超微半導體 (AMD) 2003 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the AMD fourth quarter earnings announcement. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session. At that time, if you have a question, please press the 1 followed by the 4 on your telephone. As a reminder this conference call is being recorded Tuesday, January 20, 2004. I would now like to turn the conference call over to Mr. Mike Hasay, Director of Investor Relations. Please proceed sir.

女士們、先生們，謝謝大家的支持，歡迎收看 AMD 第四季財報公告。演示期間，所有參與者將處於僅聆聽模式。之後，我們將進行問答環節。屆時，如果您有任何疑問，請在電話上按 1，然後按 4。提醒一下，本次電話會議於 2004 年 1 月 20 日星期二錄製。現在，我想將電話會議交給投資者關係總監 Mike Hasay 先生。先生，請繼續。

Thank you very much. The format of the call today will include prepared comments followed by Q and A. The participants are Hector Ruiz, our President and CEO, Bob Rivet, our CFO, and Henri Richard our SVP of world-wide sales and marketing. This call is a live broadcast and will be replayed at AMD.com and StreetEvents.com the telephone number is 800 633-8284. Outside of the United States, the number is 402-977-9140. The access code for both is 21180211. The telephone replay will be available for the next ten days starting at 6:00 p.m. pacific time tonight.

非常感謝。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 Bob 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 AMD.com 和 StreetEvents.com 上重播，電話號碼為 800 633-8284。美國境外的電話號碼是 402-977-9140。兩者的存取代碼均為 21180211。電話重播將於未來十天下午 6 點開始提供。今晚太平洋時間。

Before we begin the call I would like to caution everyone that we will be making forward-looking statements about management's goals, plans, and expectations. As you know, the semiconductor industry is generally volatile. Our product and process technology development project 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 today, I encourage you to review our 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 third quarter Form 10-Q. With that, I would now like to introduce Hector De Ruiz, AMD's president and CEO.

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。眾所周知，半導體產業整體波動較大。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。由於我們的實際結果可能與我們今天的計劃和預期有重大差異，我鼓勵您查看我們向美國證券交易委員會提交的文件，我們在其中詳細討論了我們的風險因素和業務。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 表年度報告和第三季 10-Q 表。現在，我想介紹 AMD 總裁兼執行長 Hector De Ruiz。

Thank you Mike. And thank you everyone for joining us today. One year ago at this time, we were focused on some very fundamental changes in our operating model, changes which adjusted would position us for sustainable prosperity. I'm very pleased to report that this past quarter it's proved that we can deliver on the promise of prosperity. And it is my full intent, along with all the members of the AMD management team and everyone of 14,000 plus employees, to deliver on the sustainable part of promise as we go forward from here. I hope that you're beginning to see a pattern of delivering on our promises to our customers, to ourselves, and to our shareholders. We take that very seriously here and believe this past quarter is yet another in a series of quarters where we did everything we said we would do.

謝謝你，麥克。感謝大家今天的到來。一年前的這個時候，我們專注於對營運模式進行一些非常根本性的變革，這些變革將使我們實現可持續的繁榮。我很高興地報告，過去一個季度已經證明我們能夠兌現繁榮的承諾。我和 AMD 管理團隊的所有成員以及 14,000 多名員工都決心在未來的發展中兌現可持續發展的承諾。我希望你們開始看到我們履行對客戶、對我們自己、對股東的承諾的模式。我們對此非常重視，並相信過去的這個季度是我們一系列季度中又一個完成了我們所說的一切的季度。

Last quarter I introduced three characteristics that define what I called then, the new AMD. The winning strategy of customer-centric innovation, we're becoming a strategic enabler to our customers by focusing on what is most important to their success, continued world-class design and manufacturing performance, and a strong discipline of operational flexibility. The recent quarter is the continuation of our progress in success in each of these three areas. Our customer centric innovation strategy continues to bear fruit resulting in ever strengthening customer relationships and as a result solid top line growth in each of our core businesses. In our microprocessor business, we generated strong profits on solid execution and across our brands and geographies. We are very pleased with the continued strength of our AMD Athlon XP brand. It is truly the workhorse brand in our processor business and it continues to enjoy a strong success in each of our customers product segments.

上個季度，我介紹了當時我所說的「新 AMD」的三個特點。以客戶為中心的創新是成功的策略，我們透過專注於客戶成功最重要的因素、持續的世界一流的設計和製造性能以及強大的營運靈活性紀律，成為客戶的策略推動者。最近一個季度，我們在這三個領域繼續取得成功。我們以客戶為中心的創新策略持續取得成果，不斷加強客戶關係，並因此使我們的每項核心業務都實現了穩健的收入成長。在我們的微處理器業務中，我們憑藉穩健的執行以及跨品牌和跨地區的營運創造了豐厚的利潤。我們對 AMD Athlon XP 品牌的持續強勁發展感到非常高興。它是我們處理器業務中真正的主力品牌，並且在我們每個客戶的產品領域中繼續取得巨大成功。

Meanwhile, our AMD Athlon 64 product family continues to gain momentum, especially with our top tier 1 customers. In the past quarter alone best of systems, based on the AMD Athlon 64 processor, became available from a variety of customers, including H-P, Fujitsu Siemens, Fujitsu Packard-Bell, and E-machines. Our AMD Athlon 64 FX product continued to gain share with a sophisticated gaming audience for which it was targeted. We were honored that the Athlon 64 FX processor earned the reader's choice award from Tom's Hardware guide for best innovation in CPUs for 2003. Finally, our AMD Opteron family continues to make strong inroads with both top tier customers and their most important commercial accounts. For example, Fujitsu Siemens computers announced its sell to V 810 work station, the first dual-processor work station based on AMD Opteron processor 200 series. In addition, in November we were thrilled to announce a comprehensive strategic alliance with Sun microsystems. Sun is already shipping blade products based on our AMD Athlon XP mobile 1800 plus processor, and they are on track to ship two and four-way servers based on AMD Opteron in the first half of this year. Beyond this, Sun's solaris franchise and portfolio of enterprise software relationships bring additional momentum to the AMD Opteron success story. Our strong progress in the trade and the commercial sector continued, with important customer wins such as Daimler-Chrysler, Qualcomm, Perelli, and Bristol-Myers, Squibb, and others. We saw healthy sales growth in every geography, including record sales in Latin America and China. And in summary, our ASP trajectory continued upward, a reflection of a strong brand discipline and solid execution.

同時，我們的 AMD Athlon 64 產品系列繼續獲得發展勢頭，尤其是在我們的頂級一級客戶中。光是上個季度，基於 AMD Athlon 64 處理器的最佳系統就已從多家客戶處推出，其中包括 H-P、富士通西門子、富士通 Packard-Bell 和 E-machines。我們的 AMD Athlon 64 FX 產品繼續贏得高階遊戲玩家的青睞。我們非常榮幸 Athlon 64 FX 處理器榮獲 Tom's Hardware 指南頒發的 2003 年度最佳 CPU 創新讀者選擇獎。最後，我們的 AMD Opteron 系列繼續在頂級客戶及其最重要的商業帳戶中取得強勢進展。例如，富士通西門子電腦宣佈出售其V 810工作站，這是第一款基於AMD Opteron處理器200系列的雙處理器工作站。此外，11 月我們很高興地宣布與 Sun microsystems 建立全面的策略聯盟。Sun 已開始發售基於 AMD Athlon XP mobile 1800 plus 處理器的刀片產品，並且他們計劃在今年上半年發售基於 AMD Opteron 的雙路和四路伺服器。除此之外，Sun 的 Solaris 特許經營權和企業軟體關係組合為 AMD Opteron 的成功帶來了額外的動力。我們在貿易和商業領域繼續取得強勁進展，贏得了戴姆勒-克萊斯勒、高通、佩雷利、百時美施貴寶等重要客戶。我們在每個地區的銷售都實現了健康的成長，其中拉丁美洲和中國的銷售創下了歷史新高。總而言之，我們的平均售價軌跡持續上升，這反映了強大的品牌紀律和穩健的執行力。

In its second quarter of existence, our expansion flash memory brand has extended its marketshare leadership in NOR Flash memory. Overall, AMD flash sales continue to grow faster than the NOR market in both the embedded and wireless segments. And customer demand for more feature-rich product continues to drive average densities up, resulting in a richer product mix and higher ASPs. We continue to gain share in the consumer electronics sector, especially in emerging markets, a function of the strength of the theme that joined us from Fujitsu. And we expanded our existing leadership position in the wireless segment. Once again the fourth quarter produced record demand for our Mirror bit technology which continues to be the fastest growing part of our flash portfolio. All told, the fourth quarter was a record quarter for us in the flash business.

在推出的第二季度，我們的擴展快閃記憶體品牌擴大了其在 NOR 快閃記憶體領域的市場份額領先地位。整體而言，AMD 快閃記憶體銷售額在嵌入式和無線領域的成長速度持續快於 NOR 市場。客戶對功能更豐富的產品的需求繼續推動平均密度上升，從而帶來更豐富的產品組合和更高的平均售價。我們在消費電子領域的份額不斷增長，特別是在新興市場，這是富士通加入我們的主題實力的體現。我們擴大了在無線領域的現有領導地位。第四季度，我們的鏡像位技術的需求再次創下紀錄，該技術繼續成為我們快閃記憶體產品組合中成長最快的部分。總而言之，第四季是我們快閃記憶體業務創紀錄的一個季度。

As a reminder, only two quarters into the integration efforts the progress we have made is rather phenomenal and the fact that we came very close to making money in the quarter is proof of our great progress. Rounding out our portfolio the personal connectivity and solutions group experienced strong sales growth in the quarter. In fact, in its first full quarter AMD, our AMD Geode brand achieved near record sales, a testimonial to the strength of the AMD brand. Our customer centric innovation approach is working, as we continue to offer a superior alternative to the competition in those markets we choose to serve. In manufacturing, AMD continues to demonstrate world-class operating performance in each of our core businesses. In flash, we've successfully qualified 110-nanometer floating gate technology for production as we continue our aggressive transition to 110-nanometer in both our fab 25 in Austin, Texas, and JV 3 in Japan. This, coupled with the growing adoption of our MirrorBit technology will enable continued capacity growth to meet expanded customer demand. In processors, our manufacturing ramp on AMD 64 is progressing to plan. Yields are solid. And we are capable of meeting customer demand as it continues to scale across our entire AMD 64 family. We continue our steep ramp to 90-nanometer technology and remain on track for production wafer start in the first half of this year.

提醒一下，整合工作才進行了兩個季度，我們就取得了相當驚人的進展，而我們在本季度非常接近盈利的事實證明了我們取得了巨大的進步。個人連接和解決方案集團在本季度實現了強勁的銷售成長，完善了我們的產品組合。事實上，在 AMD 的第一個完整季度，我們的 AMD Geode 品牌實現了接近創紀錄的銷售額，證明了 AMD 品牌的實力。我們以客戶為中心的創新方法正在發揮作用，因為我們將繼續在我們選擇服務的市場中提供比競爭對手更優質的替代方案。在製造業，AMD 持續在每項核心業務中展現世界級的營運表現。在快閃記憶體方面，我們已成功將 110 奈米浮柵技術應用於生產，同時我們繼續在位於德克薩斯州奧斯汀的 25 號晶圓廠和日本的 3 號合資公司積極向 110 奈米過渡。再加上我們 MirrorBit 技術的日益普及，將使容量持續成長，以滿足不斷增長的客戶需求。在處理器方面，我們在 AMD 64 上的製造提升正在按計劃進行。收益穩定。隨著客戶需求在整個 AMD 64 系列中的不斷擴展，我們有能力滿足客戶的需求。我們將繼續大力推進 90 奈米技術，並預計在今年上半年開始生產晶圓。

Finally, as promised, AMD broke ground on a new 300-millimeter manufacturing facility, AMD fab 36, located in Dresden, Germany, and adjacent to our award winning AMD fab 30. AMD fab 36 is expected to be in volume production in 2006. While the fourth quarter was clear evidence of both strong top-line performance and solid manufacturing execution, we continued to drive the principles of operational flexibility across and throughout our organization. We're now the clear market share leader in NOR Flash worldwide, we're driving the industry to pervasive 64-bit computing and our immediate success with the AMD Geode family is the confirmation of the strength of the AMD brand. To summarize, we're seeing increased confidence among our growing portfolio customers about AMD and our growing leadership profile. And as Bob will report, the results today have been very promising. And at this point I would like to ask Bob to review our fourth quarter and year-end financial results in addition to the outlook.

最後，AMD 按照承諾，在德國德勒斯登動工建造了新的 300 毫米製造工廠，即 AMD 晶圓廠 36，該工廠毗鄰我們屢獲殊榮的 AMD 晶圓廠 30。AMD fab 36 預計 2006 年投入量產。雖然第四季明顯證明了強勁的營收表現和穩健的製造執行力，但我們仍繼續在整個組織內推動營運彈性的原則。我們目前是全球 NOR Flash 市場的絕對領導者，我們正在推動產業走向普及 64 位元運算，而我們在 AMD Geode 系列上取得的直接成功證明了 AMD 品牌的實力。總而言之，我們看到不斷成長的客戶對 AMD 和我們不斷提升的領導地位的信心不斷增強。正如鮑勃所報告的，今天的結果非常令人鼓舞。現在，除了展望之外，我還想請鮑伯回顧我們第四季和年終的財務表現。

Thanks, Hector. As detailed in our press release earlier this afternoon, our fourth quarter sales were $1.206 billion dollars, up 76% compared to last year's fourth quarter, and up 26% compared to third quarter of 2003. Top line growth was a reflection of increased demand in each of our major businesses across all geographic regions, highlighted by record sales in China and Latin America. The combination of our top line growth and our operational flexibility measures, resulted in a profitable fourth quarter. In the fourth quarter our net income was $43 million, or 12 cents per share, included in our fourth quarter results is the positive impact of $14 million or 3 cents per share due to an adjustment to the previously recorded restructuring charges and purchase accounting related to the FASL LLC transaction. Operating income was $46 million in the quarter, an improvement of $76 million from the third quarter. Gross margin was 35% for the quarter, up 1 percentage point compared to the third quarter. Fourth quarter gross margin dollars increased by almost $100 million which represents a 40% fall-through on the gross margin line. Research and development spending was $227 million for the quarter, up 6% from the prior quarter. A large portion of the sequential growth was driven by initial fab 36 costs and integrating the new Geode engineering team. Marketing, general, and administrative spending was $162 million for the quarter, up 8% compared to the third quarter, in line with seasonal merchandising activities. We generated $389 million of positive cash flow from operations this quarter, the second quarter in a row we generated positive free cash flow. We grew EBITDA in the quarter to $358 million at 29% improvement over our third quarter performance.

謝謝，赫克托。正如我們今天下午早些時候的新聞稿中所述，我們第四季度的銷售額為 12.06 億美元，比去年第四季度增長 76%，比 2003 年第三季度增長 26%。營業收入的成長反映了我們各個地理區域各主要業務需求的成長，其中中國和拉丁美洲的銷售額創下了歷史新高。我們的營業收入成長和營運靈活性措施相結合，帶來了第四季度的獲利。第四季我們的淨收入為 4,300 萬美元，即每股 12 美分，其中包括對先前記錄的重組費用和與 FASL LLC 交易相關的購買會計進行調整而產生的 1,400 萬美元或每股 3 美分的正面影響。本季營業收入為 4,600 萬美元，較第三季增加 7,600 萬美元。本季毛利率為35%，較第三季上升1個百分點。第四季毛利率增加了近 1 億美元，這意味著毛利率下降了 40%。本季研發支出為 2.27 億美元，較上一季成長 6%。連續成長的很大一部分是由 36 號晶圓廠的初始成本以及新 Geode 工程團隊的整合所推動的。本季行銷、一般和行政支出為 1.62 億美元，比第三季成長 8%，與季節性商品銷售活動一致。本季度，我們的經營活動產生了 3.89 億美元的正現金流，這是我們連續第二季產生正自由現金流。本季我們的 EBITDA 成長至 3.58 億美元，較第三季的業績成長 29%。

Now I'll switch to the business overview for the quarter. First I'll start with computation product groups, or CPG. Fourth quarter sales on CPG were $581 million a 38% increase over the same period a year ago and a 15% increase over the third quarter. Increased sales were due to solid penetration with our largest OEM customers in the commercial market, and an improved product mix. We shipped more units and improved our ASP's significantly compared to the third quarter. As a result, the CPG business unit improved its profitability in the quarter and made $62 million of operating income. Profit fall-through on incremental sales was excellent at 56%.

現在我將轉到本季度的業務概覽。首先，我將從計算產品組（CPG）開始。第四季 CPG 銷售額為 5.81 億美元，比去年同期成長 38%，比第三季成長 15%。銷售額的成長得益於我們最大的 OEM 客戶在商業市場的穩固滲透，以及產品組合的改善。與第三季相比，我們的出貨量有所增加，平均銷售價格也顯著提高。因此，CPG業務部門本季獲利能力有所提高，營業收入達6,200萬美元。增量銷售額的利潤下降率高達 56%，表現十分優異。

Now moving on to our memory group. In the fourth quarter, memory sales grew to $566 million, up 161% compared to fourth quarter of 2002, and 34% over the third quarter. In an overall strong market this performance was primarily driven by denser mix, stronger M C P sales, and accelerating MirrorBit sales. MirrorBit sales continue to be a larger percentage of our flash memory business. Total unit shipments increased by approximately 16% and average density increased by approximately 19% compared to the third quarter. The memory group recorded a small operating loss of $3 million in the quarter, a reflection of solid progress in rapidly integrating Fujitsu and AMD original flash business'. This represents a $46 million bottom line improvement over the third quarter on $142 million of incremental sales, or a 32% fall-through. We have seen some progress on cost reductions in the quarter but offsetting these gains are ramping factory costs to increase output, a higher percentage of M C P sales, and end-cost increases due to weakening dollar. We anticipate improved margin expansion and as we capture the cost synergies we outlined previously, and move to the next technology node in each of our flash factories. Turning to the balance sheet, a few highlights. Cash balance has ended the fourth quarter at $1.313 billion, up $237 million from last quarter. Capital expenditures were $164 million in the fourth quarter compared to $138 million in the third quarter.

現在進入我們的記憶小組。第四季度，記憶體銷售額成長至5.66億美元，比2002年第四季成長161%，比第三季成長34%。在整體強勁的市場中，這一表現主要得益於更密集的產品組合、更強勁的 M C P 銷售以及加速的 MirrorBit 銷售。MirrorBit 銷售額在我們的快閃記憶體業務中持續佔據較大份額。與第三季相比，總單位出貨量增加了約16%，平均密度增加了約19%。記憶體集團本季錄得300萬美元的小幅營業虧損，反映出富士通與AMD原廠快閃記憶體業務的快速整合取得了紮實進展。這意味著，在第三季 1.42 億美元的增量銷售額基礎上，淨利潤成長了 4,600 萬美元，降幅為 32%。我們看到本季在成本削減方面取得了一些進展，但抵消這些收益的是工廠成本的提高以增加產量、M C P 銷售比例的提高以及由於美元疲軟導致的最終成本增加。我們預計利潤率將會提高，並且隨著我們獲得先前概述的成本協同效應，並轉向每個快閃記憶體工廠的下一個技術節點。回顧資產負債表，有幾點亮點。第四季末現金餘額為 13.13 億美元，較上一季增加 2.37 億美元。第四季資本支出為 1.64 億美元，而第三季為 1.38 億美元。

Now I'd like to summarize a few comments about the year 2003. For the fiscal year 2003, AMD sales were $3.5 billion, up 30% from 2002. Annual sales for CPG were $1.96 billion up 12% from 2002. Flash memory sales concluded 2003 at $1.42 billion, up 92% from 2002. AMD's operating loss for the year was narrowed to $233 million, roughly a billion dollar improvement from last year, and we made money in the second half of 2003. In CPG we narrowed our operating loss to $23 million for the year and in flash memory we lost $190 million for the year. This was great progress in both businesses, particularly in the second half of 2003. Cash flow from operation was positive for the year at $296 million. For the year EBITDA was $814 million positive, a $1.3 billion improvement from the prior year. Capital expenditures for 2003 were $586 million, under our guidance, and 17% less than 2002 capital expenditures of $705 million.

現在我想總結一下對2003年的幾點評論。2003財年，AMD的銷售額為35億美元，比2002年成長了30%。CPG 的年銷售額為 19.6 億美元，比 2002 年成長 12%。2003 年快閃記憶體銷售額達到 14.2 億美元，比 2002 年成長 92%。AMD 全年的營運虧損縮小至 2.33 億美元，比去年減少了約 10 億美元，我們在 2003 年下半年實現了盈利。在 CPG 領域，我們將全年營運虧損縮減至 2,300 萬美元，而在快閃記憶體領域，我們全年營運虧損為 1.9 億美元。這對兩個業務來說都是巨大的進步，特別是在 2003 年下半年。全年經營現金流為正，達 2.96 億美元。全年 EBITDA 為正 8.14 億美元，較前一年增加 13 億美元。在我們的指導下，2003 年的資本支出為 5.86 億美元，比 2002 年的 7.05 億美元資本支出減少了 17%。

Now I'd like to discuss the outlook. AMD's current outlook for the first quarter 2004 is based on the following projections. In our flash memory business, notwithstanding typical seasonal patterns AMD expects sales to be approximately flat for the quarter due to the company's strong position in the market. For the processor business, AMD expects to be in the range of industry seasonal patterns. In aggregate, AMD believes the seasonal patterns are expected to prevail and aggregate sales to be down slightly. For your modeling, please consider the following: In the fourth quarter approximately 55 million shares were included in our diluted share calculation to reflect the shares from our $403 million convertible debt offering assuming conversion. At a tax rate of 0, quarterly earnings of 9 cents per share would trigger the inclusion of these shares. Similarly, at a tax rate of 0, the 21 million shares from our $500 million convertible debt would be included when our quarterly earnings reach or exceed 29 cents per share. Our quarterly tax rate is anticipated to be within the 0 to 10% range throughout 2004.

現在我想討論一下前景。AMD 對 2004 年第一季的當前展望是基於以下預測。在我們的快閃記憶體業務中，儘管存在典型的季節性模式，但由於公司在市場上的強勢地位，AMD 預計本季的銷售額將基本持平。對於處理器業務，AMD 預計將處於行業季節性模式範圍內。總體而言，AMD 認為季節性模式預計將占主導地位，總銷售額將略有下降。對於您的建模，請考慮以下幾點：在第四季度，我們的稀釋股份計算中包含了約 5500 萬股，以反映我們假設轉換的 4.03 億美元可轉換債券發行中的股份。在稅率為 0 的情況下，每股 9 美分的季度收益將觸發這些股票的納入。類似地，在稅率為 0 的情況下，當我們的季度收益達到或超過每股 29 美分時，我們 5 億美元可轉換債務中的 2100 萬股股票將被包括在內。預計 2004 年全年季度稅率將在 0% 至 10% 範圍內。

In 2004 capital expenditures are expected to be around $1.5 billion, including fab 36 building construction and some equipment purchases, equipment purchases for the completion of our flash JV 3 factory in Japan, and the equipment to complete fab 30's transition to 90-nanometer. 2004 depreciation and amortization is expected to be approximately $1.2 billion for the year. In 2003 we delivered on our promises. We continued to tightly manage our cost, launch two major products, fully integrated FASL into our operations, grew revenue, and improved our cash position. Moving forward, we believe we are well positioned for 2004 across all business lines with strong product offerings and a sound financial platform from which to continue to execute. And in 2004 we anticipate being profitable for the year. With that, I'll turn it back over to Hector.

2004年的資本支出預計約為15億美元，包括晶圓廠36號廠房的建設和一些設備的採購、為完成我們在日本的閃存合資公司3號工廠而採購的設備以及為完成晶圓廠30號工廠向90納米過渡而採購的設備。 2004 年折舊和攤提預計約 12 億美元。2003年我們兌現了承諾。我們繼續嚴格管理成本，推出兩款主要產品，將 FASL 完全整合到我們的營運中，增加收入，並改善我們的現金狀況。展望未來，我們相信，憑藉強大的產品供應和健全的財務平台，我們在 2004 年所有業務線上都已做好充分準備，可以繼續開展業務。我們預計 2004 年將實現盈利。說完這些，我就把麥克風交還給赫克托。

Thank you, Bob. As I mentioned earlier, the fourth quarter is a solid demonstration of our capability as a new company. Our processor business generated a strong profit based on solid ASP growth, the result of great products, manufacturing excellence, and an improved brand discipline. Our AMD Athlon 64 and AMD Opteron products continue to attract an expanding list of impressive OEMs, starting with IBM, H-P, Fujitsu, Fujitsu Siemens, and now Sun Microsystems. From high performance computers to enterprise to consumer we are leading the industry to a future of pervasive 64-bit computing. And our path to that 64-bit future remains clear. In an environment that is only becoming increasingly muddy, our performance with expansion brand is just as impressive. Achieving the leadership position in less than 90 days, while driving integration efficiencies across our worldwide organization. We are gaining share in both the wireless sector, the key driver of high-density demand, and the embedded sector where our MirrorBit technology is particularly well positioned for success. MirrorBit technology continues to earn acceptance as the next-generation industry standard. Our rapid success with the AMD Geode brand both confirms the strength and stability of AMD as the strategic silicone supplier and validates our strategy to drive the X 86 architecture into new market segments as we move toward empowering a new generation of tech-capable consumers in emerging markets.

謝謝你，鮑伯。正如我之前提到的，第四季充分證明了我們作為一家新公司的實力。我們的處理器業務憑藉穩健的平均售價成長、優質的產品、卓越的製造和完善的品牌紀律創造了強勁的利潤。我們的 AMD Athlon 64 和 AMD Opteron 產品繼續吸引越來越多的知名 OEM，首先是 IBM、H-P、富士通、富士通西門子，現在還有 Sun Microsystems。從高效能電腦到企業再到消費者，我們正在引領業界走向普及 64 位元運算的未來。我們通往 64 位未來的道路依然清晰。在日益混亂的環境中，我們擴張品牌的表現也同樣令人印象深刻。在不到 90 天的時間內取得領導地位，同時推動整個全球組織的整合效率。我們在無線領域（高密度需求的主要驅動力）和嵌入式領域的份額都在不斷增加，在嵌入式領域，我們的 MirrorBit 技術特別適合取得成功。MirrorBit 技術持續獲得認可，成為下一代業界標準。AMD Geode 品牌的快速成功不僅證明了 AMD 作為策略性矽片供應商的實力和穩定性，也驗證了我們將 X 86 架構推向新市場領域的策略，即在新興市場中為新一代具有技術能力的消費者提供支援。

Looking forward, we are increasingly confident in our capacity to succeed. Our customer base continues to expand and improve in all our businesses. And a growing set of customers feels that the strategic contributor to their success. We entered this new year with the strongest product portfolio in our history and the world-class manufacturing prowess to produce them in volume. We have our cost structures moving in the direction we want them, and the capacity to leverage even more synergies from our flash business. We continue to add very high quality talent to our ranks around the globe. We know that our vision and leadership will be confirmed and in some cases copied by our competitors, but even if they copy us, our customer centric innovation approach will produce a strong customer bond and the insight to lead new ways of opportunity. We joint the SIA, the WSPS, and the growing number of industry leaders in expressing our optimism for the coming year, and for us the opportunities are clear. We must establish MirrorBit as the new technology standard in flash memory. We must establish the strong footprint in the enterprise with AMD 64, and we must empower new technology users in emerging markets. As I have said before, we are a new AMD, and we're very proud of the progress we have made and of the leadership opportunities that we have created with and for our customer.

展望未來，我們對自己取得成功的能力越來越有信心。我們的客戶群在我們所有業務領域中不斷擴大和改善。越來越多的客戶認為這是他們成功的策略貢獻者。我們以歷史上最強大的產品組合和世界一流的製造實力進入了新的一年，實現了大量生產。我們的成本結構正朝著我們期望的方向發展，並且有能力從快閃記憶體業務中發揮更多的協同效應。我們持續在全球招募高素質人才。我們知道，我們的願景和領導力將會得到競爭對手的證實，在某些情況下甚至會被他們抄襲，但即使他們抄襲我們，我們以客戶為中心的創新方法也將產生強大的客戶紐帶和引領新機遇的洞察力。我們與 SIA、WSPS 以及越來越多的行業領袖一起表達了對來年的樂觀態度，對我們來說，機會是顯而易見的。我們必須將MirrorBit確立為快閃記憶體的新技術標準。我們必須利用 AMD 64 在企業中建立強大的影響力，並且必須為新興市場的新技術用戶提供支援。正如我之前所說，我們是一個新的 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。

Before I close, I would like to once again thank the thousands of AMD employees for all the hard work to get us back to profitability in this past quarter. We entered the new year poised and ready to deliver on the promise of sustainable prosperity for our customers, our shareholders, and ourselves. Thank you for your attention, and now I would like to turn it back to Mike for the Q and A.

最後，我要再次感謝數千名 AMD 員工的辛勤工作，讓我們在上個季度恢復獲利。新的一年，我們蓄勢待發，準備兌現對客戶、股東和我們自己實現永續繁榮的承諾。感謝您的關注，現在我想把時間交還給麥克進行問答。

Operator, let's get started with the Q and A.

接線員，我們開始問答。

Thank you. Ladies and gentlemen, if you'd like to register for a question please 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 would like to withdraw your registration, please press the 1 followed by the 3. If you are using a speakerphone please lift your handset before entering your request. One moment please, for our first question. Our first question comes from the line of Michael Matibia from CSFB. Please proceed.

謝謝。女士們、先生們，如果您想註冊提問，請在電話上按 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，並且您想要撤銷註冊，請按 1，然後按 3。如果您使用揚聲器，請在輸入請求之前拿起聽筒。請稍等片刻，回答我們的第一個問題。我們的第一個問題來自瑞士信貸第一波士頓銀行的 Michael Matibia。請繼續。

Thanks a lot. Great job on the execution again guys. Congratulation. The first question really is on the wireless side. It sounds like if I read your comments correctly, that you're acknowledging a seasonal wireless quarter but your guiding for flat. If that's a correct interpretation can you give us more color if that's more share gain or ASP's or what?

多謝。大家再次出色地完成了任務。恭喜。第一個問題其實是關於無線方面的。如果我沒看錯的話，您的評論似乎表明您承認無線季度存在季節性，但您的預期是持平。如果這是正確的解釋，您能否告訴我們更多的細節，即更多的份額增長、平均銷售價格還是其他什麼？

I'm going to ask Andre to comment on this a little bit from the customer perspective, but the market in general being very consumer heavily oriented and the fourth quarter being a very strong seasonal consumer market and wireless handsets being an incredibly strong consumer product, it is the expectation of the industry as a whole that the first quarter will experience downward movement in that particular activity, nothing out of the ordinary, just the traditional first quarter has changed. As for any specific market segments or comment, Henri, would you?

我將請安德烈從客戶的角度對此發表一些評論，但總體而言，市場非常注重消費者，第四季度是一個非常強勁的季節性消費市場，無線手機是一種非常強勁的消費產品，整個行業的預期是，第一季度這一特定活動將出現下滑趨勢，這沒有什麼不尋常的，只是傳統的第一季度發生了變化。至於任何特定的細分市場或評論，亨利，你會嗎？

Thank you, yes Michael. I believe that we will continue the trend that we set in Q3 and Q4. It's not particularly new customers just an increased share in existing customer, increase of the ASP and mix.

謝謝，是的，麥可。我相信我們將延續第三季和第四季所創下的趨勢。這並不是特別的新客戶，只是現有客戶份額的增加、ASP 和組合的增加。

Great. And then Bob, maybe a follow-up. Certainly a little bit less profitability in that segment. Should we expect profits to come down a little bit as you grow your wireless next quarter and PC's are down, or are you doing more on the cost structure side there?

偉大的。然後鮑勃，也許還有後續問題。該領域的盈利能力肯定會稍微低一些。隨著下個季度無線業務的成長和個人電腦業務的下滑，我們是否應該預期利潤會略有下降，或者您是否在成本結構方面做了更多工作？

No, we should continue to have in flash, again to remind you, it's only been 180 days since we actually integrated these business. We focused on delighting the customer and sales capture. We're working on cost reductions as we speak and cost synergies so you will see margin expansion as we move forward, on the same sales level.

不，我們應該繼續保持這種狀態，再次提醒您，我們實際整合這些業務才 180 天。我們專注於取悅客戶和提高銷售量。我們正在努力降低成本並實現成本協同效應，因此，隨著我們繼續前進，在相同的銷售水平上，您會看到利潤率的擴大。

Great. Last question for me really on the capacity side. Do you guys--do you try to pull into capacity, do you feel like you need to because of some bottlenecks in it, if so, given the lead times seem to be stretching out are you having any problems to grow capacity?

偉大的。對我來說最後一個問題實際上是關於容量方面的。你們是否嘗試過擴大產能，是否覺得由於存在一些瓶頸而需要這樣做，如果是這樣，考慮到交貨時間似乎在延長，您是否在擴大產能方面遇到了任何問題？

We have -- we've started executing on capacity on leading edge technology for flash back in last summer, and the customers alerted us that this was a need coming up and I think we executed that well. As a matter of fact, today we're meeting customer demands, on MirrorBit, on high density, high performance, flash product. However, if I take us back to the third quarter of last year, frankly you know, on the lower density older factories, older technologies, we actually shut down our factories for a couple of weeks in the third quarter last year due to an unanticipated slowdown in those particular segments. Not long after we came back from the shutdown we started experiencing an upside by customers in their expectations, and since then, being in the approximately the August time frame until now, that demand has increased dramatically. So the places where we are experiencing very tight demand, it's actually in the lower products, lower density, and we are rapidly trying to move as much of the more newer product to the newer factory so we can make space in the older factory to increase that capacity. We think that that tightness in the low end of the spectrum will probably last us through the second quarter.

我們從去年夏天就開始執行閃回尖端技術的容量，客戶提醒我們這是一個即將出現的需求，我認為我們執行得很好。事實上，今天我們正在滿足客戶對 MirrorBit 、高密度、高效能快閃記憶體產品的需求。然而，如果我回顧去年第三季度，坦白說，在密度較低的老工廠、舊技術方面，由於這些特定領域的意外放緩，我們實際上在去年第三季度關閉了工廠幾週。在我們恢復營運後不久，我們就開始感受到客戶的期望值有所上升，從那時起，大約從 8 月到現在，需求急劇增加。因此，我們面臨非常緊張的需求的地方實際上是產品數量較少、密度較低的地方，我們正迅速嘗試將盡可能多的新產品轉移到新工廠，以便我們可以在舊工廠騰出空間來增加產能。我們認為，低端市場的緊張局面可能會持續到第二季​​。

Thanks a lot, guys.

非常感謝大家。

Our next question comes from the line of Andrew Root from Goldman Sachs. Please proceed with your question.

我們的下一個問題來自高盛的安德魯·魯特。請繼續您的問題。

Yes. Thanks a lot. Quick question on the 90-nanometer ramp. If you could talk a little bit about how that will dictate whether you can stay on the very strong operating leverage that you've shown in microprocessors, and I know that you'r scheduled for Q2 production wafer starts and I would assume early Q3 shipments, but is there a critical time during the quarter, are there signs that give you confidence that this ramps going normally, others, not just the microprocessors but in other logic segments have had significant delays in 90-nanometer. I'm just curious if you think you're free of most of the issues that they've faced.

是的。多謝。關於 90 奈米坡道的快速問題。如果您可以稍微談一下這將如何決定您是否能夠保持在微處理器領域展現出的非常強勁的運營槓桿，我知道您計劃在第二季度開始生產晶圓，我預計第三季度初就會出貨，但本季度是否存在關鍵時刻，是否有跡象讓您有信心這一增長將正常進行，其他方面，不僅僅是微處理器，而且其他邏輯領域在 90 奈米方面也出現了重大增長將正常進行，其他方面，不僅僅是微處理器，而且其他邏輯領域在 90 奈米方面也出現了重大增長將正常進行。我只是好奇，您是否認為自己已經擺脫了他們所面臨的大多數問題。

This is an incredibly difficult technology and challenging and we're very fortunate to be partnering with a company that I believe is the premier leader in technology, meaning IBM, with working collaboratively with them we increase our confidence in 90-nanometers even though the alliance with IBM really is only effectively starts at the 65-nanometer note, but because of that relationship we both have really been able to talk a lot of tough issues, and I am very happy, very pleased, and thrilled with the progress that our teams have made in our 90-nanometer implementation. The results in our engineering work is very promising, encouraging, and we're very, very bullish and optimistic about what that will do for our business.

這是一項極其困難且極具挑戰性的技術，我們非常幸運能夠與一家我認為是技術領域領先者的公司合作，也就是 IBM，通過與他們的合作，我們增強了對 90 奈米的信心，儘管與 IBM 的聯盟實際上只是從 65 奈米開始，但正是由於這種關係，我們雙方才能夠真正討論很多滿意的問題，我對我們感到非常棘手的問題，我對我們在 90 方面的進展非常滿意。我們的工程工作成果非常令人鼓舞，我們對它對我們的業務的影響非常非常樂觀和樂觀。

Is there a time you'd have to decide to go to production wafers or to go to another tape-out, another rap of the product? I know some of your competitors have had to go to three or four tape-outs in the 90-nanometer product.

您是否需要決定是否要進行生產晶圓或進行另一次流片、另一次產品測試？我知道你們的一些競爭對手在 90 奈米產品上已經進行了三到四次流片。

Well, you know, again, I cannot he future is tough to predict but I can tell you our plan right now is based on always having to do some tweaking on product and taking that into account, and that is also factoring into the expectation the shipments of product will occur in the third quarter.

嗯，你知道，我無法預測未來，但我可以告訴你，我們現在的計劃是基於對產品進行一些調整，並考慮到這一點，這也是對第三季產品出貨量的預期。

And then, Bob, just the second part of that, if 90-nanometer ramps on time, 50 to 60% incremental operating leverage is what we should look for in M P U's, or does that change at all?

然後，鮑勃，第二部分，如果 90 奈米技術按時投入使用，我們應該在 M P U 中尋找 50% 到 60% 的增量營運槓桿，或者這種情況會有所改變嗎？

No, that actually would enhance the situation from today's level but obviously as we ramp AMD 64, that currently is a bigger die than the existing Athlon XP, so we need to do that to maintain that 50 to 70% incremental fall-through.

不，這實際上會使情況從今天的水平得到改善，但顯然隨著我們增加 AMD 64，它目前的晶片比現有的 Athlon XP 更大，所以我們需要這樣做來維持 50% 到 70% 的增量下降。

Thanks a lot.

多謝。

Our next question comes from the line of Tom Thornhill from UBS. Please proceed with your question.

我們的下一個問題來自瑞銀的湯姆‧索恩希爾 (Tom Thornhill)。請繼續您的問題。

On the processor side can you comment at all on unit growth or ASP trends in the quarter?

在處理器方面，您能否評論一下本季的單位成長或 ASP 趨勢？

Tom this is Henri, we experienced both unit growth and ASP growth on the trajectory that we had set in Q3.

湯姆，我是亨利，我們在第三季度按照設定的軌跡實現了單位成長和平均售價成長。

Okay. And were -- would ASPs have been up even without shipments of the Athlon 64?

好的。而且——即使沒有 Athlon 64 的出貨，ASP 也會上漲嗎？

Absolutely. On the strength of our Athlon XP brand in the fourth quarter we increased ASP on all product segments.

絕對地。憑藉 Athlon XP 品牌的強勁表現，我們在第四季度提高了所有產品領域的平均售價。

Excellent. Another question that's probably more accounting than anything else, if I look at the minority interest number, $19.4 million, that's 40% of the loss, about $48 million or so from the flash side, how do I reconcile that with the $3 million operating loss number? How do I get from one to the other?

出色的。另一個問題可能比其他任何問題都更具會計意義，如果我看一下少數股東權益數字，1940 萬美元，即損失的 40%，閃存方面約為 4800 萬美元，我該如何將其與 300 萬美元的營運虧損數字相協調？我怎樣才能從一個地方到達另一個地方？

Well, it's a little hard. The business model is a fairly complex one. Again, you have to remember the FASL business operates as the manufacture selling to the two parents of the distributor, that equates a margin back to the parents. Obviously we're one of the parents, so that's the piece of the equation you're missing, plus other technology associated cost transfer between the two organization, so it is a little more complex, I think off line we can kind of help with you your modeling, because you can't just divide and come up with the answer.

嗯，有點難。該商業模式相當複雜。再次強調，您必須記住，FASL 業務的運作方式是製造商向分銷商的兩個母公司銷售產品，這就等於向母公司返還利潤。顯然，我們是家長之一，所以這是您缺少的等式的一部分，再加上兩個組織之間的其他技術相關成本轉移，所以它有點複雜，我認為我們可以離線幫助您進行建模，因為您不能只是除以答案。

Yes, I found that out. Question on incremental margin. Incremental margin on the processor side fall-through 56% of the operating line, excellent, a little less than I would have anticipated given the revenue growth on the flash side. What is the prospect of improving that incremental fall-through and what is the a appropriate range that we should be targeting over the next couple of quarters for incremental margin in that business?

是的，我發現了。關於增量保證金的問題。處理器方面的增量利潤下降了營業線的 56%，非常好，但比我考慮到閃存方面的收入增長而預期的要少一點。改善這種增量下降的前景如何？在接下來的幾個季度中，我們應該將該業務的增量利潤率設定在一個合適的範圍？

A couple of things, and let me do product technology, then Bob will make a comment on the impact of that, and that is when we went live as a new organization with a combination of Fujitsu and AMD in July 1st of last year our emphasis as Bob very correctly pointed out was to make sure we met customer demand, that no customers were affected in the transition, and all our energy was that the merging of these organizations with the serving customers was uppermost in our minds. Shortly after that we've been looking at the synergies which we just have begun to identify. The synergies come in two places. One is the cost efficiency of two organizations that allows you to eliminate some levels of redundancy. That's beginning to occur and we think we're going to experience that even more fully in the next quarter. The other part which I believe is the most significant is that both organizations are now aggressively driving the technology changes, moving to 110-nanometers in our factory and beyond 90-nanometers soon there after. Those things are, when you project them out, bringing about a tremendous opportunity for leverage in -- as revenue growth. Bob Rivet, would you like to answer?

有幾件事，讓我來談談產品技術，然後鮑勃會對其影響發表評論，那就是當我們在去年 7 月 1 日作為富士通和 AMD 合併的新組織上線時，正如鮑勃非常正確指出的那樣，我們的重點是確保我們滿足客戶需求，確保在過渡期間不會影響任何客戶，我們所有的精力都集中在這些組織與服務客戶的合併問題上，這是我們最關心的問題。此後不久，我們就開始研究剛開始發現的協同效應。協同效應體現在兩個方面。一是兩個組織的成本效率可以讓你消除一定程度的冗餘。這種現像已經開始出現，我們認為下一季我們將會更充分地體驗到這種現象。我認為另一點也是最重要的一點是，這兩個組織現在都在積極推動技術變革，我們的工廠將轉向 110 奈米技術，不久之後將超越 90 奈米技術。當你將這些事情投射出去時，它們將帶來巨大的槓桿機會——也就是收入成長。鮑伯·裡維特，你願意回答嗎？

Yeah, to your ultimate question on how much should we model for incremental fall-through, Hector's really laid out the groundwork here. As we move through time it will take us a little bit of time to reach these cost synergies, to get to the next technology node, while we also ramp capacity as you probably -- if you heard, we're actually ramping JV 3, filling out the rest of that factory. There are some cost increases taking place, but bottom line is there's no reason this business shouldn't be delivering 50 cents plus on the dollar of incremental profits as we work through the synergies and the right technology nodes.

是的，對於你最終提出的問題，即我們應該為增量式下降建模多少，赫克托確實在這裡奠定了基礎。隨著時間的推移，我們需要一點時間來實現這些成本協同效應，進入下一個技術節點，同時我們也會提高產能——如果你聽說過的話，我們實際上正在提高 JV 3 的產能，填補該工廠的剩餘產能。雖然成本確實有所增加，但歸根結底，當我們透過協同效應和正確的技術節點開展工作時，這項業務沒有理由不帶來 50 美分以上的增量利潤。

So maybe by the second half?

那麼可能是下半場？

I'd say that might be a little too far out, but I'd say not first quarter, second quarter you'll see some, third quarter. I think you'll see continued progress each quarter.

我想說這可能有點太遙遠了，但我想說不是第一季度，而是第二季、第三季。我認為你會看到每個季度的持續進步。

Thank you.

謝謝。

Our next question comes from the line of Michael McConnell from Pacific Crest Securities. Please proceed with your question.

我們的下一個問題來自 Pacific Crest Securities 的 Michael McConnell。請繼續您的問題。

Thank you. Regarding the launch or the ramp of Athlon 64 looks like we're coming up on -- you guys reducing the cash size by roughly in half to reduce the die size. Do you plan on any other die size reductions as we get closer to the 90-nanometer version?

謝謝。關於 Athlon 64 的推出或提升，看起來我們正在著手——你們將現金規模減少大約一半，以縮小晶片尺寸。隨著我們越來越接近 90 奈米版本，您是否計劃進一步縮小晶片尺寸？

At this point in time we don't have any product plans to announce right now

目前我們沒有任何產品計劃可以宣布

Okay. On the flash side, I was wondering just the competitive dynamics right now in terms of pricing, if you could give us an update on the high end as well as the low end regarding flash. Thank you.

好的。在快閃記憶體方面，我想知道目前定價方面的競爭動態，您是否可以向我們提供有關快閃記憶體高端和低端的最新資訊。謝謝。

On the high end, both for Floating Gate as well as MirrorBit, we have experienced beginning in the last quarter stabilization of pricing, and when it comes to new opportunities and new customers, we are following the demand supply equation and appropriately getting compensated for that. On the older technology, it's frankly still very competitive. There are a lot of players around that scrambling for survival, I would say, and frankly that is -- continues to be a very competitive space. All in all, though, I expect flash products to continue to experience tremendous competition. We are planning and preparing to have what you would expect on a memory type of product, degredation of pricing and as a result, accompanying the appropriate cost reductions to ensure that we're more than just competitive. Henri is there anything you need to add on the pricing side?

在高端，無論是 Floating Gate 還是 MirrorBit，我們都從上個季度開始經歷了價格的穩定，當涉及到新的機會和新客戶時，我們遵循需求供應方程式並獲得適當的補償。就舊技術而言，坦白說它仍然非常具有競爭力。我想說的是，周圍有很多參與者都在為生存而掙扎，坦白說，這仍然是一個競爭非常激烈的領域。總而言之，我預計快閃記憶體產品將繼續面臨激烈的競爭。我們正在計劃並準備實現您對記憶體類型產品的期望，降低價格，並相應地降低成本，以確保我們不僅僅具有競爭力。亨利，在定價方面您還有什麼需要補充的嗎？

Our business is very strategic in nature due to our customer base. As you pointed out Hector it's a very competitive environment, but there's some stability I think what we're seeing in the channel for the opportunistic buyers is clearly a firming up of the pricing, because of the long lead time. That's all I would add.

由於我們的客戶群，我們的業務本質上非常具有策略性。正如您所指出的，赫克托，這是一個競爭非常激烈的環境，但也有一定的穩定性，我認為，由於交貨時間較長，我們在機會主義買家管道中看到的顯然是價格的堅挺。我要補充的就這些。

Thank you very much.

非常感謝。

Our next question comes from the line of Joseph Osha of Merrill Lynch. Please proceed with your question.

我們的下一個問題來自美林證券的約瑟夫·奧沙。請繼續您的問題。

Hi, guys. Congratulations on progress, progress to profitability here. Wondering if I can get some qualitative sense in terms of the, you know, percentage of mix either in unit or revenue terms that was comprised by the Kade architecture. Are we talking say just a couple hundred thousand units here?

嗨，大家好。祝賀您取得進展，並在此實現盈利。我想知道我是否可以從 Kade 架構所包含的單位或收入方面的混合百分比方面獲得一些定性認識。我們說的只是幾十萬台嗎？

We are. We gave some indication of our plans before. We are pleased with where we are in our plans. We're happy with our progress. We don't feel that we have varied at all significantly from that and expect that to continue. As far as the mix, you know, we don't give that out, but let me throw out some ideas and help you how we're thinking about it. That is on the server side, if you segment the market by that way, we go from 0 to practically 100% because we haven't really been in much of a participant on the server side. If you are going to the high-performance segment of the client we're definitely very strong there and currently with Athlon 64 FX, being a very, very strong player on that side. When it comes on to the rest of the client space, you're looking now at a transition time. You're going from 32-bit to 64-bit, as well as from one architecture to another, so it's a little more complex than just the transition and the product. We are very happy with the progress and we expect that as software becomes more readily available in the second half of the year on the client side, that that will momentum will dramatically increase. Right now our plans is to have a very aggressive ramp throughout the year for the K 8 architecture.

是的。我們之前曾透露過我們的計劃。我們對計劃的進展感到滿意。我們對我們的進展感到滿意。我們並不認為我們與此有任何顯著的差異，並且預計這種情況將會持續下去。至於混合，你知道，我們不會透露，但讓我提出一些想法並幫助你了解我們是如何考慮的。這是在伺服器端，如果你以這種方式細分市場，我們的市場份額將從 0 上升到幾乎 100%，因為我們在伺服器端實際上還沒有太多的參與者。如果您要進入客戶端的高效能領域，我們在該領域絕對非常強大，目前我們的 Athlon 64 FX 是該領域非常強大的參與者。當涉及到其餘客戶端空間時，您現在正處於過渡時期。您要從 32 位元轉到 64 位元，以及從一種架構轉到另一種架構，因此它比轉換和產品要複雜一些。我們對這一進展感到非常高興，我們預計，隨著今年下半年客戶端軟體變得更加容易獲得，這一勢頭將會大幅增加。現在我們的計劃是全年大力推廣 K 8 架構。

Okay. Thank you. Second question, Bob, let me just save you some time here, rather than going off line with everyone, we'd all like to know how this line item that amounts to about half of reported income works. I know it's a little complex, but can you perhaps throw some guidelines out that help us to understand how to forecast that item?

好的。謝謝。第二個問題，鮑勃，讓我在這裡為您節省一些時間，而不是與每個人離線，我們都想知道這個佔報告收入一半左右的項目是如何運作的。我知道這有點複雜，但您能否提供一些指導方針來幫助我們理解如何預測該專案？

You're talking on the memory?

你在談論記憶嗎？

The $19 million add-back, yes.

是的，1900 萬美元的附加金額。

Well, obviously that's their share of just the FASL part of the business. Like I said, the piece of the P & L you don't see that we put into the consolidated AMD results of course is the distributor P & L, I'll call it of AMD. That P & L would obviously have the full value to whatever we sell to end market. It would have the margin that we've negotiated with FASL to come to each of the parents, and that's reciprocal between Fujitsu and AMD. Besides the royalty, et cetera. I'm not sure I can do justice for this on the phone call, to be honest, because there are shared service agreements between the parent and the subsidiary, so there's a lot of different factors that come into play. In the non FASL piece of the equation, but you see it in the operating income line.

嗯，顯然這只是他們在 FASL 業務中所佔的份額。就像我說的，您看不到的、我們放入合併 AMD 業績中的損益表部分當然是經銷商損益表，我稱之為 AMD 的損益表。此損益表顯然具有我們向終端市場銷售的任何產品的全部價值。我們已經與 FASL 協商好了利潤，將分配給每個母公司，這是富士通和 AMD 之間的互惠互利。除了皇室，等等。說實話，我不確定我能否在電話中公正地解釋這一點，因為母公司和子公司之間存在共享服務協議，因此有很多不同的因素會發揮作用。在等式的非 FASL 部分，但您可以在營業收入線中看到它。

Okay. But this is a big line item, Bob. Can you give us some sense as to what, as analysts, we should do here?

好的。但這是一個大項目，鮑伯。您能否告訴我們，身為分析師，我們該做些什麼呢？

Yeah. The real simple one,Joe, is we anticipate through cost synergies and aggressive movement in technology nodes that we will be sharing in profits with Fujitsu, not losses, and so that number will be getting less, and turn to be a charge for AMD versus a credit, as time goes on.

是的。喬，真正簡單的一點是，我們預計透過成本協同效應和技術節點的積極發展，我們將與富士通分享利潤，而不是損失，因此隨著時間的推移，這個數字將會越來越少，並成為 AMD 的費用而不是信用。

Okay. Very well. I believe that's it. Thank you very much.

好的。很好。我相信就是這樣。非常感謝。

Thank you.

謝謝。

Our next question comes from the line of Quinn Bolton from Oppenheimer & company. Please proceed with your question.

我們的下一個問題來自奧本海默公司的奎因·博爾頓。請繼續您的問題。

Couple questions on flash business. One, you talked about growing shipments of the M C P, or the multi-chip module. Can you just try and quantify that in terms of percent of shipments? I'm assuming you get lower margins on that business than you do on just the actual flash die. Then if you could also talk a little bit about just the end market split. You talked about strength in wireless, strength in consumer. Can you give us a sense as to what percentage of sales each of those end markets contributed to the flash business? Thanks.

關於快閃記憶體業務的幾個問題。首先，您談到了 M C P 或多晶片模組的出貨量成長。您能否嘗試用出貨量百分比來量化這一點？我估計這項業務的利潤率會比實際的快閃記憶體晶片的利潤率要低。那麼您是否也可以稍微談談最終市場分裂的情況？您談到了無線領域的優勢、消費者領域的優勢。您能否告訴我們每個終端市場對快閃記憶體業務的銷售額貢獻百分比是多少？謝謝。

First, let me kind of make sure we put this in brackets. Obviously the flash business quarter on quarter grew significant. You know, in the 33%, 33, 34% quarter on quarter. The fastest growing piece of that business was our MirrorBit. That grew at a significantly higher than the average of the whole business. Next in line was the -- is the M C P part of the business. I don't want to give the details on that piece of the business, of what's the pieces, but it did grow more than the average. Actually, considerably more than the average. And, yes, you're right, while it carries high sales value, the gross margin is a little bit less on an MCP than I'll call it a standard floating gate NOR technology or MirrorBit technology.

首先，讓我確保我們將其放在括號中。顯然，快閃記憶體業務每季都實現了顯著成長。您知道，季度環比增長了 33%、33%、34%。業務中成長最快的部分是我們的 MirrorBit。這一增長速度明顯高於整個行業的平均水平。接下來是－業務的 M C P 部分。我不想透露該業務的具體細節，但它的成長確實超過了平均水平。事實上，遠高於平均。是的，您說得對，雖然它具有很高的銷售價值，但 MCP 的毛利率比我稱之為標準浮柵 NOR 技術或 MirrorBit 技術的毛利率要低一點。

Are there things you can do, particularly insourcing some of the other types of devices, either the Nan flash or the SRAM that go into the multichip packages to improve the profitable of the MCPs?

您可以做些什麼，特別是採購一些其他類型的設備，例如 Nan 快閃記憶體或 SRAM，並將其放入多晶片封裝中，以提高 MCP 的盈利能力？

We have plans that, you know, the details of which, of course, we wouldn't disclose but we have very, very aggressive and quite exciting road maps to do a, I would say somewhat of a unique job of creating a P&L around the MCP business, which is quite different. We will be able to benefit more than just passing through the cost of additional components.

我們有計劃，當然，我們不會透露計劃的細節，但我們有非常積極和令人興奮的路線圖來做一項獨特的工作，即圍繞 MCP 業務創建損益表，這是非常不同的。我們將能夠獲得比僅僅轉嫁額外組件成本更多的利益。

Okay. Then just the end market split in the flash?

好的。那麼最終市場是否會瞬間分裂呢？

The only indication I can give you is that the wireless business was strong really around the world, where obviously a lot of the growth in the embedded business came from Asia Pacific, and particularly on the strength of the Fujitsu sales team.

我能給出的唯一跡像是，無線業務在全球範圍內表現強勁，其中嵌入式業務的很大一部分增長顯然來自亞太地區，尤其是得益於富士通銷售團隊的強大實力。

Okay. Thank you.

好的。謝謝。

Our next question comes from the line of Chris Donnelly from J.P. Morgan. Please proceed with your question.

我們的下一個問題來自摩根大通的克里斯唐納利。請繼續您的問題。

Just a couple of quick clarifications. You said you'll be able to get some cost savings. Does that mean you think gross margins can be flat in Q1 even if sales are down a little?

只需簡單澄清幾點。您說過您將能夠節省一些成本。這是否意味著您認為即使銷售額略有下降，第一季的毛利率也會保持穩定？

That's always a challenge in this business to have gross margins stay the same on lower sales. It's a possibility. It kind of depends on the mix of the businesses, but, you know, you can't lose too much altitude in this business being still fairly fixed cost oriented and maintain that without ASP lift or significant cost reductions. It will take awhile to get to the technology nodes that Hector talked about, in particular in the flash business, and as we talked about in the microprocessor business also, if 90-nanometer comes on in the second half of the year. So, I guess long answer to your question, a little bit can hold, if it's a lot, it's tough.

在銷售額較低的情況下保持毛利率不變對這個行業來說始終是一個挑戰。有這種可能。這在某種程度上取決於業務組合，但是，您知道，您不能在這個業務中失去太多高度，仍然以相當固定的成本為導向，並且在沒有平均售價提升或大幅成本削減的情況下保持這種狀態。要達到赫克托 (Hector) 談到的技術節點還需要一段時間，特別是在快閃記憶體業務方面，而且正如我們在微處理器業務中談到的，如果 90 奈米技術在下半年問世的話。所以，我想對你的問題做一個長回答，一點點就可以了，如果很多的話，就很難了。

That's fine. Definitely fair. And then on the flash business if you take a look at say your prices in aggregate for Q1 do you think they will be flat, up, or down for flash overall?

沒關係。絕對公平。然後關於快閃記憶體業務，如果您看一下第一季的整體價格，您認為快閃記憶體整體價格會持平、上漲還是下降？

You know, at this point in time, we expect the mix to continue to improve. We've had a trend of significant and fairly aggressive density uplift on the product and performance and new technologies. As a result of that, the unit pricing might go up, but the unit number of units may be less.

您知道，目前我們預計組合將繼續改善。我們的產品、性能和新技術的密度都有顯著且相當正面的提升趨勢。因此，單位價格可能會上漲，但單位數量可能會減少。

Is that a yes or a no?

是還是不是？

Well, as we said, we expected in our flash revenue, given all the things we're doing, is that we have an opportunity to have flat sales quarter on quarter.

嗯，正如我們所說的，考慮到我們正在做的所有事情，我們預計我們的閃存收入將有機會實現季度環比銷售持平。

Okay. Thanks.

好的。謝謝。

Our next question comes from the line of Eric Rothdeutsch, Friedman, Billings, Ramsey. Please proceed with your question.

我們的下一個問題來自 Eric Rothdeutsch、Friedman、Billings 和 Ramsey。請繼續您的問題。

Hi, thank you. Question for Henri. Henri, in terms of units for flash memory. What is the highest volume density that you're currently shipping in terms of units, and what is the smallest density you're currently shipping?

你好，謝謝。問亨利一個問題。亨利，就閃存單位而言。您目前運送的最高體積密度（以單位計）是多少？您目前運送的最小體積密度是多少？

I'm not going to give you the highest density volume, I'm just going to tell you our range goes from 1 megabit to 256 megabits and I'm going to remind you that we've got 512 megabit currently on the qualification.

我不會告訴你最高密度容量，我只會告訴你我們的範圍從 1 兆比特到 256 兆比特，我要提醒你，我們目前的資格是 512 兆比特。

You mentioned that lead times are also very long. What are lead times currently?

您提到交貨時間也很長。目前的交貨時間是多少？

It really varies by product. But, you know, lead times can be as much as 13 weeks.

它確實因產品而異。但是，您知道，交貨時間可能長達 13 週。

Thank you.

謝謝。

Our next question comes from the line of Dan Scovel from Needham & Company. Please proceed with your question.

我們的下一個問題來自 Needham & Company 的 Dan Scovel。請繼續您的問題。

Thank you. Your microprocessor revenue was up 15% quarter to quarter and you said ASPs were, I guess, up significantly. We can assume, basically, most of that gain was on the ASP side and the lesser of that was on the unit side?

謝謝。你們的微處理器營收季增了 15%，而且我猜平均售價也大幅上漲了。我們可以假設，基本上，大部分收益是在 ASP 方面，而較少的收益是在單位方面？

That's correct.

沒錯。

Also you're speaking a little bit vaguely, but I guess you consider yourself--you did reach your goals of shipping hundreds of thousand on the AMD 64 last quarter?

另外，您說得有點含糊，但我想您認為自己——您確實實現了上個季度在 AMD 64 上出貨數十萬台的目標？

We're pleased with where we are on AMD 64.

我們對 AMD 64 的現狀感到滿意。

And also, Bob, on the accounting side here, what's the adjustment on the convert to calculate the diluted EPS?

另外，鮑勃，從會計角度來說，計算稀釋每股盈餘時，轉換後的調整是什麼？

We currently included in the current EPS calculation was 55 million additional shares. You'll see it on the page. We had about an 18% of dilution between basic and diluted.

我們目前在目前每股盈餘計算中包括了 5500 萬股額外股票。您會在頁面上看到它。基礎稀釋液和稀釋液之間的稀釋度約為 18%。

And there's a net income adjustment for the interest income there?

那裡的利息收入有淨收入調整嗎？

Yeah, the model I'd use is about 5.2 million a quarter. Add-back.

是的，我使用的模型是每季大約 520 萬。加回。

That's what I was looking for. Thank you.

這正是我所尋找的。謝謝。

Our next question comes from the line of Adam Parker Sanford and Bernstein. Please proceed with your question.

我們的下一個問題來自亞當·帕克·桑福德和伯恩斯坦。請繼續您的問題。

Same issue with the diluted versus basic EPS. Is the right number $43 million in net income divided by the $4.16 a share? Because that seems to give 12 cents, not 10.

稀釋每股盈餘與基本每股盈餘有同樣的問題。4,300 萬美元淨收入除以每股 4.16 美元，這個數字正確嗎？因為這樣看起來好像是 12 美分，而不是 10 美分。

I don't know where you got 10.

我不知道你從哪裡得到 10。

Well, or are you adding back 5 million to the 43 to do the actual calculation? Seems like the basic and diluted EPS are the same at 12 cents but the diluted share count is 19.8% bigger so I'm just trying to see what I'm not understanding here.

那麼，或者您要將 500 萬加到 4300 萬上來進行實際計算嗎？似乎基本每股收益和稀釋每股收益相同，均為 12 美分，但稀釋股數卻增加了 19.8%，所以我只是想看看這裡我不明白的地方。

The math is you take $43 million and change divided by the basic to get the basic EPS.

計算方法是用 4300 萬美元除以基本每股收益，得到基本每股收益。

Right.

正確的。

You take the $43 million of net income, add back the interest charge associated with the convertible, and then do the math.

你拿出 4,300 萬美元的淨收入，加上與可轉換債券相關的利息費用，然後進行計算。

So you're adding that 5.2 back.

所以你要把 5.2 加回去。

Right.

正確的。

Okay. On the share count, just another issue, what was the impact from options here, you know, kind of sequentially, and, you know, in terms of the 19.8% increase in the share? I know you said the bulk of it came from the -- one of the converts, but can you help at all with what this share count balance was from any options exercised?

好的。關於股票數量，還有另一個問題，選擇權在這裡的影響是什麼，你知道，就股票數量增加 19.8% 而言，它有什麼連續的影響嗎？我知道您說過，其中大部分來自——其中一個轉換者，但您能否幫助說明，這些股票餘額來自任何行使的期權？

If you have my press release in front of you, you can see the transition in basic, $347 million to $357 million. That's really option activity.

如果您面前有我的新聞稿，您將看到基本金額的轉變，從 3.47 億美元到 3.57 億美元。這確實是一種選擇活動。

Okay. So just the 10 million, and the rest is.... Okay. And then can you add some color to the deferred income on shipments to distributors? What does that imply about revenue in the next couple of quarters? Can you just remind me how that works?

好的。所以只有 1000 萬，其餘的是......好的。然後，您能否為經銷商出貨的遞延收入添加一些說明？這對未來幾季的收入意味著什麼？你能提醒我這是怎麼回事嗎？

The way it works is obviously what we do is we ship product in the appropriate mix that we agree with, with our distributors, obviously that will range from our server base product, AMD 64 Opterons to our lowest based product, so whatever it is. Then we count it at the end of -- at the end of each quarter we count what's still left. Whatever is still left we do not record as sales, obviously it's mix-dependent what's still on the shelf. We clearly see the transition that's taken place and we have more valuable product on the shelf of the distributors as we continue to produce and make progress on the whole portfolio of products.

它的工作方式顯然是我們所做的就是根據我們與分銷商達成的適當組合來運送產品，顯然範圍從我們的伺服器基礎產品、AMD 64 Opterons 到我們最低基礎的產品，所以無論它是什麼。然後我們在每個季度末計算剩餘金額。無論剩餘多少，我們都不會記錄為銷售額，顯然，剩餘商品的種類取決於組合。我們清楚地看到了已經發生的轉變，隨著我們繼續生產並在整個產品組合上取得進展，我們在分銷商的貨架上擁有更多有價值的產品。

Okay. Sorry, one last question. Can you talk about your plan for op ex going forward? I think R&D and SG&A were up, about 6 and 8% sequentially. How should we think about op ex for 2004?

好的。抱歉，最後一個問題。您能談談您未來的營運支出計畫嗎？我認為研發費用和銷售、一般及行政費用較上月增加了約 6% 和 8%。我們該如何看待2004年的營運支出？

As Hector said, you know, we're optimistic on 2004, and we will toggle those appropriately. At this point in time I'd play in they're going to grow a little bit. As we take advantage of market opportunities to capture more customers to deliver the right technologies, et cetera. So it will grow. Not as much obviously in the first quarter, but, you know, we'll have to see how it unfolds as time goes on.

正如赫克託所說，我們對 2004 年持樂觀態度，我們將適當調整這些政策。此時，我會加入其中，他們會成長一點。我們利用市場機會吸引更多客戶，提供正確的技術等等。所以它會成長。在第一季度，情況顯然沒有那麼明顯，但是，你知道，我們必須觀察隨著時間的推移情況將如何發展。

Okay. Thank you.

好的。謝謝。

Our next question comes from the line of Hans Mosesmann from Schwab and SoundView. Please proceed with your question.

我們的下一個問題來自 Schwab 和 SoundView 的 Hans Mosesmann。請繼續您的問題。

Most of my questions have been answered. I do have a question regarding flash bit growth for '03. Do you guys have an expectation of what that was, and what the forecast is for flash growth for you guys in 2004.

我的大部分問題都已得到解答。我確實有一個關於 2003 年閃存位增長的問題。你們對此有什麼預期嗎？你們對 2004 年的快速成長有何預測？

We continue to see obviously exponential growth in bits shipped, there's nothing in the demand of high-end devices that's going to change that for '04.

我們持續看到出貨量呈指數級增長，高階設備的需求不會改變 2004 年的趨勢。

So do you have a number for '03? Was it 50%? 100%? Will that bit growth in '04 match that, that you saw in '03?

那你有 03 年的號碼嗎？是 50% 嗎？ 100%？2004 年的成長速度能與 2003 年的成長速度持平嗎？

I don't have the data for the whole year, but for the last quarter it was 30% plus.

我沒有全年的數據，但上一季的成長幅度超過了 30%。

That's sequentially or year-over-year?

這是按季度還是按年計算？

Sequentially.

依次。

Then one last question. Do you have market share goals for flash and or processors in 2004? Thanks.

最後一個問題。您對 2004 年快閃記憶體和處理器的市佔率有何目標？謝謝。

We have, of course, our internal plans, what we think we can accomplish on both flash and processors. We don't publish that, as you can imagine.

當然，我們有內部計劃，我們認為我們可以在快閃記憶體和處理器上實現這些目標。正如您所想像的，我們不會發布該內容。

Okay. Great. Thank you.

好的。偉大的。謝謝。

Our next question comes from the line of Mark Edelstone from Morgan Stanley. Please proceed with your question.

我們的下一個問題來自摩根士丹利的馬克·埃德爾斯通。請繼續您的問題。

Good afternoon, guys. First question is on the Athlon 64 and Opteron product line combined. Obviously you had a good momentum here so far. Do you have the ability, do you think, to be able to produce and ship as much as a million units here in the first quarter, and then I have a follow-up question for you as well.

大家下午好。第一個問題是關於 Athlon 64 和 Opteron 產品線的結合。顯然，到目前為止，你們的勢頭很好。您認為您是否有能力在第一季生產和運送多達一百萬台，然後我也有一個後續問題要問您。

Let me just talk about our capability in general terms, Mark. We currently are running our factory as a mix of 130-nanometer both Athlon XP and next-generation hammer product. We -- if I -- at the risk of sounding somewhat simplistic here, it's kind of like a knob that we're dialing, and as to how much of that we want to be Athlon XP and how much we want to be Hammer or Reented. We're basing the market with our customer very carefully as to what they want and need and planning this result from the beginning because we anticipate the beginning of the 90-nanometer conversion to really give us a big boost in our capability for particularly the K-8 hammer architecture, but even at the 130-nanometer I want to make sure it's clear that today, we have the capability of doing if we wanted to, more than a million a quarter, well more than a million a quarter. Significantly more than a million a quarter, so we're throttling that based on our plans, which are, you know, how to penetrate particular customer segments and accounts and the expectation in the second half of the year, other things will occur relative to software, where we will then be at 90-nanometers and be able to execute a little more leisurely how many units we can produce.

馬克，讓我概括地談談我們的能力。我們工廠目前採用 130 奈米 Athlon XP 和新一代 hammer 產品混合生產。我們 — — 如果我 — — 冒著聽起來有些過於簡單的風險，它就像一個我們正在撥打的旋鈕，至於其中有多少是我們想要成為 Athlon XP，有多少是我們想要成為 Hammer 或 Reented。我們非常謹慎地與客戶一起確定市場基礎，了解他們想要什麼和需要什麼，並從一開始就規劃好這一結果，因為我們預計 90 奈米轉換的開始將真正大大提升我們的能力，特別是 K-8 錘子架構，但即使在 130 奈米，我也想確保今天我們有能力做到如果我們願意的話，每季度超過一百萬，遠遠超過一百萬。每個季度的產量將大大超過一百萬，因此，我們根據計劃來限制產量，計劃是如何滲透到特定的客戶群體和帳戶，以及下半年的預期，其他事情將與軟體有關，屆時我們將處於 90 奈米水平，能夠更從容地執行我們可以生產多少個單元。

When you tweak the knob, so to speak, should we expect that the peak in the 32-bit Athlon version would peak once your 90-nanometer technology really ramps?

可以這麼說，當你調整旋鈕時，我們是否應該預期，一旦 90 奈米技術真正發展起來，32 位元 Athlon 版本的峰值就會達到峰值？

By peaking, I'm trying to understand what you mean by the question. You mean if the Athlon XP will peak?

透過達到頂峰，我試著理解你提出這個問題的意思。您的意思是 Athlon XP 是否會達到頂峰？

Yeah, if we did the 32-bit Athlons, obviously as the Athlon 64 ramps up, at some point that's going to cannibalize the unit opportunity you have overall. If we make the assumption that your total units continue to grow with the market, at some point we're going to expect the 32 Athlon units to basically peak, and I'm wondering if that happens once the 90-nanometer capacity ramps up or if you see that happening before that.

是的，如果我們使用 32 位元 Athlon，顯然隨著 Athlon 64 的崛起，在某種程度上這將蠶食你整體的單位機會。如果我們假設您的總單位數量隨著市場繼續增長，那麼在某個時候，我們預計 32 個 Athlon 單位數量將基本達到峰值，我想知道這是否在 90 奈米容量提升後發生，或者您是否認為這在此之前就發生了。

I think it would be fair to say that as the 90-nanometer ramps up, there is a significant shift toward the KA architecture more and more. I do want to take the opportunity though to point out that Athlon XP is not a product in our view, it's a brand, and it's intended to address the best value that you can have in today's applications. That will continue for some time. We see that as a very powerful brand, has done well for us. Athlon 64 will become the next generation, the transition to 64-bit, followed by Athlon 64 FX, which is the best you can get. There's nothing closer to that in performance, then Opteron, of course, is the server and high performance computer end space. We see this as a four tiering of our brand. We'll continue to manage that as customers work with us, therefore we're beginning to talk less about the product transition and more about the segment.

我認為可以公平地說，隨著 90 奈米技術的進步，向 KA 架構的轉變越來越明顯。不過，我確實想藉此機會指出，在我們看來，Athlon XP 不是一種產品，而是一個品牌，它旨在滿足當今應用程式所能提供的最佳價值。這種情況還會持續一段時間。我們認為，作為一個非常強大的品牌，它為我們帶來了良好的表現。Athlon 64 將成為下一代產品，過渡到 64 位，隨後是 Athlon 64 FX，這是您能得到的最好的產品。在效能方面沒有什麼能比 Opteron 更接近的了，當然，它是伺服器和高效能電腦端的空間。我們認為這是我們品牌的四個層次。在客戶與我們合作的過程中，我們將繼續管理這一點，因此我們開始較少談論產品轉型，而更多地談論細分市場。

Fair enough. I appreciate that answer, Hector. One final question, if I could, for Bob, going back again to the minority interest line, I know there's lots of give and take here as you go forward, but as we go into the second half of 2004 should we see that line toggle to basically profit for the combined flash operations, or would you expect to still be paying out minority interest in the way of losses?

很公平。我很感謝你的回答，赫克托。最後一個問題，如果可以的話，對於鮑勃，請再次回到少數股東權益方面，我知道在你們前進的過程中，這裡會有很多的讓步和妥協，但是當我們進入 2004 年下半年時，我們是否應該看到這條線切換為合併後的閃存操作的基本利潤，或者你是否仍然預計以損失的方式支付少數股東權益？

No, to me, if we execute to our plans, which we have every indication we will do, and the market continues to behave the way we think it will, that line will actually become a charge for AMD, because the FASL organization will make money, and we will share that 40% of that profit with Fujitsu. So it'll, it'll--you know, my forecast, if I was doing it for you guys, would be that that number will become smaller approaching zero and will turn positive as the year unfolds.

不，對我來說，如果我們執行我們的計劃（我們有各種跡象表明我們會這樣做），而市場繼續按照我們所認為的方式運作，那麼這條生產線實際上將成為 AMD 的一項費用，因為 FASL 組織將賺錢，我們將與富士通分享 40% 的利潤。所以，你知道，如果我為你們做這個預測，這個數字將會變得越來越小，接近零，並且隨著時間的推移將變為正數。

Great. Thank you very much, guys.

偉大的。非常感謝你們，夥伴們。

Our next question comes from the line of Clark Westmont of Smith Barney. Please proceed with your question.

我們的下一個問題來自史密斯巴尼的克拉克·韋斯特蒙特。請繼續您的問題。

Hi guys, Hector, congratulations on delivering your commitment of three months ago of turning into the black this quarter on the bottom line. Are you going to do the same in the March quarter? Are you going to be profitable in March?

大家好，赫克托，恭喜你兌現了三個月前的承諾，即本季實現盈利。您打算在三月季度做同樣的事情嗎？三月份你會獲利嗎？

Oh, you know, we are in the situation where revenue drives everything right now. We've done everything we can, that I believe is appropriate on cost, we've got our factory sufficient, we've done everything we've put in place. I believe that if the market is strong we certainly are going to do well, and at the current plan, we do not plan to lose money in the first quarter.

哦，你知道，我們現在處於收入驅動一切的境地。我們已經盡了一切努力，我相信這在成本上是合適的，我們的工廠也足夠了，我們已經完成了所有準備工作。我相信，如果市場強勁，我們肯定會做得很好，按照目前的計劃，我們不打算在第一季虧損。

So that's it. Thanks.

就是這樣。謝謝。

Our next question comes from the line of David Wong from A.G. Edwards. Please proceed with your question.

我們的下一個問題來自 A.G. Edwards 的 David Wong。請繼續您的問題。

Thank you very much. With your current 90-nanometer plans of starting production wafers somewhere in the middle of the year when do you expect to be able to announce your first 90-nanometer products?

非常感謝。按照您目前的 90 奈米計劃，您將在今年年中開始生產晶圓，您預計何時能夠發布首款 90 奈米產品？

Our current plans to ship product to customers for revenue in the third quarter of this year.

我們目前的計劃是在今年第三季將產品運送給客戶，從而產生收入。

So the announcements will come in the second quarter, or we'll get details of the product in the third quarter?

那麼公告會在第二季發布，還是我們會在第三季獲得產品的詳細資訊？

Frankly, I don't remember the exact dates. I'd rather not give you one but can get you our plans when we intend to make announcements.

坦白說，我不記得具體日期。我寧願不給你一個，但當我們打算宣佈時，我可以給你我們的計劃。

Great. Thank you.

偉大的。謝謝。

Our next question comes from line of Hayden Ugan from Susquehanna financial group. Please proceed with your question.

我們的下一個問題來自 Susquehanna 金融集團的 Hayden Ugan。請繼續您的問題。

Wondering what kind of inventory level do you see channel for both of your flash products as well as your CPU's?

想知道您看到的快閃記憶體產品和 CPU 的庫存水準如何？

On the CPU side we have a policy to keep our channel below four weeks, we stick to that. In the flash side I will tell you that the channel inventory is depressed right now. I don't have a data point to give you. I would say it's down to probably less than twoe weeks in some of the high run-rate parts.

在 CPU 方面，我們的政策是將我們的通道保持在四周以下，我們堅持這項政策。我要告訴你的是，目前通路庫存處於低迷狀態。我沒有數據點可以提供給你。我想說，在一些高運行率的零件中，這個時間可能會縮短至不到兩週。

Then on your PC business, on Q4, do you ship any Duron processors?

那麼在您的 PC 業務中，在第四季度，您會出貨任何 Duron 處理器嗎？

We shipped very small quantity of Duron, which was really the end of life shipments of this product.

我們運送了非常少量的 Duron，這實際上已經是該產品壽命終止的運送量了。

Okay. So going in Q1 do you expect to have any more Durons?

好的。那麼，進入第一季度，您預計會有更多的 Duron 嗎？

Irrelevant. Irrelevant quantities.

不相干。不相關的數量。

Then what is your -- when do you expect to have your first product coming out on 300-millimeter?

那麼，您預計什麼時候推出第一款 300 毫米產品？

Well, we've we expect to be in production in 5-36 in the year 2006, and that about right now, given the challenge in making and forecasting this sort of technology, that's as close as I tell you a date right now.

嗯，我們預計在 2006 年將 5-36 投入生產，目前，考慮到製造和預測這種技術的挑戰，這是我現在告訴你的最接近的日期。

Final question is on your Geode. Right now do you have any plan to expand that product line by integrating AMD processor core into that product?

最後一個問題是關於你的 Geode。目前，您是否有計劃透過將 AMD 處理器核心整合到該產品中來擴展該產品線？

Geode is going to become part of our road map of X 86 products. We are extending it rapidly, and we'll communicate that as we get things lined up. This will actually be a road map of low-cost, low-power and in some cases a synthesizable core. I don't want to go into what cords are going to go into what product but it's going to be a broad range of applications for the embedded and consumer space.

Geode 將成為我們 X86 產品路線圖的一部分。我們正在迅速擴展它，並且我們會在一切準備就緒後進行溝通。這實際上將是低成本、低功耗且在某些情況下可合成核心的路線圖。我不想討論什麼線會用在什麼產品上，但它將會在嵌入式和消費領域有廣泛的應用。

Great. Thank you.

偉大的。謝謝。

Operator we're going to take one more question. Thank you.

接線員，我們還要回答一個問題。謝謝。

Our next question comes from the line of John Barton from Wachovia Securities. Please proceed with your question.

我們的下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。

Just trying to piece together some of the data on the flash front from comments you've made. I think I heard you say that the lower densities were tight. I know at one point you mentioned that the longest lead times were in the 13 week range but then you made another statement that the older technologies are very competitive on a pricing perspective. I guess I'm putting words in your mouth by making the correlation between older technologies and lower density but if indeed that's the case, it seems to run against the tightness in the market. If you can just provide us some input there I'd appreciate it. Thanks.

只是想從您發表的評論中拼湊出一些有關閃存的數據。我想我聽到您說過較低的密度很緊張。我知道您曾經提到最長的交貨時間在 13 週左右，但隨後您又表示，從定價角度來看，舊技術非常有競爭力。我想，透過將舊技術和較低密度聯繫起來，我是在強加於您的話，但如果事實確實如此，那麼它似乎與市場緊張的局面相悖。如果您能為我們提供一些意見，我將不勝感激。謝謝。

The big difference between the high end and the low end of the flash market is who's playing. At the high end of the market the technology is not limited to the players to really two to three competitors. At the lower end, as Hector pointed out there's still a lot of people in the survival mode and that sometimes drives, you know, pricing behavior. That are not in line with your logical conclusion of tightness equals better pricing.

快閃記憶體市場的高端和低端之間的最大區別在於誰在參與。在高端市場，技術並不局限於參與者，實際上還有兩到三個競爭對手。正如赫克託所指出的那樣，在低端市場，仍然有很多人處於生存模式，而這有時會推動定價行為。這與您的「緊密性等於更好的定價」的邏輯結論不符。

Great. Okay. Great. Thank you very much.

偉大的。好的。偉大的。非常感謝。

We're going to wrap up the call we want to thank you all for your participation this quarter. Thank you.

我們將結束本次電話會議，感謝大家本季的參與。謝謝。

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

女士們、先生們，今天的電話會議到此結束。感謝您的參與，並請您斷開線路。