超微半導體 (AMD) 2004 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to AMD's First Quarter 2004 Earnings Conference Call. At this time, all participants are in listen-only mode. Later, we will conduct a question and answer session. Instructions will be given at that time. [Operator Instructions]

女士們、先生們，感謝你們的支持。歡迎參加 AMD 2004 年第一季財報電話會議。此時，所有參與者都處於只聽模式。稍後我們將進行問答環節。屆時將會給予指示。 [操作員說明]

I would now like to turn the conference over to our host, AMD's Director of Investor Relations, Mr. Michael Haase. Please go ahead, sir.

現在，我想將會議交給我們的主持人，AMD 投資者關係總監 Michael Haase 先生。先生，請繼續。

Thank you very much. Welcome to AMD's First Quarter Earnings Conference Call. The format of the call today will include prepared comments, followed by Q&A. The participants are Hector Ruiz, our President and CEO, Bob Rivet, our CFO, and Henri Richard, our SVP of Worldwide Sales and Marketing.

非常感謝。歡迎參加 AMD 第一季財報電話會議。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。

This call is a live broadcast and will be replayed at AMD.com and StreetEvents.com. The replay number is 800-475-6701, and outside the United States, the number is 320-365-3844. The access code is 727052 for both of those numbers. The telephone replay will be available for the next 10 days, starting at approximately 8:30 p.m. Pacific Time tonight.

本次電話會議為現場直播，將在 AMD.com 和 StreetEvents.com 上重播。重播號碼為800-475-6701，美國境外的號碼為320-365-3844。這兩個號碼的接入碼都是 727052。電話重播將在接下來的 10 天內提供，大約從晚上 8:30 開始。太平洋時間今晚。

Before we begin the call, I would like to caution everyone that we will be 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 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 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 AMD's annual report on form 10K. With that, I'll turn it over to Hector Ruiz.

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 AMD 的 10K 表格年度報告。說完這些，我將把發言權交給赫克托·魯伊斯 (Hector Ruiz)。

Thank you, Mike, and thank you, everyone, for joining us today. The first quarter of 2004 was a high water mark for AMD. It was a quarter that produced a record top line for the quarter. Impressive any quarter, but remarkable in the first quarter of the calendar year. As important, it was a quarter on which we delivered on a very important promise to ourselves -- to make money. This was our second consecutive quarter of operating profits, and a highly important milestone in our march towards delivering consistent operating profits each and every quarter, year in and year out. It was, as I have mentioned before [in this call], an example of what we call ``the new AMD,'' and we're very proud of the progress that we're making with our strategy of customer-centric innovation, our continued world class design and manufacturing performance, and our strong discipline of operational flexibility.

謝謝麥克，也謝謝大家今天加入我們。2004 年第一季是 AMD 的一個高峰。本季的營收創下了歷史新高。任何季度都令人印象深刻，但在日曆年的第一季尤其引人注目。同樣重要的是，在這個季度，我們兌現了對自己的一個非常重要的承諾——賺錢。這是我們連續第二季實現營業利潤，也是我們實現年復一年每季持續實現營業利潤過程中的一個非常重要的里程碑。正如我之前（在這次電話會議中）提到的，它是我們所謂的「新 AMD」的一個例子，我們對以客戶為中心的創新策略、持續的世界一流設計和製造性能以及強大的營運靈活性紀律所取得的進展感到非常自豪。

Our Spansion flash memory operation is an excellent example of this winning combination. In the first quarter, we enjoyed record revenues in flash, as we continued to expand our market leadership position in the [newer] flash memory segment. The products based on our revolutionary MirrorBit technology continue to earn strong customer acceptance.

我們的 Spansion 快閃記憶體操作就是這種成功組合的絕佳範例。第一季度，我們的快閃記憶體收入創下了歷史新高，我們繼續擴大在（較新的）快閃記憶體領域的市場領導地位。基於我們革命性的 MirrorBit 技術的產品繼續贏得客戶的廣泛認可。

We continue to strengthen our solid relationships with our top customers around the world, resulting in our especially strong growth in Asia Pacific and the Americas.

我們持續加強與世界各地頂級客戶的牢固關係，從而實現了亞太地區和美洲地區尤其強勁的成長。

In response to this strong customer demand, we continue our aggressive ramp to 110 nanometer technology in each of our leading-edge flash fabs. We commenced production of 110 nanometer Floating Gate flash product this quarter, the quarter that just ended, and we expect to begin production of our first 110 nanometer MirrorBit product this quarter, the second quarter. I would like to reinforce that AMD is the first to have commenced [newer flash] production below 130 nanometers.

為了滿足客戶的強烈需求，我們繼續在各個尖端閃存工廠積極推進 110 奈米技術。我們在本季（剛結束的季度）開始生產 110 奈米浮柵快閃產品，並且我們預計將於本季（第二季）開始生產我們的第一款 110 奈米 MirrorBit 產品。我想強調的是，AMD 是第一家開始生產 130 奈米以下 [新型快閃記憶體] 的公司。

In the mean time, it is important to remember that while in only the third quarter of Spansion's formal business integration efforts, we again delivered strong quarter to quarter growth, and the first operating profit in our memory group since we combined the operations only nine months ago.

同時，重要的是要記住，雖然只是 Spansion 正式開展業務整合的第三季度，但我們再次實現了強勁的季度環比增長，並且自九個月前合併業務以來，我們的內存集團首次實現了營業利潤。

The story in our Spansion operation is very straightforward -- we are expanding both the breadth and depth of our customer base. We are expanding our capacity with new technology to meet the growing demand, and we continue to work overtime to capture the efficiencies of our new global operations.

我們 Spansion 經營的故事非常簡單——我們正在擴大客戶群的廣度和深度。我們正在利用新技術擴大產能以滿足日益增長的需求，並且我們將繼續加班加點地提高新全球營運的效率。

In our microprocessor business, we again generated strong profits on solid execution and across our complete portfolio of brands. Our customers continue to show a strong interest in the unique value proposition of our AMD64 technology. The value proposition delivers only through the combination of a 64-bit instruction set, integrated memory controllers, and HyperTransport technologies. AMD64 is also the only way to get the benefit of enhanced virus protection with the X86 software ecosystem, which will be enabled by the upcoming Microsoft Windows XP Service Pack II, and it's an important additional benefit, as customers consider replacing systems in the coming months.

在我們的微處理器業務中，我們再次憑藉穩健的執行和完整的品牌組合創造了強勁的利潤。我們的客戶繼續對我們的 AMD64 技術的獨特價值主張表現出濃厚的興趣。此價值主張僅透過 64 位元指令集、整合式記憶體控制器和 HyperTransport 技術的組合來實現。AMD64 也是利用 X86 軟體生態系統獲得增強病毒防護優勢的唯一途徑，即將推出的 Microsoft Windows XP Service Pack II 將實現這一優勢，而且由於客戶會考慮在未來幾個月內更換系統，因此這是一個重要的額外優勢。

We now count over 1,000 partners in our growing ecosystem. AMD64 unit shipments more than doubled quarter to quarter, powered by growing acceptance in the enterprise segment. And our commitment to deliver a pervasive 64-bit computing continues, with the early success of our new Athlon 64 mobile processor, which we launched in this past quarter. Systems based on our AMD Opteron processor family are seeing a strong customer adoption in financial services, web infrastructure, pharmaceuticals, petrochemicals, and digital content creation segments. And our new low and mid-power AMD Opteron EE and HE processors will continue to drive the Opteron footprint into high-performance for web server and workstation solutions.

目前，我們不斷壯大的生態系統中已有 1,000 多個合作夥伴。受企業領域接受度不斷提高的推動，AMD64 的出貨量較上季成長了一倍以上。我們繼續致力於提供普及的 64 位元運算，我們在上個季度推出的新款 Athlon 64 行動處理器取得了初步成功。基於我們的 AMD Opteron 處理器系列的系統在金融服務、網路基礎設施、製藥、石化和數位內容創作領域得到了客戶的廣泛採用。我們的新型低功率和中功率 AMD Opteron EE 和 HE 處理器將繼續推動 Opteron 進入高效能網路伺服器和工作站解決方案。

With this product, we're introducing for the first time 64-bit performance in this power [envelope] and it is becoming increasingly clear that the 32-bit only server segment is rapidly approaching obsolescence. The Opteron 64-FX franchise continues to enjoy a strong acceptance among gamers and PC enthusiasts, and with the introduction of the Athlon 64 FX-53, we have once again set the standard for the definitive cinematic computing experience.

透過這款產品，我們首次在這種功率下引入了 64 位元效能，越來越明顯的是，僅限 32 位元的伺服器部分正在迅速走向淘汰。Opteron 64-FX 系列繼續受到遊戲玩家和 PC 愛好者的熱烈歡迎，隨著 Athlon 64 FX-53 的推出，我們再次為終極影院運算體驗設定了標準。

We're very pleased to report that in the first quarter, the AMD64 processor family received awards from Gartner, at their Systems Builder Summit, from ``PC World,'' ``PC'' magazine, and ``PC Professional,'' which recognized AMD for our revolutionary cool and quiet technology. AMD's 64 technology has earned over 45 awards worldwide during its first year of existence, and we're very proud to be recognized as the true technology leader.

我們非常高興地報告，在第一季度，AMD64 處理器系列獲得了 Gartner 在系統製造商高峰會上頒發的獎項，並獲得了《PC World》、《PC》雜誌和《PC Professional》頒發的獎項，這些獎項是對 AMD 革命性的冷靜和安靜技術的認可。AMD 的 64 位技術在誕生的第一年就獲得了全球超過 45 個獎項，我們非常自豪能夠被公認為真正的技術領導者。

In fact, across our brand portfolio, we saw healthy sales growth worldwide, including record sales in Latin America and continued strength in Asia. We're very pleased that Founder Group, one of China's premiere IT firms, has joined the list of over 80 customers building Athlon 64 processor-based desktop systems.

事實上，在我們的品牌組合中，我們看到了全球範圍內健康的銷售成長，包括拉丁美洲創紀錄的銷售和亞洲持續強勁的銷售勢頭。我們非常高興，中國領先的 IT 公司之一方正集團已成為 80 多家建構基於 Athlon 64 處理器的桌上型電腦系統的客戶之一。

Our ASP [projectory] continued upward for the fourth consecutive quarter, a reflection of a strong brand discipline, a differentiated value proposition, and solid execution. Our manufacturing on AMD64 is on time; yields are solid. We continue our deep ramp to 90 nanometer technology, remaining on track for volume production in the second quarter of 2004 and delivering products for revenue in the third quarter of this year. Our customer-centric innovation approach is working, as we present a superior alternative to the competition in the markets we choose to serve.

我們的平均售價（ASP）[預測]連續第四個季度上漲，這反映了我們強大的品牌紀律、差異化的價值主張和穩健的執行力。我們在 AMD64 上的製造是準時的；收益穩健。我們持續深入研究 90 奈米技術，預計在 2004 年第二季實現量產，並在今年第三季交付有收益的產品。我們以客戶為中心的創新方法正在發揮作用，因為我們為我們選擇服務的市場中的競爭對手提供了更優越的選擇。

In manufacturing, AMD continues to demonstrate world-class operating performance in each of our core businesses. And we remain committed to the discipline of operational flexibility across and throughout the organization.

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。我們將持續致力於在整個組織內推行營運彈性的紀律。

To summarize, we're seeing increased confidence among our growing portfolio of customers about AMD and our growing leadership profile, and we're looking forward to demonstrating that leadership throughout the course of the coming year and for many years to come.

總而言之，我們看到不斷增長的客戶群對 AMD 和我們不斷提升的領導地位的信心不斷增強，我們期待在未來一年以及未來的許多年裡展示這種領導地位。

At this point, I would like to ask Bob to review in more financial detail the results of our recent quarter and provide some comments regarding the current outlook.

此時，我想請鮑伯更詳細地回顧我們最近一個季度的財務業績，並對當前前景提供一些評論。

Thanks, Hector. As detailed in our press release earlier this afternoon, our first quarter sales were $1.236b, up over $500m or 73% compared to the first quarter of last year, and up 3% compared to the fourth quarter of 2003. This is an all-time quarterly sales record for AMD.

謝謝，赫克托。正如我們今天下午早些時候的新聞稿中所述，我們的第一季銷售額為 12.36 億美元，比去年第一季增長 5 億多美元（73%），比 2003 年第四季增長 3%。這是 AMD 歷史上季度銷售記錄。

Top line highlights include, one, solid sales in a seasonally down quarter for both our microprocessor-- computational product groups, excuse me, or CPG, and our memory group.

最重要的亮點包括：第一，我們的微處理器——計算產品組（對不起，或CPG）和內存組在季節性下滑的季度中均實現了穩健的銷售。

Two, especially strong sales in Asia Pacific and Latin America in both businesses.

二、兩大業務在亞太地區及拉丁美洲的銷售尤其強勁。

Three, increased ASPs in CPG and our memory group.

三、CPG 和我們的記憶組的 ASP 增加。

And four, increased unit shipments in our key new product families, more than doubling our AMD64 unit volumes and continued penetration of products based upon our MirrorBit flash technology.

第四，我們主要新產品系列的單位出貨量有所增加，其中 AMD64 單位出貨量增加了一倍以上，並且基於 MirrorBit 快閃記憶體技術的產品的滲透率持續提高。

The combination of top line growth and our operational flexibility measures resulted in a profitable quarter, with net income at $45m, or 12 cents per diluted share for the first quarter. Operating income was $61m in the quarter, an improvement of $15m from the fourth quarter, representing a 50% sell-through on incremental sales. Compared to the first quarter of last year, operating income has improved by $187m, on an increase of $522m of sales, a nice turnaround.

營業收入的成長和我們的營運彈性措施相結合，帶來了本季的盈利，第一季淨收入為 4,500 萬美元，即每股 12 美分。本季營業收入為 6,100 萬美元，較第四季增加 1,500 萬美元，增量銷售額達 50%。與去年第一季相比，營業收入增加了 1.87 億美元，銷售額增加了 5.22 億美元，這是一個很好的轉變。

Gross margin was 38% for the quarter, up two percentage points compared to the fourth quarter of 2003 and a seven percentage point improvement from the first quarter of last year. First quarter gross margin dollars increased by almost $41m, a 9% increase from the fourth quarter of 2003. The gross margin improvement was largely driven by a richer product mix, and higher ASPs in both of our major business lines.

本季毛利率為 38%，比 2003 年第四季上升了兩個百分點，比去年第一季上升了七個百分點。第一季的毛利增加了近 4,100 萬美元，比 2003 年第四季成長了 9%。毛利率的提高主要得益於更豐富的產品組合以及我們兩條主要業務線的平均售價的提高。

Marketing, general, and administrative spending was $180m in the quarter, up 11% compared to the fourth quarter, due mainly to the following three items. One, increased marketing expenses associated with our ongoing brand efforts and incremental investments in sales and marketing in our emerging markets. Two, Fab 36 start-up expenses. And three, other strategic administrative expenses. Roughly a third of the increase quarter to quarter were one-time events.

本季行銷、一般及行政支出為 1.8 億美元，較第四季成長 11%，主要歸因於以下三項。一是與我們正在進行的品牌努力以及在新興市場的銷售和行銷的增量投資相關的行銷費用增加。二、Fab 36的啟動費用。三是其他策略管理費用。季度環比成長中約有三分之一是一次性事件。

Cash flow from operations was a positive $206m for the quarter, which represents our third consecutive quarter of delivering positive cash flow from operations. EBITDA was $373m, a 4% improvement over our fourth quarter performance.

本季經營現金流為正 2.06 億美元，這是我們連續第三個季度實現營運現金流為正。EBITDA 為 3.73 億美元，比第四季業績成長 4%。

Now I'll switch to a business overview for the quarter. First I'll start with our flash memory group. In the first quarter, sales grew to $628m, up 188% from the first quarter of 2003 and up 11% over the fourth quarter. The sales growth was due to strong performance in the wireless and embedded markets and increased shipments of products based on MirrorBit technology. I'm pleased to report that the flash memory group was profitable in the first quarter, with an operating income of $14m. This is a strong reflection of a very solid progress in rapidly integrating AMD's and Fujitsu's flash memory businesses. Gross margins improved in the quarter due to increased sales, higher ASPs, and the initial realization of cost synergies. The memory group reported a $17m bottom line improvement over the fourth quarter on $61m of incremental sales, or a 27% [fall through].

現在我將轉到本季度的業務概覽。首先，我將從我們的閃存組開始。第一季銷售額成長至 6.28 億美元，較 2003 年第一季成長 188%，較第四季成長 11%。銷售額的成長得益於無線和嵌入式市場的強勁表現以及基於 MirrorBit 技術的產品出貨量的增加。我很高興地報告，快閃記憶體集團第一季獲利，營業收入達1400萬美元。這有力地體現了AMD和富士通快閃記憶體業務快速整合所取得的非常紮實的進展。由於銷售額增加、平均售價提高以及成本協同效應的初步實現，本季毛利率有所提高。該內存集團報告稱，其第四季度銷售額增加 6,100 萬美元，淨利潤增長 1,700 萬美元，降幅達 27%。

First quarter sales in CPG were $571m, a 22% increase over the same period a year ago, and slight decrease from the fourth quarter. In line with normal seasonality, unit shipments were down. ASPs improved for the fourth quarter, though, and were enhanced by continued penetration in the enterprise market. With a richer product mix, the CPG business unit increased its operating income in the quarter to $67m, a 7% increase from the fourth quarter.

CPG 第一季銷售額為 5.71 億美元，比去年同期成長 22%，比第四季略有下降。與正常的季節性情況一致，單位出貨量有所下降。不過，第四季的平均售價有所提高，並且得益於企業市場的持續滲透。憑藉更豐富的產品組合，CPG業務部門本季的營業收入增至6,700萬美元，較第四季成長7%。

Turning to the balance sheet, a few highlights. Cash balances ended of the first quarter at $1.3b, about flat from the fourth quarter. We ended the first quarter with inventory levels at $693m, roughly flat from the fourth quarter level. Capital expenditures were $202m in the first quarter, compared to $164m in the fourth.

回顧資產負債表，有幾點亮點。第一季末現金餘額為 13 億美元，與第四季基本持平。第一季末，我們的庫存水準為 6.93 億美元，與第四季的水準基本持平。第一季的資本支出為 2.02 億美元，而第四季為 1.64 億美元。

Now let's talk about the outlook. AMD's current outlook for the second quarter of 2004 is based on the following projections -- in our memory group, we expect sales to increase modestly. For our computation products group, we expect sales to decline modestly, in line with industry seasonal patterns. In aggregate, AMD expects seasonal patterns to prevail, and sales will be approximately flat.

現在我們來談談前景。AMD 目前對 2004 年第二季的展望是基於以下預測——在我們的記憶體部門，我們預計銷售額將適度成長。對於我們的計算產品組，我們預期銷售額將小幅下降，與產業季節性模式一致。總體而言，AMD 預計季節性模式將占主導地位，銷售額將大致持平。

For your modeling purposes, please consider the following. We still expect fiscal 2004 capital expenditures to be around $1.5b, and we're confident they will be largely funded by cash flow from operations. We recorded a first quarter tax rate of 5%, and we continue to anticipate that our quarterly tax rate for fiscal 2004 to be within the zero to 10% range. Given our memory group sales expectations, to be modestly up, we expect the minority interest line to be approaching zero in the second quarter.

為了您的建模目的，請考慮以下內容。我們仍預期 2004 財年的資本支出將在 15 億美元左右，我們相信這些支出將主要由營運現金流提供資金。我們記錄的第一季稅率為 5%，並且我們繼續預計 2004 財年的季度稅率將在 0 到 10% 的範圍內。鑑於我們對記憶體集團銷售額的預期將小幅上漲，我們預計第二季少數股東權益線將接近零。

Once again this quarter, approximately 55 million shares were included in our diluted share calculations to reflect the shares from our $402m convertible. Likewise, the diluted share count calculation does not include the interest expense associated with this convertible. Quarterly earnings of nine cents per share will trigger the inclusion of these shares. Similarly, the 21 million shares from our $500 million convertible will be included when our quarterly earnings reach or exceed or 27 cents per share.

本季度，我們再次將約 5,500 萬股股票納入稀釋股份計算，以反映我們 4.02 億美元可轉換債券的股份。同樣，稀釋股份數量計算不包括與該可轉換債券相關的利息費用。每股九美分的季度收益將觸發這些股票的納入。同樣，當我們的季度收益達到或超過每股 27 美分時，我們 5 億美元可轉換債券中的 2,100 萬股也將被納入其中。

In summary, we are very pleased with the progress in the first quarter, as we increased sales and profits in a seasonally down quarter and saw our memory group reach profitability. Looking ahead, we will continue to tightly manage our cost structure by completing rapid transition to our new technology nodes in both our major business units. In short, we will continue to do what we said we're going to do, an important operating principle in the new AMD. And with that, I'll turn it back to Hector.

總而言之，我們對第一季的進展感到非常滿意，因為我們在季節性低迷的季度中增加了銷售額和利潤，並且我們的內存部門實現了盈利。展望未來，我們將繼續嚴格管理我們的成本結構，快速過渡到我們兩個主要業務部門的新技術節點。簡而言之，我們將繼續履行我們所說的諾言，這是新 AMD 的一個重要營運原則。說完這些，我就把它交還給赫克托。

Thank you, Bob. We have begun this new year with substantial momentum in each of our major businesses. In our AMD64 and MirrorBit technologies, we have designed truly customer-centric innovations that have begun to reset the competitive balance of their respective markets. And each has a lot of market headroom in which to expand. With continued market help, we can be quite bullish about prospects for increased demand over the coming quarters and years, which is why I would like to take the last few minutes of my prepared comments to discuss what I consider an under-recognized capability of AMD, our design and manufacturing leadership, because in addition to a clearly superior portfolio of products and healthy customer demand, leadership in this industry is characterized by sustained mastery of highly complex and evolving manufacturing. And AMD has built some important, arguably distinctive, design and manufacturing capabilities, which will allow us to continue to thrive as our new technologies come into full maturity.

謝謝你，鮑伯。新的一年伊始，我們各項主要業務都呈現強勁發展動能。在我們的 AMD64 和 MirrorBit 技術中，我們設計了真正以客戶為中心的創新，這些創新已經開始重塑各自市場的競爭平衡。每家公司都有很大的市場拓展空間。在持續的市場幫助下，我們對未來幾季和幾年需求成長的前景非常樂觀，這就是為什麼我想利用我準備好的評論的最後幾分鐘來討論我認為 AMD 未被充分重視的能力，即我們的設計和製造領導地位，因為除了明顯優越的產品組合和健康的客戶需求之外，這個行業的領導地位還體現在對高度複雜掌握的製造業和不斷發展的製造業的持續掌握。AMD 已經建立了一些重要的、可以說是獨特的設計和製造能力，這將使我們在新技術完全成熟時繼續蓬勃發展。

You don't start with revolutionary designs. AMD takes great pride in creating elegant customer-centric designs that are simpler, more in line with the specific needs of our customers and their customers. But beyond this, we design for manufacturability. For instance, because it is largely derived from prior generations of the technology, our AMD64 technology takes advantage of the great legacy of manufacturing knowledge, developed over years of advanced logic manufacturing techniques.

你不會從革命性的設計開始。AMD 非常自豪能夠創造出優雅的以客戶為中心的設計，這些設計更加簡單，更加符合我們客戶及其客戶的特定需求。但除此之外，我們的設計也著重於可製造性。例如，由於它很大程度上源自於前幾代技術，我們的 AMD64 技術充分利用了多年來先進邏輯製造技術所累積的豐富製造知識。

Our MirrorBit technology is revolutionary in another way. It is actually a very elegant design in its simplicity, requiring few process steps and resulting in a product that is both superior in its performance and easier and therefore more cost-effective to manufacture. Our product management discipline has been well-regarded in the industry, both in the context of our performance against leading industry benchmarks and as important, in the feedback from our world-class customers and partners.

我們的 MirrorBit 技術在另一個方面具有革命性。它實際上是一種非常優雅的設計，簡單易行，只需很少的工藝步驟，就能生產出性能卓越、更容易製造且更具成本效益的產品。我們的產品管理紀律在業界享有盛譽，這不僅體現在我們相對於領先產業基準的表現上，也體現在我們世界級客戶和合作夥伴的回饋上。

But what only a few in the industry understand is the leadership position AMD has quietly established in the process automation arena. AMD's automated precision manufacturing, or APM, is our patented suite of more than 250 leading-edge fab automation and optimization technologies used to reduce time to yield on new technologies, improve wafer yields, and decrease manufacturing costs. With APM, each generation of flash memory has ramped to mature yields better and faster than prior generations. Our best time to yield in our flash business has been in converting to 130 nanometers, which is now fully accomplished in both of our leading-edge fabs. And it is important to note that we're already ahead of the ramp in our conversion to 110 nanometers in Fab 25.

但業界只有少數人了解AMD在流程自動化領域悄悄建立的領導地位。AMD 的自動化精密製造 (APM) 是我們專利的套件，包含 250 多種尖端晶圓廠自動化和優化技術，用於縮短新技術的良率實現時間、提高晶圓良率並降低製造成本。借助 APM，每一代快閃記憶體都比前幾代產品更快、更好地達到成熟產量。我們的快閃記憶體業務實現良率的最佳時機是轉換為 130 奈米，目前我們的兩家尖端晶圓廠都已完全實現這一目標。值得注意的是，我們在 Fab 25 向 110 奈米轉換方面已經處於領先地位。

With AMD Opteron, we experienced a 66% improvement in our time to mature yield ramp over the prior generation of technology. And all indications are that our performance on 90 nanometers will be on the same or better ramp.

透過 AMD Opteron，我們的成熟良率提升時間比上一代科技提高了 66%。所有跡像都表明，我們在 90 奈米方面的性能將保持相同或更好的水平。

APM is one of our sources of competitive advantage, and we continue to evolve it as an important part of our growing leadership in manufacturing.

APM 是我們競爭優勢的來源之一，我們將繼續發展它，使其成為我們在製造業中不斷提升的領導地位的重要組成部分。

AMD is gaining widespread recognition as the clear industry leader. In leading the computer industry to pervasive 64-bit computing, in establishing MirrorBit as the new industry standard in flash memory, and in empowering a new generation of tech-capable consumers around the world. We have the design and manufacturing expertise to deliver on these and many other promises in the years ahead.

AMD 作為業界領先者的地位正獲得廣泛認可。引領電腦產業走向普及的 64 位元運算，將 MirrorBit 確立為快閃記憶體的新產業標準，並為全球新一代具有技術能力的消費者提供支援。我們擁有設計和製造專業知識，可以在未來幾年兌現這些承諾以及許多其他承諾。

As I said before, we are the new AMD and we're very proud of the progress that we have made, and of the leadership opportunities that we have created with and for our customers.

正如我之前所說，我們是新的 AMD，我們為我們所取得的進步以及我們與客戶共同創造的領導機會感到非常自豪。

I would like to again thank the thousands of AMD employees around the world for all the hard work to get us back to profitability in these past two quarters. I thank you for your attention and I'd like now to turn it back to Mike Haase for the Q&A.

我要再次感謝全球數千名 AMD 員工，感謝他們在過去兩個季度的辛勤工作，使我們恢復盈利。感謝大家的關注，現在我想把問答環節交還給 Mike Haase。

Operator, we're ready to start the Q&A session, please.

接線員，我們準備開始問答環節。

[Operator Instructions] One moment, please, for the first question, which is from the line of Tim Luke with Lehman Brothers. Please go ahead.

[操作員指示] 請稍等片刻，第一個問題來自雷曼兄弟的 Tim Luke。請繼續。

Hi to you, and congratulations on the quarter. I was wondering, with respect to the gross margins in the quarter improving, whether you could give some color on how you see the margin outlook developing and how you see it, longer term, as you transition to 90 nanometer? Thank you.

大家好，恭喜本季取得佳績。我想知道，關於本季毛利率的提高，您是否可以說明一下您對利潤前景發展的看法，以及在向 90 奈米過渡的長期前景如何？謝謝。

Only upward from here. In both businesses we see actually improvement, as we transition-- as we continue to complete the transition to 110 nanometer in flash and as MirrorBit continues to gain more traction as a bigger part of the portfolio, we'll see significant gains in gross margin in our memory business and in microprocessor, really, the story is the same. As we transition to 90 nanometer, we'll see improvement from that, and also as we continue to ramp AMD64.

從這裡只能向上。隨著我們繼續完成向 110 奈米快閃記憶體的過渡，以及 MirrorBit 作為產品組合中更重要的一部分繼續獲得更多關注，我們看到這兩項業務實際上都在改善，我們將看到記憶體業務和微處理器的毛利率顯著增長，實際上，情況是一樣的。隨著我們過渡到 90 奈米，我們將看到改進，同時我們也將繼續提升 AMD64。

Can you give us any sort of sense of the range to which that might apply? Could we, on flattish sales, anticipate a similar jump to the one we've just seen in terms of the gross margin, in terms of the order of magnitude of the improvement?

您能否向我們介紹一下該規定適用的範圍？在銷售額持平的情況下，我們能否預期毛利率和改善幅度會出現與剛才類似的成長？

Well, it really depends on how you model the mix. Obviously the flash business is quite a bit lower than the microprocessor business, so-- and kind of think of it as almost 50% to one, so it kind of depends on that and really, what mix you assume for our business model. That's about all the color I'll give you.

嗯，這實際上取決於你如何對混合進行建模。顯然，快閃記憶體業務的份額比微處理器業務低很多，所以 - 可以認為兩者的比例幾乎是 50% 比 1，所以這取決於這一點，實際上，取決於您對我們的商業模式的假設組合。這就是我要給你的全部顏色。

Thank you very much.

非常感謝。

And our next question is from the line of [Mark Edelstrong] with Morgan Stanley. Please go ahead.

我們的下一個問題來自摩根士丹利的馬克·埃德爾斯特朗 (Mark Edelstrong)。請繼續。

Nice job on the quarter, guys. I had two questions. First one really just related to the incremental profitability you can drive from the operations in flash -- maybe just give us a sense as to how far along you think you are in terms of wringing out some of the efficiencies in the merged business and where that could go from here, all other things considered equal, in the flash business for you?

大家，本季表現不錯。我有兩個問題。第一個問題實際上只與您從快閃記憶體業務中獲得的增量獲利能力有關——也許您只是讓我們了解一下，您認為您在合併業務中榨取效率方面取得了多大進展，以及在其他所有條件相同的情況下，快閃記憶體業務對您來說可以走向何方？

Well Mark, there are a number of things that are going to help us improve, as Bob pointed out. In no particular order, frankly, it's just the fact that, you know, the synergies of the two institutions combined are just now beginning to be realized. As Bob mentioned in his comments, we just saw the beginning of the impact in this past quarter. We expect that to continue between now and the end of the year, to continue to improve.

好吧，馬克，正如鮑勃指出的那樣，有很多事情可以幫助我們改進。坦白說，沒有特別的順序，事實就是，你知道，這兩個機構合併後的綜效才剛開始實現。正如鮑勃在評論中提到的那樣，我們剛剛在上個季度看到了影響的開始。我們預計從現在到年底這種情況將持續改善。

The second part is we're aggressively moving to 110 nanometer technology in our flash product line. That would also have an impact, and late in the year, as we begin 90 nanometers, that will also continue that trend to improve.

第二部分是我們正在積極地將我們的快閃記憶體產品線轉向 110 奈米技術。這也會產生影響，在今年晚些時候，當我們開始採用 90 奈米技術時，這種改善趨勢也將持續下去。

However, probably one of the things that's very critical here to get a sense for is that the conversion to MirrorBit is going to be a very significant in our ability to improve profitability in that business. As I mentioned in my prepared remarks, MirrorBit is an incredibly powerful technology, it's simple, elegant, easy to manufacture, in relative terms, because nothing is easy in this business. But-- and so we're really looking forward to that.

然而，這裡可能需要意識到的一件非常關鍵的事情是，轉換為 MirrorBit 將對我們提高該業務盈利能力具有非常重要的意義。正如我在準備好的演講中提到的，MirrorBit 是一項非常強大的技術，相對而言，它簡單、優雅、易於製造，因為在這個行業中沒有什麼是容易的。但是——所以我們真的很期待這一點。

The combination of all these things give us confidence that quarter after quarter, we'll see an improvement in our margins in flash.

所有這些因素的結合讓我們充滿信心，我們將看到快閃記憶體利潤率逐季提高。

I guess, Hector, is there a way just to try to calibrate how much you can get from each of those variables?

我想，赫克托，有沒有辦法嘗試校準你能從每個變數中獲得多少？

That probably is-- any way we calculate it today will probably change tomorrow, so I can tell you they are good, they're all roughly, you know, equal in contributions, but they're all positive, and that's about all I can tell you right now.

這可能是——我們今天以任何方式計算，明天都可能會改變，所以我可以告訴你，它們是好的，它們的貢獻大致相同，但它們都是積極的，這就是我現在可以告訴你的全部。

OK, thanks for that, and just one last follow-up on the processor business, can you just tell us what happened to ASPs in the 32-bit processor family? Were those flat, or did those actually increase again?

好的，謝謝您，最後再問一下關於處理器業務的問題，您能告訴我們 32 位元處理器系列的 ASP 發生了什麼變化嗎？這些數字是持平的，還是實際上又增加了？

Mark, this Henri. The ASP increased slightly in the 32-bit family.

馬克，我是亨利。32 位元系列的 ASP 略有增加。

Great, thank you, guys.

太好了，謝謝大家。

Thank you.

謝謝。

And our next question is from the line of Andrew Root with Goldman Sachs. Please go ahead.

我們的下一個問題來自高盛的安德魯·魯特。請繼續。

Hi, thanks a lot. Just to continue on the topic of mix, your 64-bit unit shipments doubled in the quarter. Curious if you're expecting similar momentum, as those product families ramp, in Q2, as part of your guidance?

你好，非常感謝。繼續討論混合話題，本季您的 64 位元單位出貨量翻了一番。好奇的是，隨著這些產品系列在第二季的擴張，您是否預計會出現類似的勢頭，這是您的指導的一部分？

We have gained a lot of momentum, and we're happy with it. We expect that momentum to continue. In terms of dollar terms, as I mentioned at the last earnings call, and I'll repeat it on this one, is towards the end of the year, we expect the dollar revenue on AMD64 will switch over, over our K7 architecture.

我們已經取得了很大的進展，我們對此感到高興。我們預計這一勢頭將會持續下去。就美元而言，正如我在上次財報電話會議上提到的那樣，我將在這次會議上重複一遍，到今年年底，我們預計 AMD64 的美元收入將轉換到我們的 K7 架構。

OK. And then related to that, as the 64-bit architecture ramps, the- when you launch 90 nanometer Opteron for commercial volume in Q3, do you expect at that time that any other key food chain partners, chipset partners, will come alongside that would be interesting to the industry?

好的。與此相關，隨著 64 位元架構的蓬勃發展，當您在第三季推出 90 奈米 Opteron 進行商業化生產時，您是否預計屆時會有其他重要的食物鏈合作夥伴、晶片組合作夥伴加入進來，引起業界的興趣？

I'm not really sure I understood the question.

我不太確定我是否理解了這個問題。

Well, do you think that, for example, you will see additional producers of chipsets for Opteron product when 90 nanometer is launched in volume in Q3?

那麼，您是否認為，當 90 奈米技術在第三季批量推出時，您會看到更多 Opteron 產品晶片組生產商？

Yeah, we're not going to announce or pre-announce product from our partners, but it's clear that there is a growing momentum in the chipset arena for server solutions based on the AMD64 Opteron processor.

是的，我們不會宣布或預先宣布我們合作夥伴的產品，但很明顯，基於 AMD64 Opteron 處理器的伺服器解決方案在晶片組領域的發展勢頭正在不斷增強。

OK, I'll take that as a ``yes'' for the moment. Thanks.

好的，我暫時將其視為“是”。謝謝。

Our next question is from the line of Michael Masdea with CSFB. Please go ahead.

我們的下一個問題來自瑞士信貸第一波士頓銀行的 Michael Masdea。請繼續。

Yeah, thanks a lot and congratulations. If I understood you correctly, you guys are talking about fairly seasonal computing unit demand, but you're continuing to see the ASP work in your favor. If you can talk about-- if that's right, if you can talk about-- is this just a continued kind of customer perception change, and how much more room do you think you can close the gap with your competitor there, is the first question.

是的，非常感謝，恭喜你。如果我理解正確的話，你們正在談論相當季節性的計算單元需求，但你們仍然看到 ASP 對你們有利。如果您可以談論——如果這是正確的，如果您可以談論——這是否只是一種持續的客戶認知變化，以及您認為您還可以縮小與競爭對手的差距有多大，這是第一個問題。

Well, there has been a concerted effort, as we introduce the AMD64 family of products, to continue to penetrate segments where we did not serve before, and most obvious one that stands out is the server space and the workstation space, high-performance computing. We went from pretty much a year ago being a zero in that space and we're gaining traction, and as you know, with more customers signing up with now, with, you know, Sun, HP, and IBM continuing, and others, we have-- we will continue to move into that space where prices are higher and therefore the mix change will continue to put some upward potential in our ASPs.

嗯，隨著我們推出 AMD64 系列產品，我們做出了一致的努力，繼續滲透到我們以前沒有服務過的領域，最明顯的是伺服器領域和工作站領域，高效能運算。大約一年前，我們在該領域還是零，但現在已經取得了進展，正如你所知，現在簽約的客戶越來越多，Sun、HP、IBM 和其他公司也將繼續與我們合作，我們將繼續進入價格更高的領域，因此產品組合的變化將繼續為我們的平均售價帶來一些上漲潛力。

Great. Just a quick follow-up, maybe, on the flash side -- can we have some milestones in terms of where you are in MirrorBit now and where you expect to be, kind of by the end of the year, if you can give those out?

偉大的。也許只是在閃存方面進行快速跟進 - 我們能否就您目前在 MirrorBit 所處的位置以及您預計在年底前所處的位置，給出一些里程碑，如果您可以透露的話？

What I can tell you is the growth in MirrorBit is robust, aggressive, and we're moving it as fast as, you know, customers are able to move to that. And we believe that, you know, roughly, in round numbers, give or take a little bit, towards the end of the year half of our products being manufactured will be MirrorBit, or more.

我可以告訴你的是，MirrorBit 的成長勢頭強勁、迅猛，而且我們正在以客戶能夠承受的速度推進它。我們相信，大致上，到今年年底，我們生產的產品中一半或更多將是 MirrorBit。

Thanks a lot.

多謝。

Our next question is from the line of [Joseph Osha] with Merrill Lynch. Please go ahead.

我們的下一個問題來自美林證券的 [Joseph Osha]。請繼續。

Hi, guys. Yeah, two ones. First, on the flash side of the business, how-- how close are you to capacity or being capacity-limited, and then I have a follow-up.

嗨，大家好。是的，兩個。首先，在快閃記憶體業務方面，您的產能有多接近或受到產能限制，然後我有一個後續問題。

In the first quarter, the one that we just ended, our flash capacity was very tight. We-- you know, we live hand-to-mouth in many, many-- many of our products, but particularly the heaviest challenge was definitely on the low-density part of the equation. As we go into the second quarter, we're going to improve our ability to make product, but we still expect to be very, very tight. We believe that the conversion to 110 nanometers will begin to improve that in the third quarter.

在剛結束的第一季度，我們的快閃記憶體容量非常緊張。你知道，我們的許多產品只能維持勉強糊口，但最嚴峻的挑戰肯定是在低密度部分。進入第二季度，我們將提高產品生產能力，但我們預計仍會非常非常緊張。我們相信，向 110 奈米的轉換將在第三季開始改善這種情況。

In the third quarter?

在第三季？

Yes.

是的。

OK. And then the second one, I know you can't-- not going to give me a number, but as I look at my model, it looks to me like Opteron plus Athlon 64 in the first quarter was probably in the neighborhood, in unit terms, of about 10% of your volume. Am I in the right-- excuse me, 5% of your volume. Am I in the right ZIP code, perhaps?

好的。然後第二個問題，我知道你不能——不會給我一個數字，但是當我查看我的模型時，在我看來，第一季度的 Opteron 加上 Athlon 64 的銷量可能在你們的銷量的 10% 左右。我說得對嗎？不好意思，只佔您音量的 5%。我的郵遞區號是否正確？

You're too low, and I'm not going to give you the number, but you're too low.

你太低了，我不會告訴你數字，但你太低了。

Oh, OK. OK. So 5% is too low? All right, thanks.

哦，好的。好的。那麼 5% 太低了嗎？好的，謝謝。

Our next question is from the line of Hans Mosesmann with Schwab Soundview. Please go ahead.

我們的下一個問題來自 Schwab Soundview 的 Hans Mosesmann。請繼續。

Yes, thank you. A couple of questions on-- can you give us a sense of the Athlon 64/Opteron ramp -- is it coming along as expected, a little better than expected, and the follow on is on flash -- if you can comment on the level of allocation, if you are on allocation, of this product for the next couple quarters? Thanks.

是的，謝謝。有幾個問題——您能否給我們介紹一下 Athlon 64/Opteron 的進展——它是否如預期的那樣發展，比預期的要好一點，接下來是閃存——如果您在分配方面，您能否評論一下該產品在未來幾個季度的分配水平？謝謝。

Yeah, we've modeled our-- the balance between our AMD64 product, which is our K8 architecture, and our Athlon XP product, which right now is mostly known as our K7 architecture, based on what customers wanted-- want from us.

是的，根據客戶的需求，我們已經建立了我們的 AMD64 產品（即我們的 K8 架構）和我們的 Athlon XP 產品（目前主要稱為我們的 K7 架構）之間的平衡模型。

For example, if a customer wants a- the best value you can get, at a given performance, for a 32-bit system only, it is hard to beat Athlon XP today. And so we've dialed that, as we-- the quarter evolved, and we have managed to stay on plan, relative to the ramp that we can-- we're happy to have on AMD64. We expect that to accelerate, as in the second half of the year, the software ecosystem begins to get stronger and Microsoft will begin to release the client OS that will address the needs of the 64 system, so we expect that to accelerate. But we're very fortunate to have now the broadest portfolio in X86 architecture we've ever had in the history of the company, when you go from the value space, mainstream, 32/64 client, server, workstation, and we are dialing in the proper means, based on our customer needs and demands.

例如，如果客戶想要在給定效能下獲得最佳價值，並且僅適用於 32 位元系統，那麼目前很難找到比 Athlon XP 更合適的產品。因此，隨著本季度的發展，我們已經撥通了電話，並且我們設法按照計劃進行，相對於我們可以實現的增長，我們很高興能夠在 AMD64 上實現這一目標。我們預計這一進程將會加速，因為在下半年，軟體生態系統將開始變得更加強大，微軟將開始發佈滿足 64 位元系統需求的用戶端作業系統，因此我們預期這一進程將會加速。但我們非常幸運，現在我們擁有公司歷史上最廣泛的 X86 架構產品組合，從價值空間、主流、32/64 用戶端、伺服器、工作站來看，我們會根據客戶的需求和要求，採用適當的方式。

And on the flash side, as I said before, we're tight in manufacturing. We're having a tremendous challenge on the very low density part of the spectrum on flash. We expect that very tight situation to continue in the second quarter and begin to be alleviated in the third quarter, as 110 nanometer takes over.

在快閃記憶體方面，正如我之前所說，我們的製造能力非常強。我們在閃存頻譜的極低密度部分面臨巨大的挑戰。我們預計這種非常緊張的局面將在第二季持續下去，並在第三季隨著 110 奈米技術的普及而開始得到緩解。

OK, thanks a lot.

好的，非常感謝。

Our next question is from the line of Krishna Shankar with JMP Securities. Please go ahead.

我們的下一個問題來自 JMP Securities 的 Krishna Shankar。請繼續。

Can you give us an indication of what channels and markets seem to be most receptive to adopting the Athlon 64 architecture and can you also give us an update on your efforts in the notebook PC market?

您能否向我們介紹哪些通路和市場最願意接受採用 Athlon 64 架構？您能否向我們介紹一下您在筆記型電腦市場的最新努力？

Sure. In terms of channels, we had, again, a record quarter in the distribution channel, which indicates continued strong adoption by enthusiasts, PC enthusiasts, gamers, and the small and medium businesses. And that's a statement for the client side.

當然。在通路方面，我們再次在分銷管道上創下了新紀錄，這表明我們繼續受到發燒友、PC 愛好者、遊戲玩家和中小型企業的強烈歡迎。這是針對客戶端的聲明。

As we indicated in our remarks, on the server side, the quarter was characterized by increasing adoption of the Opteron processor in the enterprise, outside of its traditional high performance computing segment, and into true computational needs that are more-- considered mainstream. So I'd say across the board.

正如我們在評論中所指出的，在伺服器方面，本季的特點是企業越來越多地採用 Opteron 處理器，這超出了傳統的高效能運算領域，並且滿足了更主流的真正運算需求。所以我想說，整體來說。

As far as the notebook, as you may know, we introduced in the first quarter our Athlon 64 mobile processor and I'm very pleased with the initial response that we've got in the marketplace. As you know, the most dynamic portion of the notebook market segment is the desktop replacement, and the AMD Athlon 64 mobile processor brings an incredible level of performance for that particular type of usage, so we're seeing strong demand in that segment.

就筆記型電腦而言，正如你們所知，我們在第一季推出了 Athlon 64 行動處理器，我對我們在市場上獲得的初步反應感到非常滿意。眾所周知，筆記型電腦市場中最活躍的部分是桌上型電腦的替代品，而 AMD Athlon 64 行動處理器為這種特定類型的用途帶來了令人難以置信的性能水平，因此我們看到該領域的需求強勁。

OK. And on the flash market, given that you're running almost at full capacity, what steps can you take to improve your mix of units so that you get to significantly higher levels of profitability before the 110 nanometer technology gives you effectively more capacity?

好的。在快閃記憶體市場，假設您幾乎滿載運轉，您可以採取哪些措施來改善您的產品組合，以便在 110 奈米技術有效地為您提供更多容量之前獲得更高的盈利水平？

Well, the steps-- it's not a question of dialing a different product mix. It's a question of what our customer demand is, and we're working with our customers to look at the-- you know, their needs and particularly in the wireless space, where the need for higher density continues to be strong and moving up, and we have a very strong partnership with many of the-- all of the key suppliers in the mobile space. And working with them, the density of our products continues to increase in that particular space. So we're spending a lot of time and energy working with them to be able to- to make sure that we meet their needs. And in addition to that, on the embedded side of the house, we're working to try to move people also to MirrorBit, because it's a much more effective technology, better for the customer, better reliability, better cost, et cetera. That will also lead to improved margins. And we're putting in place expansions in our flash factory in Japan, which is called JB 3, which is one of the factories that came from Fujitsu, in order to add more capability at these leading-edge type of technologies, both for Floating Gate and MirrorBit.

嗯，步驟——這不是撥打不同的產品組合的問題。問題在於我們的客戶需求是什麼，我們正在與客戶合作，了解他們的需求，特別是在無線領域，對更高密度的需求持續強勁且不斷上升，我們與移動領域的許多主要供應商都建立了非常牢固的合作夥伴關係。與他們合作後，我們的產品在特定領域的密度不斷提高。因此，我們花費了大量的時間和精力與他們合作，以確保滿足他們的需求。除此之外，在嵌入式方面，我們正在努力嘗試讓人們轉向 MirrorBit，因為它是一項更有效的技術，對客戶更有利，可靠性更高，成本更低，等等。這也將提高利潤率。我們正在對位於日本的快閃記憶體工廠（稱為 JB 3）進行擴建，該工廠是從富士通收購的工廠之一，目的是為浮動閘極和 MirrorBit 等尖端技術增加更多功能。

We expect all those things will continue to modestly increase pricing. One thing I just want to re-emphasize is that despite the capacity constraints being tight, there's still a pretty heavy duty competition out there in the marketplace, and although prices are firming, they're definitely not a rocket going up. Henri?

我們預計所有這些因素將繼續小幅推高價格。我想再次強調的一點是，儘管產能限制很緊，但市場上的競爭仍然相當激烈，儘管價格在走強，但絕對不會像火箭一樣飛漲。亨利？

Just want to underline that in the first quarter, we had the improvement in both average megabits shipped and also ASP, so there is already a trend towards an enrichment of the product mix.

只想強調的是，在第一季度，我們的平均出貨量和平均售價都有所提高，因此產品組合已經呈現出豐富的趨勢。

Thank you.

謝謝。

Our next question is from the line of Ben Lynch with Deutsche Bank. Please go ahead.

我們的下一個問題來自德意志銀行的本·林奇。請繼續。

First question, the CPU revenues declined, EBIT went up, you know, there's been some concern that you guys were maybe having some problems at 130 nanometer yields, which of course-- well, which you have denied. How should I interpret this revenue-EBIT divergence? Is it, you know, AMD64-bit products have, you know, higher margins that 32-bit, or is there something else behind it, and I have a follow-up question, please.

第一個問題，CPU 收入下降，EBIT 上升，你知道，有人擔心你們在 130 奈米產量方面可能遇到了一些問題，當然，你已經否認了這一點。我該如何解釋收入與息稅前利潤的差異？您是否知道，AMD 64 位元產品的利潤率比 32 位元產品更高，或者這背後還有其他原因，我有一個後續問題。

Well, I guess I'll repeat a portion of what I said before. The introduction of AMD64 has given us the opportunity to penetrate segments that we did not serve before, and those segments have allowed us then to improve our ASP and product mix. That is a very positive statement and has helped in our ASPs.

好吧，我想我會重複我之前說過的一部分內容。AMD64 的推出使我們有機會進入以前未曾涉足的領域，而這些領域又使我們能夠改進 ASP 和產品組合。這是一個非常積極的聲明，對我們的 ASP 有所幫助。

The second part, and not-- you know, I'm looking for ways in which I can dispel this belief in the marketplace, is-- we-- our manufacturing is at an all-time high in terms of yields, performance, cycle time. Benchmarks done by third parties, which are made up of practically every semiconductor manufacturer in the world, indicate that we are the premiere manufacturing site, premiere manufacturing company. Our customers, as present data to them, they're pleasantly receiving the data that we present to them, because we are very strong. So 130 nanometer is mature, the yields are outstanding, and as we begin to make the transition to 90 nanometers, which I said in my prepared remarks, we're going to begin within a matter of a few weeks, we already have data that indicates that we will begin 90 nanometers at a higher level of productivity that 130 nanometer, so we're very pleased with manufacturing and that's why I took some additional steps in m prepared remarks to try to convey to you how strong we are in that particular area.

第二部分，你知道，我正在尋找可以消除市場這種信念的方法，我們的製造在產量、性能、週期時間方面都達到了歷史最高水平。幾乎由世界上所有的半導體製造商組成的第三方所做的基準測試表明，我們是首屈一指的製造基地、首屈一指的製造公司。我們的客戶，當我們向他們提供數據時，他們很高興地接受我們提供給他們的數據，因為我們非常強大。因此，130 奈米已經成熟，產量非常出色，隨著我們開始向 90 奈米過渡，正如我在準備好的發言中所說，我們將在幾週內開始，我們已經有數據表明，我們將以比 130 奈米更高的生產率開始 90 奈米，因此我們對製造感到非常滿意，這就是為什麼我在準備好的發言中採取了一些額外的措施，我們試圖向你們有多麼強大。

Yeah, thanks. OK, the second question I had was maybe for Henri -- CPU revenues outgrew Intel a lot, or let's say they ``under-grew less,'' probably about eight percentage points or so. For the second quarter, you're guiding maybe only 1% to 2% better, it seems. You know, are you losing sort of momentum in terms of the rate of share that you're gaining, or do you think you're more so just being conservative?

是的，謝謝。好的，我的第二個問題可能是問亨利的——CPU 收入增長遠遠超過英特爾，或者說“增長幅度較小”，大概是 8 個百分點左右。對於第二季度，您預測的增幅似乎只會提高 1% 到 2%。您知道嗎，就您所獲得的份額而言，您是否正在失去某種動力，或者您認為您只是比較保守？

Well Ben, as you know, the second quarter is always a tricky quarter for this industry, in particular in Europe, where we have a very strong presence. So I would say we're conservative.

嗯，本，如你所知，第二季度對於這個行業來說始終是一個棘手的季度，特別是在我們佔有非常強大地位的歐洲。所以我想說我們是保守的。

Great. Thank you very much.

偉大的。非常感謝。

Our next question is from the line of John Lau with the Banc of America. Please go ahead.

我們的下一個問題來自美國銀行的 John Lau。請繼續。

Thank you. Henri, given the rapid adoption of the AMD64 and looking at the forecast for the second half of 2004, are you going to be constrained by capacity at the 130 nanometer node, and what is the percentage of the-- the best guess that you have in terms of what the AMD64 percentage would be at 90 nanometers by the end of the year? And I have a follow-up, thank you.

謝謝。亨利，鑑於 AMD64 的快速普及以及對 2004 年下半年的預測，你們是否會受到 130 奈米節點產能的限制，您能預測到今年年底 AMD64 在 90 奈米節點的佔比是多少嗎？我還有一個後續問題，謝謝。

Do you want me to answer the demand question?

你想讓我回答需求問題嗎？

Yes.

是的。

Well, John, from a-- as we can see today, based on our plans and forecasts, I don't foresee any constraints of supply of AMD64-based processors for the second half of the year. That's the response, from a demand perspective.

嗯，約翰，正如我們今天所看到的，根據我們的計劃和預測，我預計下半年基於 AMD64 的處理器的供應不會受到任何限制。從需求角度來看，這就是回應。

As far as the 90 nanometer question?

至於 90 奈米的問題呢？

Yes?

是的？

Can you clarify exactly what you want to know there?

您能確切地說出您想知道什麼嗎？

Yeah, what percentage of the AMD64s will be at 90 nanometer by the end of the year?

是啊，到今年年底，有多少比例的 AMD64 會採用 90 奈米技術？

You know, I won't give an exact amount. I think it'll be significant, because we're ramping the technology fairly aggressively, beginning this quarter.

你知道，我不會給出確切的金額。我認為這意義重大，因為從本季開始我們將大力推進這項技術。

OK. OK, and then in terms of fall, looking into the second half of 2004 and into 2005, in terms of the relative growth based on a unit basis, do you believe the notebook market units will be growing faster, or is the server units still the catalyst for 2004?

好的。好的，那麼就下降而言，展望2004年下半年和2005年，就基於單位基礎的相對增長而言，您是否認為筆記型電腦市場單位的增長速度會更快，還是伺服器單位仍然是2004年的催化劑？

Well clearly, from a unit perspective, the mobile market will be a catalyst for growth for us. As I mentioned, we introduced the AMD64 mobile processor in Q1. That was the first order, and we expect to grow that business very quickly. From a revenue perspective, we're going to see both the mobile segment and the server segment generate, you know, good revenue growth, obviously, because of the ASP driven in the server segment.

顯然，從單位角度來看，行動市場將成為我們成長的催化劑。正如我所提到的，我們在第一季推出了 AMD64 行動處理器。這是第一筆訂單，我們預計該業務將快速成長。從收入角度來看，我們將看到行動領域和伺服器領域都產生良好的收入成長，這顯然是由於伺服器領域的平均售價所推動的。

The only thing that I would add to that is that because we're going from an incredibly low level of participation in the server space, our opportunity for growth for us is much higher than what it is for the market.

我唯一想補充的是，由於我們在伺服器領域的參與程度非常低，因此我們的成長機會比市場高得多。

Great. Thank you.

偉大的。謝謝。

Our next question is from the line of Quinn Bolton with Needham & Company. Please go ahead.

我們的下一個問題來自 Needham & Company 的 Quinn Bolton。請繼續。

Hi, first question for Bob. I think in some of your earlier comments at investor conferences this quarter, you talked about a double-digit operating margin target for the flash operation by the end of '04. Still think that that's a good target?

你好，第一個問題是問鮑伯。我想，您在本季度投資者會議上的一些早期評論中談到了到 2004 年底閃存業務的兩位數營業利潤率目標。還是認為這是個好目標嗎？

Yes. By the fourth quarter, still think that's within reach, and again, that's based on demand is very strong, MirrorBit technology continues to ramp very aggressively in the marketplace and accepted by our customers, and the transition to 110 nanometers now and starting 90 nanometers at the end of the year.

是的。到第四季度，仍然認為這是可以實現的，而且，這是基於需求非常強勁，MirrorBit 技術繼續在市場上積極發展並被我們的客戶所接受，並且現在過渡到 110 奈米並在年底開始 90 奈米。

OK. And then the second question -- can you give us an update on the New Castle product and how that's ramping here into the second quarter?

好的。然後是第二個問題——您能否向我們介紹一下 New Castle 產品的最新情況以及它在第二季度的進展？

Yes, the product is on plan.

是的，產品正在計劃中。

OK.

好的。

Is our update on that. All our product plans are on plan for the second quarter.

這是我們的最新消息嗎？我們所有的產品計劃都在第二季度按計劃進行。

And our next question is from the line of Michael Mcconnell with Pacific Crest Securities. Please go ahead.

我們的下一個問題來自 Pacific Crest Securities 的 Michael Mcconnell。請繼續。

Ah, yes, on the high density flash pricing, is it more a function-- the rather benign pricing we're seeing out there, although it is stabilizing your ability to really get better pricing, is that more a function of your competitors' pricing tactics right now, or one of your competitor's pricing tactics, or more a function of the longer term contracts you have with your customers?

啊，是的，關於高密度快閃記憶體定價，它更多的是一種功能嗎？我們看到的相當溫和的定價，雖然它正在穩定你獲得更好定價的能力，但這更多的是你競爭對手的定價策略的功能，還是你的競爭對手的定價策略之一，或者更多的是你與客戶簽訂的長期合約的功能？

It's the latter. As you know, a vast majority of our flash business today is with strategic OEMs around the world, with whom we've engaged in multi-year relationships. Therefore we have a stability in the pricing that's essentially driven by the performance of our product portfolio and our roadmaps. There is pricing pressure out there, but you know, those type of customers don't switch over simply because there's a lower price suddenly in the market.

是後者。如您所知，我們目前絕大部分的快閃記憶體業務是與世界各地的策略 OEM 進行的，我們與他們建立了多年的合作關係。因此，我們的定價穩定，主要取決於我們的產品組合和路線圖的表現。雖然有定價壓力，但你知道，這類客戶不會因為市場價格突然下降就轉換業務。

And then what is your target by the end of the year for, on the flash side, for 110 nanometer, percentage of total flash by the end of the year, your capacity?

那麼，到今年年底，在快閃記憶體方面，您的目標是什麼？到今年年底，110 奈米快閃記憶體佔總快閃記憶體容量的百分比是多少？

More than 50%.

超過50%。

And Bob, what was the add back to the converts in Q1?

鮑勃，Q1 中轉換率的增加是多少？

55 million shares, the first convertible, the $402.5m convertible is in the fully diluted share computation.

5,500 萬股，第一支可轉換股票，4.025 億美元的可轉換股票屬於完全稀釋股份計算。

OK, great. Thanks.

好的，太好了。謝謝。

Our next question is from the line of Chris Stanley with JP Morgan. Please go ahead.

我們的下一個問題來自摩根大通的克里斯·史丹利。請繼續。

Hey thanks guys, nice quarter. Just a couple of clarifications on flash. You said ASPs go up -- did actual pricing go up in Q1 for flash, i.e., pricing for individual chips?

嘿，謝謝大家，這是一個美好的季度。只要對 Flash 做一些澄清。您說平均售價上漲了——那麼第一季快閃記憶體的實際價格（即單一晶片的價格）是否上漲了？

No, as you know, again, because we're engaged in many long-term relationships, typically Q1 is a quarter where you negotiate pricing for the year, for the fiscal year.

不，如你所知，因為我們建立了許多長期關係，通常第一季是你為年度、為財政年度協商定價的季度。

Yeah.

是的。

So there was the natural adjustment in those relationships, of the pricing. But yet we had an ASP increase, which is a testimonial to the growth of our-- you know, the quality of our mix.

因此，這些關係中的定價會進行自然調整。但我們的平均售價卻有所上漲，證明了我們的產品組合品質的成長。

Exactly. And--

確切地。和 -

-there was a slight decrease in price and an increase in ASP, due to a, you know, significant increase in product mix.

-由於產品組合大幅增加，價格略有下降，平均售價上升。

Got it. And do you expect a similar situation to occur in Q2 and Q3?

知道了。您預計第二季和第三季也會出現類似的情況嗎？

Well as I stated, we negotiated most of the long-term relationships in the first quarter, so as far as the large customers, we now have a stable situation. Clearly for us, we're driven by our customer demand to move more and more of our solutions to MirrorBit, and that, you know, provides us with opportunity to bring, you know, cost-competitive solutions, but at the same time, improve our own profits.

正如我所說，我們在第一季就協商了大部分長期合作關係，因此就大客戶而言，我們現在的情況是穩定的。顯然，對我們來說，客戶需求推動著我們將越來越多的解決方案轉移到 MirrorBit，這為我們提供了提供具有成本競爭力的解決方案的機會，同時提高了我們自己的利潤。

Sure. And then can you just comment on what the lead times in are in flash right now?

當然。然後您能否評論一下目前 Flash 的交付週期是多少？

Our lead times in the 12 to 13 weeks range.

我們的交貨時間在 12 至 13 週範圍內。

And-- so it sounds like you expect those to remain in the same range for Q2 and then hopefully be brought down in Q3, when the capacity comes online?

那麼—聽起來您預計這些數字在第二季將保持在同一範圍內，然後希望在第三季產能上線後下降？

That's correct, and you know, again, we are ramping 110 nanometer on Floating Gate. Next quarter we'll ramp 110 nanometer on MirrorBit and the conjunction of these two transitions will bring us in a very favorable position to respond to customer demand in the second half of the year.

這是正確的，而且您知道，我們正在將浮柵技術提升至 110 奈米。下個季度，我們將在 MirrorBit 上推出 110 奈米技術，這兩次轉型的結合將使我們在下半年處於非常有利的位置來滿足客戶的需求。

And last question -- can you give us any sense of how much capacity you have coming on in Q2 and Q3?

最後一個問題—您能否告訴我們您在第二季和第三季的產能是多少？

No, I wouldn't give you specifics, but I can tell you that we're moving rapidly towards the-- if you were to look at fourth quarter to fourth quarter, we're-- it's approximately doubling.

不，我不會告訴你具體細節，但我可以告訴你，我們正在快速邁向——如果你看一下第四季度，我們——它大約翻了一番。

I'm sorry, say that again?

對不起，你再說一次好嗎？

If you're looking at fourth quarter to fourth quarter, we're probably doubling, more or less, give or take a little bit.

如果你看一下第四季度，我們可能會翻一番，或多或少，或多或少。

Great. Thanks a lot, guys. Great quarter.

偉大的。非常感謝大家。很棒的一個季度。

Our next question is from the line of David Wong with A.G. Edwards. Please go ahead.

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

Thank you very much. For your flash sales, can you give us some idea of the distribution amongst areas, major end markets?

非常感謝。對於你們的限時搶購活動，能否介紹一下各地區、各主要終端市場的分佈？

Sure. We're-- clearly our biggest position in the wireless handset market, where we're engaged with most of the key players in the industry, and that represents a little over 60% of our business, but we also have a very strong position in the embedded segment. And actually, it's important to note that in the first quarter, the growth in the embedded markets was slightly higher than in the wireless market.

當然。顯然，我們在無線手機市場佔據最大的地位，我們與業內大多數主要參與者都有合作，這占我們業務的 60% 多一點，但我們在嵌入式領域也佔有非常強的地位。實際上，值得注意的是，第一季嵌入式市場的成長略高於無線市場。

And in embedded, can you give us any idea of what the major users of the embedded are?

在嵌入式領域，您能否告訴我們嵌入式的主要用戶有哪些？

Well, I'll give you-- you know, consumer electronics and automotive are traditionally very strong segments for AMD.

嗯，我告訴你——你知道，消費電子和汽車傳統上是 AMD 非常強大的領域。

OK, thank you.

好的，謝謝。

And our next question is from the line of Adam Parker with Sanford Bernstein. Please go ahead.

我們的下一個問題來自桑福德伯恩斯坦的亞當帕克。請繼續。

You might have said -- I apologize if I missed it -- but when is your plan for 50% crossover on production on 90 nanometer in the processor space?

您可能已經說過——如果我錯過了，我很抱歉——但是您計劃何時在處理器領域實現 90 奈米生產 50% 的交叉？

I didn't say for 90 nanometer; but--

我並沒有說 90 奈米；但 -

You said production is starting in Q3, so when do you think you'll cross over?

您說生產將於第三季開始，那麼您認為什麼時候會跨越？

90-- you know, it'll between fourth and first quarter.

90——你知道，它會在第四季和第一季之間。

OK. Then just following up on something Bob said, just trying to dive a little bit more into your comment that margins are only sort of upward from here. You know, it seems like at a high level, the biggest factors are basically depreciation, technology improvements, and then a combination of pricing and mix. And I just want to talk about the kind of depreciation part a little bit. Can you help with-- do you think you've really structurally reduced your capital intensity over time, and you know, what's the depreciation impact in Q2 versus Q1, and then sort of longer term, sort of 2005 versus 2004, if you can add any color?

好的。然後，我只是跟進鮑勃所說的一些事情，只是想更深入地探討一下你的評論，即利潤率從現在開始只會上升。您知道，從高層次來看，最大的因素基本上是折舊、技術改進，然後是定價和產品組合的組合。我只想稍微談一下折舊部分。您能否幫忙—您是否認為您真的從結構上降低了資本密集度？您知道，第二季與第一季相比，折舊影響如何？長期來看，例如 2005 年與 2004 年相比，折舊影響如何？能補充一些細節嗎？

Well, we're-- if you haven't picked up on earlier answers to questions, we are adding capacity. We're [inaudible] machinery capacity in the memory business in JB 3 in particular.

好吧，如果您還沒有註意到先前問題的答案，我們正在增加容量。我們[聽不清楚]特別是 JB 3 記憶體業務的機械產能。

Right.

正確的。

That building was only actually half equipped, so we will have more depreciation come on line throughout the year. Most of that will happen in the second half of the year, from that standpoint. And you know, we're enjoying leadership position in that marketplace. We continue to try to distance ourselves from number two. So we'll continue to add capacity at the appropriate time, which to me will yield a little more depreciation.

該建築實際上只配備了一半的設備，因此全年將有更多的折舊。從這個角度來看，大部分情況將在下半年發生。你知道，我們在該市場享有領導地位。我們將繼續努力與第二名保持距離。因此，我們會在適當的時候繼續增加產能，對我來說，這將產生更多的折舊。

So I guess my point is, you know, do you think longer term, you've kind of changed your capital intensity at all, or is that, you know, is that not part of the plan?

所以我想我的觀點是，你知道，你是否認為從長遠來看，你已經改變了你的資本強度，或者，你知道，這不是計劃的一部分嗎？

We always continue to-- I guess the answer is we always look at it, and figure out where to find the sweet spot, but the memory business is still a very capital-intensive business.

我們始終在繼續——我想答案是我們始終在關注它，並找出最佳點，但記憶體業務仍然是一個非常資本密集型的​​業務。

All right, so the second piece of that, then, would be kind of the pricing, or you know, you've talked about the mix being good, but can you maybe talk a little bit about, you know, what you envision for flash pricing over the medium term here, with I guess Intel, Samsung, Renaissance, all wanting to gain more share in [newer] flash in the coming couple of years. How do you think that's going to plan out, or do you just think your technology is just a cut above and getting better and better?

好的，那麼第二部分就是定價，或者您知道，您說過組合很好，但您能否談談您對中期閃存定價的設想，我猜英特爾、三星、文藝復興都希望在未來幾年內在[更新的]閃存中獲得更多份額。您認為這將如何進行規劃，或者您只是認為您的技術更勝一籌並且會越來越好？

Well, I think I wouldn't be so bold as giving you a two-year outlook on price in flash. If I did, maybe I would have your job, but--

好吧，我想我不會這麼大膽地給你一個關於閃存價格的兩年展望。如果我這麼做了，也許我會得到你的工作，但是——

That's the last thing you want!

這是你最不想要的！

But clearly again, because of the strategic nature of our business, and particularly in the wireless space, you know, that area is really driven by constant innovation and progression in density and complexity of the package. So, you know, time to market, a competitive roadmap, and high-level quality technology is really what matters.

但顯然，由於我們業務的戰略性質，特別是在無線領域，你知道，該領域實際上是由封裝密度和複雜性的不斷創新和進步所驅動的。所以，你知道，上市時間、有競爭力的路線圖和高品質的技術才是真正重要的。

At the low end, in the lower density, as you pointed out, there are some people that have lost significant market share over the last year that are going to try to regain some of that share and I expect that a lot of the competition may come in that space initially.

正如您所指出的，在低端、較低密度領域，有些人在過去一年中失去了大量市場份額，他們將試圖重新獲得部分份額，我預計很多競爭最初可能會出現在這個領域。

So yeah, I guess the--

是的，我想——

--so I would say, you know, competitive, tough business at the high end, but again, it's more than price. As you go down in density, you know, the effect of being cheap and available is probably more of a factor of decision for the customers.

——所以我想說，你知道，高端市場的競爭非常激烈，但問題不僅僅在於價格。隨著密度的降低，廉價和可用性的影響可能成為客戶決策的更重要因素。

And I'd like to add to that just one thing -- you alluded to it in your question, is that the MirrorBit technology is really unique. It's incredibly strong, very powerful in terms of cost performance and quality, and I think that will be one significant competitive differentiator.

我想補充一點——您在問題中提到了這一點，MirrorBit 技術確實非常獨特。它非常強大，在性價比和品質方面非常強大，我認為這將是一個重要的競爭優勢。

OK, thanks for the color.

好的，謝謝你的顏色。

Our next question is from the line of Clark Westmont with Smith Barney. Please go ahead.

我們的下一個問題來自史密斯巴尼的克拉克·韋斯特蒙特 (Clark Westmont)。請繼續。

Hi, most of my questions have been answered. I'm just wondering on the-- in terms of any roadmap or milestones you've put out there for Athlon 64, can you tell us how you're tracking to those or give us any milestones for the year in terms of unit volumes or anything like that?

你好，我的大部分問題都已得到解答。我只是想知道——就您為 Athlon 64 制定的任何路線圖或里程碑而言，您能否告訴我們您如何跟踪這些計劃，或者為我們提供今年在單位產量或類似方面取得的任何里程碑？

Well Mark, as Hector pointed out, we've always said that we were expecting the crossover point to be in the fourth quarter of 2004, and we're maintaining that guidance.

嗯，馬克，正如赫克托指出的那樣，我們一直說，我們預計交叉點會出現在 2004 年第四季度，而且我們仍維持這一預期。

OK. And any mid-year-- I think you had said at one point, over a million units cumulative, or a million and a half? I'm trying to nail down which one of those numbers was the bogey, or was there such a bogey?

好的。任何年中——我想您曾經說過，累計銷量超過 100 萬台，還是 150 萬台？我試著確定這些數字中哪一個是柏忌，或者是否有這樣的柏忌？

Well, the market is determining that, but we are-- we are-- our capability to ramp is on plan, we're happy with where we are, and we expect, again, on the longer term view, to cross over by the end of the year.

嗯，市場正在決定這一點，但是我們 - 我們 - 我們的提升能力正在按計劃進行，我們對目前的狀況感到滿意，並且我們再次預計，從長遠來看，到今年年底將實現跨越。

And I think there was an earlier question, about whether the margins on the 64-bit are more than the 32-bit. Can you comment on that?

我認為之前有一個問題，關於 64 位元的邊距是否大於 32 位元。您能對此發表評論嗎？

The recent [data] right now is that we are so heavily influenced by the fact that the early introduction of AMD64 was in April of last year, a year ago, and it was not in the server/workstation/high performance computer, where margins are, you know, higher than the 32-bit performance we had, which was mostly in the consumer client space. For that reason, that continues right now.

目前的最新數據表明，我們受到 AMD64 於去年 4 月（也就是一年前）推出這一事實的嚴重影響，而且它並不適用於伺服器/工作站/高性能計算機，這些領域的利潤率高於我們擁有的 32 位元效能，而 32 位元效能主要應用於消費者客戶端領域。出於這個原因，這種情況現在仍在繼續。

However, part of the client that I think is important for you to know that is doing extremely well is in the Athlon 64-FX, which is really the highest-performing client product that you can get, period, in both 32-bit and 64-bit. And those margins are pretty good, too.

然而，我認為您需要知道的是，客戶端中表現非常出色的部分是 Athlon 64-FX，它實際上是您能獲得的性能最高的客戶端產品，無論是 32 位元還是 64 位元。而且這些利潤率也相當不錯。

Thanks.

謝謝。

Operator, we're going to take two more questions, please.

接線員，我們還想回答兩個問題。

Yes, sir. Our next question is from the line of [Alan Michon] with CIBC. Please go ahead.

是的，先生。我們的下一個問題來自加拿大帝國商業銀行的 [Alan Michon]。請繼續。

Hi. With your expectation that revenue will be flat next quarter and the slight shift towards memory, we would tend to expect that gross margin would decline slightly, going forward. Is there anything going on, on the ASP side, or maybe on the manufacturing side, that would cause that not to happen?

你好。由於您預期下個季度的收入將持平，並且略微轉向內存，我們傾向於預計未來的毛利率將略有下降。在 ASP 方面或製造方面是否存在什麼問題導致這種情況不會發生？

You've decoded it pretty correctly. We're trying our darnedest, of course, to offset that kind of mix shift issue that takes place, but nothing of significance that can happen in a 90-day window of time to overcome the two-for-one issue between the microprocessor margin and the flash margin.

你已經非常正確地解碼了它。當然，我們正在盡最大努力來抵消這種混合轉變問題，但在 90 天的時間內不可能發生任何重大變化來克服微處理器裕度和快閃裕度之間的二合一問題。

OK. And I know we've beaten flash margins to death, but just kind of in simple terms, do we get additional margin boost on the flash side from, you know, just a higher volume, or are we dependent on pricing improving at this point, or you know, a shift towards MirrorBit or higher density, et cetera?

好的。我知道我們已經把快閃記憶體利潤率壓垮了，但簡單來說，我們是否能從快閃記憶體方面獲得額外的利潤提升，僅僅是透過更高的銷量，還是我們依賴此時的價格改善，或者你知道，轉向MirrorBit或更高的密度等等？

Well, higher volume always helps amortize the cost, because it's a very fixed-cost business, so that's one. Any increase in MirrorBit is a positive. So-- and obviously ASP is a positive, so you know, we have a lot of levers that are moving in the right direction, it's just a matter of how quickly they gain traction and move through the system.

嗯，更高的銷售總是有助於攤銷成本，因為這是一項成本非常固定的業務，所以這是其中之一。MirrorBit 的任何增加都是正面的。所以，顯然 ASP 是正面的，所以你知道，我們有很多槓桿正在朝著正確的方向發展，唯一的問題是它們如何快速獲得牽引力並在系統中移動。

Great. Thank you.

偉大的。謝謝。

Our next question is from the line of Michael Cohen with Pacific America Securities. Please go ahead.

我們的下一個問題來自太平洋美國證券公司的邁克爾科恩。請繼續。

Yeah, congratulations on the quarter. Hector, with the recently announced partnership between Sun Microsystems and Microsoft, I was wondering if you'd be willing to share in your words how you think that this partnership is going to affect AMD?

是的，恭喜本季。赫克托，Sun Microsystems 和微軟最近宣佈建立合作關係，我想知道您是否願意與您分享您認為這種合作關係將如何影響 AMD？

Well, I will give you a personal view, and it's not a reflection of anything from our key partners and customers. I think it's great for the industry, that these two companies are working together now, and with a strong partnership with Sun, which we are enjoying and we're very thankful and excited about, it can only be positive for us.

好吧，我會給你一個個人觀點，它並不反映我們的主要合作夥伴和客戶的任何觀點。我認為這對整個行業來說是一件好事，這兩家公司現在正在合作，並且與 Sun 建立了牢固的合作夥伴關係，我們對此感到非常高興、感激和興奮，這對我們來說只能是積極的。

OK. Another question I had for you is with Intel recently announcing that they're going to also have 64-bit extensions on Xeon, I was wondering what differentiators, like an integrated front side BUS and other things, do you believe is a compelling reason why customers should still be choosing, let's say, Opteron over Xeon?

好的。我想問您的另一個問題是，英特爾最近宣布他們也將在 Xeon 上推出 64 位擴展，我想知道您認為有哪些差異化因素（例如集成前端總線和其他因素）可以成為客戶仍然選擇 Opteron 而不是 Xeon 的有力理由？

Well, you know, that's a tough question, with the fact that, you know, I personally and I don't know anybody that has seen any of the product yet that is going to compete with Opteron, so-- but given the fact that Opteron is an eighth generation processor, not a seventh generation processor with an added instruction set, but an eighth generation processor with an integrated memory controller, with HyperTransport Technology, and also a-- the inherent capability, because of that, to be able to move into the multi-core space, I believe we have a very strong position, of which the customers will see the value of pretty quickly.

嗯，你知道，這是一個很難回答的問題，因為，你知道，我個人以及我認識的其他人都沒有見過任何可以與 Opteron 競爭的產品，所以 - 但考慮到 Opteron 是第八代處理器，而不是帶有附加指令集的第七代處理器，而是帶有集成內存控制器的第八代處理器，帶有 HyperTransport 技術，並且還具有固有的價值

Yeah, Hector, I'd just like to add that, you know, to date, we are winning in many, many segments on 32-bit performance only, so that's clearly, you know, a testament to the fact that the architecture of the product is superior. 64-bit extension is relevant and becomes more and more important by the day, but architecturally, this product is the superior product today because it's a new generation and there's a lot of catching up that needs to be done before you can match the performance of Opteron.

是的，赫克托，我只想補充一點，你知道，到目前為止，我們在 32 位性能的許多領域都取得了勝利，所以這顯然證明了該產品的架構更為優越。 64 位元擴充功能很重要，而且日益重要，但從架構上來說，該產品是當今更優秀的產品，因為它是新一代產品，在能夠匹敵 Opteron 的效能之前，還有很多工作要做。

And congratulations on being the first to introduce it as well.

並且祝賀您成為第一個介紹它的人。

Thanks.

謝謝。

Thanks, Mike, and thank you everyone for participating. We're going to conclude the call now.

謝謝，麥克，也謝謝大家的參與。我們現在要結束通話了。

Ladies and gentlemen, that does conclude our conference call for this evening. Thank you for your participation for using AT&T Executive Teleconference. You may now disconnect.

女士們、先生們，我們今晚的電話會議到此結束。感謝您參與使用 AT&T 高階主管電話會議。您現在可以斷開連線。