超微半導體 (AMD) 2004 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by and welcome to AMD's Q2 '04 earnings conference call. At this time all participant lines are in a listen-only mode. Later we will conduct a question-and-answer session with instructions being given at that time. If you should require any further assistance, please depress star then zero and we will assist you offline. As a reminder, this conference call is being recorded. I'd now like to turn the conference over to the Director of Investor Relations, Mike Hassi(ph). Please go ahead, sir.

女士們、先生們，感謝各位的支持，歡迎參加 AMD 2004 年第二季財報電話會議。此時所有參與者線路均處於只聽模式。稍後我們將進行問答環節，屆時將提供說明。如果您需要任何進一步的幫助，請按下星號然後按下零，我們將離線為您提供協助。提醒一下，本次電話會議正在錄音。現在，我想將會議交給投資人關係總監 Mike Hassi（音譯）。先生，請繼續。

Thank you and good afternoon, everyone, welcome to AMD's second quarter earnings conference call. The format of the call today will include prepared comments followed by Q&A. The participants are Hector Ruiz, our Chairman, President and CEO, Bob Rivet, our Chief Financial Officer, Henri Richard, our Executive Vice President of Sales and Marketing. This call is a live broadcast and will be replayed at AMD.com and StreetEvents.com. The telephone replay number is 800-475-6701. Outside of the United States the number is 320-365-3844. The access code for both is 736792. The telephone replay will be available for the next 10 days starting tonight at 7 p.m. Pacific time.

謝謝大家，下午好，歡迎參加 AMD 第二季財報電話會議。今天的電話會議形式將包括準備好的評論和隨後的問答。參與者包括我們的董事長、總裁兼執行長 Hector Ruiz、我們的財務長 Bob Rivet 以及我們的銷售和行銷執行副總裁 Henri Richard。本次電話會議為現場直播，將在 AMD.com 和 StreetEvents.com 上重播。電話回放號碼是800-475-6701。美國境外的電話號碼是 320-365-3844。兩者的存取代碼均為 736792。從今晚 7 點開始，接下來的 10 天內都可以收聽電話重播。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 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'll find detailed discussions in our most recent SEC filings, including AMD's annual report on Form 10-K for the year-ended December 28, 2003 and AMD's quarterly report on Form 10-Q, for the quarter ended March 28, 2004.

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 AMD 截至 2003 年 12 月 28 日的 10-K 表年度報告和 AMD 截至 2004 年 3 月 28 日的 10-Q 表季度報告。

With that, I'll turn it over to Hector Ruiz, AMD's Chairman, President and CEO.

接下來，我將把發言權交給 AMD 董事長、總裁兼執行長 Hector Ruiz。

Thank you, Mike. The second quarter continued a very important trend for AMD, delivering on our promise of sustained profitability. This was our third consecutive quarter of operating profits with solid contributions from both our memory and computation products groups. We continue to demonstrate the three important fundamentals that define this new AMD as strategy of customers centric innovation, world-class design and manufacture and performance and a strong discipline of operational flexibility. These three part approach is generating a strong positive momentum across our Company and in the market that we choose to serve. Our memory groups set another record for sales in the quarter, with strong growth in every region in both wireless and embedded segments.

謝謝你，麥克。第二季延續了 AMD 的一個非常重要的趨勢，兌現了我們持續獲利的承諾。這是我們連續第三個季度實現營業利潤，記憶體和計算產品部門都做出了堅實的貢獻。我們繼續展示定義新 AMD 的三個重要基本原則：以客戶為中心的創新策略、世界一流的設計、製造和性能以及強大的營運靈活性紀律。這三部分方法正在我們公司以及我們選擇服務的市場中產生強勁的積極勢頭。我們的記憶體組在本季度創下了新的銷售記錄，在無線和嵌入式領域的各個地區都實現了強勁增長。

Products based in our revolutionary MirrorBit technology continued to earn strong customer acceptance. We remain on track to doubling bit capacity in our Flash memory business by the end of the year. And our ramp to 110 nanometers technology in each of our leading edge fabs continues on plan. And in line with growing market demand, we begun production of our first 110 nanometer MirrorBit product in the second quarter and AMD is the first to have commenced NOR flash production below this 130 nanometer level. In only one short year of existence our expansion operation has taken the number one position in NOR flash market.

基於我們革命性的 MirrorBit 技術的產品繼續獲得客戶的廣泛認可。我們仍有望在今年年底前將快閃記憶體業務的容量翻倍。我們每個尖端晶圓廠的 110 奈米技術發展仍按計劃進行。為了滿足不斷增長的市場需求，我們在第二季度開始生產第一款 110 奈米 MirrorBit 產品，AMD 是第一家開始生產低於 130 奈米等級 NOR 快閃記憶體的公司。在短短一年的時間裡，我們的擴展業務已在 NOR 快閃記憶體市場佔據第一的位置。

We have grown dramatically in each major segment and we have doubled our revenues year-on-year while keeping our headcount relatively flat in that time frame. In our microprocessor business, our focus on penetrating segments of most strategic value to our customers is progressing well. Both our server and mobile franchises grew at a healthy rate quarter-on-quarter and they continue to be the fastest segments of growth in our processor group. Our AMD Opteron processor family is redefining the competitive landscape of the four peak categories in servers and as announced we plan to lead the way to dual core processors and solutions for the X86 server and workstation markets in mid-2005 and for high-end client PCs later that year.

我們在每個主要領域都取得了顯著成長，營收年增了一倍，同時員工人數保持相對穩定。在我們的微處理器業務中，我們專注於滲透對客戶最具策略價值的領域，並且進展順利。我們的伺服器和行動特許​​經營權均以健康的速率環比增長，並且它們繼續成為我們處理器組中增長最快的部分。我們的 AMD Opteron 處理器系列正在重新定義伺服器領域四大頂級類別的競爭格局，並且正如所宣布的，我們計劃在 2005 年中期引領 X86 伺服器和工作站市場的雙核心處理器和解決方案，並在同年稍後引領高階客戶端 PC 市場的雙核心處理器和解決方案。

With a recent launch of our AMD Japan engineering lab, we underline our commitment to serve the unique customer requirements of the mobile segment as well as those of the Japanese market. We now count hundreds of computer manufacturers as AMD 64 customers worldwide, including four of the top five OEMs in the industry and we were pleased to add China's Lenovo Group to our stable of world-class customers and to report that Lenovo Systems, based on AMD Athlon 64 processors, are already well received in that vibrant and expanding market. AMD 64 technology is being implemented by a growing number of global enterprises and Fortune 500 companies, including two of the leading financial institutions in the United States, two of the top-five internet infrastructure leaders, and five of the top ten international players in the automotive industry. As well as one of the largest lab sciences companies in the world.

隨著我們最近成立的 AMD 日本工程實驗室，我們強調了我們致力於滿足行動領域以及日本市場的獨特客戶需求的承諾。目前，全球有數百家電腦製造商是 AMD 64 的客戶，其中包括業內前五大 OEM 廠商中的四家，而且我們很高興將中國的聯想集團加入我們的世界級客戶行列，並向大家宣布，基於 AMD Athlon 64 處理器的聯想系統已經在這個充滿活力且不斷擴張的市場中廣受歡迎。越來越多的全球企業和財富 500 強企業正在實施 AMD 64 技術，其中包括美國兩家領先的金融機構、五大互聯網基礎設施領導者中的兩家以及汽車行業十大國際企業中的五家。也是世界上最大的實驗室科學公司之一。

The AMD 64 ecosystem is taking off and our customers and their customers are delighted with the performance, reliability, simplicity, and security advantages of solutions based on AMD 64 Our transition to volume 90 nanometer production is proceeding on plan. We began 90 nanometer volume production in May and we're on target to ship 90 nanometer microprocessors for revenue this quarter. In addition, construction of our new 300 millimeter fab 36 in Dresden, Germany, is on track with production plan in the first half of 2006. Across AMD, our customer centric innovation approach is working in the growing list of markets we choose to serve. We continue to demonstrate world-class design in manufacture and performance in each of our core businesses and we remain committed to the discipline of operational flexibility across and throughout the organization.

AMD 64 生態系統正在起飛，我們的客戶和他們的客戶都對基於 AMD 64 的解決方案的性能、可靠性、簡單性和安全性優勢感到非常滿意。我們向 90 奈米批量生產的過渡正在按計劃進行。我們於五月開始大量生產 90 奈米微處理器，並計劃於本季交付這些微處理器並實現盈利。此外，我們在德國德勒斯登新建的300毫米晶圓廠36號正按計畫於2006年上半年投產。在 AMD，我們以客戶為中心的創新方法在我們選擇服務的越來越多的市場中發揮作用。我們繼續在每項核心業務中展示世界一流的製造設計和性能，並繼續致力於在整個組織內保持營運靈活性。

At this point, I would like to take -- turn this over to Bob Rivet to review the results of the quarter.

現在，我想把這個交給鮑勃·裡維特 (Bob Rivet) 來回顧一下本季的結果。

Thanks, Hector. As detailed in our press release earlier this afternoon, second-quarter sales were $1.262 billion, up 96% compared to the second quarter of last year and up 2% compared to the first quarter of 2004. In what is typically a seasonally down quarter, this was an all time quarterly sales record for AMD. Major highlights for the quarter were: One, solid profitability highlighted by a more than tripling of the the Memory Group's operating income and, two, very strong growth in our next-generation technologies as demonstrated by record Spansion flash memory sales and a greater than 50% quarter-on-quarter sales increase of our AMD 64 based processors from the first quarter. The combination of top-line growth and solid execution resulted in another profitable quarter with net income at $32 million or 9 cents per share, per diluted share for the second quarter.

謝謝，赫克托。正如我們今天下午早些時候的新聞稿中所述，第二季度的銷售額為 12.62 億美元，比去年第二季度增長 96%，比 2004 年第一季增長 2%。在通常屬於季節性下滑的季度中，這創下了 AMD 的季度銷售記錄。本季度的主要亮點是：一是穩健的盈利能力，內存集團的營業收入增長了兩倍多；二是我們下一代技術的強勁增長，如創紀錄的 Spansion 閃存銷售額和第一季環比增長超過 50% 的 AMD 64 處理器銷售額。營業收入的成長和穩健的執行相結合，使公司再次實現盈利，第二季淨收入為 3,200 萬美元，即每股 9 美分。

These results incorporated tax rate of 10%, double the rate applied in the -- from the first quarter. Operating income was $72 million in the quarter and an improvement of 11 million from the first quarter representing a 44% fall-through on incremental sales. This improvement was driven by higher sales, strong execution of the Company's technology transitions and solid manufacturing performance. Compared to the second quarter of last year, operating income improved by $196 million on $617 million of incremental sales, a reflection of our operational flexibility strategies we put in place over a year ago. Gross margin was 38% for the quarter, equal to the first quarter and a 4 percentage point improvement from the second quarter of last year.

這些結果包含 10% 的稅率，是第一季適用稅率的兩倍。本季營業收入為 7,200 萬美元，較第一季增加 1,100 萬美元，銷售額增量下降 44%。這一成長得益於銷售額的提高、公司技術轉型的強大執行以及穩健的製造業績。與去年第二季相比，營業收入增加了 1.96 億美元，銷售額增加了 6.17 億美元，這反映了我們一年前實施的營運彈性策略。本季毛利率為38%，與第一季持平，較去年第二季提高4個百分點。

Below the operating margin line are two noteworthy charges to point out: One, the foreign exchange loss of approximately $6 million was recorded in the interest and other income line and, two, an expense of $6.5 million for minority interest, reflecting the significant profit improvement in our Spansion operation this quarter. Cash flow from operations was a positive $240 million for the quarter, which represents our fourth consecutive quarter of delivering positive cash flow from operations. EBITDA was $353 million. Now switch to the business overview for the quarter. First I'll start with our memory group. In the second quarter sales grew to $673 million, up a strong 220% from the second quarter of 2003 and up 7% over the first quarter.

營業利潤率線以下有兩項值得注意的費用：第一，約 600 萬美元的外匯損失記錄在利息和其他收入中；第二，650 萬美元的少數股東權益費用，反映了本季度 Spansion 營運利潤的顯著提高。本季經營活動現金流為正 2.4 億美元，這是我們連續第四個季度實現營運活動現金流為正。EBITDA 為 3.53 億美元。現在切換到本季的業務概覽。首先，我將從我們的記憶小組開始。第二季銷售額成長至 6.73 億美元，較 2003 年第二季大幅成長 220%，較第一季成長 7%。

Spansion flash memory sales grew in all major regions and across both the embedded and wireless segments driven by continued strong demand from tier-one customers. The Memory Group tripled its operating income to $45 million, this is a $31 million improvement over the first quarter, on $45 million of incremental sales or a 69% fall-through. Memory Group's gross margin improved a couple percentage points in the quarter, due to the successful transition to 110 nanometer technology and benefit recognized from the integration of the AMD and Fujitsu flash memory businesses. Computation of product groups, sales were $554 million in the quarter, a 36% increase over the same period a year ago and a slight decrease from the first quarter. Unit sales were slightly higher in the second quarter compared to the first and ASPs were modestly lower. Sales of AMD 64 based processors grew by more than 50% sequentially.

受一級客戶持續強勁需求的推動，Spansion 快閃記憶體銷售額在所有主要地區以及嵌入式和無線領域均實現成長。記憶集團的營業收入成長了兩倍，達到 4,500 萬美元，比第一季增加了 3,100 萬美元，銷售額增加了 4,500 萬美元，降幅為 69%。由於成功過渡到 110 奈米技術以及 AMD 和富士通快閃記憶體業務整合帶來的好處，記憶體集團的毛利率在本季度提高了幾個百分點。以產品組計算，本季銷售額為5.54億美元，比去年同期成長36%，比第一季略有下降。第二季度的單位銷售額略高於第一季，平均銷售價格略低。AMD 64 處理器的銷量較上月成長超過 50%。

CPG's operating income in the quarter was $58 million or 10.5% of sales. Now, let me turn to the balance sheet. Cash balances ended the second quarter at $1.14 billion, down from the first quarter by $166 million. This was largely due to ongoing investments in new technologies and facilities, resulting in second-quarter capital expenditures of 600 -- $361 million, up from $202 million in the first quarter. Inventories increased from the first quarter by $34 million, a planned 5% modest increase in anticipation of a seasonally strong second half of 2004. Now let's talk about the outlook. AMD's current outlook for the third quarter of 2004 is that we expect sales in both our major business to increase and that we expect total AMD sales in aggregate to increase moderately.

CPG 本季的營業收入為 5,800 萬美元，佔銷售額的 10.5%。現在，讓我來看看資產負債表。第二季末現金餘額為 11.4 億美元，較第一季下降 1.66 億美元。這主要歸功於對新技術和新設施的持續投資，導致第二季資本支出為 6 億至 3.61 億美元，高於第一季的 2.02 億美元。庫存較第一季增加了 3,400 萬美元，預計成長 5%，以迎接 2004 年下半年的旺季需求。現在我們來談談前景。AMD 目前對 2004 年第三季的展望是，我們預期主要業務的銷售額都會增加，而且我們預期 AMD 的總銷售額也會適度增加。

For your modeling purposes please consider the following: We expect second-half 2004 marketing, general, administrative costs to increase approximately 10 to 15% from the first-half levels as we accelerate our marketing investments across AMD 64 products. We still expect fiscal 2004 capital expenditures to be around $1.5 billion and we are confident they will be largely funded by cash flow from operations and partner contributions both from the Free State of Saxony and M&W, our building partner associated with Fab36. In summary, AMD is executing solidly to its financial and technology road maps. We had another profitable quarter with record sales for Spansion flash memory and our AMD Opteron and Athlon 64 processors. We continue to focus on our core competency to deliver solid results and remain committed to growing AMD across all business lines. With that, I'll turn it back over to Hector.

為了您的建模目的，請考慮以下幾點：隨著我們加快 AMD 64 產品的行銷投資，我們預計 2004 年下半年的行銷、一般和管理成本將比上半年增加約 10% 至 15%。我們仍然預計 2004 財年的資本支出將在 15 億美元左右，並且我們相信這些支出將主要由營運現金流以及來自薩克森自由州和 M&W（我們與 Fab36 相關的建築合作夥伴）的合作夥伴捐款提供資金。總而言之，AMD 正在穩步執行其財務和技術路線圖。我們又度過了一個獲利的季度，Spansion 快閃記憶體以及 AMD Opteron 和 Athlon 64 處理器的銷量創下了歷史新高。我們將繼續專注於我們的核心競爭力，以取得穩健的業績，並繼續致力於推動 AMD 所有業務線的發展。說完這些，我就把麥克風交還給赫克托。

Thank you, Bob. In conclusion, I want to place the new AMD in a broader context, because beyond the fundamentals of the quality of our relationship with key customers, our worklife(ph) design and manufacturing capability and the streamlining of our overall cost structure, something transformative is going on at AMD. Something that can be explained perhaps more by the growing independence of our financial performance than by any other metric or measure. If you look at our financial performance over the last few quarters, it is becoming evident that we're increasingly defined by our innovations, designs and technologies, our manufacturing, execution, and our customers and partners. In short, by AMD's ecosystem and trajectory, we have deliberately and methodically positioned ourselves to be in more control of our own destiny. In each of our core businesses, we have moved to strengthen our customer relationships, particularly with our tier-one customers. We have worked with them to create solid customer centric innovations that are truly differentiated and we're constantly working to accelerate our capabilities to ramp new processes and technologies in the manufacturing realm.

謝謝你，鮑伯。總而言之，我想將新的 AMD 放在更廣泛的背景下，因為除了我們與關鍵客戶的關係品質、我們的工作壽命（ph）設計和製造能力以及我們整體成本結構的精簡等基本要素之外，AMD 還在發生一些變化。或許，這更多的可以用我們財務表現日益增長的獨立性來解釋，而不是用任何其他指標或衡量標準來解釋。如果你看一下我們過去幾季的財務業績，就會發現我們越來越多地由我們的創新、設計和技術、我們的製造、執行以及我們的客戶和合作夥伴來定義。簡而言之，透過 AMD 的生態系統和發展軌跡，我們已經有意、有條不紊地定位自己，以便更好地掌控自己的命運。在我們的每項核心業務中，我們都致力於加強與客戶的關係，特別是與一級客戶的關係。我們與他們合作，創造出真正差異化的以客戶為中心的創新，並且我們不斷努力提高我們在製造領域推廣新流程和新技術的能力。

AMD is gaining widespread recognition as an industry leader. And in leading the company industry to -- computing industry to pervasive 64-bit computing and in establishing MirrorBit as a new industry standard in Flash memory, and in empowering a new generation of capable consumers around the world. We have the design in manufacturing expertise to deliver on these and many other promises in the years ahead. We're very proud of the progress that we have made and of the leadership opportunities we have created with and for our customers. We look forward to demonstrating our capacity to exercise increasing control over a destiny defined by the AMD ecosystem in the quarters ahead. As I always do, I would like to thank the thousands of AMD employees around the world for all their hard work to get us back to sustained profitability in this past quarter. Now back to Mike for the Q&A.

AMD 作為行業領導者正獲得廣泛認可。並引領公司產業向普及的 64 位元運算邁進，並將 MirrorBit 確立為快閃記憶體的新產業標準，並為全球新一代有能力的消費者提供支援。我們擁有專業的設計製造能力，可以在未來幾年兌現這些承諾以及許多其他承諾。我們對於所取得的進步以及與客戶共同創造的領導機會感到非常自豪。我們期待在未來幾季中展示我們對 AMD 生態系統所定義的命運越來越強的控制能力。一如既往，我要感謝全球數千名 AMD 員工，感謝他們的辛勤工作，使我們在上個季度恢復了持續盈利。現在回到 Mike 的問答環節。

Thank you very much, Hector. Let's start the Q&A process, please.

非常感謝，赫克托。讓我們開始問答環節。

Ladies and gentlemen, if you would like to ask a question, please depress star then one on your touchtone phone. You will hear a tone indicating you have been placed in queue and you may withdraw yourself from this queue at any time by depressing the pound key. One moment, please, for the first question. And our first question is from the line of Krishna Shankar from JMP Securities. Please go ahead.

女士們、先生們，如果您想提問，請按下按鍵電話上的星號，然後按一。您將聽到一個提示音，表示您已加入佇列，您可以隨時按下井號鍵退出佇列。請稍等片刻，回答第一個問題。我們的第一個問題來自 JMP Securities 的 Krishna Shankar。請繼續。

Yes, even though AMD 64 revenues are up, I guess, more than 50% sequentially, ASPs declined modestly. Can you elaborate on pricing pressures you're seeing in the processor marketplace?

是的，儘管 AMD 64 的營收比上一季成長了 50% 以上，但平均銷售價格卻略有下降。您能詳細說明一下處理器市場所面臨的定價壓力嗎？

Um, Henri, would you like to comment on that.

嗯，亨利，你想對此發表評論嗎？

Yes, Hector. As you recall, a majority of our shipment of Athlon XP have been based on the same technology for over a year. We haven't introduced new speed rates. We've done excellent brand management and we've maintained our ASP and actually grew it a little bit at the beginning of that cycle. But eventually the forces of the market prevail and we've had to admit the fact that the wonderful performance of the Athlon XP needed some price adjustment so what you're seeing is a modest decline of ASP on the Athlon XP line and a strong progression on the Athlon 64 which result in a blended slight decline in ASP.

是的，赫克托。您還記得，一年多來，我們發貨的大部分 Athlon XP 都是基於同一種技術。我們還沒有引入新的速率。我們進行了出色的品牌管理，保持了我們的平均售價，並且實際上在該週期開始時略有增長。但最終市場力量佔了上風，我們不得不承認 Athlon XP 的出色性能需要進行一些價格調整，因此您看到的是 Athlon XP 系列的 ASP 適度下降，而 Athlon 64 的強勁增長，這導致 ASP 的混合略有下降。

Okay. And in Flash, your large competitor, I guess, grew Flash revenues almost 40% sequentially, can you talk about the environment for NOR Flash pricing both in embedded and wireless applications?

好的。在 Flash 方面，我猜你們最大的競爭對手的 Flash 收入環比增長了近 40%，您能談談嵌入式和無線應用中 NOR Flash 的定價環境嗎？

Um, let me make a few comments about the Flash. We -- we've -- we've focused significantly on tier-one multinational customers who I believe are providing tremendous opportunity for us to grow. That allows us to grow from a year ago from about $200 million to the current level of 687 or so, uh, which is the significant growth in -- in our position of marketplace which led us to become the number one NOR player in the market. We see this multinational tier-one players continuing to have a very strong participation in this market in the quarters ahead and our strategy will be, uh -- will continue to be to focus on them in particular. What we've seen in pricing and we think will continue into the third quarter is somewhat of a stabilization in pricing, not a degradation and not a significant increase at all and so we expect, uh, pricing to be fairly stable going into the third quarter.

嗯，讓我對 Flash 發表一些評論。我們——我們——專注於一級跨國客戶，我相信他們為我們的發展提供了巨大的機會。這使得我們的銷售額從一年前的約 2 億美元增長到目前的 6.87 億美元左右，嗯，這是我們市場地位的顯著增長，使我們成為市場上排名第一的 NOR 參與者。我們看到，這些跨國一級企業在未來幾季將繼續大力參與這個市場，而我們的策略將是，呃——將繼續特別關注他們。我們看到價格呈現一定程度的穩定，我們認為這種穩定將持續到第三季度，而不是下降，也不會大幅上漲，因此我們預計價格在進入第三季度時將保持相當穩定。

Thank you and congratulations on a great quarter.

謝謝您，並祝賀您本季取得如此出色的成績。

Thank you.

謝謝。

And our next question is from the line of Mark Edelstone from Morgan Stanley, please go ahead.

我們的下一個問題來自摩根士丹利的馬克·埃德爾斯通，請繼續。

Good afternoon, guys, and nice job on the quarter overall. A couple quick questions if I could. The first one was on manufacturing. Hector, if you look at the 90 nanometer ramp that you have in place right now for microprocessors, when do you expect to see that crossover, point one three and when would you think that the majority of that transition is over? And I'm looking at that question both on an outs basis.

大家下午好，整體來說本季表現不錯。如果可以的話，我想問幾個簡單的問題。第一個是關於製造業的。赫克托，如果您看一下現在微處理器的 90 奈米工藝，您預計什麼時候會出現這種交叉，即 0.13，您認為什麼時候這種轉變的大部分會結束？我從兩個角度來看這個問題。

Um, Mark, I think that, um, you know, we -- we're off to an awfully good start in the transition and if I look at the experience we had from, uh, 180 to 130 and what we're seeing from 130 to 90, uh, I believe we'll be able to make that transition reasonably fast. I think the -- if -- if I assume that the customer transition on some of the products, because we're making not only a technology transition but also a product -- and number of product transitions, that the customer acceptance is in line with our ability to ramp. Physically we should be able to ramp totally to factory by the end of next year to be totally converted to 90 nanometers. If there is not total conversion it will be mostly because there might be some remnants of products that cannot be transitioned from a few customers.

嗯，馬克，我認為，嗯，你知道，我們——我們在過渡期已經有了一個非常好的開始，如果我回顧一下我們從 180 到 130 的經驗，以及從 130 到 90 的經驗，我相信我們能夠相當快地完成這一過渡。我認為——如果我假設客戶對某些產品進行轉型，因為我們不僅進行技術轉型，而且還進行產品轉型——以及產品數量的轉型，那麼客戶的接受度與我們提升的能力是一致的。從實際意義上講，我們應該能夠在明年年底之前全面實現工廠規模化生產，並完全轉換為 90 奈米。如果沒有完全轉換，主要是因為可能有一些剩餘的產品無法從少數客戶轉移。

And when would the crossover be, do you think, in terms of outs, Hector?

赫克托，您認為從出局數來看交叉會在什麼時候發生？

I don't remember the exact time frame but I would say we're probably talking about a crossover sometime in the summer, second quarter summer, next year.

我不記得具體的時間框架，但我想我們可能正在談論明年夏季第二季度某個時候的交叉。

Okay, great. And then just another question, if I could, on the processor business, either for you, I guess, or Henri. If my data is right here it looks like this might be the first quarter in a few where you guys actually gained some unit share and I know you've obviously been gaining some dollar share, but you did gain some unit share here in the quarter, uh, can you talk about what the factors were that drove that from your perspective?

好的，太好了。然後，如果可以的話，我還有一個關於處理器業務的問題，我想問您或亨利。如果我的數據沒錯的話，這看起來可能是你們幾個季度以來第一個真正獲得一些單位份額的季度，而且我知道你們顯然已經獲得了一些美元份額，但是你們在本季度確實獲得了一些單位份額，呃，你能從你的角度談談推動這一趨勢的因素是什麼嗎？

Mark, you know, we just serviced our customers. As you know we're very focused at increasing our business in the server space, in the mobile space, um, I guess we had some significant growth in those two areas. And if you were to look, you know, for where some of the growth happened in units, I would look in those areas.

馬克，你知道，我們只是為客戶提供服務。如您所知，我們非常注重增加伺服器領域和行動領域的業務，嗯，我想我們在這兩個領域都取得了顯著的成長。如果你要尋找單位成長發生在哪裡，我會注意這些領域。

Great. Thanks a lot, guys.

偉大的。非常感謝大家。

And we have a question from Michael Masdea from Credit Suisse First Boston, please go ahead.

我們還有來自瑞士信貸第一波士頓的邁克爾馬斯迪亞 (Michael Masdea) 的問題，請繼續。

Thanks a lot. Can we get a gauge of what you mean by moderate, are we talking -- how does that relate to seasonal and we talking kind of mid-single digits or any guidance there at all.

多謝。我們能否衡量一下您所說的適度是什麼意思，我們談論的是 - 這與季節有什麼關係，我們談論的是中等個位數或任何指導。

Mike I believe that the second half of the year will be a good -- a good second half. I think it'll improve over the first half. I believe we're looking at both the third and the fourth quarter that will give us an opportunity for growth. We're excited, optimistic, looking forward to it, and frankly, um, I think a moderate increase in revenue in one quarter is a very good performance. I don't want to pin it down to a number because, frankly, nobody knows what the market exactly is going to do but we'll be in line and we expect to perform in -- in the expectations of what the market will do.

麥克，我相信今年下半年將會是個好的下半年。我認為上半年情況會有所改善。我相信我們正在關注第三季度和第四季度，這將為我們提供成長機會。我們對此感到興奮、樂觀和期待，坦白說，嗯，我認為一個季度的收入適度增長是一個非常好的表現。我不想把它確定為一個數字，因為坦白說，沒有人知道市場究竟會如何變化，但我們會保持一致，並期望按照市場預期進行表現。

Always keep share for whatever -- whatever the market's growing.

無論市場如何成長，始終保持份額。

Actually, we -- our plans are to grow share.

實際上，我們的計劃是擴大份額。

Great. Um, you addressed a little bit your focus on the tier-one customers, um, if -- if we see a bunch of -- in the Flash side, if we see a bunch of Flash on up in the distribution channel, I mean how much impact does that have on your pricing situation and contracts and relationships with the tier-ones, are they going to start turning some of that into your products and go into distribution channel, or how do you see that plan out.

偉大的。嗯，您稍微提到了對一級客戶的關注，嗯，如果我們在 Flash 方面看到大量 Flash，如果我們在分銷渠道中看到大量 Flash，我的意思是這會對您的定價情況、合同和與一級客戶的關係產生多大影響，他們是否會開始將其中一些轉化為您的產品並進入分銷渠道，或者您如何看待這個計劃。

This is Henri. Frankly, everybody knows that the distribution channel prices are on average higher than the tier-one contracts and so we're nowhere near our situation of demand, supply and balance that would drive the distribution channel to offer better prices than the tier-one OEM contracts. So I don't see this happening, I don't see this being a factor.

這是亨利。坦白說，每個人都知道分銷管道的價格平均高於一級合同，因此我們的供需平衡狀況還遠遠沒有達到可以推動分銷渠道提供比一級 OEM 合同更優惠價格的程度。所以我認為這種情況不會發生，我認為這不是一個因素。

Okay. I guess another followup kind of in the same sort of vein. If you see -- you know, with the processor inventory from your competitor out there needing be to be worked down, if you see a substantial pricing coming down, how much impact do you think that will have on your business, will it be substantial or do you find yourself not really in price-to-price competition on your -- on your -- on your -- on your customer relationships on the PC side?

好的。我想另一種後續行動也與此類似。如果您發現 - 您知道，由於您的競爭對手的處理器庫存需要減少，如果您看到價格大幅下降，您認為這會對您的業務產生多大影響，影響是否很大，或者您是否發現您在 PC 方面的客戶關係上並沒有真正進行價格競爭？

You know, as I mentioned on the comments, um, Mike, we -- we have spent a considerable amount of time trying to create our own financial ecosystem, our economic ecosystem, to build a partnership with our customer and I think that we're seeing a situation where the bulk -- even though our inventory increase was very modest, practically all of it was really AMD 64 products, there is no competitor in that space at the moment and, uh -- and so I don't see that, you know, being in any way affected. Uh , frankly, also, I believe that -- personally I think the inventory build in our competitor, perhaps, it's overblown and these guys might actually be delighted to have built that inventory if the second half of the year turns out to be healthy.

你知道，正如我在評論中提到的，嗯，邁克，我們——我們花了大量的時間試圖創建我們自己的金融生態系統、我們的經濟生態系統，與我們的客戶建立合作夥伴關係，我認為我們看到的情況是，儘管我們的庫存增加非常溫和，但幾乎所有都是 AMD 64 產品，目前該領域沒有競爭對手，所以我認為這不會受到任何影響。呃，坦白說，我還認為——我個人認為我們競爭對手的庫存建設可能被誇大了，如果今年下半年情況良好，這些人實際上可能會很高興建立了這些庫存。

Great. Appreciate it. This last question on the Flash side. Can we get any sort of idea what's happening on the -- on the bits per handset side given that we've seen some continued outgrowth relative to end markets. Does that just continue to go up or have you seen stabilization there or any comments would be helpful.

偉大的。非常感謝。這是關於 Flash 方面的最後一個問題。鑑於我們看到相對於終端市場而言的持續成長，我們能否了解每部手機的位數方面發生了什麼情況？這是會繼續漲嗎？還是已經穩定下來了？任何評論都會有幫助。

Right now, and, again, Henri can add to this, we -- we see a rather healthy continued, uh, need for bits in hand-held devices and, uh, the applications go from larger software systems these devices need to accommodate, which increase the demand for NOR, to larger data, uh, uses such as, uh, better pictures or whatever you -- which also increases the demand for LAN-like product, not necessarily LAN, but products that can offer the -- the cost performance advantages. So we see at least in the foreseeable future a continued explosion of bit density.

現在，Henri 可以再次補充一點，我們看到手持設備對數據位的需求持續保持健康，而且應用程式從這些設備需要適應的更大的軟體系統擴展到更大的數據用途，例如更好的圖片或任何你認為需要的——這也增加了對類似 LAN 的產品的需求，不一定是 LAN，而是能夠提供成本性能優勢的產品。因此，至少在可預見的未來，我們會看到位元密度持續爆炸性成長。

Thanks a lot.

多謝。

And our next question is from the line of Chris Danley from JP Morgan. Please go ahead.

我們的下一個問題來自摩根大通的克里斯丹利 (Chris Danley)。請繼續。

Hey, thanks, guys, just a couple quick questions. One quick thingie on Flash. Do you guys have any sales written down inventory on Flash in this quarter.

嘿，謝謝大家，我只想問幾個簡單的問題。關於 Flash 的一個快速小事。本季你們有任何 Flash 銷售記錄庫存嗎？

No.

不。

Okay. And then you said you expect both Flash and CPU sales to increase in Q3, do you expect, um, operating income to increase in both in the third quarter, too?

好的。然後您說您預計第三季 Flash 和 CPU 的銷售都會增加，那麼您預期第三季的營業收入也會增加嗎？

Yes.

是的。

And the last question, uh, have you seen any, you know, irrational pricing behavior by Intel out there yet?

最後一個問題，呃，您是否看到過英特爾的任何不合理的定價行為？

Absolutely not.

絕對不是。

Great, thanks.

太好了，謝謝。

And our next question is from the line of Glen Yeung from Smith Barney. Please go ahead.

我們的下一個問題來自 Smith Barney 的 Glen Yeung。請繼續。

Thanks. Just also a followup on the Flash. Can you talk about what percentage MirrorBit was in the second quarter, what you think it'll be in the third quarter and maybe how you think that factors into your -- your outlook for a stabilized pricing environment.

謝謝。這只是對 Flash 的後續報導。您能否談談 MirrorBit 在第二季的佔比是多少，您認為它在第三季的佔比會是多少，以及您認為這對您對穩定定價環境的展望有何影響？

Yeah. First, you know, MirrorBit was a record, uh, performance for us in the second quarter in the sense that we almost quadrupled our pipeline of opportunity, so the momentum of this product line within our total portfolio is really strong. It continues to be a double-digit contribution and we see that continuing, particularly with the introduction of the second generation MirrorBit.

是的。首先，您知道，MirrorBit 在第二季度的表現創下了紀錄，因為我們的機會管道幾乎增加了四倍，因此該產品線在我們整個產品組合中的勢頭非常強勁。它繼續保持兩位數的貢獻，而且我們看到這種趨勢還在繼續，特別是隨著第二代 MirrorBit 的推出。

And -- and when you -- when you talk about a stabilized pricing is that sort of mix adjusted, in other words, are you talking across your entire output of NOR that that price will be stable because I'm under the assumption here that MirrorBit's selling at a premium.

而且 — — 而且當您 — — 當您談論穩定的價格時，這種組合是否經過調整，換句話說，您是否在談論整個 NOR 產出的價格將是穩定的，因為我在這裡假設 MirrorBit 以溢價出售。

Well, you know, our -- our ESD went up slightly quarter-to-quarter so that gives you a good indication that pricing was stable. As I mentioned in the past calls, you know, we have a very large proportion of our wireless business with tier-one customers, which are long-term engagements, strategic in nature, and so that has a stability factor on our overall pricing. Um, we're also in the embedded space under tight constraint, frankly there's a lot of demand out there for Spansion Flash, particularly new MirrorBit design and so by nature that also provides us with a fairly stable price environment.

嗯，你知道，我們的 ESD 環比略有上升，這很好地表明價格是穩定的。正如我在過去的電話會議中提到的那樣，我們的無線業務很大一部分來自一級客戶，這些客戶是長期合作，具有戰略性質，因此對我們的整體定價具有穩定性因素。嗯，我們在嵌入式領域也受到嚴格的限制，坦白說，Spansion Flash 的需求很大，特別是新的 MirrorBit 設計，因此從本質上來說，這也為我們提供了一個相當穩定的價格環境。

Great. And just one last question, which is, um, in the balance sheet I see this line for deferred income to distributors and that seemed to go up pretty substantially in the quarter, I wonder if you could just elaborate a little bit on what went on there.

偉大的。最後一個問題，嗯，在資產負債表中，我看到這行是分銷商的遞延收入，而且這筆收入在本季度似乎大幅增加，我想知道您是否可以詳細說明那裡發生了什麼。

Yeah, this is Bob. That reflects -- obviously that's the amount of product that we have out there in the distributors' shelves that we don't record as revenue until they actually sell it through. What you're actually seeing is the continued shift to AMD 64, you know, as we continue to migrate and get more traction on the AMD 64 based products, they carry a much higher value, uh, to both us and the end markets, so therefore that's what you're kind of seeing on the balance sheet.

是的，這是鮑伯。這反映出——顯然，這是我們在經銷商貨架上銷售的產品數量，我們只有在他們實際銷售出去後才會記錄為收入。您實際上看到的是向 AMD 64 的持續轉變，您知道，隨著我們繼續遷移並在基於 AMD 64 的產品上獲得更多關注，它們對我們和終端市場都具有更高的價值，因此這就是您在資產負債表上看到的。

Well -- so, that was up 15% quarter-on-quarter and looking just back in the past, it's usually down something like 20%. If we were to take out the price issue and just look at a unit basis, I guess your suggestion is that the unit growth is not as much as 15%.

嗯——所以，這個數字比上一季增加了 15%，而回顧過去，通常會下降 20% 左右。如果我們拋開價格問題，只看單位基礎，我猜你的建議是單位成長率不會高達 15%。

Right. The unit growth is actually relatively flat.

正確的。單位成長實際上相對平穩。

Great. Thank you very much.

偉大的。非常感謝。

Question from the line of Ben Lynch from Deutsche Bank. Please go ahead.

德意志銀行的本‧林奇 (Ben Lynch) 提出了這個問題。請繼續。

Yeah, thanks very much. Just -- in recent quarters, you guys have, one, been outgrowing Intel processor revenues and, two, guiding in line with Intel because, you know, they're the big guy and, you know, whatever they say probably goes. Um, it's not the case this time. What's going on and is this a trend?

是的，非常感謝。只是——最近幾個季度，你們的處理器收入增長已經超過了英特爾，其次，你們的指導方針與英特爾一致，因為，你知道，他們是巨頭，他們說了算。嗯，這次不是這樣。發生了什麼事？這是一種趨勢嗎？

Could you elaborate on your question a little bit more.

您能否更詳細地解釋一下您的問題？

Well, you know, on the last few quarters you guys have managed to, uh -- prior to Q2, where you just outgrew Intel in process, looks like about 1% or so, but in prior quarters you'd been outgrowing them a lot and now, you know, that's slowed down and the numbers you have reported and also in the guidance, uh, Intel is -- for their processor business I guess seems like they're guiding up 7% or 8%, they haven't been explicit about it but you guys don't seem to be guiding up anywhere near as much. You know, who -- who's wrong here, or who's losing out here?

嗯，你知道，在過去的幾個季度裡，你們已經做到了——在第二季度之前，你們的進程剛剛超過英特爾，看起來大約 1% 左右，但在之前的幾個季度，你們的增長已經遠遠超過他們，現在，你知道，這種增長已經放緩，而且你們報告的數字以及在指導中，呃，英特爾——對於他們的處理器業務，我猜他們的處理器業務，我猜他們8%，他們沒有明確說明這一點，但你們似乎並沒有指導這麼高的成長。你知道，誰——誰在這裡犯了錯誤，或者誰在這裡遭受了損失？

No, I don't think -- you know, let me just -- and Henri can add when I finish. First of all, I think the one thing you're absolutely correct on is they are the behemoth and they are the market in the sense and in the near term, you know, they -- they can call their number fairly accurately because of, first of all their size and -- and their -- the type of customers they have. Longer term, you know, as I mentioned before, we had intend to grow share over a long period of time. But calling a number, uh, you know, on a quarter-to-quarter basis is -- is not really what we're about. What we're about to is that like you to judge us at the end of each quarter about what we do relative to how the market did and I believe that our guidance in saying that we'll be, uh -- will have a moderate increase in revenue, I think that's an indication of a good quarter expectation ahead of us. And, uh, nothing -- bad quarter or not, it's just a good expectation for a good quarter and I expect that we will continue to modestly gain, uh, share.

不，我不這麼認為——你知道，讓我——當我說完後亨利可以補充。首先，我認為有一件事你是絕對正確的，那就是他們是龐然大物，從某種意義上來說，他們是市場，在短期內，你知道，他們可以相當準確地說出他們的數字，首先是因為他們的規模，以及他們的客戶類型。從長遠來看，正如我之前提到的，我們打算在很長一段時間內擴大市場份額。但是，你知道，按季度計算數字並不是我們真正想要的。我們要做的是，像你們在每個季度末根據市場表現來評判我們的表現一樣，我相信我們的指導方針是，我們的收入將會適度增長，我認為這預示著我們對未來一個季度的良好預期。而且，呃，沒什麼——不管這個季度是否糟糕，這只是對一個好季度的一個良好預期，我預計我們將繼續適度獲得份額。

Okay. It just seemed like in prior quarters you were, you know, happy to, you know, give guidance that was referenced to Intel's own guidance because they are the market in a, as you say, a (inaudible) this quarter your guidance seems, uh, you know, a lot less robust than theirs is and, um, you know, that -- that's really where I'm coming from. Maybe I'll come at it from a another angle, Hector, if that's okay. How do you feel about visibility in general now versus how you, say, you felt three months ago or so, um, in both CPU and Flash and on top of that, you know, how was the linearity in the current quarter and then coming out of the quarter so that -- that's like two -- two questions there?

好的。似乎在前幾個季度，您很樂意給出參考英特爾自身指導的指導，因為正如您所說，他們處於一個市場（聽不清），這個季度，您的指導似乎，呃，您知道，遠不如他們的指導強勁，嗯，您知道，那 - 這確實是我的觀點。如果可以的話，赫克托，也許我應該從另一個角度來談談這個問題。與三個月前相比，您對現在的可見性有何看法，嗯，無論是在 CPU 還是 Flash 方面，除此之外，您知道本季度的線性如何，然後是本季度的線性如何 - 這就像是兩個 - 兩個問題？

Well, we feel -- let me start with Flash and I'll cut to CPUs in a second, but, you know, we are -- the demand for Flash is strong. We continue, as Henri mentioned, to engage heavily with tier-one players who give us some visibility beyond what you normally get from other players. And we see going into the third quarter is fairly, uh, you know, a good quarter ahead of us in terms of Flash. And the processor side, perhaps one of the things you might be sensing has to do with some of the comments I made in my opening remarks, is that, uh, we've created an ecosystem now based on the AMD 64 and we have partners now that are partnering with us to take product to market, infrastructure, supplies, motherboard, chipsets, who are also part of the AMD 64, you know, ecosystem. So we almost have to now project what we think is going to happen based on our customers' needs, plans, etc., not so much based on our competitor does. And, uh, you know, we are in a eighth generation product growing fast and rapidly. Our competition is still in the seventh generation product and so the comparisons become less -- less important and, frankly, uh, maybe somewhat irrelevant at some point in time. So Henri, is there anything you'd like to add?

好吧，我們感覺——讓我先從 Flash 開始，然後我會馬上切換到 CPU，但是，你知道，我們對 Flash 的需求很強勁。正如亨利所提到的，我們繼續與一級玩家密切合作，這為我們提供了超越其他玩家通常所能獲得的知名度。我們認為進入第三季度，就 Flash 而言，這將是一個相當不錯的季度。至於處理器方面，也許您可能會感覺到與我在開場白中提到的一些評論有關，那就是，呃，我們現在已經創建了一個基於 AMD 64 的生態系統，並且我們現在有合作夥伴與我們合作將產品推向市場，基礎設施、耗材、主機板、晶片組，他們也是 AMD 64 生態系統的一部分。因此，我們現在幾乎必須根據客戶的需求、計劃等來預測我們認為將要發生的事情，而不是根據競爭對手的做法。而且，你知道，我們正處於第八代產品的快速發展階段。我們的競爭對手仍然在第七代產品上，因此比較變得不那麼重要，坦白說，在某些時候可能有點無關緊要。那麼亨利，您還有什麼要補充的嗎？

Just the point that, specifically to the Q2 question, um, then, you know, we have a higher proportion of our business in Europe than our competitor, as a total of percentage total revenue and as you know Q2 is seasonally more affected in Europe, so that has a play, but you also noted that we still managed to outgrew them in both revenue and unit. So, not as much as in the past but the trend continues to be very positive.

只是關於第二季度的問題，嗯，你知道，我們在歐洲的業務比例高於我們的競爭對手，佔總收入的百分比，而且你知道，第二季度在歐洲受到季節性的影響更大，所以這有影響，但你也注意到，我們仍然設法在收入和單位方面超越他們。因此，雖然不像過去那麼多，但趨勢仍然非常積極。

Okay, thanks, Hector, thanks Henri.

好的，謝謝，赫克托，謝謝亨利。

And we go to a question from the line of Tom Thornhill with UBS. Please go ahead.

我們來回答瑞銀的湯姆‧索恩希爾提出的問題。請繼續。

Yes, with the acceleration in the 64-bit processors within the processor business, um, approximately what percentage of, uh, shipments or unit shipments now are accounted for in the 64-bit families?

是的，隨著處理器業務中 64 位元處理器的加速發展，嗯，現在 64 位元處理器系列大約佔出貨量或單位出貨量的百分之多少？

Well, we -- we're not going to provide you the granularity but obviously we made the comment earlier that by the end of the year we would have flipped the 50% mark on the change to AMD 64 from the older K7 and we're on a fairly fast ramp, so, you know, we -- we're happy with our progress type, happy with our rate and ramp.

好吧，我們 - 我們不會向您提供細節，但顯然我們之前曾評論說，到今年年底，我們將把 50% 的標記從舊的 K7 轉移到 AMD 64，而且我們的速度相當快，所以，你知道，我們 - 我們對我們的進度類型感到滿意，對我們的速度和坡度感到滿意。

So that's to reach 50% of processor, so the 64 -bit family would reach 50% of unit shipments by the end of this calendar year?

那麼，到今年年底，64 位元處理器的出貨量將達到 50%，那麼 64 位元系列處理器的出貨量將達到 50% 嗎？

Of -- 50% of the dollar revenue will be from AMD 64 by the end of this year.

到今年年底，50% 的美元收入將來自 AMD 64。

Okay, the end of '04.

好的，04 年結束了。

Yeah.

是的。

Okay. And you mentioned the ASP being down slightly was largely an issue with the Athlon XP, uh, what was the AS -- is there an ASP trend that's noticeable for the 64-bit families as well, Opteron and the Athlon 64.

好的。您提到 ASP 略有下降主要是 Athlon XP 的問題，那麼 AS 是什麼呢——對於 64 位元系列、Opteron 和 Athlon 64 來說，ASP 趨勢是否也很明顯。

Though the -- on both Opteron and Athlon 64 the ASP was stable, um, and, uh, in particular, uh, it was up in the mobile space.

儘管 Opteron 和 Athlon 64 的 ASP 都很穩定，嗯，特別是在行動領域，ASP 有所上升。

Okay. And that's a blend on higher -- on higher speeds, or --

好的。這是更高速度下的混合，或者——

It's a blend -- it's a blend on the higher mix for the overall line, absolutely.

這是一種混合——絕對是整個系列中較高級別的混合。

Okay. And -- and if you could, one comment I'd like to get your opinion on, an end-market comment. Now that you're with Opteron participating in the server market to a larger degree, can you provide any insight into the trend that you see in IT spending in the corporate market?

好的。如果可以的話，我想聽聽您對一個評論的看法，即關於終端市場的評論。既然您已經帶著 Opteron 更大程度地參與伺服器市場，您能否提供一些關於企業市場 IT 支出趨勢的見解？

Um, we've -- we believe that IT folks are -- are very eager to, um -- to improve the productivity of their businesses and they want to do it to investments in -- in products that, uh , return, of course, a significant better return than they've been accustomed to and they're looking for value more than anything else. And what we see, it's modest signals coming from the IT community that they are going to increase spending but extremely focused on return of the value, you know, the value equation. And as a result, one of the reasons I think Opteron is getting a lot of traction and credibility in that space is because the value question is just so strong and it's pretty difficult to -- to ignore. And I'd like to add just to the -- to the previous comment that -- the previous question you had, is that, you know, as we increase our participation in that space, which goes from a zero a couple years ago and growing rapidly, that the -- the impact on ASPs will be in the upward print, because the mix will change, not because the ASP on a particular product will improve, but because the mix will improve for us. And we're in a unique position to be able to do that because we're going from, as I said earlier, a mix of almost zero servers a couple years ago to an expectation that we'll play a big role in that in the quarters ahead.

嗯，我們相信 IT 人員非常渴望提高其業務的生產力，並且他們希望透過投資產品來實現這一點，當然，這些產品的回報要比他們習慣的要好得多，而且他們最重視的是價值。我們看到，IT 社群發出了溫和的訊號，表明他們將增加支出，但極度注重價值回報，即價值方程式。因此，我認為 Opteron 在該領域獲得廣泛關注和信任的原因之一是，其價值問題非常突出，很難被忽視。我想補充一下——針對先前的評論——您之前提出的問題是，您知道，隨著我們增加在該領域的參與度，該領域幾年前從零開始迅速增長，對平均售價的影響將是向上的，因為產品組合將發生變化，不是因為特定產品的平均售價會提高，而是因為產品組合對我們來說會得到改善。我們處於一個獨特的位置，能夠做到這一點，因為正如我之前所說，我們從幾年前幾乎為零的伺服器組合轉變為期望在未來幾季中發揮重要作用。

Do you expect the blended ASP in processors to increase, stay flat, or decrease again in Q3?

您預計第三季處理器的混合 ASP 會增加、保持平穩還是再次下降？

I would say we're going to be modestly up in the -- due to the AMD 64.

我想說，由於 AMD 64，我們的收入將會略有成長。

Thank you very much.

非常感謝。

And we have a question from the line of John Lau from Banc of America Securities. Please go ahead.

我們收到了來自美國銀行證券公司的 John Lau 的一個問題。請繼續。

Yes, thanks. Looking ahead, is there any significant divergence or weakness in PC demand from normal seasonality or region or -- and could you give us a color as to what is happening out there? And also if you can comment on what the -- what you believe our inventory levels are out in the channel? Thank you.

是的，謝謝。展望未來，個人電腦需求與正常季節或地區相比是否有顯著差異或疲軟—您能否向我們介紹目前的情況？另外，如果您能評論一下——您認為我們的庫存水平在渠道中處於什麼水平？謝謝。

To the first part of your question I believe we're going to walk in a very solid second half of the year, um, clearly the -- the demand is shifting from, uh, desktop to notebook and that's the only trend to watch out for. Um, as far as the second part of your -- of your question, um, our inventory management is very tight, we don't have any concern with our direct inventory management. As far as our OEM customers, I think you really have to ask themselves what their position is. There was a glut of inventory at the beginning of the year in the notebook space that I believe has been resolved, and, um, we're looking for very solid second half because I think that there's no particular issues with that inventory position.

對於你問題的第一部分，我相信我們今年下半年的業績會非常穩健，嗯，顯然——需求正在從桌上型電腦轉向筆記型電腦，這是唯一需要注意的趨勢。嗯，就您問題的第二部分而言，我們的庫存管理非常嚴格，我們對直接庫存管理沒有任何擔憂。就我們的 OEM 客戶而言，我認為你真的必須問自己他們的立場是什麼。今年年初，筆記型電腦領域的庫存過剩問題已經解決，而且，我們預計下半年的市場表現會非常穩健，因為我認為庫存狀況沒有什麼特別的問題。

Okay. And then, Henri, thank you. I had a followup question. With regards to the different product segments that you have, traditionally AMD has -- has, you know, participated in the value segment. What do you see, uh, going on in that value segment? Because there was a comment by the competition that they are seeing a mix shift. Can you give a little bit more color on those shift dynamics?

好的。然後，亨利，謝謝你。我有一個後續問題。就你們擁有的不同產品領域而言，傳統上 AMD 已經參與了價值領域。您認為該價值領域中發生了什麼事？因為競爭對手評論說他們看到了混合轉變。您能否更詳細地介紹一下這些轉變動態？

In the value segment, what's happening is that you have a little bit of, what I would call, a good-enough phenomena. Clearly, you know, as the performance continues to waterfall down, the product that you could buy in the -- at the low end of the value space are -- are increasingly performing, um, most of the tasks that you would want to do with a PC can be done today, uh, with some of these products. And so, um, I believe that the features and function are going to go, um, increasingly enriched in terms of the audio, the video capabilities of those products, the display and so the out-of-the-box value, um, in the value space may increase, uh, significantly in the -- in the second half of the year and going into next year.

在價值領域，正在發生的事情是，你遇到了一點點我稱之為「夠好」的現象。顯然，隨著性能的不斷下降，你在價值空間的低端可以買到的產品的性能越來越好，嗯，你想要用電腦完成的大多數任務今天都可以用其中一些產品來完成。因此，我相信這些產品的音訊、視訊功能、顯示器等特性和功能將會越來越豐富，因此開箱即用的價值空間可能會在今年下半年和明年大幅增加。

Henri, if you can comment on that,, too. This is an important segment for us, we intend to be a -- a significant player in the value space and one of the reasons we introduced Sempron as a value brand in that space is we believe we can bring a lot of that, uh, learning we've had in, uh -- in the products we've built, particularly as we have migrated to 64-bit eventually, to bring a lot of value to that segment, uh, at a reasonable price.

亨利，如果你能對此發表評論的話，也請。這對我們來說是一個重要的領域，我們打算成為價值領域的重要參與者，我們推出 Sempron 作為該領域價值品牌的原因之一是，我們相信我們可以將我們所學到的很多東西運用到我們製造的產品中，特別是當我們最終遷移到 64 位時，以合理的價格為該領域帶來很多價值。

Yeah. We have -- as you know, we've introduced the Sempron brand which is clearly aimed at the value space, it's going to allow us to be more competitive in that market. And to service the needs of the customers that have expressed the interest of having an AMD based technology to address the opportunities in that market.

是的。如您所知，我們推出了 Sempron 品牌，該品牌顯然是針對價值領域的，它將使我們在該市場上更具競爭力。並滿足那些表示有興趣採用基於 AMD 的技術來抓住該市場機會的客戶的需求。

And -- and as the Sempron launches, are we anticipating that it will have a -- a pretty neutral affect on the ASPs, or is that value propositioned on higher performance with higher ASPs associate with it. Thank you.

而且 — — 隨著 Sempron 的推出，我們是否預期它會對 ASP 產生相當中性的影響，或者其價值主張是否在於更高的性能和更高的 ASP。謝謝。

Well it's going to have -- as we just told you, we expect the ASPs to continue to grow, um, so obviously it would have a -- a neutral to positive effect, uh, and again the rest of the ASP growth will be driven by AMD 64 and the high end of our offering.

嗯，正如我們剛才告訴你的，我們預計 ASP 將繼續增長，嗯，所以顯然它會產生中性到積極的影響，呃，其餘的 ASP 增長將由 AMD 64 和我們的高端產品推動。

Thank you, Henri.

謝謝你，亨利。

Our next question is from the line of Tim Luke from Lehman Brothers. Please go ahead. Luke, your line is open, do you have your phone on mute? Once again, Mr. Luke, do you have a question, sir? We will move on, then, to the line of Hans Mosesmann with SchwabSoundview. Please go ahead.

我們的下一個問題來自雷曼兄弟的 Tim Luke。請繼續。盧克，你的線路是開通的，你的手機靜音了嗎？盧克先生，您還有什麼問題嗎？接下來，我們將繼續討論 Hans Mosesmann 和 SchwabSoundview 的產品線。請繼續。

Thank you. A couple of questions. Going back to the Athlon XP. Is the issue Durons, are the Durons now out of the product lineup and is that why ASPs could have been down?

謝謝。有幾個問題。回到 Athlon XP。問題是 Duron 嗎？ Duron 是否已經退出了產品線，這是否是導致 ASP 下降的原因？

No. So, first, the Duron have been out of our product for quite some time, um, as we indicated, you know, we are launching Sempron and some of the business that -- that Duron brand was interesting in the past is going to be covered by the Sempron new brand in the value space.

不。首先，Duron 已經退出我們的產品很長一段時間了，嗯，正如我們所指出的，您知道，我們正在推出 Sempron，而 Duron 品牌過去引人關注的一些業務將由價值領域的新品牌 Sempron 所涵蓋。

Okay. Can you give us a sense on gross margins, there seems to be an improvement in operational efficiencies and gross margins should improve, can you give us a sense of what kind of improvement we can see in the second half?

好的。您能否告訴我們毛利率的情況，似乎營運效率有所提高，毛利率也應該會提高，您能否告訴我們下半年我們會看到什麼樣的改善？

This is Bob. I'll give you a little directional first and I'll break it down by business. As we've stated repeatedly, uh, in our memory business, we see continued gross margin expansion. Uh, as we enjoy the benefits of, uh, full implementation of 110 nanometers, that's a positive. As we convert to more MirrorBit, that's a positive. Uh, we're already at fairly good, I'll call it factory utilization, so we're seeing that benefit but we see margin expansion in both those businesses. And also we continue to offer higher and higher density products, which definitely carry the premium ASP in the product portfolio. In the microprocessor space, as we talked about, we just launched a 90 nanometer product in May. That output will take place in the third quarter. That will become as time goes on a bigger portion of the output, clearly the die costs is way cheaper at 90 nanometer and so -- and so the margin expansion is also available in the CPG product line. Also as we continue to, uh, penetrate the server market and the mobile space, as we've demonstrated over the last couple quarters, in the next couple quarters you'll see margin expansion there. So we think we were set in both major businesses for good margin expansion in both businesses.

這是鮑伯。我先給你一點指導，然後再根據業務進行細分。正如我們一再提到的，在我們的記憶體業務中，我們看到毛利率持續擴大。嗯，當我們享受全面實施 110 奈米帶來的好處時，這是一件積極的事情。隨著我們轉向更多 MirrorBit，這是一件積極的事。呃，我們已經處於相當好的水平，我稱之為工廠利用率，所以我們看到了這種好處，但我們看到這兩家業務的利潤率都在擴大。而且我們也將繼續提供越來越高密度的產品，這些產品無疑在產品組合中具有較高的平均銷售價格。在微處理器領域，正如我們所討論的，我們剛剛在五月推出了 90 奈米產品。該產出將在第三季實現。隨著時間的推移，產量將佔到相當大的比例，顯然 90 奈米的晶片成本要便宜得多，因此 CPG 產品線的利潤率也會擴大。此外，隨著我們繼續滲透伺服器市場和行動領域，正如我們在過去幾季所展示的那樣，在接下來的幾個季度裡，你會看到利潤率的擴大。因此，我們認為我們在兩大主要業務上都已做好準備，以實現利潤率的良好成長。

Okay. Thanks a lot.

好的。多謝。

Joe Osha from Merrill Lynch, please go ahead.

請美林證券的 Joe Osha 發言。

Hi guys, I just wanted to first hit this issue of average selling prices. You said that you expected them to be up in the September quarter, uh, moderately, is that correct?

大家好，我首先想談談平均售價的問題。您說您預計它們在 9 月季度會適度上漲，對嗎？

Modestly, yes.

謙虛地說，是的。

Modestly, sorry, okay. But I understand that there's a pretty dramatic shift going on towards, uh, Athlon 64, why -- why -- is Sempron sort of counterbalancing that? It seems as if ASPs should be moving rather dramatically, what am I missing?

謙虛地說，抱歉，好的。但我知道，向 Athlon 64 的轉變非常劇烈，為什麼——為什麼——Sempron 會起到平衡作用？看起來好像 ASP 應該會發生相當大的變化，我錯過了什麼？

Well, as we continue to move forward, we are addressing more and more price band with the Athlon 64 product and therefore you have access to Athlon 64 at lower price points than we did in the initial ramp of the product line. As an indication, starting in Q3, there's price parity between Athlon XP and Athlon 64.

嗯，隨著我們不斷前進，我們正在透過 Athlon 64 產品解決越來越多的價格區間，因此您可以以比我們在產品線初始階段更低的價格獲得 Athlon 64。作為一個跡象，從第三季開始，Athlon XP 和 Athlon 64 之間的價格持平。

Okay -- okay, that -- that clears it up.

好的——好的，那——事情就清楚了。

So what you have is, you have a very -- a large increase in the volume is coming from price bands that are at the bottom of the stack. And therefore although you have expansion of ASP on the Athlon 64 product line as well, you have to remember a lot of the volume is going to come from the volume price bands in the market.

所以，你看到的是，交易量的大幅增加來自於位於堆疊底部的價格區間。因此，儘管 Athlon 64 產品線的 ASP 也得到了擴展，但您必須記住，大部分銷售將來自市場上的銷售價格帶。

Okay. That's -- that's helpful. The second -- just to clarify something you said earlier, you talked about, uh, 64-bit being more than 50% of revenue in the fourth quarter, does that include the server business or not?

好的。這很有幫助。第二，只是為了澄清您之前所說的一些事情，您談到，呃，64 位佔第四季度收入的 50% 以上，這是否包括伺服器業務？

It does.

確實如此。

It does. Okay. You mentioned in the third quarter that you expected profits to -- operating profits for both groups to go up, right?

確實如此。好的。您在第三季提到，您預計兩個集團的利潤——營業利潤都會上升，對嗎？

Yes.

是的。

Okay. Just some back of the envelope math, I believe you said that, uh, SG&A was going to be up second half of the year, um, that the total was going to be up 15, 10 to 15% on the first half, is that correct?

好的。這只是一些粗略的計算，我相信您說過，呃，銷售、一般和行政費用 (SG&A) 將在下半年上漲，嗯，總額將比上半年上漲 15%、10% 到 15%，對嗎？

That's right, Joe.

沒錯，喬。

Okay. So the implication, then, would be that you've got some pretty significant expansion in gross margin occurring in the third and fourth quarters to cover that?

好的。那麼，這意味著第三季和第四季的毛利率將出現相當顯著的成長來彌補這一損失？

Revenue and gross margin, correct.

收入和毛利率，正確。

Okay. But clearly -- I mean, you know, you're adding, by my math, you know, almost, uh, you know, $40 million, that's $20 million a quarter, so, um, you know, the -- are you saying here that gross margins are -- are going to increase in the third and fourth quarter.

好的。但顯然——我的意思是，根據我的計算，你增加了幾乎 4000 萬美元，也就是每季 2000 萬美元，所以，嗯，你知道——你是說毛利率——將在第三季和第四季增加。

Yes.

是的。

I'm sorry?

對不起？

Yes. I mean, you know, a combination of revenue and continued margin expansion opportunities that I just went through a couple seconds ago.

是的。我的意思是，你知道，我幾秒鐘前剛剛討論過收入和持續利潤擴張機會的組合。

Okay. Fair enough, I'm just wanting to make sure I'm getting the -- I'm getting the numbers -- the numbers right here. And then, finally, I -- I hate to -- I know Hector gets a lot of credit for his determined sort of clinging to the term moderate in the third quarter here, but, um, what -- what has -- what has changed? I mean, you -- this is the first time I've seen you guys this -- this skittish on -- on -- on the guidance. Is it simply that you've identified some higher margin opportunities and you don't -- you don't want to grow the business, uh, as quickly? It seems something has to have changed in terms of you guys being more -- more cautious in terms of putting a number out than you normally are, can you help me understand what that is?

好的。公平地說，我只是想確保我得到了——我得到了數字——這裡的數字。最後，我——我不想這麼說——我知道赫克託在第三季度堅持使用溫和一詞，這讓他獲得了很多讚譽，但是，嗯，什麼——什麼——什麼發生了變化？我的意思是，這是我第一次看到你們對指導如此膽怯。是因為您已經發現了一些利潤更高的機會，但您不想那麼快地發展業務？看來你們在公佈數字方面比平時更加謹慎了，你能幫我理解一下這是什麼嗎？

Um, well, John, I don't want to debate you totally on the phone, but we've used words like last quarter modestly so I'm not sure we're changing anything besides saying, as Hector said, back half of the year we see for both business to be seasonally up and very strong and that we see moderate growth in the third quarter, decoded it's a good quarter, as Hector said.

嗯，約翰，我不想在電話里和你爭論，但是我們已經適度使用了“上個季度”這樣的詞語，所以我不確定我們是否會改變任何東西，除了像赫克託所說的那樣，上半年我們看到兩項業務都呈現季節性上漲且非常強勁，而且我們看到第三季度出現溫和增長，正如赫克託所說，這意味著這是一個好季度。

Okay, great. And you did indicate that your R & D expectations hadn't changed, right.

好的，太好了。您確實表示過您的研發預期沒有改變，對嗎？

That's right.

這是正確的。

Okay. Thank you very much.

好的。非常感謝。

Thank you.

謝謝。

And we go to the line of Simona Jankowski with Goldman Sachs, please go ahead.

現在我們接通高盛的 Simona Jankowski 的電話，請繼續。

Yes, hi, thank you very much. This is on behalf of Andrew Root at Goldman Sachs. I just wanted to get your perspective on the end-demand environment as far as the consumer side and how are you seeing the back-to-school season shaping up as of this point?

是的，你好，非常感謝。這是高盛的 Andrew Root 的代表。我只是想了解您對消費者方面的最終需求環境的看法，以及您如何看待目前的返校季節狀況？

Well, as AMD, you know, as you know we're very involved in the consumer space. Um, we are seeing very strong demand for our AMD 64 based architecture in the consumer space. Um, but it's -- it's too early to say how it's going to pan out because, uh, the back-to-school season really is starting in three weeks in the U.S., uh, will not start in Europe until the beginning -- the end of August, beginning of September. But so far the indication is positive.

嗯，作為 AMD，您知道，我們非常活躍於消費領域。嗯，我們看到消費領域對基於 AMD 64 架構的需求非常強勁。嗯，但現在說事情會如何發展還為時過早，因為美國的返校季實際上還有三週就要開始了，而歐洲則要到八月底、九月初才開始。但迄今為止跡像都是積極的。

So you're seeing right now a normal seasonal demand as far as the back-to-school season is concerned, or is it just too early to tell?

所以就返校季而言，您現在看到的是正常的季節性需求，還是現在下結論還為時過早？

No. The -- the demand -- the demand is absolutely seasonal.

不。需求－需求絕對是季節性的。

Okay. And just a quick followup on the NOR side, as well, just wanted to see if you can provide a date on your 90 nanometer transition in NOR?

好的。另外，我還要快速跟進 NOR 方面的情況，只是想看看您是否可以提供 NOR 中 90 奈米轉變的日期？

Um, all I can -- I guess all I can do is repeat what I said because I don't know what other thing I could provide you, but, uh, it's going on plan, it's going well. We started production in May, we expect to ship product, uh -- I'm sorry. Use 110, 90 nanometer. Oh, I'm sorry, I thought you meant CPU.

嗯，我所能做的——我想我所能做的就是重複我所說的話，因為我不知道我還能為您提供什麼其他東西，但是，呃，一切按計劃進行，進展順利。我們從五月開始生產，我們預計將發貨，呃——抱歉。使用110、90奈米。哦，對不起，我以為你指的是 CPU。

Oh no, 90 nanometer in flash.

喔不，閃光燈是 90 奈米。

Flash I apologize for that. We will begin that conversion at the end of the year, begin -- start converting some of our factories. We will start with our leading most advanced factories which are one in Japan and one in Austin, Texas and then we will ramp as fast as we can in the year 2005.

Flash 我對此表示歉意。我們將在今年年底開始改造我們的一些工廠。我們將從我們最先進的工廠開始，一家在日本，另一家在美國德克薩斯州的奧斯汀，然後我們將在 2005 年盡快擴大產能。

Great. Thanks very much.

偉大的。非常感謝。

And our next question is from the line of David Wong, AG Edwards, please go ahead.

我們的下一個問題來自 David Wong、AG Edwards，請繼續。

Thank you very much. Can you give us any idea of plans for new products on the notebook microprocessors aside, especially low-power products.

非常感謝。除了筆記型電腦微處理器之外，您能否向我們透露新產品的計劃，特別是低功耗產品。

As we -- we had mentioned before that, you know, the K 7, which is our, I would call it, quote, whole, unquote, generation product, was, uh, running into the point where the -- its ability to deliver a power performance at the right wattage level was limited. And that we had to wait til we introduce both 130 as well as 90 nanometer Athlon 64, which we just started doing, and we started providing -- our customers started shipping the first, uh, thin and light as well as portable and transportable products in that space and they are doing very well. So they're doing, uh, very, very well. We have a -- a road map that continues to get stronger on K8, our eight-generation product. We -- we -- we believe that in the next, uh, couple of quarters we will see, uh , some new products that will continue to improve that performance, uh, power dissipation equation. Henri?

正如我們之前提到的，您知道，K 7，也就是我們整個世代的產品，已經到了在合適的瓦數水平上提供功率性能的能力有限的階段。我們必須等到我們推出 130 奈米和 90 奈米 Athlon 64，我們才剛開始做這件事，並且我們開始提供 - 我們的客戶開始在該領域運送第一批輕薄、便攜和可移動的產品，而且他們的表現非常好。所以他們做得非常非常好。我們有一個路線圖，該路線圖將繼續增強我們的第八代產品 K8。我們—我們—我們相信，在接下來的幾個季度裡，我們將看到一些新產品，它們將繼續改善效能、功率耗散方程式。亨利？

Just, you know, the -- today the -- the thermal envelope that you can have on the K8 is 35 wet, we'll introduce the 25 wet part in the fourth quarter.

只是，你知道，今天你可以在 K8 上擁有的熱包絡是 35 濕，我們將在第四季度推出 25 濕部分。

Right, thanks.

好的，謝謝。

Which will allow us to address specifically the thin and light market. Great, thanks.

這將使我們能夠專門針對輕薄市場。太好了，謝謝。

And next we go to the line of Adam Parker from Sanford Bernstein, please go ahead.

接下來我們請桑福德伯恩斯坦公司的亞當帕克發言。

Yeah, hi, just a couple of questions. First of all, did you see any slowdown in processor demand in the second half of June?

是的，你好，我只想問幾個問題。首先，您是否發現 6 月下半月處理器需求放緩？

No. As a matter of fact, the second half of June was just modestly better than the first half of June.

不。事實上，六月下半月的情況略好於六月上半月。

Okay. And have you seen any improvements in July so far in the processor space relative to the back half of June?

好的。與 6 月下半月相比，7 月到目前為止處理器領域是否有所改善？

Too early to tell, frankly.

坦白說，現在說還為時過早。

Okay. Bob, this might be a semantic that was unattended that I'm picking on but in talking about the 1.5 billion in CapEx, I think you said the word was it would be largely funded by CFO and partners. Did you not earlier say it was your expeciation(ph) it would be entirely funded by CFO in the past, or am I just splitting hairs here?

好的。鮑勃，這可能是我挑選的一個未被注意到的語義，但在談論 15 億美元的資本支出時，我認為你說過它將主要由財務長和合夥人資助。您之前不是說過，您期望它完全由 CFO 資助嗎，還是我只是在吹毛求疵？

I think you're splitting hairs. I probably wasn't as granular as that in prior statements.

我認為你是在吹毛求疵。我在之前的陳述中可能沒有那麼詳細。

Just because this whole modest versus moderate language has got me focused on every word you saying now. Okay, can you remind us also what, uh, is going to happen to your share count here in the next couple of quarters?

只是因為這整個謙虛與溫和的語言讓我專注於你現在說的每一個字。好的，您能否提醒我們一下，在接下來的幾個季度中，您的股票數量將會發生什麼變化？

Well, it really depends on profitability, uh, you know, if there's a triggering point at about the 8 cent level for the first $402 million convertible, which is in the current quarter's EPS calculation, uh, I think the next price point is about, uh, 27 cents and the other shares associated with the $500 million convertible will kick in. So it kind of depends on how profitable you think we'll be of how many shares you throw into it.

嗯，這實際上取決於盈利能力，你知道，如果第一個 4.02 億美元可轉換債券的觸發點在 8 美分左右，也就是本季度的 EPS 計算中，那麼我認為下一個價格點大約是 27 美分，與 5 億美元可轉換債券相關的其他股票將開始生效。所以這取決於你認為我們投入多少股份能帶來多少利潤。

Okay, fine. One last question. Hector, maybe just a long-term question, you know, because it -- it kind of occurs to me when you -- when I look at Intel, you know, trying to, you know, build some capacity for unknown demand a couple of years out. Maybe you can just help a little bit with what you think PC unit growth is, you know, over the next two to three years and as you try to allocate capital given your building a big facility in Dresden, what do you think PC unit growth is going to be over the next couple of years?

好的，好的。最後一個問題。赫克托，這可能只是一個長期問題，你知道，因為當我看到英特爾試圖為幾年後未知的需求建立一些產能時，我就想到了這一點。也許您可以稍微幫忙解釋一下您認為未來兩到三年 PC 銷量的增長情況，當您試圖分配資本，並在德累斯頓建造一個大型工廠時，您認為未來幾年 PC 銷量的增長情況會是多少？

Well, I think that we believe, as the rest of the industry does, that the PC market is somewhat mature and stable and I don't think the PC unit growth in total is ever going to be, uh, as it was back in the late '90s of double-digit growth. Uh, but you've got to remember that we are coming from a position wherein our share in dollar terms is less than 10%, and therefore our focus is more in the customers that we serve and growing our business in that -- in that space. And, uh, we in a -- in our technology and product road maps are based on a -- on quite a different approach than others have taken in terms of -- you know, we put all our energy and resources in X86 and when we cover X86 from consumer products, hand-held devices to servers, uh, and you'd realize that our share participation in dollars is under 10%.

嗯，我認為，我們和業內其他人一樣，都認為個人電腦市場已經比較成熟和穩定，我認為個人電腦總體銷量的增長不會再像上世紀 90 年代末那樣實現兩位數的增長。呃，但你必須記住，我們的份額以美元計算不到 10%，因此我們的重點更多地放在我們服務的客戶身上，並在那個領域發展我們的業務。而且，呃，我們的技術和產品路線圖是基於一種與其他人所採取的完全不同的方法——你知道，我們將所有的精力和資源都投入到 X86 中，當我們涵蓋從消費產品、手持設備到伺服器的 X86 時，呃，你會發現我們的美元份額參與度低於 10%。

Right.

正確的。

We have a tremendous opportunity for growth just by gaining customers to accept our product. And that's the focus we have on as opposed to -- I just expect in the overall number units to go up. Based on that, uh, we need to have perfect execution in our factory. We have -- fab36 must come on-line when we said it's going to be because we're going to need it.

只要讓客戶接受我們的產品，我們就有巨大的成長機會。這就是我們所關注的重點，而不是──我只是希望總體數量能夠上升。基於此，呃，我們需要在工廠裡完美地執行。我們有——fab36 必須在我們說好上線的時候上線，因為我們需要它。

So I guess just from the other side of the equation, though, I mean, is there any -- with -- with the Intel quarter still fresh in mind, I mean, is there any risk that you, you know, um, you know, create manufacturing capability that by 2006 or so is, you know, well in excess of what you would need?

所以我想從等式的另一方面來看，我的意思是，是否存在——考慮到英特爾季度業績仍記憶猶新，我的意思是，是否存在這樣的風險：到 2006 年左右，你所創造的製造能力會遠遠超過你所需要的能力？

We have a -- our confidence and expectations on the products we've created, AMD 64, X86, every (inaudible) strategy and all that, frankly we have a fairly high degree of confidence that this capacity will be fully utilized.

我們對自己創造的產品、AMD 64、X86、每一個（聽不清楚）策略等等都充滿信心和期望，坦白說，我們對這種產能將得到充分利用有相當高的信心。

Okay. Thanks for your time, guys.

好的。謝謝你們的時間。

Operator we'll take two more questions, please.

接線員，我們還想回答兩個問題。

Very good and we will go to the line of Cody Acree. Please go ahead.

非常好，我們將前往 Cody Acree 的路線。請繼續。

Thanks. You talk about normal seasonality here in Q3, but obviously your positioning is a little different with 64 bit than maybe it's been in years past. Can you talk about what is your normal historic seasonality into the third quarter and maybe how you see things, uh, a little differently now from the competitive front and from your product as well?

謝謝。您談到第三季的正常季節性，但顯然您對 64 位的定位與過去幾年略有不同。您能否談談第三季的正常歷史季節性，以及您從競爭方面和產品方面對事物的看法有何不同？

Well, historically, our seasonality is in the range of, uh, you know, 7% to 9%, second to third quarter. Um, clearly we have opportunities to grow our business, as Hector just pointed out, we, you know, we have a relatively small market share, the PC microprocessing market, the AMD 64 architecture, that's some momentum. So there's an opportunity, but historically our growth has been in the 7% to 9% range.

嗯，從歷史上看，我們的季節性在第二季到第三季的 7% 到 9% 之間。嗯，顯然我們有機會發展我們的業務，正如赫克托剛才指出的那樣，我們的市場份額相對較小，在個人電腦微處理市場、AMD 64 架構方面，這是一種動力。所以有機會，但從歷史上看，我們的成長率一直在 7% 到 9% 的範圍內。

And can you talk a little bit about your dual-core processor strategy? You talked about, uh, a timeline in the second half of next year starting to get those into, uh, really into, uh -- into revenue. When would you expect that this becomes more of a mainstream application that really begins to drive growth and not just kind of the early adopter status.

您能稍微談談你們的雙核心處理器策略嗎？您談到了明年下半年的時間表，開始將這些轉化為收入。您何時會期望它成為真正開始推動成長的主流應用程序，而不僅僅是早期採用者的地位。

Let me -- if we could answer that question in two parts and I -- Henri can comment on the market and the rate at which customers and consumers will -- will adopt the dual-core products. And I'll just mention, now, because it's so important to know that the -- that the multi-core strategy, the first of these products, which is the dual-core, uh, was really conceived from the moment that the K8 was designed. The hammer K8 architecture was conceived with this feature we call a direct-connect architecture. And this is part of the HyperTransport technology, the onboard memory controller, all those things that is going to allow for this multicore capability to be implemented and developed as the technology migrates to 90, 65 nanometers, etc. So from day one this was, you know, birthed with that in mind and therefore what you're going to see is a very powerful scaling of performance and features with this kind of technology. And perhaps Henri can comment on our view, our opinion as to how fast we think the marketplace will accept that.

如果我們可以分成兩部分來回答這個問題，我——亨利可以對市場以及客戶和消費者採用雙核心產品的速度發表評論。現在我只想提一下，因為了解這一點非常重要——多核心策略，這些產品中的第一個，也就是雙核心，實際上是從設計 K8 的那一刻開始構思的。錘子 K8 架構就是基於這個特色而設計的，我們稱之為直連架構。這是 HyperTransport 技術、板載記憶體控制器的一部分，隨著技術遷移到 90、65 奈米等，所有這些都將允許實現和開發這種多核心功能。所以從第一天起，我們就考慮到了這一點，因此你將會看到這種技術在性能和功能上具有非常強大的擴展性。也許亨利可以對我們的觀點、我們對市場接受速度的看法發表一下評論。

Hector,well you know our view is really shaped by our customers' view and what you have to remember is that what we've introduced with the Opteron processor is a positive disruptive technology that really allows us to move to 64 bit very quickly while maintaining this legacy to 32 bit and getting performance improvement. One of the interesting factor in our current business is that the distribution of speed is towards the high end of what's available. So that shows that the appetite, from our customers at least, the appetite for the best performing parts is -- is non-stop. Clearly, um, they will like to have, um, our dual-core products as early as possible and, uh, I believe that the ramp will be very, very fast because by then, uh, Opteron will be an accepted architecture and will be in full swing in terms of 64 bit application availability and therefore the immediate improvement in performance and the enablement that this performance will provide end-user customers in terms of new applications or ways to use that computing power that they didn't think they could in the past, will drive, I think, very fast acceptance of the multi-core strategy.

赫克托，你知道我們的觀點實際上是由客戶的觀點塑造的，你必須記住的是，我們在 Opteron 處理器中引入的是一種積極的顛覆性技術，它確實使我們能夠非常快速地轉向 64 位，同時保持 32 位的傳統並提高性能。我們目前業務中一個有趣的因素是速度分佈趨向於可用速度的高端。這表明，至少從我們的客戶來看，對性能最佳部件的需求是永不停歇的。顯然，他們希望儘早擁有我們的雙核產品，而且我相信增長速度會非常非常快，因為到那時，Opteron 將成為一種公認的架構，並將在 64 位應用程序可用性方面全面展開，因此性能的直接提升以及這種性能將為最終用戶提供新的應用程序或使用計算能力的方式，這是他們過去認為不可能實現的，我認為，這將推動多核策略的快速接受。

And we should be -- begin to see meaningful revenue late '05, early '60.

我們應該會在 2005 年底、2060 年初開始看到有意義的收入。

Yes. I think that's a fair assessment.

是的。我認為這是一個公平的評價。

Thanks, guys.

謝謝大家。

And our final question comes from the line of Tim Luke with Lehman Brothers, please go ahead.

我們的最後一個問題來自雷曼兄弟的蒂姆·盧克 (Tim Luke)，請繼續。

Thanks. So just within the context of your, um -- the guide of -- of modest growth given that normal historical seasonality one should anticipate that the -- the process should -- growth should come in a little stronger than the Flash growth, is that the way we should see it sequentially?

謝謝。因此，僅在您的背景下，嗯 - 適度增長的指導 - 考慮到正常的歷史季節性，人們應該預期 - 這個過程應該 - 增長應該比閃電增長稍微強勁一些，這是我們應該連續看到的方式嗎？

Um, I don't -- if you mean that the Flash growth will be less than the processor growth, is that what you meant?

嗯，我不這麼認為——如果你的意思是 Flash 的成長速度將低於處理器的成長速度，這是你的意思嗎？

Yeah, whether --

是的，無論——

No, I think right now, frankly, we expect both businesses to have a reasonably equal shot at growing from second to third quarter.

不，坦白說，我認為現在我們預計兩家公司從第二季到第三季都有相當平等的成長機會。

At somewhat below historical seasonality, that's the direction that we should anticipate.

在略低於歷史季節性的情況下，這是我們應該預期的方向。

No. And like I said before we're not going to pin down on a number but we believe a good quarter.

不。正如我之前所說，我們不會確定一個數字，但我們相信這是一個好的季度。

Okay. And then just with respect to, um, the gross margin dynamics, is that something with a better revenue we should think about a framework for that moving somewhat higher?

好的。那麼就毛利率動態而言，如果收入更高，我們是否應該考慮制定一個框架，讓毛利率略有增加？

Yes. As I outlined earlier, we have opportunities for gross-margin expansion in both businesses, um, and, uh, you know, we've demonstrated that in both businesses this quarter, so I think that's -- I mean we believe that trend will continue.

是的。正如我之前概述的那樣，我們在這兩項業務中都有機會提高毛利率，嗯，你知道，我們已經在本季度在兩項業務中證明了這一點，所以我認為——我的意思是我們相信這種趨勢將會持續下去。

Uh-huh. And I think last quarter on MirrorBit you did say -- you gave a range for MirrorBit as a percentage of Flash. Could you give any more sort of precise a range for where it was this quarter?

嗯哼。我認為上個季度您在 MirrorBit 上確實說過——您給出了 MirrorBit 佔 Flash 的百分比範圍。您能否給出本季更精確的範圍？

No. It stayed in the same range, the double-digit.

不。它保持在同一範圍內，即兩位數。

The same kind of range as a percentage.

與百分比相同的範圍。

That's right.

這是正確的。

Okay. Thank you very much.

好的。非常感謝。

Thank you.

謝謝。

Thank you. We'll conclude the call now.

謝謝。我們現在就結束通話。

Thank you. And ladies and gentlemen, this conference is available for replay after 7:45 p.m. Pacific time today through July 25th at midnight. You may access the AT&T Replay Service at any time by dialing 1-800-475-6701 and the access code of 736792. International participants may dial 320-365-3844 and use the access code of 736792. Once again those numbers are 1-800-475-6701 and 320-365-3844 with the access code of 736792. That does conclude your conference for today. Thank you for your participation and for using AT&T Executive Teleconference. You may now disconnect.

謝謝。女士們、先生們，本次會議將於晚上 7:45 後重播。太平洋時間今天至 7 月 25 日午夜。您可以隨時撥打 1-800-475-6701 和存取碼 736792 存取 AT&T 重播服務。國際參與者可撥打320-365-3844並使用接入碼736792。再次強調，這些號碼是 1-800-475-6701 和 320-365-3844，接入碼為 736792。今天的會議就到此結束了。感謝您的參與和使用 AT&T 高階主管電話會議。您現在可以斷開連線。