很幸運能夠提供強大的產品，使得本季基於 Athlon XP 的行動出貨量創下紀錄。事實證明，客戶所期望的 Athlon 64 尺寸的產品和技術已經變得非常令人興奮。我們期待它能獲得熱烈的迴響。

Absolutely, Hector. We have to date more models of thin and light notebooks based on Athlon XP base machine shipping in market over 10 different systems in this quarter and we are seeing strong demand for these products. They provide a very competitive alternative to our competition infrastructure. Moving into next year, we're seeing demand for the same product based on Athlon 64 core that will be available in the second half of the year.

絕對如此，赫克托。到目前為止，本季度我們已經有超過 10 種基於 Athlon XP 基礎機器的輕薄筆記型電腦型號在市場上出貨，並且我們看到對這些產品的需求強勁。它們為我們的競爭基礎設施提供了非常有競爭力的替代方案。進入明年，我們將看到對基於 Athlon 64 核心的同款產品的需求，該產品將於今年下半年上市。

Okay. My final question is Hector, you said in Q1 of '04 you expect 40% of your wafer starts to be Athlon 64 based. When could we see the cross-over between Athlon 64 units and Athlon XP units next year?

好的。我的最後一個問題是 Hector，您說過在 2004 年第一季您預計 40% 的晶圓將基於 Athlon 64。明年我們什麼時候可以看到 Athlon 64 單元和 Athlon XP 單元之間的交叉？

Let me just correct a couple of numbers. As we expect in the first quarter that half of our wafer starts will be on the AMD 64 architecture. That is a mixture of servers, workstations and clients and we anticipate given the projections that we have, 60% cross-over will occur by end of next year.

讓我糾正幾個數字。我們預計第一季一半的晶圓將採用 AMD 64 架構。這是伺服器、工作站和客戶端的混合體，根據我們的預測，我們預計到明年年底將出現 60% 的交叉。

Thank you.

謝謝。

The next question comes from Ben Lynch of Deutsche Bank.

下一個問題來自德意志銀行的本·林奇。

I am second Michael's comments on the new AMD versus the old AMD. Could you may be comment please in the flash growth and give us a feel for the organic elements of that market share gain element of that and also you said that AMD and Mirror Bit products will be on top of the seasonal growth you are expecting in Q4. Could you give us a rough feel for how much they may contribute to the growth you expect in Q4, please? I do have a follow-up.

我同意邁克爾關於新 AMD 與舊 AMD 的評論。您能否對快閃記憶體成長進行評論，並讓我們了解市場佔有率成長的有機因素，並且您也說過 AMD 和 Mirror Bit 產品將達到您預期的第四季季節性成長的頂峰。您能否粗略地告訴我們，它們對您預期的第四季成長可能貢獻多少？我確實有一個後續行動。

I may have missed part of the question. I was trying to answer what I thought you asked. Please ask again. But I think that the organic growth that means the original memory Flash business experiences healthy growth quarter-on-quarter and year-on-year. When you have consolidated FASL numbers, it is even much stronger. I'm not sure I got the balance of the question.

我可能遺漏了部分問題。我只是想回答你問的問題。請再詢問一下。但我認為有機成長意味著原始記憶體快閃業務將實現環比和同比的健康成長。當你擁有合併的 FASL 數字時，它會變得更強大。我不確定我是否理解了這個問題的要點。

So, you don't have a number for the organic growth versus consolidated growth?

那麼，您沒有有機成長與合併成長的具體數字嗎？

We don't think that is necessary to hand out at this point. We're just one company.

我們認為目前沒有必要分發這些。我們只是一家公司。

How much do you think you picked up share wise in the third quarter?

您認為第三季您的股票上漲了多少？

Don't know the numbers yet. We know we did only based on the growth and the comparison to the competition that we feel confident, we believe we picked share.

還不知道具體數字。我們知道，我們所做的只是基於成長和與競爭對手的比較，我們感到有信心，我們相信我們選擇了份額。

And then on the other question, please, I will try. What you think might be incremental Q4 contribution from AMD 64 and Mirror Bit, you highlighted them as being on top of seasonal growth you expect.

關於另一個問題，請回答，我會嘗試。您認為 AMD 64 和 Mirror Bit 可能會在第四季度帶來增量貢獻，您強調它們處於您預期的季節性增長之上。

In Autumn, we are not going to give the granularity on it. I will make a broad statement. As we ended the quarter, our Mirror Bit contribution was already in double digits in terms of revenue and growing fast. And I also mentioned in my remarks, we're going from third quarter shipping tens of thousands of AMD products to hundreds of thousands in the fourth quarter. That gives you some idea.

在秋季，我們不會對此給予詳細的說明。我將做一個概括性的發言。截至本季末，Mirror Bit 的營收貢獻已達到兩位數，並且成長迅速。我在發言中也提到，我們將從第三季出貨數萬台 AMD 產品，到第四季將出貨數十萬台。這給了你一些想法。

Thank you.

謝謝。

Next question.

下一個問題。

Christy -

克里斯蒂-

The next question is from Joseph Osha of Merrill Lynch.

下一個問題來自美林證券的 Joseph Osha。

Hi, guys, congratulations and well done. On the microprocessor business obviously ramping the 64-bit architecture is additive to ASP. If we leave that out for a second, looks like very good things were happening with existing Athlon, as well. Leaving 64-bit out, were ASPs up for the 32-bit line of products, as well? And also I am curious did Duron tail off a lot this quarter and did that contribute to some of the strength in ASP?

大家好，恭喜你們，你們做得非常好。在微處理器業務方面，64 位元架構的提升顯然對 ASP 有利。如果我們暫時不考慮這一點，看起來現有的 Athlon 也發生了非常好的事情。除了 64 位元之外，32 位元產品線的 ASP 是否也一樣？而且我很好奇 Duron 本季的銷售量是否大幅下降，這是否對 ASP 的強勁成長有所貢獻？

To the first part of your question, the Athlon XP brand continues to derive more value for us and is seeing a shift in customer demand for the higher portion of the offering. We had increase in that proportion of the product line independent from the acceptance of the AMD Athlon 64 brand. For the second part of your question, can you precise exactly what you are looking for?

對於您問題的第一部分，Athlon XP 品牌繼續為我們創造更多價值，而客戶對該品牌更高部分產品的需求正在轉變。無論 AMD Athlon 64 品牌的接受度如何，我們的產品線中這一比例都有所增加。對於問題的第二部分，您能準確地說明您在尋找什麼嗎？

I guess, we understood you were getting end of life in Duron, is that true? Because, if you were, that would obviously tend to have a positive impact on ASP, as well.

我想，我們知道你在 Duron 的生命即將結束，是真的嗎？因為，如果是這樣，顯然也會對 ASP 產生正面影響。

The Duron product line is really a target of the emerging market. At this point of time, it represents a small portion of our product offering.

Duron 產品線確實是新興市場的目標。目前，它只占我們提供產品的一小部分。

OK. Now, are you willing to make some kind of rough comment in terms of what unit volume from microprocessor did quarter-on-quarter?

好的。現在，您是否願意就微處理器的單位銷售量環比表現做出一些粗略的評論？

No, not at this point in time. We'll pass on that.

不，目前還不行。我們會傳達這一點。

OK, Thank you.

好的，謝謝。

The next question is from Quinn Bolton of Oppenheimer and Company.

下一個問題來自奧本海默公司的奎因·博爾頓。

Congratulations on the strong quarter. First question on just the MPU business. You talked at the end of last quarter and I think in some of your public appearances during the quarter, that the channel inventory distribution was about four weeks. As wanted if you could give us an update on that ? And can you also comment on how you feel about the mix in the distribution channel heading into the stronger fourth quarter and then I have got one follow-up?

恭喜本季業績強勁。第一個問題僅關於 MPU 業務。您在上個季度末談到過，而且我想您在本季度的一些公開露面中也提到過，渠道庫存分配大約需要四周時間。您是否可以向我們提供有關該問題的最新消息？您能否評論一下您對進入更強勁的第四季度分銷管道組合的看法，然後我還有一個後續問題？

First, our mix in the channel has gone up and continues to reflect the value of the brand and our channel inventory at the end of third quarter was less than four weeks.

首先，我們的通路組合已經上升並繼續反映品牌價值，並且我們第三季末的通路庫存不到四周。

Great. OK and then the second question just on the Flash business it sounds like things may be getting this tight in the market. Can you comment on lead times and overall capacity utilization or capacity issues?

偉大的。好的，第二個問題是關於 Flash 業務的，聽起來市場狀況可能變得緊張。您能評論一下交貨時間和整體產能利用率或產能問題嗎？

The demand for Flash is strong, and particularly strong on high-density, high-performance part of the equation. That happens to be an area where AMD is well positioned for a couple of reasons. One is we have a leadership product, as mentioned earlier when we introduced a half gigabit or 512-megabit product. Also, Mirror Bit is being much more rapidly accepted in the wireless segment than we had anticipated. So, that's also contributing to that.

對 Flash 的需求很強烈，尤其是在高密度、高性能方面。由於以下幾個原因，AMD 恰好在該領域佔據有利地位。一是我們擁有領先的產品，就像前面提到的我們推出的半千兆位元或512兆位元產品一樣。此外，Mirror Bit 在無線領域的接受速度比我們預期的要快得多。所以，這也有助於實現這一點。

The other reason we are well positioned is the manufacturing side in our joint venture with Fujitsu, turns out to be each company contributed a phenomenal asset on the Fujitsu side was a factory called JV 3 which is a state-of-the-art factory that is not fully utilized. As a matter of fact, there is significant capacity expansion capability existing in the factory. And then we have 525 in Austin, Texas, which is also a state-of-the-art facility that is rapidly converting to leading edge-technology and as a result, improving its ability to deliver high-volume, high-performance product. So I think despite the fact that the demand is tight and growing, we see that as a opportunity for us.

我們處於有利地位的另一個原因是我們與富士通合資的製造方面，事實證明每家公司都貢獻了一筆驚人的資產，富士通方面有一家名為 JV 3 的工廠，這是一家尚未充分利用的最先進的工廠。事實上，該工廠具備顯著的產能擴張能力。我們在德州奧斯汀還有 525 號工廠，這也是一個最先進的工廠，正在迅速轉向尖端技術，從而提高其提供大量、高性能產品的能力。因此我認為，儘管需求緊張且不斷增長，我們仍將其視為一個機會。

And any comments on where lead times are? Where are they on absolute basis and whether they are stable or stretching out?

對於交貨時間有什麼評論嗎？它們的絕對基礎在哪裡以及它們是否穩定或伸展？

Let me speak only for AMD. We are seeing our lead times being stable and we are working very intimately with customers because demand is not only is it robust, it actually is very dynamic and tends to move from one product line to another very fast. It is a lot of intimacy required and we believe we are doing a good job of that.

我只代表 AMD 發言。我們的交貨週期很穩定，我們與客戶保持著非常密切的合作，因為需求不僅強勁，而且實際上非常動態，並且往往從一條產品線快速轉移到另一條產品線。這需要很多親密關係，我們相信我們在這方面做得很好。

Thanks.

謝謝。

The next question comes from Andrew Root of Goldman Sachs.

下一個問題來自高盛的安德魯·魯特。

Thank you very much. Had a question regarding a billion dollar operating cost assumption. What type of unit growth can that support before you would have to scale that up? What is your base line assumption there?

非常感謝。對於十億美元的營運成本假設有一個疑問。在擴大規模之前，它可以支援什麼類型的單位成長？您的基準假設是什麼？

This is Bob. I'm probably not going to answer from a unit perspective, but obviously I will kind of give you a little bit of granularity.

這是鮑伯。我可能不會從單位的角度來回答，但顯然我會給你一點細節。

Operation flexibility was about trying to change the mix between variable and fixed. Clearly the two businesses are different. The microprocessor is more variable than the memory business, so it kind of depends on the mix assumption of both. So, as each of those grow at different paces, both have different fall through and different incremental cost required with both businesses.

操作靈活性就是嘗試改變可變和固定之間的組合。顯然，這兩項業務是不同的。微處理器比記憶體業務更具變化性，因此它有點取決於兩者的混合假設。因此，由於它們各自的成長速度不同，因此兩種業務的失敗率和所需的增量成本也不同。

Do you guys have -- are you willing to share at least assumption for what you think the PC-unit end market grows in the fourth quarter in terms of unit?

你們是否願意至少分享一下第四季度 PC 終端市場在單位數量方面增長情況的假設？

All I can say on that is normal seasonality is someplace in between 10 to 15% expansion between third and fourth quarter. It appears that is the kind of quarter we are looking at from an industry-perspective.

我只能說，正常的季節性是在第三季和第四季之間擴張 10% 到 15% 之間。從行業角度來看，這似乎是我們正在關注的一個季度。

I'm assuming you expect to pick up share in the fourth quarter?

我猜您預期第四季的市佔率會上升？

We always try.

我們總是盡力嘗試。

That's fair. For the microprocessor business last quarter, 24% growth, obviously was terrific. We're guessing about a third came from ASP, is that close?

這很公平。對於上個季度的微處理器業務來說，24%的成長顯然是了不起的。我們猜測大約三分之一是來自 ASP，接近嗎？

No. There is some ASP involvement, but I am not going to comment on that, but that is not close.

不。有一些 ASP 參與，但我不會對此發表評論，但這並不接近。

OK.

好的。

Can I add something to the comment before. It is important as we anticipate what our cost might be in fourth quarter. Part of the mix issue that Bob referred to has to do with how we do Flash. We borrow Flash business is what we call a multi chip module products and these are products where we actually put two or three, four sometimes dye on one package. Therefore, the cost is associated with how much of that you have to acquire to be able to make the product. We are sensitive on mix and as Bob pointed out, the processor Flash mix has got quite a different cost model. So, I just want to underline that the mix issues can make that cost very -- significant amount plus or minus a significant number.

我可以對之前的評論補充一些內容嗎？這很重要，因為我們要預測第四季的成本。Bob 提到的混合問題部分與我們如何處理 Flash 有關。我們借用 Flash 業務就是我們所說的多晶片模組產品，這些產品實際上將兩個或三個，有時四個染料放在一個封裝上。因此，成本與您為生產產品所需獲取多少資源有關。我們對混合很敏感，正如鮑勃指出的那樣，處理器快閃記憶體混合具有相當不同的成本模型。因此，我只想強調，混合問題可能會使成本增加或減少很多。

Makes sense. Do you know what percentage of the product is in multi-chip package at this point?

有道理。您知道目前該產品中有多少百分比是採用多晶片封裝的嗎？

Not off the top of my head.

我還沒想起來。

Final question. When the Athlon 64 was launched at the launch event, there was suggestion that there might be some other key OEM channel partners that would eventually become involved with this decline anticipating that particular event. Should we expect other announcements over the next quarter or so?

最後一個問題。當 Athlon 64 在發布會上推出時，有人暗示可能還有其他一些關鍵 OEM 通路合作夥伴最終會參與到這一下滑中，以預見到這一特定事件。我們是否應該期待下個季度左右的其他公告？

We're working hard with all the major computer makers to, you know, to launch products. I think what you are seeing and as we reported in my remarks earlier, we got some fairly heavy weights already launching products this quarter and others anticipating to launch in the first quarter. There is not a single computer maker that is not working with us in trying to see if this platform makes sense. All of them actually have serious plans and committed to develop some sort of a platform that they can launch in the early part of 2004, except for one.

我們正在與所有主要的電腦製造商努力合作，推出產品。我想您所看到的以及我們之前在我發言中所報告的一樣，我們已經有一些重量級人物在本季度推出了產品，其他一些人物預計在第一季度推出產品。所有電腦製造商都與我們合作，嘗試看看這個平台是否有意義。除了一個公司外，其他公司實際上都有認真的計劃，並承諾開發某種平台，並在 2004 年初推出。

OK. No, That is Great. Thank you.

好的。不，那太好了。謝謝。

Our next question comes from Ramesh Misra of Smith Barney.

我們的下一個問題來自 Smith Barney 的 Ramesh Misra。

Hello, Good afternoon, gentlemen. Could you provide some milestones on the 90-nanometer plans for the microprocessor in terms of what proportion of wafer starts can we expect by next year? I have a follow-up.

大家好，先生們，下午好。您能否提供一些關於微處理器 90 奈米計畫的里程碑，即明年我們預計可以開始生產多少比例的晶圓？我有一個後續問題。

We are going to let the market drive that part. That's going to be the continuation of how we exploit AMD 64 family of products. And, as I mentioned earlier, we expect to begin and as a matter of fact are running right now -- we call it engineered runs. We are very happy with where we are and expect to begin production starts by the middle of next year on 90-nanometer.

我們將讓市場來推動這一部分。這將是我們利用 AMD 64 系列產品的延續。而且，正如我之前提到的，我們期望開始並且實際上現在正在運行 - 我們稱之為工程運行。我們對目前的狀況非常滿意，並預計明年年中開始採用 90 奈米技術進行生產。

OK. And then for the sub-3-pound notebook category, when do you expect or anticipate having product for that? Would that come after the 90-nanometer transition?

好的。那麼對於重量低於 3 磅的筆記型電腦類別，您預期或預期何時會有此類產品？這會在 90 奈米轉變之後出現嗎？

For that segment, it requires 25-watt and below. We will have to be moving to 90-nanometer technology to provide a product based on the AMD 64 architecture.

對於該部分，需要 25 瓦及以下的功率。我們必須轉向 90 奈米技術才能提供基於 AMD 64 架構的產品。

So, that would be second half of '04 and later phenomenon?

那麼，那是 2004 年下半年及以後的現象嗎？

Correct.

正確的。

Thank you.

謝謝。

The next question comes from Adam Parker of Sanford Bernstein.

下一個問題來自桑福德伯恩斯坦公司的亞當帕克。

Can you tell me what the impact on the revenue from the National Semi acquisition was? Is that included in the hundred million you got in the competition product group growth?

您能告訴我收購 National Semi 對營收有何影響嗎？這包括在你們競爭產品組成長得到的一億裡面嗎？

No revenue in the current quarter. That will not be classified. That is the other category segment reported.

本季沒有收入。這不會保密。這是報告的另一個類別部分。

OK. Trying to ask an earlier question a different way. You recently guided to 180 million in Flash from JV. Did the actual revenue from the JV exceed that or original forecast accurate?

好的。嘗試以不同的方式提出先前的問題。您最近從 JV 獲得了 1.8 億美元的 Flash 投資。合資公司的實際收入是否超過了最初的預測或準確嗎？

It was within the zone.

它位於該區域內。

I'm sorry.

對不起。

It was within the zone.

它位於該區域內。

Within the zone, you said?

你說的是區域內嗎？

Yes, close to that number.

是的，接近這個數字。

OK, I was a bit surprised that your gross margins didn't improve more sequentially given the processor growth and comments about improved mix in pricing. Is this kind of given the processor growth and you kind of improve some pricing so trying to figure out just related to more cause from the JV's Flash business or can you just tell us what were the factors on the margin sequentially?

好的，考慮到處理器的增長和有關價格組合改善的評論，我有點驚訝您的毛利率沒有連續提高。這是否考慮到處理器的成長，而您提高了一些定價，因此試圖找出與合資公司的快閃記憶體業務相關的更多原因，或者您能否告訴我們利潤率的連續因素是什麼？

If you were listening before, both businesses, the cost characteristics are very different. The memory business and microprocessor business. Obviously by now we have effectively 50/50 between the business. Before we were two-thirds and one-third. So those are the dynamics that take place in the quarter and will take place in going forward as you model which business growing faster or slower.

如果您之前聽過的話，您會發現這兩家公司的成本特徵非常不同。內存業務和微處理器業務。顯然，現在我們的業務實際上已經達到 50/50 的比例。之前我們的比例是三分之二和三分之一。因此，這些是本季發生的動態，當您模擬哪些業務成長更快或更慢時，這些動態將在未來繼續發生。

Right. Bob, you guys recently said 180 in revenue from FASL. And if you assume the same call structure you eluded to looked like about $135 million in calls. It has a bit of drag, I think about 250 basis point drag on your margins. But if you look at the organic growth from the other businesses, it implies more margin expansion, just trying to match up those two thoughts. Can you help at all there?

正確的。鮑勃，你們最近說 FASL 的收入為 180%。如果你假設相同的呼叫結構，那麼你所避開的呼叫看起來大約是 1.35 億美元。它有一點阻力，我認為對你的利潤率有大約 250 個基點的阻力。但如果你看看其他業務的有機成長，它意味著更多的利潤擴張，只是試圖將這兩種想法相匹配。你能幫上什麼忙嗎？

No. Not at this point.

不。目前還不行。

All right. Thanks.

好的。謝謝。

The next question comes from Hans Mosesman of SoundviewTechnologies.

下一個問題來自 SoundviewTechnologies 的 Hans Mosesman。

Thank you. Microsoft apparently yesterday pushed out the introduction for Windows XP support for the AMD 64. What is the impact of that push-out if you can confirm it?

謝謝。微軟昨天推出了對 AMD 64 的 Windows XP 支援。如果您能確認的話，這種延遲會產生什麼影響？

First of all, there is no -- right now we are working with Microsoft very closely to continue to stay on track with their release of the software needed. I don't know if there is anything substantial to add beyond that.

首先，沒有——現在我們正在與微軟密切合作，以繼續按計劃發布所需的軟體。我不知道除此之外是否還有什麼實質的內容可以補充。

No, expect to date consumers and enterprise that are looking at AMD 64 platform and doing it because they want 32-bit performance today. It is well understood the operating system will be available later in 2004. Frankly, a delay of one or two months doesn't change the value proposition for the consumer and the enterprise.

不，期望消費者和企業關注 AMD 64 平台並這樣做，因為他們今天想要 32 位元效能。據悉，該作業系統將於 2004 年下半年上市。坦白說，一兩個月的延遲並不會改變消費者和企業的價值主張。

OK. And one follow-up. Can you comment on inventories that you see out there in the PC space in the channel?

好的。還有一個後續行動。您能評論一下您在 PC 頻道中看到的庫存嗎？

Did you mean inventories from -

您指的是以下庫存嗎？

Microprocessor point of view, yes.

從微處理器的角度來看，是的。

As Anre pointed out a bit earlier, we have been pleased with what we have managed that and we are happy with the current situation. We believe we call it stable. We have less than four weeks inventory in the channel. We are happy with that and intend to manage it tightly and keep it that way.

正如安雷之前指出的那樣，我們對所取得的成績感到滿意，對目前的狀況也感到滿意。我們相信我們稱之為穩定。我們在渠道中的庫存不足四周。我們對此感到高興，並打算嚴格管理並保持這種狀態。

Thank you.

謝謝。

The next question comes from Erik Rothdeutsch of FBR.

下一個問題來自 FBR 的 Erik Rothdeutsch。

Most of my questions have been answered. Just one question. Last quarter you had given guidance for the Flash memory revenue from FASL would be $180 million. Can you say how you do relative to the guidance for FASL flash sales?

我的大部分問題都已得到解答。只有一個問題。上個季度您曾預測 FASL 的快閃記憶體收入將達到 1.8 億美元。能否說說您相對於 FASL 閃購指導的做得如何？

The question was asked before. We -- that was relatively close.

這個問題之前已經有人問過了。我們——那是相對接近的。

Okay. Thank you.

好的。謝謝。

The next question comes from Michael McConnell of Pacific Crest Securities.

下一個問題來自 Pacific Crest Securities 的 Michael McConnell。

Yes, regarding the comments, which were helpful on the PC side for fourth quarter looking at industry unit growth attend of 10 to 15%. Could you just characterize, may be from industry outlook what you would expect on the Flash side, what is typical normal seasonality on the Flash side for fourth quarter?

是的，關於這些評論，這對 PC 方面很有幫助，因為第四季度行業單位成長率將達到 10% 至 15%。您能否從行業前景的角度描述一下您對 Flash 方面的預期，第四季度 Flash 方面的典型正常季節性是什麼？

Fourth quarter is traditionally very good quarter for cell phones. And as you know, the wireless space drives a lot of demand in NOR Flash market. We expect to see solid demand from that segment, probably double digit similar to what we expect on the PC side.

傳統上，第四季是手機產業表現非常好的季度。如您所知，無線領域推動了 NOR Flash 市場的大量需求。我們預計該領域的需求將會很強勁，可能達到兩位數，與 PC 領域的預期需求相似。

OK. Given your capacity you have currently, if we were to look at double-digit growth in PCs, even Flash, do you have enough capacity right now, do you feel looking through 2004 to meet the need of the market should it continue at this pace?

好的。考慮到您目前的產能，如果我們看一下個人電腦甚至快閃記憶體的兩位數成長，您現在是否有足夠的產能，您是否認為到 2004 年是否應該繼續以這種速度滿足市場需求？

I believe looking out into 2004, we are well positioned to address capacity and growth in the market that could occur. In the two angles for that on the microprocessor side is because of the migration in technology from 130 nanometer to 90-nanometer gives significant boost in our capability for next year, particularly in the second half. The same is true in Flash with a double-barrel there because one, we are aggressively moving to leading-edge technology in Flash. At the same time, as I mentioned earlier, we have underutilized leading-edge factory in Japan where we could expand capacity rapidly.

我相信展望2004年，我們已做好準備，以應對可能出現的市場容量和成長問題。從兩個角度來看，微處理器方面，由於技術從 130 奈米到 90 奈米的遷移，我們明年，特別是下半年的產能將會顯著提升。Flash 也是如此，因為首先，我們正在積極轉向 Flash 的尖端技術。同時，正如我之前提到的，我們在日本擁有未充分利用的尖端工廠，可以迅速擴大產能。

OK, thank you very much.

好的，非常感謝。

The next question comes from Tom Thornhill of UBS Warburg.

下一個問題來自瑞銀華寶的湯姆·索恩希爾。

Thank you. The microprocessor performance was outstanding, up 24%. Can you give us a little idea which was the larger driver there, units or ASPs? Or were units and ASPs both up about the same or one larger, more than the other?

謝謝。微處理器效能表現出色，成長了24%。您能否告訴我們，哪一個是更大的驅動因素，是單位數還是平均售價？或者單位數和平均售價都上漲了差不多，或者其中一個比另一個更大、更多？

You really want to know the granularity of that. I can tell you both contributed to revenue being up, growth in unit and growth in ASPs.

您確實想知道它的詳細程度。我可以告訴你們，你們都為收入成長、單位成長和平均售價成長做出了貢獻。

But, you are unable to disclose which was the larger contributor?

但是，您無法透露誰的貢獻更大？

That is correct.

沒錯。

Thank you.

謝謝。

The next question is from Chris Stanley (ph) of J.P. Morgan.

下一個問題來自摩根大通的克里斯·斯坦利（Chris Stanley）。

Thanks, guys. Most of my questions have been answered. Just a couple. Can you give us a sense of mobile versus desktop processors?

謝謝大家。我的大部分問題都已得到解答。只是一對。您能給我們介紹一下行動處理器和桌上型電腦處理器的差異嗎？

Could you repeat the question.

你能重複一下這個問題嗎？

Sure, if you could give us a sense of your mix of on mobile laptops versus and desktop processors? The percentage?

當然，您能否向我們介紹一下行動筆記型電腦和桌上型電腦處理器的組合情況？百分比是多少？

We normally don't do that. We have a healthy segment of our shipments in the mobile space and as I mentioned earlier, we did accomplish record shipments last quarter.

我們通常不會這麼做。我們的行動領域出貨量佔比很大，正如我之前提到的，上個季度我們的出貨量確實創下了紀錄。

: Sure. And then sounds like Flash business is tightening up. Do you guy have plans to raise pricing there?

： 當然。聽起來 Flash 業務正在收緊。你們有計劃提高那裡的價格嗎？

You know, we believe strongly that we are making a lot of very strong commitments with our customers and product plans that go beyond this quarter. We do not anticipate changing that philosophy.

您知道，我們堅信，我們對客戶做出了很多非常強大的承諾，並且產品計劃將超越本季度。我們並不打算改變這個理念。

You don't have plans to raise prices?

你們沒有漲價計畫嗎？

In this programs, we are already working with customers.

在這個專案中，我們已經與客戶合作了。

Okay. Thanks.

好的。謝謝。

Two more questions, please.

請問還有兩個問題。

Certainly. The next question comes from Mark Lipsis (ph) of Prudential Equity Group.

當然。下一個問題來自 Prudential Equity Group 的 Mark Lipsis (ph)。

Two questions. The first one is do you guys have some sort of long-term operating model you guys are targeting? The second one, you talked about inventory, the distributors, what do you think inventories look like at OEMs? Thanks.

兩個問題。第一個問題是，你們是否有某種長期營運模式作為目標？第二個問題，您談到了庫存，分銷商，您認為 OEM 的庫存情況如何？謝謝。

I'm not sure I know what the inventories look like at OEMs right now. Other than the evidence but maybe Henri can add more solid background. I just got back from Europe visiting a number of customers. All I can tell you they are seeing healthy growth and as a result, managing their inventories very tightly.

我不確定我是否知道現在 OEM 的庫存情況。除了證據之外，也許亨利還可以添加更可靠的背景。我剛從歐洲拜訪了一些客戶回來。我可以告訴你的是，他們正在看到健康的成長，因此，他們的庫存管理非常嚴格。

Just to clarify, most of the large OEM, we are on GIT models. So, we have very little inventory and from what we can tell there, they are experiencing strong demand for their systems. I would expect from an AMD perspective, our inventory is in the minimum.

需要澄清的是，大多數大型 OEM 都採用 GIT 模型。因此，我們的庫存很少，而且從我們所了解的情況來看，他們的系統需求旺盛。我預計從 AMD 的角度來看，我們的庫存處於最低水準。

As far as the operating models, our goal in life is to get return on capital. You kind of work backwards from that, I think as we stated before. That requires 18% operating income level. That is what we continue to drive to. They are slightly different cost structures, operating models between the two businesses. In general, we're racing to get back to where we were in 2000, which was 18% operating income level.

就營運模式而言，我們的人生目標是獲得資本回報。我認為，正如我們之前所說的那樣，你可以從那方面反向思考。這就要求18%的營業收入水準。這就是我們繼續努力的方向。兩家企業的成本結構和營運模式略有不同。總的來說，我們正在努力回到 2000 年的水平，即 18% 的營業收入水平。

Thanks.

謝謝。

We can take last question please.

我們可以回答最後一個問題。

The final question is from Kevin Roddinghouse (ph) of Midwest Research.

最後一個問題來自中西部研究中心的 Kevin Roddinghouse （音譯）。

Thanks for getting me in here. You mentioned a couple corporate wins here. Are you seeing a general broad-based corporate pick-up at all or were those kind of added on comments?

謝謝你讓我來這裡。您在這裡提到了幾項企業勝利。您是否看到了企業普遍的回升趨勢，還是這只是您添加的評論？

I think from our perspective, the acceptance of AMD products in the corporate space has been growing and increasing. We are seeing significant wins in Europe, Latin America and the United States. We expect that to continue. Now, that is a space we have not been as strongly a participant in the past and therefore, our growth in that space may not necessarily be reflective of significant growth in corporate spending.

我認為從我們的角度來看，AMD 產品在企業領域的接受度一直在不斷成長。我們在歐洲、拉丁美洲和美國看到了重大勝利。我們預計這種情況將會持續下去。現在，這是我們過去沒有那麼積極參與的領域，因此，我們在該領域的成長不一定反映企業支出的顯著成長。

OK. More market share gains than just a broad-based pick-up?

好的。市場佔有率的成長不僅僅是廣泛的回升嗎？

Correct.

正確的。

Another question. You mentioned a couple different Geodes there, any particular Geodes you are seeing strength?

另一個問題。您提到了幾個不同的 Geode，您認為哪個 Geode 具有強度？

I am sorry, I missed the question.

抱歉，我忽略了這個問題。

Any particular geographies that appear to be targeted at others?

是否有任何特定地區似乎針對其他地區？

This past quarter, across the board. We saw pick-up across all geographies. I couldn't pin one strongly over another one.

過去一個季度，情況全面如此。我們看到所有地區的經濟都在回升。我無法確定哪一個比另一個更突出。

Thank you.

謝謝。

I want to thank everyone for participating. Take care.

我要感謝大家的參與。小心。

Ladies and gentlemen, that does conclude the conference call for today. We thank you for your participation and ask that you please disconnect your line.

女士們、先生們，今天的電話會議到此結束。我們感謝您的參與，並請您斷開線路。