超微半導體 (AMD) 2004 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the AMD Q3 '04 earnings conference call. At this time all participants are in a listen only mode. Later we will conduct a question-and-answer session, instructions will be given at that time. If you should require assistance during the call, please depress the star then zero. As a reminder, this conference is being recorded. I would now like to turn the conference over to our host, Director of Investor Relations, Mr. Mike Hasi. Please go ahead.

女士們、先生們，感謝各位的支持，歡迎參加 AMD 2004 年第三季財報電話會議。此時所有參與者都處於僅聆聽模式。稍後我們將進行問答環節，屆時將給予說明。如果您在通話過程中需要協助，請按下星號，然後按零。提醒一下，本次會議正在錄製中。現在，我想將會議交給我們的主持人、投資者關係總監 Mike Hasi 先生。請繼續。

Thank you, good afternoon everyone. Welcome to AMD's third quarter earnings conference call. Our participants today are Hector Ruiz, our Chairman of the Board, President, and CEO, Bob Rivet, our Chief Financial Officer and Henri Richard, our Executive Vice President of Worldwide 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 74955. The telephone replay will be available for the next ten days starting at 7:00 p.m. Pacific time tonight. As a reminder, AMD will be hosting it's analysts day in Sunnyvale, California on November 12. We will be sending invitations next week. Before we begin today's call, I would like to caution everyone that we will be making forward-looking statements about management's expectations. Investors are cautioned that our forward-looking statements involve risks and uncertainty that could cause actual results to differ materially from current expectations. The semiconductor industry is generally volatile, and market conditions are particularly difficult to forecast. 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 discussion in detail our risk factors and our business. You'll find detailed discussions if our earnings release, and in our most recent SEC filings, including AMDs annual report on form 10-K for the year ended December 28, 2003, and AMDs quarterly report on form 10-Q for the quarter ended June 27, 2004 With that I'll now turn it over to our Chairman, President, and CEO Hector Ruiz.

謝謝大家，下午好。歡迎參加 AMD 第三季財報電話會議。今天的參與者有我們的董事會主席、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。兩者的存取代碼都是 74955。電話重播將於未來十天晚上 7 點開始提供。今晚太平洋時間。提醒一下，AMD 將於 11 月 12 日在加州桑尼維爾舉辦分析師日。我們將於下週發送邀請。在我們開始今天的電話會議之前，我想提醒大家，我們將對管理階層的期望做出前瞻性的陳述。請投資人注意，我們的前瞻性陳述涉及風險和不確定性，可能導致實際結果與當前預期有重大差異。半導體產業整體波動較大，市場狀況尤其難以預測。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。在我們的收益報告中以及我們最近提交給美國證券交易委員會 (SEC) 的文件中，您可以找到詳細的討論，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 6 月 27 日的 10-Q 表季度報告。現在，我將把發言權交給我們的董事長、總裁兼執行長 Hector Ruiz。

Thank you, Mike. The third quarter of 2004 was another solid performance for AMD despite challenging market dynamics in the flash memory business. I'm pleased to report that we delivered on our fourth consecutive quarter of operating profits. We achieved strong EPS growth, we improved the gross margin over the prior quarter, and we grew our top line 30% over the same period a year ago. On another level, the quarter was one of the strongest in showcasing the three defining characteristics of what we have been calling the new AMD. Allow me to elaborate. We lead through our customer centric innovation approach. There is no better example than our evolutionary AMD 64 technology. Which offers our growing list of customers a completely different shaded, yet compatible path to pervasive 64-bit computing. On the strength of AMD Opteron's superior performance and power consumption characteristics, AMD's enterprise customer base now includes world class companies like Credit Suisse First Boston, Merrill Lynch, Time-Warner's AOL, Microsoft's Treasury, Qualcomm, Labor Holdings, and many others. AMD 64 processors now represent over 1/3 of our processor business on track to becoming 50% of our processor revenues by the end of the year.

謝謝你，麥克。2004 年第三季度，儘管快閃記憶體業務的市場情況嚴峻，AMD 仍然取得了穩健的業績。我很高興地報告，我們連續第四個季度實現了營業利潤。我們實現了強勁的每股盈餘成長，毛利率較上一季提高，營業收入較去年同期成長了 30%。從另一個層面來看，本季是展示新 AMD 三大定義特徵的最強季度之一。請允許我詳細說明。我們透過以客戶為中心的創新方法引領產業發展。沒有比我們先進的 AMD 64 技術更好的例子了。這為我們不斷成長的客戶提供了一條完全不同的、但又相容的、通往普及 64 位元運算的途徑。憑藉AMD Opteron卓越的效能與低功耗特性，AMD的企業客戶群現已包括瑞士信貸第一波士頓、美林證券、時代華納旗下AOL、微軟旗下Treasury、高通、勞工控股等眾多世界級公司。AMD 64 處理器目前佔據我們處理器業務的三分之一以上，預計今年年底將占我們處理器收入的 50%。

Customer-centric innovation applies to branding as well. As an example, we're very pleased with customer response to our new AMD Sempron brand. Around the world, and particularly in China. we created the AMD Sempron family to reinvent everyday computing, and it is an important component of our commitment to deliver world class computing technology to the broadest possible customer base. Because of our customer-centric approach, our processor business grew by 21% over the second quarter, and our ASP improved. And we believe that we grew share in that period. The second defining characteristic of the new AMD is world class design and manufacturing performance. Construction of our new 300 millimeter Fab 36 in Dresden is on track with production plan in the first half of 2006. We began shipping 90-nanometer processors for revenue in the third quarter as promised. And we expect that approximately 50% of the total 8th generation wafer stars will be 90-nanometers by the end of this year. In flash, we have completed the conversion of our a Fab 25, and substantially completed the conversion of JB3 in Japan to 110-nanometer, the smallest production geometry in the NOR Flash industry. Finally, we continue to lead the industry on the path to mainstream multicore technology. We were the first to demonstrate an X 86 dual core processor. We have begun sampling customers with 90-nanometer parts designed to work in today's platforms, and AMD expects to be first to introduce dual core for the 1 to 8 weight server and workstation market by mid-2005.

以客戶為中心的創新也適用於品牌建立。例如，我們對客戶對新品牌 AMD Sempron 的反應非常滿意。在世界各地，特別是在中國。我們創建了 AMD Sempron 系列來重新發明日常運算，它是我們致力於向盡可能廣泛的客戶群提供世界一流運算技術的重要組成部分。由於我們採取以客戶為中心的方法，我們的處理器業務比第二季度增長了 21%，並且我們的平均銷售價格也有所提高。我們相信，我們在此期間的份額有所增長。新款 AMD 的第二個顯著特徵是世界一流的設計和製造性能。我們在德勒斯登新建的 300 毫米 Fab 36 工廠正在按照 2006 年上半年的生產計畫進行。我們按照承諾在第三季開始出貨 90 奈米處理器並產生收入。我們預計，到今年年底，第 8 代晶圓總數中約有 50% 將採用 90 奈米製程。在快閃記憶體方面，我們已經完成了Fab 25的轉換，並基本上完成了日本JB3向110奈米的轉換，這是NOR Flash產業最小的生產幾何尺寸。最後，我們持續引領產業走向主流多核心技術的道路。我們是第一個展示 X 86 雙核心處理器的公司。我們已經開始向客戶提供適用於當今平台的 90 奈米零件樣品，AMD 預計將於 2005 年中期率先為 1 至 8 磅重量的伺服器和工作站市場推出雙核心產品。

Like pervasive 64-bit technology, multicore processing is the future, and once again, AMD is leading the industry there. The third defining characteristic of this new AMD is what I refer to as a the discipline of operational excellence. And I'm proud to report that despite declines in the in the Flash market, our Flash operation was not only profitable, we actually were able to improve gross margins. This is a direct reflection of the (INAUDIBLE) to 110-nanometers, aggressive cost management, as well as another solid increase in MirrorBit shipments. Across AMD our commitment to the disciplines of customer-centric innovation, world class design and manufacturing, and operational excellence results in strong overall operating performance and position us for success in the coming quarters. I would like to ask Bob now to review the results of the quarter and provide comments regarding the outlook.

與普及的 64 位元技術一樣，多核心處理代表著未來，而 AMD 再次引領了這個產業。新 AMD 的第三個決定性特徵就是我所說的卓越營運紀律。我很自豪地報告，儘管 Flash 市場下滑，但我們的 Flash 業務不僅盈利，而且實際上還提高了毛利率。這是（聽不清楚）向 110 奈米、積極的成本管理以及 MirrorBit 出貨量的另一個穩步增長的直接體現。在 AMD，我們致力於以客戶為中心的創新、世界一流的設計和製造以及卓越的運營，從而帶來了強勁的整體營運業績，並為我們在未來幾季取得成功奠定了基礎。我現在想請鮑伯回顧一下本季的業績並對前景發表評論。

Thanks, Hector. As detailed in our press release earlier this afternoon third quarter sales were $1.239 billion up 30% compared to the third quarter of last year, and down 2% compared to the second quarter of 2004. The combination of a 21% sales growth in our computation products group improved Flash memory gross margin and excellent execution of our process technology transition both businesses helped drive sequential improvements in net income and . gross margin percentage. Net income was $44 million, or 12 cents per diluted share for the third quarter. These results incorporate the same tax rate from the prior quarter of 10%. Gross margin improved to 40.5% for the quarter, 2.6 percentage points above the 37.9% reported in the second quarter, and a solid 6 percentage point improvement from the third quarter of last year. As guided, third quarter marketing general and administrative cost increased 13% from the second quarter levels. As we accelerate our marketing investments across Athlon 64, Opteron, and Sempron products. Cash flow from operation was $263 million for the quarter, up 10% from the second of 2004. EBITDA was $374 million.

謝謝，赫克托。正如我們今天下午稍早的新聞稿中所述，第三季的銷售額為 12.39 億美元，與去年第三季相比成長 30%，與 2004 年第二季相比下降 2%。我們的計算產品集團銷售額成長了 21%，提高了快閃記憶體的毛利率，加上我們製程技術轉型的出色執行，這兩項業務都幫助推動了淨收入的連續成長。毛利率百分比。第三季淨收入為 4,400 萬美元，即每股 12 美分。這些結果採用了與上一季相同的 10% 的稅率。本季毛利率提高至 40.5%，較第二季的 37.9% 提高 2.6 個百分點，較去年第三季提高 6 個百分點。根據指引，第三季行銷總務及行政費用較第二季成長了 13%。隨著我們加快對 Athlon 64、Opteron 和 Sempron 產品的行銷投資。本季經營現金流為 2.63 億美元，較 2004 年第二季成長 10%。EBITDA 為 3.74 億美元。

Switching to our two businesses, a quick overview. I'll start with our computation product group, CPG sales were $673 million in the quarter, a 34% increase over the same period a year ago, and a 21% improvement from the second quarter. Unit sales and ASPs increased compared to the second quarter. Unit sales of AMD 64 processors grew by more than 50% sequentially, and now represent over 1/3 of total CPG sales. In addition, we successfully launched the AMD Sempron processor family in the quarter, enjoying particularly solid success in China. CPGs operating income in the quarter was $89 million or 13% of sales. This represents a a 53% improvement from the second quarter. Switching to the Memory group business, third quarter sales were $538 million, up 27% from the third quarter of 2003, but down 20% from the second quarter of this year. Flash memory sales declined due to softness in the wireless handset market supply chain, but embedded sales remain solid. Unit shipments in ASPs declined for the second quarter -- from the second quarter, excuse me. The Memory group made money in the quarter with operating income at $15 million, down from the $45 million in the prior quarter. The Memory group's gross margin improved slightly in the quarter due to the successful transition to 110-nanometer technology, and increased shipments of MirrorBit technology.

前往我們的兩個業務，進行快速概覽。我先從我們的計算產品組開始，本季 CPG 銷售額為 6.73 億美元，比去年同期成長 34%，比第二季成長 21%。與第二季相比，單位銷售額和平均銷售價格均增加。AMD 64 處理器的銷售量較上季成長超過 50%，目前佔 CPG 總銷量的 1/3 以上。此外，我們在本季成功推出了 AMD Sempron 處理器系列，在中國取得了特別顯著的成功。CPG 本季的營業收入為 8,900 萬美元，佔銷售額的 13%。這比第二季提高了 53%。轉向記憶體集團業務，第三季銷售額為5.38億美元，比2003年第三季成長27%，但比今年第二季下降20%。由於無線手機市場供應鏈疲軟，快閃記憶體銷售額出現下滑，但嵌入式銷售額仍保持穩健。第二季度，平均銷售價格的單位出貨量有所下降——對不起，是從第二季度開始的。記憶體部門本季獲利，營業收入 1,500 萬美元，低於上一季的 4,500 萬美元。由於成功過渡到 110 奈米技術以及 MirrorBit 技術出貨量的增加，記憶體部門本季的毛利率略有提高。

Now, let's talk to balance sheet. Cash balances ended the third quarter at $1.2 billion up slightly from the second quarter. Third quarter capital expenditures were $407 million up from $361 million in the second quarter. Inventories increased from the second quarter by $81 million, primarily in leading edge 110-nanometer Flash memory technology. Now I'd like to discuss the outlook. AMDs current outlook for the fourth quarter of 2004 is that we expect overall sales to increase, driven by microprocessor sales that exceed seasonal trends, and flat to up Flash memory sales. In summary, we are pleased with our net income and gross margin progress in the third quarter, and are well-positioned for the fourth quarter. With that, back to Hector.

現在，我們來談談資產負債表。第三季末現金餘額為 12 億美元，較第二季略有增加。第三季的資本支出為 4.07 億美元，高於第二季的 3.61 億美元。庫存較第二季增加了 8,100 萬美元，主要集中在尖端的 110 奈米閃存技術方面。現在我想討論一下前景。AMD 目前對 2004 年第四季的展望是，我們預計整體銷售額將會增加，這得益於超過季節性趨勢的微處理器銷售額以及持平或上升的閃存銷售額。綜上所述，我們對第三季的淨收入和毛利率成長感到滿意，並為第四季做好了準備。說完這些，我們回到赫克托。

Thanks, Bob. In summary, I am pleased to report that once again, we're delivering on the promise that we have made to our customers, our partners, to our investors, and to ourselves. We committed to lead the industry to pervasive 64-bit computing and we are delivering on that promise. With our superior AMD 64 technology, and rapidly expanding product portfolio and solid growth trajectory and a growing collection of key strategic relationships with industry leaders such as Microsoft, HP, IBM, Sun, Linobel, and many others. We committed to penetrating the enterprise, and we are delivering on that promise. With notable enterprise caliber system deployment at Credit Suisse First Boston, Microsoft Treasury, Ajier, Merrill Lynch, Phillips Electronics, Qualcomm, AOL, (INAUDIBLE), Labor Holdings. In fact, AMD 64 technology is now being employed in 25 of the fortune global 100 companies. We committed to building a strong portfolio brand, and we are delivering on that promise. With the introduction of AMD Opteron, AMD Athlon 64, AMD Athlon 64 FX, the Spansion, and in this past quarter the AMD Sempron processor family.

謝謝，鮑伯。總而言之，我很高興地報告，我們再次兌現了對我們的客戶、合作夥伴、投資者和我們自己的承諾。我們致力於引領業界走向普及 64 位元運算，我們正在兌現這項承諾。我們擁有卓越的 AMD 64 技術、​​快速擴展的產品組合、穩健的成長軌跡以及與微軟、惠普、IBM、Sun、Linobel 等行業領導者建立的日益增長的關鍵策略關係。我們致力於滲透企業，我們正在兌現這項承諾。其中包括瑞士信貸第一波士頓、微軟財務部、阿吉爾、美林證券、飛利浦電子、高通、美國線上、（聽不清楚）、勞工控股等知名企業級系統部署。事實上，全球財富 100 強企業中已有 25 家採用了 AMD 64 技術。我們致力於打造強大的投資組合品牌，並且我們正在兌現這項承諾。隨著 AMD Opteron、AMD Athlon 64、AMD Athlon 64 FX、Spansion 以及上個季度的 AMD Sempron 處理器系列的推出。

We are a strong Company and getting stronger. In our manufacturing capability which is benchmarked as best in class, in our design capability where we have the taken a clear leadership position with our current generation of designs and our product portfolio which has never been stronger, more diverse and better positioned in the market, and our ecosystem which is the best in our history and getting better every day. In our customer base which has expanded and improved globally and in terms of it's strategic competition, and in our financials where we're demonstrating a pattern of sustained profitability. And finally, in our people where we continue to attract and retain the best people in our industry to what has become the new leader in the processor and memory solution business. As with any company, AMD is only as good as the people who work here, and our people have demonstrated with with a strong sense of urgency their passion and desire to reformulate this Company into a new engine of innovation. Customer-centric innovation with our own path to success. Thank you and let me give it back to Mike Hasi for the question and answer period.

我們是一家強大的公司，並且正在變得越來越強大。我們的製造能力是同類最佳，我們的設計能力憑藉著當前世代的設計和產品組合佔據了明顯的領導地位，我們的產品組合從未如此強大、如此多樣化、在市場上佔據更有利的地位，我們的生態系統也是歷史上最好的，並且每天都在不斷完善。我們的客戶群在全球範圍內不斷擴大和改善，在策略競爭方面，以及在財務方面，我們都展示了持續獲利的模式。最後，我們不斷吸引和留住業界最優秀的人才，使公司成為處理器和記憶體解決方案業務的新領導者。與任何公司一樣，AMD 的優秀取決於在這裡工作的員工，我們的員工以強烈的緊迫感展示了他們的熱情和願望，將公司重塑為新的創新引擎。以客戶為中心的創新，走我們自己的成功之路。謝謝，讓我把時間交還給 Mike Hasi，讓他進行問答。

Thanks Hector. Tammy if we could get started with the Q&A.

謝謝赫克托。塔米，我們可以開始問答了嗎？

Thank you. Ladies and gentlemen, if you wish to ask a question, please press star then one on your touch-tone phone. You will hear a tone indicating you have been placed in queue. You may remove yourself from queue at any time by pressing the pound key. If you are using a speakerphone, please pick up the handset before pressing the numbers. Once again, if you have a question, please press star, one at this time. One moment for our first question. Our first question comes from the line of Michael Masdea from CSFB. Please go ahead.

謝謝。女士們、先生們，如果您想提問，請在按鍵電話上按星號，然後按一。您將聽到提示音，表示您已進入佇列。您可以隨時按井號鍵退出佇列。如果您使用揚聲器電話，請在按下數字之前拿起聽筒。再次強調，如果您有疑問，請按星號，此時按一個。請稍等片刻，回答我們的第一個問題。我們的第一個問題來自瑞士信貸第一波士頓銀行的 Michael Masdea。請繼續。

Yeah, thanks a lot. Yeah, we've been enjoying your chips here at CSFB. Thanks for those. The first question is on the inventory on the Flash side. Just are we -- it sounds like you're going to be burning through more of that in the fourth quarter. Does that continue into the first part of next year, and when do you think that will be cleared up.

是的，非常感謝。是的，我們在 CSFB 一直很喜歡你們的籌碼。謝謝你們。第一個問題是關於Flash方面的庫存。聽起來你會在第四季消耗更多這些。這種情況會持續到明年上半年嗎？您認為什麼時候會解決？

Bob, do you want to take a crack at that?

鮑勃，你想嘗試嗎？

Yeah, you know, actually if you stand back in our inventory position, we actually deplete a lot of inventory in the first half of the year, we're actually down about 14% from the same point in time from a year ago. All of the inventory we built is 110-nanometer technology, so we feel very comfortable and very well positioned to take advantage of the wireless marketplace as it continues to evolve over the next couple periods of time. So we're very confident we're in great shape to really take advantage of the marketplace.

是的，你知道，實際上如果你回顧我們的庫存狀況，我們實際上在今年上半年消耗了大量庫存，與去年同期相比，我們的庫存實際上下降了約 14％。我們建立的所有庫存都是 110 奈米技術，因此我們感到非常舒適並且非常有能力利用無線市場，因為它將在未來幾個時期內不斷發展。因此，我們非常有信心，我們已做好充分的準備來真正利用市場。

I'll answer Bob's comment just a little bit. Obviously with the technology we have in place, and the going with a healthy inventory position in the quarter, we intend to be aggressive.

我將稍微回答一下鮑伯的評論。顯然，憑藉我們現有的技術，以及本季健康的庫存狀況，我們打算積極進取。

Great. And on the manufacturing side real quick, I think changes on the 300-millimeter plan with some of the kind of outlooks for next year being a little bit more -- more cautious, or are you still pushing forward on the same time frame?

偉大的。在製造方面，我認為 300 毫米計劃會有所變化，對明年的展望會更加謹慎一些，還是您仍在同一時間框架內繼續推進？

We're not changing our plans at all. We're doing it at as fast as we can and we're on plan at the moment.

我們根本沒有改變我們的計劃。我們正在盡快完成，目前正在按照計劃進行。

Great. Just a last question on the cost side. Your costs declined more than your revenue. You talked about MirrorBit and 110-millimeters -- nanometer. Is there anything on the processor side that helped you do that in the quarter?

偉大的。關於成本方面的最後一個問題。您的成本下降幅度大於收入下降幅度。您談到了 MirrorBit 和 110 毫米奈米。處理器方面有什麼可以幫助您在本季實現這一目標嗎？

Our continued expansion of the 90-nanometer. You know, we started the conversion in May, shipped our first product in the July/August kind of time frame, and that continues to evolve as time goes on, plus, we continue to enjoy world class yields in both 130-nanometer and in the 90-nanometer mode.

我們繼續擴展 90 奈米。您知道，我們在五月開始轉換，在七八月份的時間範圍內交付了我們的第一批產品，並且隨著時間的推移，這一過程不斷發展，此外，我們在 130 奈米和 90 奈米模式下繼續享有世界一流的產量。

Great. Thanks a lot.

偉大的。多謝。

Thank you our next question comes from the line of Tim Luke. Please go ahead.

謝謝，我們的下一個問題來自蒂姆·盧克 (Tim Luke)。請繼續。

I was just wondering if you could give us a sense of the percentage of the business that has now moved to MirrorBit. And give us a sense in terms of region. I think you've spoken earlier about China being an area where there was some issues, give us some color there. Thank you.

我只是想知道您是否可以告訴我們目前轉移到 MirrorBit 的業務百分比。並從區域角度給我們一個概念。我想您之前曾談到中國是一個存在一些問題的地區，請給我們講講那裡的情況。謝謝。

If you wouldn't mind repeating the second part of the question. I lost it.

如果您不介意的話，請重複問題的第二部分。我把它弄丟了。

Can you hear me, Hector?

你聽得到我說話嗎，赫克托？

Yeah.

是的。

I'm sorry. The question just related to MirrorBit as a percentage of the Flash business now, and also I think previously you had commented on synergies with China in the wireless area, could you give us any sort of regional color in terms of how you're viewing Flash demand.

對不起。這個問題只與 MirrorBit 目前在 Flash 業務中所佔的百分比有關，而且我認為您之前曾評論過與中國在無線領域的協同效應，您能否就您對 Flash 需求的看法，給我們提供一些區域性的信息。

Let me -- I'll make some comments and welcome Henri to add whatever he would like. First of all we continued to ramp and move aggressively to a shift towards MirrorBit, because so far, as we said before, it's a great technology with great performance and great cost. We expect to in terms of bits shipped that go out of this year with 50% of bits being shipped in the embedded space in MirrorBit, and by the end this year 50% of the bits for all slides will be in MirrorBit. So we are in a fairly good ramp. As a matter of fact, this quarter versus last quarter, we had a double-digit growth in units relative to MirrorBit. We are pleased with that and that performance. And relative to China, if you are referring to the fact that we made two comments relative to China. One we did well in China in the processor side, and that was the (INAUDIBLE, MULTIPLE VOICES) there was a lot of acceptance of the introduction of Sempron in China. It was received very well, it was product that they actually (INAUDIBLE) and exactly it seemed to fit right at the time of things they wanted to do and we did very well there. Henri, would you like to add anything to that?

讓我——我會發表一些評論，並歡迎亨利添加他想添加的任何內容。首先，我們繼續積極地向 MirrorBit 轉變，因為到目前為止，正如我們之前所說，它是一項性能卓越、成本低廉的偉大技術。我們預計，就今年出貨的比特數而言，50% 的比特數將在 MirrorBit 的嵌入式空間中出貨，到今年年底，所有幻燈片的 50% 的比特數都將在 MirrorBit 中出貨。因此我們處於一個相當良好的狀態。事實上，與上一季相比，本季我們的 MirrorBit 銷量實現了兩位數的成長。我們對此以及那場表現感到滿意。相對於中國，如果您指的是我們對中國發表了兩則評論。一方面，我們在中國的處理器方面做得很好，那就是（聽不清，多個聲音）Sempron 在中國的推出得到了廣泛的接受。它受到了熱烈歡迎，這是他們實際上（聽不清楚）的產品，而且它似乎正好適合他們想要做的事情，我們在那裡做得很好。亨利，你還有什麼要補充的嗎？

Just a clarification, Hector. You said that in terms of MirrorBit shipments, we'll be at over 50% for the embedded space by the end of 2004, and we'll be at 50% overall at the end of 2005.

只是澄清一下，赫克托。您說過，就 MirrorBit 的出貨量而言，到 2004 年底，我們在嵌入式領域的佔有率將超過 50%，到 2005 年底，我們的整體佔有率將達到 50%。

Could you also, Hector, just secondly, just with respect to the processor side you talked about the seasonal outlook for the fourth calendar quarter. Could you just give us -- I think you sort of said microprocessors above seasonal trend. Could you just clarify your commentary there. Is that because your share gain, or any commentary on the turn of the overall market. Thank you.

赫克托，其次，就處理器方面而言，您能否談談第四季度的季節性前景。您能否告訴我們—我認為您說的是微處理器高於季節性趨勢。您能否澄清一下您的評論？這是因為你的股票上漲，還是對整體市場走勢的任何評論。謝謝。

Let me ask Henri to make some comments about the market. Which I think are appropriate.

我請亨利對市場發表一些評論。我認為這是合適的。

Well, clearly in the microprocessor side, which is your question, we're seeing a continued acceptance of the ND 64 architecture, particularly in the enterprise. This was outlined with significant wins in mainstream enterprise business during Q3. We intend there continue to see this trend accelerate, and so we think we can gain share in the fourth quarter of this year.

嗯，顯然在微處理器方面，也就是您的問題，我們看到 ND 64 架構的持續接受，特別是在企業中。這體現在第三季主流企業業務的重大勝利。我們希望看到這一趨勢繼續加速，因此我們認為我們可以在今年第四季獲得份額。

Thank you.

謝謝。

Thank you. Our next question comes from the line of Hans Mosesmann from Schwab SoundView. Please go ahead.

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

Yes, if you can clarify the last statement regarding enterprise. Are you implying that it's's Opteron that's driving the better than expected acceptance of the 64 architecture?

是的，如果您可以澄清有關企業的最後一句話。您是否暗示 Opteron 推動了 64 位元架構的接受度超出預期？

It's across all of the AMD 64 products, but clearly for the Opteron product which is an enterprise product it is that segment, but we're also enjoying a significant growth quarter to quarter on both the Mobile Athlon 64, the desktop Athlon 64, and the Athlon 64 FX.

它適用於所有 AMD 64 產品，但顯然對於作為企業級產品的 Opteron 產品來說，它屬於這一細分市場，但我們在移動 Athlon 64、桌面 Athlon 64 和 Athlon 64 FX 方面也實現了季度顯著增長。

And I have a follow-on on the wireless market if you can comment on seasonality or any inventory situation in the various markets that you participate in? Thanks.

我對無線市場還有疑問，您能否評論一下您所參與的各個市場的季節性或庫存情況？謝謝。

The wireless market is -- this is going to be a little bit of a lengthy answer. It's important to put it in perspective. We think that the hand -- the cell phone market is actually a healthy market this year. We think it will have a reasonably good growth year-on-year. However, I think that the cell phone manufacturers' expectations were probably a bit higher than just a good market, and as a result, in the first and second quarter of this year, there was a concern that there were not enough Flash capacity available to meet the needs of those customers. As a result, what I did, I think it triggered some conservatism in purchasing on the part of the cell makers, but it was particularly compounded on the second and third tier players that of course they feel that -- they fear that they might get left behind, and they not only double order, but they triple order and so we believe in the second quarter, there was an accumulation of inventory that was unreasonable, particularly in the second and third tier players which seems to be very focused an indigenous cell maker in China. The indigenous cell manufacturers in China ended up then compounding the situation, because of the Chinese government's desire to curtail economic activity. And that had a profound effect on them too. So when you combine those two effects, the Asian market was actually really affected, and I am to be fortunate that the last three three weeks of the quarter, I spent in Asia, mostly in China, and I personally talked to the CEOs, the various cell phone companies, and processor companies, and I got a very strong feeling of how severe it was, the combination of inventory accumulation, as well as the curtailing of economic activity really had an impact on these folks. However, having said that, at the same time they also felt like towards the end of September they began to see a somewhat of a recovery of purchasing pattern, and although it wasn't strong enough to really affect or have any impact on the third quarter, it is encouraging for us that we're going into the fourth quarter with some activity pickup in those areas that were severely affected. And for that reason we have cautious outlook in the fourth quarter, but optimistic that if the market is there, and they did indeed recover, and the supply chain logistics get fixed, we'll do well.

無線市場是——這將是一個有點冗長的答案。正確看待這個問題很重要。我們認為，今年的手機市場其實是一個健康的市場。我們認為其年增速將會相當不錯。然而，我認為手機製造商的期望可能比好的市場要高一些，因此，在今年第一季和第二季度，人們擔心沒有足夠的快閃記憶體容量來滿足這些客戶的需求。因此，我認為我的做法引發了電池製造商在採購方面的一些保守情緒，但對於二線和三線企業來說尤其如此，他們當然感到——他們擔心自己可能會落後，因此他們不僅增加了一倍的訂單，而是增加了三倍的訂單，因此我們認為，第二季度的庫存積累是不合理的，特別是對於二線和三線企業來說，他們似乎非常專注於中國本土的電池製造商。由於中國政府希望限制經濟活動，中國本土電池製造商最終使情況變得更加複雜。這也對他們產生了深遠的影響。因此，當你將這兩種影響結合起來時，亞洲市場實際上受到了嚴重影響，我很幸運，本季度的最後三週，我都在亞洲，主要是在中國，我親自與各家手機公司和處理器公司的首席執行官進行了交談，我強烈地感覺到情況有多麼嚴重，庫存積累以及經濟活動的減少確實對這些人產生了影響。然而，話雖如此，他們同時也感覺到，到九月底，他們開始看到購買模式有所復甦，儘管這種復甦還不足以真正影響或對第三季度產生任何影響，但令我們感到鼓舞的是，進入第四季度，那些受到嚴重影響的地區的活動將有所回升。因此，我們對第四季度的前景持謹慎態度，但樂觀地認為，如果市場存在，並且確實復甦，並且供應鏈物流得到修復，我們就會做得很好。

Okay. Thank you very much.

好的。非常感謝。

Thank you. The next question comes from the line of Mark Edelstone from Morgan Stanley. Please go ahead.

謝謝。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. A couple of questions on processors, if I could. First one is, what was the change in Athlon units in the quarter. Did those increase or decrease sequentially?

大家下午好。如果可以的話，我想問幾個關於處理器的問題。第一個問題是，本季 Athlon 單位的變化情況如何。這些是連續增加還是減少？

Is that an Athlon 64 question, or an Athlon XP question?

這是有關 Athlon 64 的問題，還是有關 Athlon XP 的問題？

That was basically the Athlon XP.

那基本上就是 Athlon XP。

There was obviously a decrease -- significant decrease in Athlon XP as we're end of licensing that product line.

由於我們終止了對該產品線的授權，Athlon XP 的銷量明顯下降——大幅下降。

Okay. Great. And then I guess for Hector or Bob, obviously you were able to improve your profitability in processors, but the incremental margins there were perhaps less than what someone would have suspected given the strong growth that you had in revenues. Is that largely because we've yet to really see the positive impact of the transition in 90-nanometer at this point in the AMD 64 and Opteron product lines?

好的。偉大的。然後我想對於赫克託或鮑勃來說，顯然你們能夠提高處理器的盈利能力，但考慮到你們收入的強勁增長，那裡的增量利潤率可能低於人們所懷疑的水平。這是否主要是因為我們目前尚未真正看到 90 奈米轉型對 AMD 64 和 Opteron 產品線的正面影響？

A combination of two things, Mark, of one, yes, we're still in the early phases of transitioning to 90-nanometer, but two we also spent a fair amount of money, almost all of the increase -- the $20 million increase you're seeing quarter on quarter in sales and marketing went against the microprocessor business as we did some pretty aggressive campaign and work to -- for Opteron, Athlon 64, and the Sempron brands.

馬克，有兩個因素，第一，是的，我們仍處於向 90 奈米過渡的早期階段，第二，我們也花費了相當多的錢，幾乎所有的增長——銷售和營銷費用環比增長 2000 萬美元——都與微處理器業務背道而馳，因為我們為 Opteron、Athlon 64 和 Sempron 品牌開展了一些非常積極的宣傳和工作。

Okay. And then just lastly, it looks like there's a restatement of some of the balance sheet items in Q2 relative to the cue that you put out. Can you walk through that if that is the case?

好的。最後，根據您提出的提示，第二季的一些資產負債表項目似乎進行了重述。如果是那樣的話，您能詳細說明一下嗎？

Boy, I'm not aware of that.

孩子，我不知道這一點。

Maybe we can just take it offline then.

也許我們可以將其下線。

Yeah, we'll need to take it offline.

是的，我們需要將其下線。

Okay, guys. Thanks a lot.

好的，夥計們。多謝。

The next question comes from the line of John Lau from Bank of America. Please go ahead.

下一個問題來自美國銀行的 John Lau。請繼續。

Okay, thank you. I wanted to take another try at the PC question. I was wondering -- what do you believe is a typical PC seasonality for Q4 in your expectations, and while you may be growing faster than the seasonal, is the overall market fairly robust and seasonal at this point, and then I have a follow-up. Thank you.

好的，謝謝。我想再嘗試一次 PC 問題。我想知道——您認為第四季度典型的 PC 季節性是什麼，雖然你們的成長速度可能比季節性快，但目前整體市場是否相當強勁且具有季節性，然後我有一個後續問題。謝謝。

Well, we believe the traditional seasonality is between 10 and 12%.

嗯，我們認為傳統的季節性在 10% 到 12% 之間。

I would like to add to that, is that, you know, going forward, it may not be as meaningful for us sometimes to talk about seasonality as it applies to us. We've now departed significantly if terms of architecture products, features, et cetera. For example, we had a very healthy back to school activity for us. We felt good. Very positive about it. I'm not so sure that that was exactly in line with general trends. And being this small in terms of dollar share, being at 10% or less of a dollar share, frankly, what we see may be more applicable to what we see for AMD rather than for the industry. And so, therefore, given the momentum we're building on penetration in the enterprise, which we still believe will let us gain share and go out of the year at a healthy number that we communicated before, and the acceptance of the AMD 64 technology in the client space it's positioned to us have a very optimistic outlook this quarter.

我想補充一點，你知道，展望未來，有時談論季節性對我們來說可能沒有那麼有意義。現在，我們在架構產品、功能等方面已經取得了很大進展。例如，我們舉辦了一項非常健康的返校活動。我們感覺很好。對此非常積極。我不太確定這是否完全符合整體趨勢。就美元份額而言，這一比例很小，僅為 10% 或更低，坦白說，我們所看到的情況可能更適用於 AMD 而不是整個行業。因此，鑑於我們在企業滲透方面所取得的進展，我們仍然相信這將使我們獲得市場份額，並在今年年底前達到我們之前傳達的健康數字，以及 AMD 64 技術在客戶端領域的接受度，我們對本季度的前景非常樂觀。

Great. And in terms of the follow-up, based on what you see in the channel there, do you believe the inventory for PCs in the channel are seasonally normal at this point, or do you see any issues?

偉大的。就後續情況而言，根據您在頻道中看到的情況，您是否認為目前頻道中的 PC 庫存處於季節性正常水平，或者您是否發現任何問題？

We don't see any issues at all. In fact, in certain aspects, there were some shortages that we heard happened in the market for chipsets in Taiwan, so it looks like the old build supply chain, starting from chipsets going to motherboards is very healthy.

我們根本沒發現任何問題。事實上，我們聽說台灣晶片組市場在某些方面出現了一些短缺，因此看起來從晶片組到主機板的舊供應鏈非常健康。

Great. Thank you very much.

偉大的。非常感謝。

Our next question comes from the line of Andrew Root from 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。

Thanks a lot. I had a question on brand positioning. I think you mentioned that the Athlon XP obviously being phased out with the Sempron launching. Are there any campaigns or anything planned to transition that in the customers's mind, the retail side, the XP brand has been very successful, launched with great fanfare in '99-2000. Just curious what's planned.

多謝。我對品牌定位有疑問。我想您提到過，隨著 Sempron 的推出，Athlon XP 顯然正在被淘汰。是否有任何活動或計劃來轉變顧客心目中的這一形象，零售方面，XP 品牌非常成功，在 99-2000 年推出時引起了極大的轟動。只是好奇有什麼計劃。

Well, yeah, there's a extensive campaign that's ongoing since the beginning of the summer. Clearly we recognize the strength of the Athlon XP brand, but as you know we ended up in a situation where we were competing with a single brand against our competitor's two brands. So what we started at the beginning of this year, the repositioning in order to be able to be aggressive in the value segment with a brand positioned appropriately, and that's Sempron and to compete head on with the Pentium brand with our Athlon 64 product. And frankly, part of the successful result is this increase in ASP that we've seen because we're now competing appropriately against the two brands. The Athlon XP was very solid, but ended up being a tweener in certain markets and that was affecting our ability to position properly.

嗯，是的，從夏天開始我們就在進行一場大規模的活動。我們顯然認識到 Athlon XP 品牌的實力，但正如您所知，我們最終陷入了用一個品牌與競爭對手的兩個品牌競爭的境地。因此，我們從今年年初開始進行重新定位，以便能夠在價值領域中積極進取，並推出一個定位恰當的品牌，那就是 Sempron，並透過我們的 Athlon 64 產品與 Pentium 品牌展開正面競爭。坦白說，成功的結果部分歸功於我們看到的平均售價的增加，因為我們現在正在與這兩個品牌進行適當的競爭。Athlon XP 非常穩定，但在某些市場卻處於中間位置，這影響了我們正確定位的能力。

And then I guess, sort of, 6-12 months from now as the desktop moves to Athlon 64, the XP gets phased out so, you know, a year from now we won't be talking about it?

然後我想，從現在起 6-12 個月後，隨著桌面轉向 Athlon 64，XP 將被逐步淘汰，所以，一年後我們就不會再談論它了？

No, the XP phase out is much faster than this. We don't expect to have any significant Athlon XP shipments beyond Q1 '05.

不，XP 的淘汰速度比這快得多。我們預計 2005 年第一季之後 Athlon XP 不會有大量出貨。

Okay. That makes sense. And then one quick follow-up on inventory, just wondering if you could give us a sense if the dated inventory is higher on the Flash side, which I think it is, and then if you sort of step back and say, you know, you have 99 days inventory, Intel has 90, how does this -- how does this eventually resolve itself? Because they're trimming production whether they're successful in bringing inventory I don't know. But, is this just a level we can run at for a while until demand gets better, or just need to, you know, just have to resolve itself some other way?

好的。這很有道理。然後快速跟進庫存問題，只是想知道您是否可以讓我們了解一下閃存方面的過時庫存是否更高，我認為是的，然後如果您退一步說，您知道，您的庫存為 99 天，英特爾有 90 天，這個問題最終如何解決？因為他們正在削減產量，所以我不知道他們是否能成功補充庫存。但是，這是否只是我們可以維持一段時間直到需求好轉的水平，或者只是需要以其他方式解決？

We're not -- you know, we're not concerned about the inventory at this point in time. As Bob pointed out in the comments, we actually were concerned in the second quarter we didn't have enough, when we thought there was a severe shortage, and we are right now, even today, we're still at 14% below where we were a year ago in Flash. In processors, it's an entirely different story. Frankly, we are, you know, able, we are fortunate that we're, you know, making every product we make it's a highly desirable SKU, an entirely desirable bin, and so we're not at all in any way concerned of inventory from the microprocessor side. I think if the market does what we hope it does, and as I mentioned earlier the supply chain logistics issues on the cell phone business get sorted out in the fourth quarter, we're pretty solidly positioned to gain share.

您知道，我們目前並不擔心庫存。正如鮑勃在評論中指出的那樣，我們實際上在第二季度擔心庫存不足，當時我們認為存在嚴重短缺，而現在，即使是今天，我們的 Flash 庫存仍然比一年前低 14%。在處理器中，情況就完全不同了。坦白說，你知道，我們能夠，我們很幸運，你知道，我們製造的每一件產品都是非常理想的 SKU，一個完全理想的箱子，所以我們根本不擔心微處理器方面的庫存。我認為，如果市場如我們所願，並且如我之前提到的那樣，手機業務的供應鏈物流問題將在第四季度得到解決，那麼我們就有很大的把握獲得市場份額。

Okay. Thanks.

好的。謝謝。

Thank you. Our next question comes from the line of Krishna Shankar from JMP Securities. Please go ahead.

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

Yes. In the processor business in the AMD 64 did you have good growth both in desktops and notebooks Q2 to Q3, and also going into the fourth quarter, will -- did you say more than 50% of your processor production will be on 90-nanometer.

是的。在 AMD 64 處理器業務中，你們在第二季度到第三季度的桌上型電腦和筆記型電腦方面是否都取得了良好的成長，並且進入第四季度，你是否說過超過 50% 的處理器生產將採用 90 奈米技術？

I'll answer the first part of the question. We had a double-digit growth in both mobile and desktop Athlon 64 processor.

我來回答問題的第一部分。我們的行動和桌上型 Athlon 64 處理器都實現了兩位數的成長。

And in terms of the 90-nanometer, we expect going out of the year to have over half of our wafer starts to be 90-nanometer AMD 64.

就 90 奈米而言，我們預計今年將有超過一半的晶圓採用 90 奈米 AMD 64。

Okay. And for the Flash market it sounds like most of the shortfall was because of cell phones and finished goods. Can you talk about the pricing environment in the in Flash market both for embedded, low density Flash and high density Flash applications?

好的。對於 Flash 市場來說，大部分短缺似乎是由於手機和成品造成的。您能談談快閃記憶體市場中嵌入式、低密度快閃記憶體和高密度快閃記憶體應用的定價環境嗎？

Sure. The market is competitive. There were some irrational pricing that happened at the beginning of the quarter as people were facing the softness. Frankly, if you look at our situation, we had a delight slight decline in ASP, but that's normal because we intended to be competitive and we are leveraging our 110-nanometer technology. Overall, it wasn't a disaster and as Hector pointed out as the supply chain clears out and I think the market returns to a more positive tone, we are going to continue to see a competitive environment but no particular concern on the front of ASP.

當然。市場競爭激烈。由於人們面臨經濟疲軟，本季初出現了一些不合理的定價。坦白說，如果你看看我們的情況，你會發現平均售價略有下降，但這是正常的，因為我們想要保持競爭力，而且我們正在利用我們的 110 奈米技術。總體而言，這並不是一場災難，正如 Hector 所指出的那樣，隨著供應鏈的清理，我認為市場將恢復到更積極的基調，我們將繼續看到競爭環境，但在 ASP 方面無需特別擔憂。

And finally more sort of strategic question. You had a phenomenal processor quarter, but obviously the response in the market has been dampened by what's happened in the Flash market. What are your thoughts on, in terms of unlocking shareholder value for the spectacular performance you've had in processors versus a more volatile environment in the Flash market which seems be to commoditizing more rapidly?

最後還有更具策略性的問題。你們的處理器季度表現十分出色，但顯然市場反應受到了快閃記憶體市場表現的抑制。相對於快閃記憶體市場更加動盪且似乎商品化速度更快的環境，您在處理器領域取得的出色業績對於釋放股東價值有何看法？

Well, first of all we have a very long-term view of the investments we're making in the Flash memory business. You know, we're not going to let a one quarter blip in performance to obscure the vision of our future. And we have a tremendous confidence that this is a fast-growing market, pervasive in its applications. We have a unique technology that is unique. Nobody else has it. We believe we can do a lot of exciting things, so we have a lot of faith in that, and on the long term, I believe this is going to be a way in which shareholder value will be created.

首先，我們對快閃記憶體業務的投資有著非常長遠的眼光。你知道，我們不會讓一個季度的業績下滑影響我們對未來的展望。我們非常有信心，這是一個快速成長的市場，其應用十分廣泛。我們擁有獨一無二的獨特技術。其他人都沒有。我們相信我們可以做很多令人興奮的事情，所以我們對此充滿信心，從長遠來看，我相信這將是創造股東價值的一種方式。

Thank you.

謝謝。

Our next question comes from Ben Lynch from Deutsche Bank. Please go ahead.

下一個問題來自德意志銀行的本·林奇。請繼續。

Yeah. Hi, guys. I must congratulate you in a very difficult environment for really such a great quarter. I also have two questions. I'll just take one at a time, if that's okay. Back to the seasonality thing that people have been on about, and how you sort of define it, when I look at the last 7 years, in 6 of them, it looks like you've had processor growth of 13% or above, and in fact in several of the years, significantly higher than that. You know, is that a good sort of framework for us to be thinking about what you mean by seasonality this year?

是的。嗨，大家好。我必須在非常困難的環境下祝賀你們取得如此出色的一個季度。我也有兩個問題。如果可以的話，我一次只拿一個。回到人們一直在討論的季節性問題，以及你如何定義它，當我回顧過去 7 年時，其中 6 年，處理器的增長率似乎達到了 13% 或以上，事實上，有幾年的增長率明顯高於這個數字。您知道嗎，這是否是一個很好的框架，讓我們思考今年的季節性？

I don't believe so. I believe that this, frankly, we don't know. I mean, that's the truth. We believe the market in the fourth quarter will be better than the third quarter, and it is our belief that in an environment like that, we will do better than the market. But frankly, you know, we do not think the world has changed a lot for seasonality discussions are not as appropriate. Henri?

我不這麼認為。我認為，坦白說，我們不知道這一點。我的意思是，這是事實。我們相信第四季的市場會比第三季更好，我們也相信在這樣的環境下，我們的表現會比市場更好。但坦白說，您知道，我們認為世界並沒有發生太大變化，因為季節性討論並不那麼合適。亨利？

A couple of comments. Historically, this data that you've indicated may be right, but you have to keep in mind that there is two factors that have changed at AMD. First, we have a growing part of our revenue in microprocessors that have derived from enterprise and commercial business. And second, a fast going part that's coming from strategic accounts. And so some of the seasonality that we saw in the past was really related to more of a consumer based business than we're evolving towards, so I'm not sure that the past models are going to be as relevant going forward.

一些評論。從歷史上看，您所指出的這些數據可能是正確的，但您必須記住，AMD 有兩個因素發生了變化。首先，來自企業和商業業務的微處理器收入佔比不斷成長。第二，來自策略帳戶的快速成長部分。因此，我們過去看到的一些季節性實際上與以消費者為基礎的業務有關，而不是我們正在發展的方向，所以我不確定過去的模型在未來是否仍然具有相關性。

Okay. Great. And then the follow-up question I had was, you know, clearly you guys have been showing consistent share gains now against Intel and Intel is a tough competitor, they never like to lose share for long. Realistically, what things are you guys worried about that they might do or can do in both the short term and the medium term to at least attempt to turn things around?

好的。偉大的。然後我的後續問題是，您知道，很明顯你們在與英特爾的競爭中一直在穩步提升市場份額，而英特爾是一個強勁的競爭對手，他們從不喜歡長時間失去市場份額。現實地說，你們擔心他們在短期和中期內可能做或能夠做什麼來至少嘗試扭轉局面？

At the risk of sounding flippant which I don't mean to, we worry a hell of a lot more about what our customers really want from us and what they're expecting and making sure that we're turning this place upside down to do that for them. And I think if we do that well, there's less of a risk of a competitor doing anything that could harm that situation. So, yeah, you know, you've got a gorilla that's big and can do a lot of other things, but our focus and our energy, believe me, is totally focused on trying to understand how we can serve the customers, and a lot less worrying what the competitor might or might not do because we don't know.

儘管聽起來有些輕率（我並非有意如此），但我們非常關心客戶真正想要從我們這裡得到什麼以及他們的期望是什麼，並確保我們徹底改變這個地方來為他們做到這一點。我認為，如果我們做得好，競爭對手採取任何可能損害這種局面的行動的風險就會降低。所以，是的，你知道，你有一隻大猩猩，它能做很多其他的事情，但是相信我，我們的重點和精力完全集中在試圖了解如何為客戶服務上，而很少擔心競爭對手可能會做什麼或可能不會做什麼，因為我們不知道。

Okay. And you just said you're in that stronger position now than in the past, where it's, you know, you've got your own destiny more in your hands than you have in the past, and you're going to focus on customers to make sure that remains so.

好的。您剛才說，現在您的地位比過去更加強大，您知道，您比過去更加能夠掌握自己的命運，而且您將專注於客戶，以確保這一點始終保持下去。

And across the board, if you look at Flash and microprocessor both, you have products that are unique, technology that's different. Differentiating products, and, you know, we believe we have created a situation where it's our execution and how how well we can meet our customer need and demands that will determine our success.

整體而言，如果你看一下快閃記憶體和微處理器，你會發現它們都是獨特的產品，採用不同的技術。差異化產品，你知道，我們相信我們已經創造了一種局面，我們的執行力以及我們如何滿足客戶的需求和要求將決定我們的成功。

Thank you very much.

非常感謝。

Our next question comes from the line of Kevin Rottinghaus from Midwest Research. Please go ahead.

我們的下一個問題來自 Midwest Research 的 Kevin Rottinghaus。請繼續。

Yes, I didn't catch this. Did you give any guidance on operating expenses in the the quarter?

是的，我沒注意到這一點。您對本季的營運費用有何指引？

No, we did not. But I'll give them to you verbally. Everything should be relatively flat, except continued investment in the SG&A category for the branding efforts and marketing investments on Opteron, Athlon 64, and Sempron brands

不，我們沒有。但我會口頭告訴你。一切都應該相對平穩，除了繼續在 Opteron、Athlon 64 和 Sempron 品牌的營銷和營銷投資方面進行 SG&A 類投資

Okay. Second question. Can you give any kind of scope, or do you have any thoughts on where handset densities are, how much they're increasing quarter-over-quarter as people continue to move to high-end phones?

好的。第二個問題。您能否給出任何範圍，或者您對手機密度在哪裡有什麼看法，隨著人們繼續轉向高階手機，手機密度每季成長了多少？

Well, clearly, I can give you our average. We had a single digit, about 5% increase on average density. The sweet spot right now for handset is moving from 32 to 64 meg. And just after that, it appears that just a little over a year ago the average density in megapixels in a phone was less than one megapixel per phone. We're now entering 2005, so with that beginning to approach to and we believe that shortly after that we should see in the year 2006 probably phones with 4 megapixels, which is all indicative of the acceleration of density in Flash.

好吧，顯然，我可以給你我們的平均值。我們的平均密度增加了個位數，大約 5%。目前手機的最佳容量是從 32 兆變成 64 兆。而就在那之後，似乎就在一年多前，每支手機的平均像素密度還不到一百萬像素。現在我們即將進入 2005 年，我們相信在那之後不久我們就會在 2006 年看到分辨率達到 400 萬像素的手機，這都預示著 Flash 密度的加速增長。

Okay. And I guess my last question on that note, can you talk out all about the threat from NAN over the longer term becoming the Fash of choice going into handsets?

好的。我的最後一個問題是，您能否談談 NAN 從長遠來看將成為手機市場的首選所帶來的威脅？

You know, I think what customer is going to look for is what product solves their needs, what provides the features, the cost, the things they're looking for. NAN happens to be a technology. It's not a product, like NOR is for technology. We've stated before, and we'll continue to do this, and we're going to do it in more detail at the analyst's meeting coming up next month is that the technology that we've created although it's been perceived to be only an NOR technology, MirrorBit actually is going to be providing land like features with improved performance and cost, and therefore we believe we'll be able to be a player in all of those areas where NAN today is beginning to play a big roll.

你知道，我認為客戶要尋找的是哪種產品能夠滿足他們的需求、提供什麼功能、價格如何以及他們正在尋找什麼。NAN 恰好是一種技術。它不是一種產品，就像 NOR 是一種技術一樣。我們之前已經說過，我們會繼續這樣做，我們將在下個月舉行的分析師會議上更詳細地說明，我們所創造的技術雖然被認為只是一種 NOR 技術，但 MirrorBit 實際上將提供類似陸地的功能，並具有改進的性能和成本，因此我們相信，我們將能夠在 NAN 如今開始發揮重要作用的所有領域中開始發揮重要作用。

Okay. Thank you.

好的。謝謝。

The next question comes from the line of Michael McConnell from Pacific Crest Securities. Please go ahead.

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

Thank you. Hector, just wanted to kind of clarify a couple of comments. You had said that obviously in China you are starting to see some stabilization, some reordering, yet you were planning on being more aggressive. Was that just meaning being more aggressive with market share -- trying to take market share in Q4 because of the shrink to 110-nanometers, or is that something with pricing?

謝謝。赫克托，我只是想澄清幾點評論。您曾說過，顯然在中國，您開始看到一些穩定和重新秩序，但您計劃採取更積極的措施。這是否意味著要更積極地搶佔市場份額——試圖透過縮小到 110 奈米來在第四季度佔領市場份額，還是與定價有關？

More along the lines of the fact that in the second quarter we were a little tight on supply, and as we migrated to 110-nanometers, we have a much more breadth of product and capabilities to serve other customers' needs, so we're going to go out to aggressively gain share.

更確切地說，第二季度我們的供應有點緊張，隨著我們遷移到 110 奈米，我們擁有更廣泛的產品和能力來滿足其他客戶的需求，因此我們將積極爭取市場份額。

Okay. And then just one question on the gross margin side, maybe for Bob. Looking at obviously the growth you're going to be expecting in CPG, now looking at Flash kind of stabilizing to growing, maybe low single digits, we should probably assume a pretty sizable bump in gross margin in Q4? Any kind of color there would be helpful. Thank you.

好的。然後，關於毛利率方面，我只想問鮑伯一個問題。顯然，從您預期的 CPG 成長來看，現在 Flash 趨於穩定並開始成長，可能為個位數低位，我們應該可以預期第四季度的毛利率將出現相當大的成長？任何顏色都會有幫助。謝謝。

Well, we continue, obviously you saw the impact of the shift in mix of business towards more processors, less Flash. We continue to be almost, you know, microprocessors is twice as large gross margin than the Flash business, so as you model forward and put more CPG in than flash, yes, indeed, the gross margin of the Company will go up. But I want to make sure it's clearly noted. We continue to make progress in gross margin in the Flash business as a stand alone business. You know, we've been on that kick for white quite a while, and we will continue to make progress in that business to improve the gross margin and maybe actually even close the gap between the distance between microprocessor and Flash.

好吧，我們繼續，顯然您看到了業務組合向更多處理器、更少閃存轉變的影響。您知道，我們的微處理器毛利率幾乎是快閃記憶體業務的兩倍，因此，當您向前發展並在 CPG 中投入比快閃記憶體更多的資金時，是的，公司的毛利率確實會上升。但我想確保這一點被清楚地記錄下來。作為一項獨立業務，我們的 Flash 業務的毛利率持續取得進步。你知道，我們已經在這個領域努力了很長一段時間，我們將繼續在這個業務上取得進展，以提高毛利率，甚至可能縮小微處理器和快閃記憶體之間的差距。

Thank you.

謝謝。

Thank you. Our next question comes from the line of John Barton from Wachovia Securities. Please go ahead.

謝謝。我們的下一個問題來自美聯銀行證券公司的約翰巴頓。請繼續。

Thank you very much. Bob, you made a comment when you were asked about operating expense if things will remain flat with the exception of SG&A, continue to expand for promotion et cetera. Is that to imply that, just looking at it real quick, it looks like you ramped about $24 million, absolute dollars sequentially in Q3. Did that type of ramp continue into Q4, and does it get rolled back post Christmas or post Chinese New Year? How do we think about that trend line longer term?

非常感謝。鮑勃，當你被問及營運費用時，你發表了評論，除了銷售、一般及行政費用之外，其他費用是否會保持不變，是否會繼續擴大促銷規模等等。這是否意味著，只需快速看一下，看起來您在第三季度連續增加了約 2400 萬美元。這種成長勢頭是否會持續到第四季？聖誕節或農曆新年之後是否會回落？我們如何看待這條長期趨勢線？

Yeah. I mean, you know, we are into a big season, a very big retail season from that standpoint, so there is a lot of increased costs, so modeling that same kind of growth quarter to quarter is fine. As we've demonstrated in the past, though, that will retract a little bit in the first quarter as we move forward.

是的。我的意思是，你知道，從這個角度來看，我們正進入一個旺季，一個非常大的零售旺季，因此成本增加了很多，因此模擬逐季度的相同增長是可以的。不過，正如我們過去所證明的那樣，隨著我們向前發展，這一數字將在第一季有所回落。

Okay. Then also on the memory side of the house, it look likes the non operating expenses have declined for an actual number about 22.5 million in Q2 over a 28.5 in Q2, first if my math is right, if not right please correct me. But trend line going forward, is there any way we can think about that?

好的。然後同樣在內存方面，看起來非營運費用在第二季度的實際數字已經下降了約 2250 萬美元，而上一季為 2850 萬美元，首先，如果我的計算正確，如果不正確，請糾正我。但是未來的趨勢線，我們有辦法考慮嗎？

Well, we'll continue to make -- I mean we continue to make cost reduction progress in the memory business, so while that was a fairly steep movement from quarter to quarter, because of converting 110-nanometer, as Hector said, we're almost complete with that movement, so obviously the line flattens out a little bit on progress, but we will continue to make progress.

好吧，我們將繼續——我的意思是我們將繼續在內存業務中降低成本，因此，儘管這是一個季度間相當大的變化，但正如赫克託所說，由於轉換了 110 奈米，我們幾乎完成了這一轉變，因此顯然這條線在進展上會稍微趨於平緩，但我們會繼續取得進展。

Then last question if I could, convertible interest added back in the quarter is I believe about 4.2 million, and any comments on the trend line of that going forward, please?

那麼最後一個問題，如果可以的話，本季度增加的可轉換利息我認為大約是 420 萬，請您對未來的趨勢線有何評論？

No, that's right now obviously it's in the money. If we could, it would be soft callable, but that position doesn't start until December of next year to be able to soft call it so I would continue to assume that interest will be there.

不，現在顯然它是有錢的。如果可以的話，它將是軟贖回的，但該職位直到明年 12 月才開始能夠軟贖回，所以我會繼續假設人們會感興趣。

Thank you.

謝謝。

Thank you. Our next question comes from the line of Chris Danley from J.P. Morgan. Please go ahead.

謝謝。我們的下一個問題來自摩根大通的克里斯丹利。請繼續。

Thanks, guys. You said on the CPU business, both units and ASPs were up sequentially in Q3. Can you give us a sense of did units increase more than ASPs or vice versa.

謝謝大家。您說過，就 CPU 業務而言，第三季的銷售和平均售價均較上月上漲。您能否告訴我們，銷量成長是否超過了平均售價成長，或者反之亦然。

They both increased in double digits, and the only thing I will tell you is units increased slightly more than ASP.

它們都實現了兩位數的成長，而我要告訴你的唯一一件事是，銷量的成長略高於平均售價的成長。

Okay. And can you give us is a sense of the relative increase in units and ASPs, or your expectations for Q4?

好的。您能否告訴我們單位和平均售價的相對成長情況，或者您對第四季的預期？

Well, I think that we'll obviously see an increase in the units, and as far as ASP, as the mix continues to move towards our new generation Opteron, Athlon 64 products, we should see another slight increase in ASP.

嗯，我認為我們顯然會看到銷售量的成長，至於 ASP，隨著產品組合繼續向新一代 Opteron、Athlon 64 產品發展，我們應該會看到 ASP 再次略有成長。

Sure. And then moving over to the Flash side, did you say you expect Flash pricing to stabilize, Flash go up sequentially in Q4?

當然。然後轉到 Flash 方面，您是否說過您預計 Flash 價格會穩定下來，Flash 會在第四季連續上漲？

No, I said that we expect the environment continuing to be challenging, and also as Hector pointed out, we have our 110-nanometer technology which allows us to be aggressive in the market to gain share so I believe that we will continue to see a, you know, a fairly competitive environment on the pricing side.

不，我說我們預計環境將繼續充滿挑戰，正如赫克托指出的那樣，我們擁有 110 奈米技術，這使我們能夠積極進取，贏得市場份額，因此我相信我們將繼續看到，你知道，在定價方面相當有競爭力的環境。

Okay. And then assuming Q4 goes as you guys expect it, what're you thinking on CapEx for next year?

好的。然後假設第四季如你們預期的那樣，您對明年的資本支出有何看法？

Not ready to -- excuse me, but not ready to talk about that, but we will talk about that but we will talk about that at the analysts conference in mid-November.

還沒準備好——對不起，還沒準備好談論這個，但我們會談論這個，但我們會在 11 月中旬的分析師會議上談論這個。

Okay. Great. Thanks, guys.

好的。偉大的。謝謝大家。

Thank you. Our next question comes from the line of Dave Iliskew from UBS. Please go ahead.

謝謝。我們的下一個問題來自瑞銀的 Dave Iliskew。請繼續。

Yes, this Steve Iliskew for Tom Thornhill. You've answered most of the questions. I just have one regarding this other category. We haven't spoken about that. But it seems to be an increasing drag on earnings. What are your plans in terms of business to reverse those trends?

是的，這是 Steve Iliskew 為 Tom Thornhill 製作的。你已經回答了大部分問題。我只有一個關於這個其他類別的資訊。我們還沒有談論過這個。但這似乎對獲利的拖累越來越大。您在業務方面有什麼計劃來扭轉這些趨勢？

There is a piece of that -- there are two pieces to that. One, there is a -- it's almost an incubating place for new businesses, and I'll talk about that a little bit, but then also we put other costs in there that have nothing to do with that, and I'll ask Bob to comment on that. First of all, we've got some pretty exciting things in our X 86 cell record strategy, and we are going to be fairly public and disclose that this quarter, the fourth quarter. We're very excited about some of the things we're doing with the X 86 technology in low cost, low power activities. We think that has an awful lot of potential for us as the Company leverages the investments we've already made, and it really puts us in a position that we can have a phenomenal leverage on technology and the customer relationships that we have built, so I have a pretty -- you know, very high hopes that that will turn out to be another element of our strategy going forward that will grow well and fast. But in addition in that category we also dumped a lot of costs in there that are different than just that business. Bob?

其中有一部分——其中有兩個部分。首先，它幾乎是新企業的孵化地，我會稍微談論這一點，但我們也將與此無關的其他成本放在那裡，我會請鮑伯對此發表評論。首先，我們的 X86 行動記錄策略中有一些非常令人興奮的事情，我們將在本季度，也就是第四季度公開披露這些事情。我們對利用 X 86 技術在低成本、低功耗領域所進行的一些工作感到非常興奮。我們認為這對我們來說具有巨大的潛力，因為公司可以利用我們已經進行的投資，這確實使我們能夠充分利用我們已經建立的技術和客戶關係，所以我非常希望這將成為我們未來策略的另一個要素，並實現良好而快速的成長。但除此之外，我們還在該類別中投入了大量與該業務不同的成本。鮑伯？

Sure. Actually, it's not that many costs. It's really more corporate cost really driven on bonuses and profit sharing. So it's those kind of costs associated. The results of the corporation versus the results of an individual business. Obviously, as we make more money, those numbers would go up, but obviously our game plan is to fix the business and actually generate a lot of sales and profits from the other business that Hector just talked about to cover those kind of costs.

當然。事實上，成本並沒有那麼多。事實上，更多的企業成本是由獎金和利潤分享決定的。所以這就是相關的成本。公司績效與個體企業績效的比較。顯然，隨著我們賺更多的錢，這些數字也會上升，但顯然我們的計劃是修復業務，並從赫克托剛才談到的其他業務中產生大量銷售額和利潤，以彌補這些成本。

And the expected time frame for that?

預計的時間框架是怎麼樣的？

Well, this is a business that today it's an investment business, but we expect that business to not lose money next year.

嗯，這是一項今天作為投資業務的業務，但我們預計該業務明年不會虧損。

Thank you.

謝謝。

Thank you. Our next question comes from the line of Cody Acree from Legg Mason. Please go ahead.

謝謝。我們的下一個問題來自 Legg Mason 的 Cody Acree。請繼續。

Thanks. You mentioned earlier that Flash profitability on a gross margin standpoint would likely be make some trends towards processors. With the pricing pressure with the continued expansion of capacity in that space, and obviously a lot of competition, but yet your improvements in manufacturing technologies, where do you see a longer term sustainable operating target, if not a gross margin target for Flash memory?

謝謝。您之前提到，從毛利率的角度來看，Flash 的獲利能力可能會對處理器產生一些影響。隨著該領域產能的不斷擴大，價格壓力也隨之增加，競爭也愈發激烈，但貴公司在製造技術方面卻取得了進步，如果不是快閃記憶體的毛利率目標，您認為長期可持續的營運目標在哪裡？

First, one correction. We are continuing working on cost reduction in the memory business to improve its gross margin to try to close the differential between the microprocessor business and the Flash business, but we have no expectation that the Flash business will actually get to the margins of the microprocessor business. So I wanted to make sure to level set there. Our long term game plan of that business needs to be in the 30 to 35% range in gross margin, which would translate into a 15 to 20% operating income, so that's kind of the model we think a very healthy world class memory organization should be driving to on a continuum, and clearly it's a technology game, pennies count, and you have to drive -- be the technology leader to make sure you take every penny out of the system and share it with your customers to continue to have enormous market share and the appropriate return on investment.

首先，糾正一點。我們正在繼續致力於降低記憶體業務的成本，以提高其毛利率，試圖縮小微處理器業務和快閃記憶體業務之間的差異，但我們並不期望閃存業務實際上能夠達到微處理器業務的利潤率。所以我想確保在那裡設置水平。我們對該業務的長期計劃是將毛利率保持在 30% 至 35% 之間，這將轉化為 15% 至 20% 的營業收入，因此，我們認為一個非常健康的世界級內存組織應該持續推動這種模式，顯然這是一場技術遊戲，分分秒秒都很重要，您必須推動獲得技術領導者，確保從系統中獲得巨大的收入和市場份額。

Are you assuming in that 15 to 20%, I would assume a pretty aggressive pricing environment, or is that -- does that negate some of those profitability objectives.

您是否認為 15% 到 20% 的定價環境相當激進，或者這是否會否定部分獲利目標。

No, we -- unfortunately, the -- because it's called memory, it's always aggressive pricing environment, so we have to always assume it will be an aggressive pricing environment, and that there will be, you know, occasionally that will change when there is supply, demand, and balance, but most of the time it is a -- cost per bit continues to go down, period, decimal point.

不，不幸的是，因為它被稱為內存，所以它始終處於激進的定價環境中，所以我們必須始終假設它將是一個激進的定價環境，並且，你知道，當有供應、需求和平衡時，它偶爾會發生變化，但大多數時候，每比特成本會繼續下降，句號，小數點後一位。

And then lastly with Sempron ramping in, obviously doing very well in the 64 bit side, do you get some bump out of the Sempron pricing or the Sempron gross margin initially or does that start to have some maybe negative impact to the 64-bit improvement in margins over time?

最後，隨著 Sempron 的不斷湧入，顯然它在 64 位方面表現非常出色，您是否會在 Sempron 定價或 Sempron 毛利率方面獲得一些提升，或者這是否會隨著時間的推移對 64 位利潤率的提高產生一些負面影響？

Clearly, you know, the Sempron product is aimed at the value space. And as Hector pointed out, you know, we have a lot of market share gain potential in that space, as well. But our focus is to build an enterprise business. So we're going to continue to put all of our efforts in building a very strong Opteron brand. Continue to gain share in the Athlon 64 and Athlon 64 FX space. We have some opportunities in the mobile space as you know. We're using Sempron strategically to make sure it responds to customer needs in important markets where the Sempron value proposition is the best suited to the customers.

顯然，您知道，Sempron 產品針對的是價值空間。正如赫克托指出的那樣，我們在該領域也具有很大的市場份額成長潛力。但我們的重點是建立企業業務。因此，我們將繼續竭盡全力打造強大的 Opteron 品牌。繼續在 Athlon 64 和 Athlon 64 FX 領域獲得份額。如您所知，我們在行動領域有一些機會。我們正在策略性地使用 Sempron，以確保它能夠滿足重要市場中的客戶需求，而 Sempron 的價值主張最適合這些市場的客戶。

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

塔米，我們還想回答兩個問題。

Thank you. Our next question comes from the line of David Wong from AG Edwards. Please go ahead.

謝謝。我們的下一個問題來自 AG Edwards 的 David Wong。請繼續。

Thank you very much. Spending on your 300 millimeter fab, I think originally you had a number like -- was it 2.4 billion? Can you tell us how much of your cumulative spending has been invested already, how much is left to go, and roughly how that will be divided over the next several quarters?

非常感謝。您在 300 毫米晶圓廠上的支出，我想您最初有一個這樣的數字——是 24 億美元嗎？您能否告訴我們，您的累積支出中已經投資了多少，還剩下多少，以及在接下來的幾個季度中大致如何分配？

Sure. Yes. You have the number right. The initial investment, we're still working to, is about 2.5 billion. 600 million of that is for the building the rest is in equipment. Our spend rate this year is around 600 million. We've probably spent in the order of 250 million so far to date. Obviously, the building is coming toward the end. We will actually start receiving equipment in December. Next year will be a fairly large ramp of equipment, which is effectively the first tool set that will go in, and so you can plan for around the same kind of number of about 600 million next year as a thought process. Again, I'll give more clarity on this in November, and then the balance fills in to '06, '07 as you continue to fill out the equipment line.

當然。是的。您的號碼正確。我們仍在努力實現初始投資約 25 億美元。其中 6 億美元用於建築，其餘用於設備。我們今年的支出大概是6億左右。到目前為止，我們可能已經花費了大約 2.5 億美元。顯然，這棟建築已經接近尾聲。我們實際上將於 12 月開始接收設備。明年將會有相當大規模的設備投入使用，這實際上是第一批投入使用的工具，因此，從思考過程來看，你可以規劃明年的設備數量約為 6 億台。再次，我將在 11 月對此做出更清晰的說明，然後隨著您繼續填寫設備線，餘額將填寫為 '06、'07。

Great. Thank you very much.

偉大的。非常感謝。

Thank you. Our last question comes from the line of Allan Mishan from CIBC. Please go ahead.

謝謝。我們的最後一個問題來自加拿大帝國商業銀行的 Allan Mishan。請繼續。

Hey, guys. I'm not going to ask you to give any March guidance, but I would just ask that based on the ASP trends that you expect to see, because 64 bit is really ramping up as a percentage of your mix, if March is seasonally down in unit terms, do you think that ASPs will rise enough to offset that? Thank you.

嘿，大家好。我不會要求您給出任何三月份的指導，但我只想問一下，根據您預期看到的 ASP 趨勢，因為 64 位在您的產品組合中所佔的百分比確實在上升，如果三月份的單位數量出現季節性下降，您是否認為 ASP 會上漲到足以抵消這一影響？謝謝。

You know, my crystal ball doesn't go that far. I'm sorry. You're right in stating that we expect to continue to see our AMD 64 based processor to represent a larger mix, but, you know we're enjoying also a very strong Sempron acceptance in the marketplace, so for me to give you two quarters out a balance between the two brands and how it's going to affect ASP is impossible.

你知道，我的水晶球沒有走那麼遠。對不起。您說得對，我們期望繼續看到基於 AMD 64 的處理器佔據更大的市場份額，但是，您知道，Sempron 在市場上也非常受歡迎，因此，我不可能在兩個季度內給您一個這兩個品牌之間的平衡數據，以及它將如何影響 ASP。

Okay, then if I could try another question. I just want to ask you the Intel question maybe in another way. If you look at their inventories that they say they are going to try and get off their books in this coming quarter, it's $700 million over the last two quarters. That's larger than you entire computation business. With that coming into the market, can you talk about, you know, what you think insulates you from the types of levers that they have as a monopolist that they have shown they can be, to prevent adverse effect on your ASPs, or certainly on your unit shipments because you're a dual source for a lot of the stuff you do. Thank you.

好的，那麼我可以嘗試問另一個問題。我只是想以另一種方式向您詢問英特爾的問題。如果你看一下他們說將在下個季度嘗試清除的庫存，你會發現過去兩個季度的庫存總額為 7 億美元。這比整個計算業務還要大。隨著這項技術進入市場，您能否談談，您認為什麼可以使您免受他們作為壟斷者所採取的手段的影響（他們已經證明他們可以做到這一點），以防止對您的 ASP 產生不利影響，或者肯定不會對您的單位出貨量產生不利影響，因為您所做的很多事情都是雙重來源。謝謝。

Well, first of all, you know, as I said before that's a good question that you should ask them what they plan to do. I have no idea what they plan to do. Let me tell you what we are going to do. We continue to put efforts in really making sure that we execute to the plans that we have, and get the products out that we need that our customers really want. I believe that we're now differentiated enough that we're not second source or compatible, and therefore we're now addressing different needs, differentiated products, and different markets. What they do, frankly, I think it's appropriate for them to ask. What we're going to do, we're going to stay focused and continue on the path to improve our Athlon 64, our Opteron brand, our Sempron activity and I think the momentum and progress that we have is one that gives us confidence that we'll continue to gain and do well, and particularly in this next upcoming quarter.

嗯，首先，你知道，正如我之前所說，這是一個好問題，你應該問他們打算做什麼。我不知道他們打算做什麼。讓我告訴你我們要做什麼。我們將繼續努力確保執行我們的計劃，並推出客戶真正想要的產品。我相信，我們現在已經有足夠的差異化，我們不再是第二來源或相容的，因此我們現在正在滿足不同的需求、差異化的產品和不同的市場。坦白說，我認為他們應該詢問他們所做的事情。我們要做的是，保持專注並繼續改進我們的 Athlon 64、我們的 Opteron 品牌、我們的 Sempron 活動，我認為我們所擁有的勢頭和進步讓我們有信心繼續取得進展並取得良好成績，特別是在即將到來的下一個季度。

Okay. Thank you very much. Nice quarter.

好的。非常感謝。不錯的季度。

Thank you everyone for participating the call.

感謝大家參加此次電話會議。

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

女士們、先生們，今天的會議到此結束。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。