超微半導體 (AMD) 2004 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by and welcome to AMD's Q4 '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 and instructions will be given to you at that time. If you should require any further assistance, please depress star, and then 0, and we will assist you off-line. And as a reminder, this conference call is being recorded. I would now like to turn the conference over to the Director of Investor Relations, Mike Hasse. Please go ahead, sir.

女士們、先生們，感謝各位的支持，歡迎參加 AMD 2004 年第四季財報電話會議。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，屆時將向大家提供指導。如果您需要任何進一步的協助，請按下星號，然後按下 0，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者關係總監 Mike Hasse。先生，請繼續。

Thank you. Welcome to AMD's fourth 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, or 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 765351. A telephone replay will be available for the next 10 days starting at 7 p.m. Pacific Time tonight.

謝謝。歡迎參加 AMD 第四季財報電話會議。我們今天的參與者是我們的董事會主席、總裁兼執行長 Hector Ruiz；我們的財務長 Bob Rivet；以及全球銷售與行銷執行副總裁 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 765351。從晚上 7 點開始，未來 10 天內將提供電話重播。太平洋時間今晚。

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 uncertainties that could cause actual results to differ materially from current expectations. The semi-conductor industry is generally volatile and market condition are difficult to forecast. Because our actual results may differ materially from our plans and expectations today, I encourage to you review our filings with the SEC where we discuss in detail our risk factors and our business. You will find detailed discussions in our most recent SEC filings, including AMD's annual report on Form 10(K) for the year ended December 28th, 2003 and AMD's quarterly report on Form 10(Q) for the quarter ended September 26th, 2004. With that, I'll turn it over to our Chairman, President, and CEO Hector Ruiz.

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。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 9 月 26 日的 10(Q) 表季度報告。說完這些，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. You know, the fourth quarter of 2004 was, for AMD, a solid quarter in microprocessors, but frankly, a freakin' dismal quarter in Flash. In processors we showed some strong fundamentals, but in my view, despite dramatic year-on-year gains, it was still an underwhelming end to an otherwise break-away year. It is worth noting that in 2004, we grew our processor business by a commendable 29 percent year-on-year. And based on the strength of our AMD Opteron franchise, we continued our unprecedented growth in the commercial server and enterprise segments. And at the end of the year, over 40 percent of the companies in the Forbes 100 are satisfied AMD64 customers, a very strong sign over our possibilities for expansion in this year. AMD64 base processors now represent one half of our processor business. On this core and a combination of expanding demand, continued strong yields, and world-class manufacturing execution. Our Athlon 64 FX processors held the performance ground from wire to wire through the course of the year, almost unheard of in this business. And our new AMD Sempron processor family, in only 6 months since its introduction, has become a key part of our successful growth into high-growth markets such as India, Russia, and China.

謝謝你，麥克。你知道，2004 年第四季對 AMD 來說，是微處理器業務表現強勁的一個季度，但坦白說，對於 Flash 業務來說，這是一個慘淡的季度。在處理器方面，我們表現出了一些強勁的基本面，但在我看來，儘管同比增長顯著，但對於原本具有突破性的年份來說，這仍然是一個令人失望的結局。值得注意的是，2004年我們的處理器業務年增了29%，令人欣喜。憑藉 AMD Opteron 特許經營的優勢，我們在商業伺服器和企業領域繼續實現前所未有的成長。截至年底，福布斯 100 強企業中有超過 40% 的公司都是滿意的 AMD64 客戶，這充分錶明我們今年具有極強的擴張潛力。AMD64 基礎處理器目前占我們處理器業務的一半。以此為核心，結合不斷擴大的需求、持續強勁的收益以及世界一流的製造執行力。我們的 Athlon 64 FX 處理器在全年的測試中始終保持著優異的性能，這在業界幾乎是聞所未聞的。我們的全新 AMD Sempron 處理器系列自推出以來僅 6 個月，就已成為我們成功進入印度、俄羅斯和中國等高成長市場的關鍵部分。

In the fourth quarter, we saw record server and mobile processor sales and double-digit percent unit growth across all of our segments. Yet despite these successes, we remain unsatisfied with our performance in processors, where we believe we're not capturing yet our fair share of the overall opportunity that we see before us. And we will address this shortfall effective immediately. In our Flash business, we had an awful quarter. In the context of an aggressive pricing environment and a continued supply and demanding balance we suffered from poor execution in Japan and delayed product qualification in a wireless segment. Yet, overall, we begin the new year in Flash in much better shape than a year ago. We completed the successful integration of the AMD and Fujitsu businesses. Customer acceptance of our revolutionary MirrorBit technology continues. And we believe we're set to revolutionize the Flash memory business with our ORNAND architecture, providing the best of in NOR and NAND technologies in a single device. In short, while the fourth quarter was disappointing end to an otherwise good year, we believe we are better positioned in both of our businesses than we have ever been. And at this point, I want to ask Bob to review the financial results for the quarter as well as the outlook.

第四季度，我們的伺服器和行動處理器銷售創下新高，所有部門的銷售量均實現了兩位數的百分比成長。儘管取得了這些成功，我們仍然對自己在處理器領域的表現不滿意，我們認為我們還沒有抓住擺在我們面前的整體機會的公平份額。我們將立即解決這一不足。就我們的 Flash 業務而言，我們經歷了一個糟糕的季度。在激進的定價環境和持續的供需平衡的背景下，我們在日本的執行情況不佳，並且無線領域的產品認證被推遲。然而，總體而言，我們在新的一年以比一年前更好的狀態開始使用 Flash。我們成功完成了AMD和富士通業務的整合。客戶對我們革命性的 MirrorBit 技術的接受度持續提升。我們相信，我們的 ORNAND 架構將徹底改變快閃記憶體業務，在單一裝置中提供最佳的 NOR 和 NAND 技術。簡而言之，雖然第四季對於原本表現良好的一年來說是一個令人失望的結局，但我們相信，我們兩項業務的處境都比以往更加有利。現在，我想請鮑伯回顧一下本季的財務表現以及前景。

Thanks, Hector. As detailed in our press release, we reported record fourth quarter sales of $1.264 billion, up 5 percent compared to the fourth quarter of last year and up 2 percent compared to the third quarter of 2004. Key highlights in the quarter were a 9 percent sequential microprocessor sales growth, record sales in server and mobile, and record desktop unit shipments. This helped drive all-time high quarterly sales and our tenth consecutive quarter of increased gross margin percentage. Operating income for the quarter was $20 million, and declined from the third quarter due to the loss from our memory business. This performance represents the fifth consecutive quarter of profitability. Loss per share on a GAAP basis was $.08. Included in this were charges of $.13 per share, largely associated with the conversion and retirement of debt, thereby allowing us to remain profitable on an EPS basis. Gross margin improved to 41.2 percent for the quarter, above the 40.5 percent reported in the third quarter, and a solid 5.8 percentage point improvement from the fourth quarter of last year. This improvement was driven by a combination of continued improvements in our CPG business, the mix of CPG business as a percent of our overall business, offset somewhat by a reduction in our memory business gross margin.

謝謝，赫克托。正如我們的新聞稿中所述，我們報告第四季銷售額達到創紀錄的 12.64 億美元，比去年第四季成長 5%，比 2004 年第三季成長 2%。本季的主要亮點是微處理器銷售量較上季成長 9%、伺服器和行動裝置銷售量創歷史新高、桌上型電腦出貨量創歷史新高。這有助於推動季度銷售額創歷史新高，並實現毛利率連續第十個季度成長。本季營業收入為 2,000 萬美元，由於記憶體業務的虧損，較第三季有所下降。這一業績代表該公司連續第五個季度實現盈利。根據 GAAP 計算，每股虧損為 0.08 美元。其中包括每股 0.13 美元的費用，主要與債務的轉換和償還有關，從而使我們在每股收益上保持盈利。本季毛利率提高至 41.2%，高於第三季的 40.5%，比去年第四季提高了 5.8 個百分點。這項改善是由我們的 CPG 業務的持續改善、CPG 業務占我們整體業務的百分比的提高共同推動的，但在一定程度上被我們內存業務毛利率的下降所抵消。

Research and development spending was $253 million for the quarter, up 9 percent from the prior quarter. The growth was driven by Fab 36 start-up cost, as planned, and other server and work station -- product development efforts. In December, we started placing equipment in Fab 36. Fourth quarter marketing, general and administrative costs increased 21 percent as compared to the third quarter of 2004, due to seasonal merchandising activity, long-term branding investments and first-year SOX certification costs. Cash flow from operations was $362 million for the quarter, up 37 percent from the third quarter of 2004. EBITDA was $317 million for the quarter.

本季研發支出為 2.53 億美元，較上一季成長 9%。這一成長是由 Fab 36 的啟動成本（按計劃）以及其他伺服器和工作站產品開發工作所推動的。12月，我們開始在Fab 36放置設備。由於季節性商品銷售活動、長期品牌投資和第一年的 SOX 認證成本，第四季度的行銷、一般和行政成本與 2004 年第三季相比增加了 21%。本季營運現金流為 3.62 億美元，較 2004 年第三季成長 37%。本季的 EBITDA 為 3.17 億美元。

Now, I'll switch to the business overview for the quarter. I'll start with our Computation Product Groups. CPG sales were $730 million in the quarter, a 26 percent increase over the same period a year ago and a 9 percent improvement from the third quarter. Unit sales in the quarter increased sequentially by more than 15 percent, with double-digit growth in each of the product segments. ASP and our AMD64 server and mobile increased. However, overall ASP decreased as compared to the third quarter, driven by desktop demand in high-growth regions. Unit sales of AMD64 processors grew by more than 70 percent sequentially, and now represent 50 percent of total CPG dollar sales. We saw continued demand for our mobile processors, and we shipped record server and desktop units in the quarter. CPG's operating income in the quarter was $89 million, or 12 percent of sales, flat from the third quarter. CPG's gross margin increased in the quarter, due to strong microprocessor sales growth and increased shipments of 90-nanometer units. Incremental profit fall through on incremental CPG sales was 0 in the quarter, due to the high seasonal marketing and long-term brand investments. For the first quarter of 2005 marketing, general, and administrative spending level is expected to return to third quarter levels.

現在，我將轉到本季度的業務概覽。我將從我們的計算產品組開始。本季 CPG 銷售額為 7.3 億美元，比去年同期成長 26%，比第三季成長 9%。本季單位銷售額較上季成長超過 15%，各產品類別均達到兩位數成長。ASP 和我們的 AMD64 伺服器和行動裝置都有所增加。然而，受高成長地區桌上型電腦需求的推動，整體平均售價與第三季相比有所下降。AMD64 處理器的單位銷售額比上一季成長了 70% 以上，目前佔 CPG 總銷售額的 50%。我們看到行動處理器的需求持續成長，並且本季我們的伺服器和桌上型電腦出貨量創下了紀錄。CPG 本季的營業收入為 8,900 萬美元，佔銷售額的 12%，與第三季持平。由於微處理器銷售強勁成長以及 90 奈米單元出貨量增加，CPG 本季毛利率有所增加。由於季節性行銷力度大和長期品牌投資，本季快速消費品銷售額增量的利潤下降幅度為 0。2005年第一季的行銷、一般和行政支出水準預計將恢復到第三季的水準。

Switching to the memory business. Fourth quarter sales were $504 million down 11 percent from the fourth quarter of 2003 and 6 percent from the third quarter of this year. Flash memory sales were weaker than expected, due to an aggressive pricing environment, particularly weak sales in Japan, and a delayed new product qualification in the wireless segment. However, MirrorBit-based products increased as an overall percentage of the sales in the quarter, unit shipments increased, and ASP declined from the third quarter. Disappointingly, the Memory Group lost money in the quarter, with an operating loss of $39 million, down from an operating income of $15 million in the prior quarter. The Memory Group's gross margin declined in the quarter reflecting the aggressive pricing environment, only offset somewhat by record bit shipments.

轉向內存業務。第四季銷售額為 5.04 億美元，比 2003 年第四季下降 11%，比今年第三季下降 6%。由於激進的定價環境（尤其是日本的銷售疲軟）以及無線領域新產品認證的延遲，快閃記憶體銷售低於預期。不過，基於MirrorBit的產品在本季的整體銷售額中所佔比例有所增加，單位出貨量有所增加，而平均售價較第三季有所下降。令人失望的是，記憶集團本季虧損，營業虧損 3,900 萬美元，低於上一季 1,500 萬美元的營業收入。由於定價環境激進，內存集團本季的毛利率有所下降，但創紀錄的出貨量在一定程度上彌補了這一下降。

Turning to the balance sheet. As outlined at our November analyst day, we made significant progress in the fourth quarter delevering our balance sheet. And as planned, we reduced our debt by $200 million in the quarter. We exchanged for stock $201 million of convertible senior notes, reduced our near-term debt by retiring $612 million of our Dresden Fab 30, as it's secure, term loan, and issued a 7.75 percent senior note due 2012, thereby refinancing a near-term loan with a long-term one. As stated earlier, these actions contributed to a $49 million, or 13 percent, charge to earnings in this quarter. Cash balances ended the fourth quarter at $1.2 billion, flat from the third quarter. Fourth quarter capital expenditures were $470 million, up as expected from $407 million in the third quarter. Inventories increased from the third quarter by $68 million, primarily in leading-edge 110-nanometer Flash memory technology.

轉向資產負債表。正如我們在 11 月分析師日上所概述的那樣，我們在第四季度在降低資產負債表槓桿率方面取得了重大進展。按照計劃，我們在本季減少了 2 億美元的債務。我們用 2.01 億美元的可轉換優先票據交換了股票，透過償還德累斯頓 Fab 30 的 6.12 億美元（作為安全的定期貸款）減少了我們的近期債務，並發行了 2012 年到期的 7.75% 的優先票據，從而用長期貸款為近期貸款進行再融資。如前所述，這些舉措導致本季收益減少 4,900 萬美元，即 13%。第四季末現金餘額為 12 億美元，與第三季持平。第四季資本支出為 4.7 億美元，高於第三季的 4.07 億美元，符合預期。庫存較第三季增加了 6,800 萬美元，主要涉及尖端的 110 奈米閃存技術。

Now I'd like to summarize a few comments about the year 2004. For the fiscal year 2004, we were at an all-time high for the Company at $5 billion, up a significant 42 percent from 2003. Annual sales for CPG were $2.5 billion, up 29 percent from 2003. Flash memory sales concluded 2004 at $2.3 billion, up 65 percent from 2003. AMD's operating income for the year was $222 million, roughly a $455 million improvement. In CPG we had an operating profit of $303 million for the year, and in Flash memory, we reported a profit of $35 million for the year. This was good progress in both businesses. Cash flow from AMD operation was positive for year at $1.1 billion. For the year, EBITDA was $1.4 billion, a $602 million improvement from the prior year. Capital expenditures for 2004 were $1.4 billion, under our guidance of $1.5 billion.

現在我想總結一下對2004年的幾點評論。2004 財年，公司營業額達到歷史最高水平，達到 50 億美元，比 2003 年成長了 42%。CPG 的年銷售額為 25 億美元，比 2003 年成長 29%。2004 年快閃記憶體銷售額達到 23 億美元，比 2003 年成長 65%。AMD 全年營業收入為 2.22 億美元，成長約 4.55 億美元。在 CPG 領域，我們全年的營業利潤為 3.03 億美元，而在快閃記憶體領域，我們報告的全年利潤為 3,500 萬美元。這對兩個企業來說都是良好的進展。AMD 營運的現金流今年為正值 11 億美元。全年 EBITDA 為 14 億美元，較前一年增加 6.02 億美元。2004 年的資本支出為 14 億美元，低於我們 15 億美元的預期。

Now I'd like to discuss the outlook. AMD's outlook statements are based on current expectations. Following statements are forward-looking, and actual results may differ materially depending on market conditions. Based on strong acceptance of AMD64 technology, AMD expects its processor amount to increase as the year unfolds. In the first quarter, AMD expects processor sales to be flat to down slightly, in a typically seasonal down quarter. AMD expects Flash memory sales to be down in the first quarter, due to the continued imbalance in supply and demand, continued pressure on ASPs, and seasonality. For your modeling, consider the following -- In 2005 total research and development dollar expenses, and as a percent of sales, are expected to be up, primarily due to Fab 36 start-up costs of around $200 million. First quarter R&D expenses are anticipated to be up approximately $20 million from the fourth quarter. Total marketing, general, and administrative dollar expense are expected to be up in 2005, but as a percent of sales, are expected to decline. First quarter marketing, general, and administrative expenses are anticipated to return to third quarter levels of 2004. Our quarterly tax rate is anticipated to be within the 10 to 20 percent range throughout 2005. In fiscal 2005, capital expenditures are expected to be around $1.5 billion. 2005 depreciation and amortization is expected to be approximately $1.2 billion. Operating cash flow is anticipated to be around $1.2 billion, with free cash flow relatively neutral for the year, with the inclusion of Fab 36 grants and subsidies.

現在我想討論一下前景。AMD 的展望聲明是基於當前預期。以下陳述具有前瞻性，實際結果可能因市場狀況而有重大差異。基於 AMD64 技術的廣泛接受度，AMD 預計其處理器數量將隨著時間的推移而增加。第一季度，AMD 預計處理器銷量將持平或略有下降，這通常屬於季節性下滑季度。AMD 預計第一季快閃記憶體銷售額將下降，原因是供需持續失衡、平均售價持續承壓以及季節性因素。對於您的建模，請考慮以下情況——2005 年，總研發費用及其占銷售額的百分比預計將上升，這主要是由於 Fab 36 的啟動成本約為 2 億美元。預計第一季研發費用將比第四季增加約 2,000 萬美元。2005 年，行銷、一般和行政開支總額預計會增加，但佔銷售額的百分比預計會下降。預計第一季的行銷、一般和行政費用將恢復到 2004 年第三季的水平。預計 2005 年全年的季度稅率將在 10% 至 20% 之間。2005財年，資本支出預計約15億美元。 2005 年折舊和攤提預計約 12 億美元。預計營運現金流約 12 億美元，計入 Fab 36 的撥款和補貼後，全年自由現金流相對中性。

In summary we have made significant progress over the last couple of years to position AMD as a viable and financially sound competitor in the microprocessor and Flash memory markets. With record 2004 and fourth quarter sales, an improved balance sheet, and despite seasonal trends, we are confident that AMD is well-positioned as we head into 2005 to continue to impress our product and technology leadership on the microprocessor and Flash memory markets and to maximize shareholder value of our 2 principal businesses. With that, I'll turn it back to Hector.

總而言之，過去幾年我們取得了重大進展，使 AMD 成為微處理器和快閃記憶體市場上一個有實力且財務狀況良好的競爭對手。憑藉創紀錄的 2004 年和第四季度銷售額、不斷改善的資產負債表以及儘管存在季節性趨勢的影響，我們仍然有信心，AMD 在邁入 2005 年時將處於有利地位，繼續在微處理器和閃存市場上樹立我們的產品和技術領先地位，並最大限度地提高我們兩大主要業務的股東價值。說完這些，我就把它交還給赫克托。

Thank you, Bob. As we mentioned, 2004 was a record year for AMD in many ways, but the finish was disappointing. We're taking bold actions to address these issues and more aggressively capitalize on the opportunities before us and to maximize shareholder value. In that context, AMD is entering 2005 with a formidable and unrelenting sense of competitiveness. A desire to demonstrate that our overall success in 2004 is only a point on the line towards reinventing the competitive balance of the industry. We have many formidable assets -- a clear and demonstrable performance advantage across a growing set of product segments; an expanded portfolio of world-class partners, companies like HP, Lenovo, Sun Microsystems, IBM, and others who see AMD as a path to real differentiation and unprecedented customer satisfaction; an evolving community of top-tier enterprise customers, evangelists willing to share their successes with their IT peers; and a solid ecosystem of partners, vendors, governments and communities that are investing in our success; a design and technology team that is second to none; an expanding portfolio of leading brands from AMD Opteron to Athlon 64 and 64 FX, AMD Sempron, and the newly announced AMD Turion 64 for mobile technology; a stellar manufacturing record in some of the world's most challenging technologies; and technology leadership momentum, highlighted by our AMD64 and MirrorBit technologies, and underscored by our leadership in the move to multi-core processing; and an employee base of highly-skilled and motivated employees who recognize the moment-in-time opportunity that's before us. Most important we have developed a taste for sustained success, both in terms of the work we do and the economic prosperity that it produces.

謝謝你，鮑伯。正如我們所提到的，2004 年對 AMD 來說在許多方面都是創紀錄的一年，但結局卻令人失望。我們正在採取大膽行動來解決這些問題，並更積極地利用我們面前的機會並實現股東價值最大化。在這樣的背景下，AMD 帶著強大而堅定的競爭意識邁入2005年。我們希望證明，我們在 2004 年的全面成功只是重塑產業競爭平衡的一個階段。我們擁有許多強大的資產——在不斷增長的產品領域中擁有明顯且可證明的性能優勢；擴大世界級合作夥伴組合，包括惠普、聯想、Sun Microsystems、IBM 等公司，他們將 AMD 視為實現真正差異化和前所未有的客戶滿意度的途徑；一個不斷發展的頂級企業客戶社區，傳播者願意與 IT同行分享他們的成功經驗；以及為我們的成功投資的合作夥伴、供應商、政府和社區組成的堅實生態系統；一支首屈一指的設計和技術團隊；不斷擴大的領先品牌組合，從 AMD Opteron 到 Athlon 64 和 64 FX、AMD Sempron，以及新發布的用於移動技術的 AMD Turion 64；在一些世界上最具挑戰性的領域記錄AMD64 和 MirrorBit 技術，並強調了我們在轉型為多核心處理方面的領導地位；以及一群技術精湛、積極進取的員工，他們認識到我們面前的即時機遇。最重要的是，我們已經培養了對持續成功的追求，無論是在我們所做的工作方面，還是在它所產生的經濟繁榮方面。

This success will continue. We are leading the industry to pervasive 64-bit computing, and we will increase our lead, bolstered by our leadership in multi-core processors and the upcoming release of both the Microsoft 64-bit Windows OS, and the highly-anticipated Solaris 10 operating system. We are reinventing the Flash memory business on the strength of our innovative MirrorBit technology, and our revolutionary ORNAND architecture. And we are determined to make this business provide, one way or the other, a fair return to our shareholders. And we are empowering a new global generation of tech-capable consumers with a recently-launched personal internet communicator, and our emphasis on serving the high-growth regions of the world such as India, Russia, Latin America and China. Like 2004, we are determined to do great things in 2005, and to continue to pursue our destiny to change the competitive dynamics of our industry. Thank you, and now I'd like to turn it back to Mike for questions and answers.

這一成功將會持續下去。我們正在引領業界走向普及 64 位元運算，並且，憑藉我們在多核心處理器領域的領先地位以及即將發布的 Microsoft 64 位元 Windows 作業系統和備受期待的 Solaris 10 作業系統，我們將進一步鞏固領先地位。我們正在利用創新的 MirrorBit 技術和革命性的 ORNAND 架構重塑快閃記憶體業務。我們決心透過某種方式使這項業務為我們的股東帶來公平的回報。我們透過最近推出的個人網路通訊器為全球新一代擁有科技能力的消費者提供支持，並致力於服務印度、俄羅斯、拉丁美洲和中國等世界高成長地區。如同 2004 年一樣，我們決心在 2005 年做出偉大的成就，並繼續追尋我們的命運，改變我們產業的競爭態勢。謝謝，現在我想把時間交還給麥克提問和回答。

Okay. Operator, if we could start the Q&A session, please.

好的。接線生，我們可以開始問答環節嗎？

Thank you. Ladies and gentlemen, if you would like to ask a question, please depress star, then 1 on your touchtone phone. You will hear a tone indicating you have placed in queue, and you may withdraw your request from this queue at any time by depressing the pound key. Our first quarter is from the line of Mark Edelstone from Morgan Stanley. Please go ahead.

謝謝。女士們、先生們，如果您想提問，請在您的按鍵電話上按下星號，然後按下 1。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從該佇列中撤回您的請求。我們第一季的報道來自摩根士丹利的馬克‧艾德爾斯通 (Mark Edelstone)。請繼續。

Yes, good afternoon. I had two questions, if I could. Bob, it sounded like from your commentary that the gross margins in the processor business were actually up sequentially. Can you give us a general range as to how much the increase, is that, like, a 100 to 200 basis point sequentially?

是的，下午好。如果可以的話，我有兩個問題。鮑勃，從你的評論來看，處理器業務的毛利率實際上是環比上升的。您能否給我們一個大概的增幅範圍，例如連續增加 100 到 200 個基點？

More than 1, less than 2, Mark, but did definitely up.

大於 1，小於 2，馬克，但確實上升了。

Okay. Great. And than just a clarification on your comments on the balance sheet, that inventories were up primarily in 110-nanometer Flash. The distribution reserves were also up in the quarter, I think for the second quarter in a row. And I think in the prior quarter that was due to a richer mix of processors. Can you talk about that as well, and to what drove that increase here in Q4?

好的。偉大的。除了澄清您對資產負債表的評論之外，庫存主要在 110 奈米快閃記憶體中增加。本季分銷儲備也有所增加，我認為這是連續第二季增加。我認為上一季的這一增長是由於處理器組合更加豐富。您能談談這一點嗎？是什麼原因推動了第四季的成長？

As we continue to ship more and more AMD 64, which has much higher value to us and to the whole marketplace, that number continues to increase. Actually, units are not up, it's actually a dollar shift. So you'll see that trend continue as time moves on, just from the shift -- I will call it -- to higher-valued products.

隨著我們繼續出貨越來越多的 AMD 64，這個數字還在繼續增加，因為它對我們和整個市場都有更高的價值。實際上，單位數並沒有增加，而是美元改變了。因此，隨著時間的推移，你會看到這種趨勢將繼續下去，只是從轉變——我稱之為——到更高價值的產品。

Okay. But that did not have an impact on your own balance sheet, on your own inventories?

好的。但這不會對你們自己的資產負債表和庫存產生影響嗎？

Memory -- microprocessor inventory was up a little bit, but we had a pretty good quarter. We hit record units, so we actually shipped a lot of product. But most of our inventory build, as I highlighted, was in the Flash memory area, where, as Hector said, we were disappointed, and we actually missed our sales expectation, and built some inventory. But all the inventory we did build was the leading-edge 110-nanometer-type product, particularly for the wireless segment.

記憶體－微處理器庫存略有增加，但我們本季的業績相當不錯。我們的銷售量創下了紀錄，因此我們實際上運送了很多產品。但正如我所強調的那樣，我們的大部分庫存都在閃存領域，正如赫克託所說，我們對此感到失望，我們實際上沒有達到銷售預期，因此建立了一些庫存。但我們建立的所有庫存都是尖端的 110 奈米型產品，特別是針對無線領域。

Okay. Thanks a lot, guys.

好的。非常感謝大家。

Thank you.

謝謝。

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

謝謝。我們的下一個問題來自桑福德伯恩斯坦公司的亞當帕克。請繼續。

Hi, in the Flash memory business, given bit demand, it looks like it's strong, what did you underestimate about the NOR Flash pricing environment? I think, Bob, you mentioned supply-demand is a problem, yet, it, kind of on the surface, looks like Intel's got capacity and others do, and you guys are investing a lot of CapEx in the Flash. So, how do you think the capacity environment for Flash will shake out in the coming quarters here? And what can you guys do over the next couple quarters to generate profits again in Flash?

您好，在快閃記憶體業務方面，考慮到位元需求，它看起來很強勁，您低估了 NOR 快閃記憶體定價環境的哪些方面？鮑勃，我認為你提到供需是一個問題，然而，從表面上看，英特爾和其他公司似乎都有產能，而且你們在 Flash 上投入了大量的資本支出。那麼，您認為未來幾季 Flash 的容量環境將如何變化？在接下來的幾個季度裡，你們可以做些什麼來再次透過 Flash 創造利潤？

Let me make some comments about the capacity and the technology. And then I'll ask Henri to comment about the pricing environment in Flash. First of all, the marketing total is unbalanced right now. There is definitely a lot more capacity in place than there is demand. It is my judgment, my view, and my opinion that there is across-the-board, in general, except for isolated cases, an underutilization of capacity today. And but the one being used is competitive pressures are pretty high. So we expect that that will continue even though bit demand is still pretty strong, and will continue to increase over time. We -- well, our plans, frankly, based on the results of the last 2 quarters, are now being modified as we speak. We intend to drive hard, fight hard, drive utilization and capacity better, and be more competitive, more aggressive in the marketplace. We thought and made a judgment call that beginning late in the fourth quarter and early in the first quarter there would be a stabilization and more normalcy in the capacity-demand equation. That has not happened. And as a result we're going to modify our strategy and aggressively go after business. Henri?

讓我對容量和技術發表一些評論。然後我會請亨利評論一下 Flash 的定價環境。首先，目前行銷總量不平衡。現有的產能肯定比需求多很多。根據我的判斷、我的觀點和我的意見，目前，除了個別情況外，總體上，產能利用率普遍不足。但所使用的是競爭壓力相當高。因此，我們預計，儘管鑽頭需求仍然強勁，但這種情況仍將持續下去，並將隨著時間的推移而不斷增加。嗯，坦白說，我們的計劃是根據過去兩個季度的結果制定的，目前正在進行修改。我們打算努力奮鬥，奮力拼搏，提高利用率和產能，在市場上更具競爭力、更積極進取。我們思考並做出判斷，從第四季末和第一季初開始，產能需求方程式將趨於穩定和正常化。但那並沒有發生。因此，我們將修改策略並積極拓展業務。亨利？

Hector, from an environment perspective, although overall, obviously, the quarter was very challenging with particular pressure in Asia and within Asia and Japan, where the imbedded market was a little softer than expected. And, overall, if you look at our business around the world, we had a much better performance in the wireless segment than the imbedded segment, where the pressure was the most severe with some ASP declining over 30 percent quarter-to-quarter?

赫克托，從環境角度來看，儘管總體而言，本季顯然非常具有挑戰性，尤其是亞洲以及亞洲和日本的壓力，嵌入式市場比預期略微疲軟。整體而言，如果你看看我們在全球的業務，你會發現無線領域的表現比嵌入式領域的表現好得多，而嵌入式領域的壓力最為嚴峻，部分產品的平均售價環比下降超過 30%？

Okay. Just as a follow up, I remember, I guess, in the fall of '02, I wrote a piece that maybe AMD should exit the Flash memory business and Ben and Jerry told me in the most polite way that that was not going to be possible. I guess I'm wondering what would have to transpire here in NOR Flash for you guys to consider, sort of, exiting the business, or what your thoughts about that would be depending on the environment in '05?

好的。作為後續，我記得，我想，在 2002 年秋天，我寫了一篇文章，也許 AMD 應該退出閃存業務，而 Ben 和 Jerry 以最禮貌的方式告訴我，這是不可能的。我想知道在 NOR Flash 領域，如果發生什麼事情，你們才會考慮退出這個行業，或者根據 2005 年的環境，你們對此有何看法？

Well, first of all, let me tell you that -- that the Flash technology is unique and pervasive. And our invention of MirrorBit is also uniquely positioned. I think that's an awful -- and one example of that is when you look at the fact I have $504 million revenue in the quarter, we lost $39 million, which I hate, it makes me puke to lose $39 million. But in all -- when I -- when you think about it, put it in perspective, I don't think there is a Flash company in the NOR space anywhere in the world with that price, that cost competitiveness that will allow you to lose only $39 million on $504 million in sales. So we -- and we're a long way from, yet, milking the benefits of MirrorBit. Having said all that, we are prepared to do whatever it takes to make sure that we get value to our shareholders going forward.

嗯，首先，讓我告訴你—Flash 技術是獨特且普遍的。而我們發明的MirrorBit也有著獨特的優勢。我認為這太糟糕了——其中一個例子就是，當你看到本季度我收入 5.04 億美元，卻損失了 3900 萬美元，我討厭這種情況，損失 3900 萬美元讓我感到噁心。但總的來說，當我考慮這個問題時，我認為世界上沒有一家 NOR 領域的 Flash 公司能夠提供這樣的價格和成本競爭力，讓它們在 5.04 億美元的銷售額中只損失 3900 萬美元。因此，我們距離充分利用 MirrorBit 的優勢還有很長的路要走。話雖如此，我們準備盡一切努力確保未來為股東帶來價值。

Okay. So you're leaving that open-ended then?

好的。那麼你對此沒有做出任何解釋嗎？

We are open to anything that will allow us to increase value to our shareholders?

我們願意接受任何能增加股東價值的事物嗎？

Okay. Sorry, one last quick housekeeping question. What do you guys expect depreciation to be in 2006? So I'm trying to understand how you have flat depreciation 2 years in a row here when your CapEx is ramped so significantly from '03 through '05?

好的。抱歉，最後一個簡短的問題。你們預計 2006 年的折舊額會是多少？所以我想理解一下，當您的資本支出從 2003 年到 2005 年大幅增加時，您如何能連續兩年保持平穩折舊？

This is Bob. When -- in particular I'll call it in last year, the investments we're making in Fab 36, which is the disproportional amount of money the Company is spending last year and this year, that does not depreciate until we actually turn the facility on to manufacture product.

這是鮑伯。特別是去年，我們在 Fab 36 上進行的投資，也就是公司去年和今年花費的不成比例的資金，在我們真正啟動該工廠生產產品之前，這些資金都不會貶值。

Right.

正確的。

So it's -- it's not in the depreciation rate. So depreciation will step up fairly significantly in the '06 period of time as we start turning on the billion-plus investments we're going to make in Fab 36. Fab 36 over the 2-year period was roughly $600 million last year and an equivalent $600 million this year of investments that will turn on to depreciation in the beginning of '06.

所以它 - 它不在折舊率中。因此，隨著我們開始對 Fab 36 進行超過 10 億美元的投資，2006 年期間折舊將會大幅增加。Fab 36 在兩年期間的投資去年約為 6 億美元，今年的投資也相當於 6 億美元，這些投資將在 2006 年初轉為折舊。

So, like, another 100 million a quarter from this year's rate or?

那麼，以今年的速度，每季再增加 1 億美元，是嗎？

Divided by 5 years, to give you a ballpark. Divide the 1.6 billion by 5 years.

除以 5 年，即可得出一個大概的數字。將16億除以5年。

Okay. Thanks, guys.

好的。謝謝大家。

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

我們的下一個問題來自德意志銀行的本‧林奇 (Ben Lynch)。請繼續。

Yes, hi, guys. Just a couple of questions. First one -- is there any signs of Intel becoming more aggressive in the server space, and has that had any sort of impact on the business, the processor business in Q4?

是的，大家好。僅有幾個問題。第一個問題－有沒有跡象顯示英特爾在伺服器領域變得更加積極，這對第四季的處理器業務有什麼影響？

Again, I'll make a few comments and Henri can follow up. You know, when somebody asks me that question, I have to smile because we are in a very competitive space, and I don't know of a segment where AMD and Intel are not aggressively competing big time. So to me that question is sort of like, yeah, it is tough, it is competitive, and do we see anything unusual, just doggone, you know, fight hard in the marketplace? No. Henri, would you like to add to that?

再次，我會提出一些評論，然後亨利可以跟進。你知道，當有人問我這個問題時，我不得不笑，因為我們處於一個競爭非常激烈的領域，我不知道 AMD 和英特爾在哪個領域沒有激烈的競爭。所以對我來說，這個問題有點像，是的，這很艱難，競爭很激烈，我們是否看到任何不尋常的事情，只是，你知道，在市場上激烈的競爭？不。亨利，你想補充嗎？

No, just underline that, Ben, we've had, again, a record revenue for server in the quarter, so we got continued momentum. We were expecting our competitor to aggressively seed their new Nocona technology in the marketplace. We've seen that. But, frankly, on some of the key parameters that matter for the customer like thermals and efficiency, that technology is not revolutionary, and the leadership that Opteron providers to the customer remains intact. And we, in fact, expect that as we move into 2005 and we introduce our dual-core based Opteron technology, we'll further enhance our competitive positioning in that market. So, yes, it's tough out there, as Hector outlines it, but customers put a premium on the value of architecture and that's not changing.

不，我只是想強調一下，本，我們在本季度再次獲得了創紀錄的伺服器收入，因此我們獲得了持續的發展勢頭。我們預計我們的競爭對手將在市場上大力推廣他們的新 Nocona 技術。我們已經看到了。但坦白說，就散熱和效率等客戶關心的一些關鍵參數而言，該技術並不是革命性的，而 Opteron 為客戶提供的領導地位仍然完好無損。事實上，我們預計，隨著我們進入 2005 年並推出基於雙核心的 Opteron 技術，我們將進一步增強我們在該市場的競爭地位。所以，是的，正如赫克託所概述的那樣，這很艱難，但客戶非常重視建築的價值，這一點不會改變。

Okay. Great. And then the second question I had was, Flash revenues and operating profit were down a lot in what's typically the seasonally better quarter. And now for Q1, you're guiding that down because of continued price pressure and seasonality. Without getting -- not trying to force you in a corner on this -- you probably have at least better visibility than us there. Is there sort of sequential change or environment for Flash now? Is it comparable to what it was in Q4? Is it worse, is it better? Just help us think about that, please?

好的。偉大的。我的第二個問題是，在通常表現較好的季度中，Flash 收入和營業利潤卻大幅下降。現在對於第一季度，由於持續的價格壓力和季節性因素，您將其下調。不需要 — — 不是想把你逼到絕境 — — 你可能至少比我們有更好的視野。Flash 現在是否有某種連續的變化或環境？它與第四季度的情況相比如何？是更糟了，還是更好了？請幫我們想想，好嗎？

Well, first, what we've got to do in the first quarter is accelerate in Japan as we outlined. We have a challenge there. If you recall then when we put together 2 organization, historically, AMD has a very strong presence in the wireless base. Our partner, Fujitsu, had a strong presence in the embedded space. In Japan, the wireless market a booming market. We need to do a better job at penetrating that market, but we don't expect that to turn around within the first quarter. So that -- the area of focus for us is to go and aggressively defend our position in the wireless space, which is still very strong, with all of the key customers around the world, and to be more aggressive and attack the embedded opportunities that are in front of us.

首先，正如我們所概述的那樣，我們在第一季要做的就是加速在日本的發展。我們在那裡面臨挑戰。如果你還記得，當我們組建兩個組織時，從歷史上看，AMD 在無線領域佔有非常強大的地位。我們的合作夥伴富士通在嵌入式領域佔有重要地位。在日本，無線市場是一個蓬勃發展的市場。我們需要更好地滲透該市場，但我們預計這種情況不會在第一季內轉變。因此，我們的重點領域是積極捍衛我們在無線領域的地位，該領域仍然非常強大，擁有遍布全球的所有關鍵客戶，並且要更積極地抓住擺在我們面前的嵌入式機會。

So the intense -- so the intensity of the issues facing you is going to be just as hard in Q1 as it was in Q4, I guess.

所以，我猜，您面臨的問題的嚴重程度在第一季將與在第四季度一樣嚴重。

From a mark -- yes, the answer is yes, the intensity is going to be there. And we are going to -- as I mentioned earlier without being too specific right now -- we are going to take some aggressive action to contain cost, accelerate technology, because one of the good things that's going to come out of this is that some of the underutilized capacity we have in place and some of the energy in our people is not going to be totally focused on figuring out how we can even move faster on technology and new products and take advantage of these market condition that exist. Because the cost competitiveness of MirrorBit is pretty awesome, and the fact that we can get there totally, the better off we're going to be. So we are going to redirect energy and resources to accelerate that rather rapidly.

從某種程度上來說——是的，答案是肯定的，強度將會存在。正如我之前提到的，現在還不是太具體，我們將採取一些積極的措施來控製成本，加速技術發展，因為這樣做的好處之一是，我們現有的一些未充分利用的產能和我們員工的精力將不再完全集中在如何更快地開發技術和新產品，以及如何利用現有的市場條件。因為 MirrorBit 的成本競爭力相當強，而且如果我們能夠完全實現這一目標，我們就會變得更好。因此，我們將重新分配能源和資源，以加快這一進程。

Great. Thank you.

偉大的。謝謝。

Our next question is from the line of Michael Masdea from Credit Suisse First Boston. Please go ahead.

我們的下一個問題來自瑞士信貸第一波士頓的邁克爾馬斯迪亞 (Michael Masdea)。請繼續。

Yes. The first question, and I have a quick follow up after, is on the strategy overall. Obviously, you guys have done a great in coming out with processors that compete -- that are very competitive with your competition, and that's had a good impact. But your competition is talking a lot more about platform strategies than they have in the past, restructuring around that. Could you just talk about how you guys compete against that and how important it is to compete against that?

是的。第一個問題，我接下來會快速跟進，是關於整體策略的。顯然，你們在推出具有競爭力的處理器方面做得非常出色——這些處理器在與競爭對手的競爭中非常有競爭力，並且產生了良好的影響。但你的競爭對手比過去更常談論平台策略，並圍繞該策略進行重組。您能否談談你們如何應對這種競爭以及應對這種競爭的重要性？

We believe that the market -- the customer really would like to see all of us more focused on total solutions, whether you call it a platform or not. And I believe that doing that makes sense, makes sense for us, makes sense for the customer. And as a matter of fact, although I rarely do that, I'll pay a compliment to my competitor. I think that's very innovative to do and it is almost tempting to ape it. But I'd like to make a comment on the difference on how we might go about it, is that I think that the opportunity for us to establish deeper and stronger relationships with the ecosystem to provide customers the best solution, not the solution that we dream up in the lab and come up with and then cram it down their throat, but to be able to provide the best possible solution, and the combination of support infrastructure to accomplish that. We believe that we are a company capable of doing that. And our strategy, going forward, is to really strengthen that. And you're going to see some moves in 2005 that are going to clearly indicate a strong move in the direction of being a strong ecosystem provider in total platform solutions, although in a different approach than our competition.

我們相信，市場——客戶確實希望看到我們所有人都更加專注於整體解決方案，無論您是否稱之為平台。我相信這樣做是有意義的，對我們有意義，對客戶有意義。事實上，儘管我很少這樣做，但我會稱讚我的競爭對手。我認為這樣做非常具有創新性並且幾乎讓人忍不住去模仿它。但我想就我們如何做到這一點的不同之處發表一下評論，我認為我們有機會與生態系統建立更深層次、更牢固的關係，為客戶提供最佳解決方案，而不是我們在實驗室裡夢想並提出然後強加給他們的解決方案，而是能夠提供最好的解決方案，以及實現這一目標的支持基礎設施的組合。我們相信我們是一家有能力做到這一點的公司。我們未來的策略就是切實加強這一點。您將會看到，2005 年我們的一些舉措將明確表明我們將朝著成為整體平台解決方案領域強大的生態系統提供者的方向邁出強有力的一步，儘管我們採用的方法與競爭對手不同。

Just a follow up, ASPs are weaker this quarter. You talked about that coming from the new -- the high-growth areas, presumably emerging markets or other areas. Can you just talk about business was, and kind of on a like-for-like, apples-for-apples, other parts of the world where, some of maybe the lower-growth areas?

順便說一下，本季的平均售價較低。您談到了來自新領域——高成長領域，大概是新興市場或其他領域。您能否簡單談談業務狀況，以及世界其他地區（可能是成長較低的地區）的同類情況？

Sure. I want to compliment Hector's answer to your first question. As you may have not noticed, but when we announced our new Turion 64 mobile technology, it is not only a processor technology, but also, it really is a platform offering, that over time with partners, we will present to the market. Now turning to your second question, what you need to understand in the mix of the quarter is that we actually had stable ASPs in our server business, it actually grew a little bit, the same in our Athlon 64 business, and in our mobile Athlon 64 business. What we've seen through the quarter is a very high demand for our new Sempron brand in high-growth markets, and we decided to serve that demand. So the ASP variation is really a mechanical effect of the higher mix of Sempron product than we expected initially.

當然。我想讚揚赫克託對你的第一個問題的回答。您可能還沒有註意到，當我們宣布新的 Turion 64 行動技術時，它不僅是一種處理器技術，而且它實際上是一種平台產品，我們將隨著時間的推移與合作夥伴一起將其推向市場。現在轉到您的第二個問題，您需要了解的是，在本季度的組合中，我們的伺服器業務實際上擁有穩定的 ASP，它實際上有所增長，我們的 Athlon 64 業務和移動 Athlon 64 業務也是如此。我們在本季看到，高成長市場對我們的新 Sempron 品牌的需求非常高，我們決定滿足這種需求。因此，ASP 變化實際上是 Sempron 產品混合比例高於我們最初預期的機械效應。

Thanks a lot.

多謝。

We have a question from the line of Joseph Osha from Merrill Lynch. Please go ahead.

我們收到了來自美林證券的 Joseph Osha 的一個問題。請繼續。

Hi, can you hear me?

嗨，你聽得到我說話嗎？

Yes.

是的。

Hector, you appear to be picking up Jerry's pension for colorful rhetoric. Two questions, first on the microprocessor side, can you update me as to what percentage of starts or outs, whatever you prefer, is 90-nanometer, and just give me an update as to what their road map is there? And then I have a follow up.

赫克托，你似乎因為華麗的言論而領取了傑瑞的退休金。兩個問題，首先是關於微處理器方面，您能否告訴我 90 奈米的啟動或停止百分比（無論您喜歡什麼）是多少，並告訴我他們的路線圖的最新情況？然後我有一個後續行動。

Right now we're -- and I -- within some first-order approximation, we're pretty close to over half of our starts being 90-nanometers. And our plan is to be, for all practical purposes, converted totally by the second quarter. The reason I say practical is because there are some products that have unique customer requirements that may keep us for some time longer at 130, but that's just strictly just to serve a customer need for not changing the platform. So, by the end of the quarter, we'll be -- the second quarter we'll be fairly much done on 90-nanometers. And there is no way, I am going to agree that could ever could dream to be as colorful as Sanders is.

現在，我們——包括我——在某種一階近似中，我們接近一半以上的起點是 90 奈米。從實際目的來看，我們的計劃是在第二季完成全面轉型。我之所以說實用，是因為有些產品有獨特的客戶要求，可能會讓我們在 130 上停留更長時間，但這只是嚴格滿足客戶不會改變平台的需求。因此，到本季末，我們將—第二季基本完成 90 奈米技術。我完全同意，任何人都不可能夢想成為像桑德斯一樣多采多姿的人。

You have your own charms. Second question, Bob, I admit I'm struggling modeling operating expenses here. I've been looking for SG&A to be up by about the same dollar amount as it was in the third quarter, and I was surprised there and also surprised on R&D. So forgive me for being literal, but can you please, again, nail down for me what you expect in dollar terms for both line items in the first quarter, and then to the extent that you can, dollar terms for both line items for all of 2005?

你有你自己的魅力。第二個問題，鮑勃，我承認我在這裡很難模擬營運費用。我一直希望銷售、一般及行政費用 (SG&A) 的漲幅與第三季大致相同，但我對此感到驚訝，對研發也感到驚訝。所以請原諒我的直白，但是您能否再次為我明確說明一下您對第一季度這兩項的美元預期，然後儘可能地，為我明確說明 2005 年全年這兩項的美元預期？

Sure, Joe. First on the R&D line, for the first quarter, we will continue to see that increase from the fourth quarter levels to the tune of about $20 million from the fourth quarter level, so increasing by $20 million as we move in. That is driven by Fab 36 start-up costs as we continue to hire more people and continue to exercise the equipment. That line, in total, by the end of the year will be up $200 million year-on-year.

當然，喬。首先是研發線，第一季度，我們將繼續看到研發支出從第四季度的水平增加到約 2000 萬美元，因此隨著我們進入新季度，研發支出將增加 2000 萬美元。這是由 Fab 36 的啟動成本所驅動的，因為我們會繼續僱用更多員工並繼續使用設備。今年底，該總額將比去年同期增加 2 億美元。

And then at that --

然後就在那時——

It will ramp as we go quarter-to-quarter.

隨著我們每季的發展，它將會逐漸增加。

Right. And then in '06 it, presumably, starts being absorbed through cost of sales as you ramp Dresden, right?

正確的。然後在 2006 年，隨著 Dresden 的擴張，這些成本大概會開始透過銷售成本來吸收，對嗎？

Absolutely. You got it.

絕對地。你明白了。

Okay.

好的。

In the SG&A, marketing, and general and administrative area, first quarter was a -- I mean, fourth quarter was a high watermark. First quarter will drop to third quarter levels. So that delta we picked up quarter-on-quarter of about $42 million will go away. And for the year, I would model marketing, general and administrative expenses will be up in absolute dollars, but as a percent of sales, depending on what you pick, it will be down. So we'll see some dilution as we go through the year. But first quarter, we will quickly move back to third quarter levels.

在銷售、一般及行政開支、行銷以及一般和行政管理領域，第一季是——我的意思是，第四季是高水位。第一季將下降至第三季的水平。因此，我們季度環比增長約 4,200 萬美元的差額將會消失。對於今年，我會模擬行銷，一般和行政費用將以絕對美元計算上升，但作為銷售額的百分比，取決於你的選擇，它會下降。因此，隨著時間的推移，我們會看到一些稀釋。但第一季度，我們將迅速恢復到第三季度的水平。

Okay. And then just a last quickie follow-up on the inventory numbers. Did you flow through any reserves relating to Flash memory pricing at all, or Flash memory costing more properly?

好的。然後最後快速跟進一下庫存數量。您是否流過任何與快閃記憶體定價有關的儲備，或者快閃記憶體成本是否更合適？

No, actually by building more inventory of -- in the Flash business we actually took on more reserves. So we actually continue to be conservative in valuation in the memory business, particularly in this pricing environment.

不，實際上，透過建立更多的庫存——在 Flash 業務中，我們實際上承擔了更多的儲備。因此，我們實際上對記憶體業務的估值繼續持保守態度，尤其是在這種定價環境下。

I'm sorry, explain that? You build more reserve?

抱歉，能解釋一下嗎？你建立了更多的儲備嗎？

So gross inventory, just pick a number, gross inventor went up by 100, and then inventory went up by 85.

因此，總庫存，只需選一個數字，總庫存增加了 100，然後庫存增加了 85。

All right. So, you flowed through some reserve value. You flowed some reserves, I'm sorry, you're realizing reserves?

好的。所以，您流過了一些儲備價值。您流出了一些儲備，對不起，您意識到儲備了嗎？

That's right.

這是正確的。

All right. Thank you, very much.

好的。非常感謝。

Thank you.

謝謝。

And our next question is from the line of Tim Luke from Lehman Brothers. Please go ahead.

我們的下一個問題來自雷曼兄弟的 Tim Luke。請繼續。

Thank you. I was wondering if you could provide some color on how you see the gross margin developing going forward? Thank you.

謝謝。我想知道您是否可以提供一些關於未來毛利率發展的詳細資訊？謝謝。

In both businesses? Well, let me do it in both businesses.

在兩個行業中？好吧，讓我在兩個行業都做這件事。

Thanks.

謝謝。

First in the microprocessor business, because clearly the Company is dependent on the mix of the business, because the gross margins between both businesses are significantly different. In the processor business, we're actually, as we said, we're north of 50 percent. We improved quarter-on-quarter. And as we continue to penetrate deeper in the commercial space, both with Opteron and client, we will see further expansion in the gross margin, and further shipments of 90-nanometer. So we feel like we will continue to see improvements in gross margin in the microprocessor business on the continuum as we go through time. In the Flash business, it is very pricing dependent. It's hard to anticipate right now improving gross margin in the first quarter with sales looking like a down quarter. Our -- so right now, we are modeling, we have budgeted the memory business to improve gross margin year-on-year, and that is predicated mainly on continued execution of making MirrorBit a significant portion of what have we shift in that portfolio, which clearly has a cost advantage, which you clearly need in a very aggressive pricing environment.

首先是微處理器業務，因為很明顯公司依賴業務組合，因為兩項業務之間的毛利率差異很大。在處理器業務方面，正如我們所說，我們的份額實際上已經超過了 50%。我們每季都取得了進步。隨著我們繼續深入商業領域，包括 Opteron 和客戶端，我們將看到毛利率進一步擴大，90 奈米的出貨量也將進一步增加。因此，我們感覺隨著時間的推移，微處理器業務的毛利率將會持續提高。在 Flash 業務中，它非常依賴定價。由於銷售額看起來是一個下滑的季度，因此現在很難預測第一季的毛利率會提高。我們的 - 所以現在，我們正在建模，我們已經為內存業務編制了預算，以提高毛利率，這主要取決於繼續執行使 MirrorBit 成為我們在該投資組合中轉移的很大一部分，這顯然具有成本優勢，這在非常激進的定價環境中顯然是需要的。

Could you remind us what those metrics are for MirrorBit as a percentage of the mix, then, as we move forward?

那麼，隨著我們繼續前進，您能否提醒我們 MirrorBit 的混合百分比指標是多少？

The current, we're -- we're in the double -- we're in between 10 and 20 percent of our business today is MirrorBit, and by the end of the year, we expect it to be 50 percent.

目前，我們的業務中 10% 到 20% 來自 MirrorBit，到今年年底，我們預計這一比例將達到 50%。

That's right.

這是正確的。

Just one last clarification on the Flash side, were the units up sequentially?

關於 Flash 方面還有最後一個澄清，各單位是依序啟動的嗎？

Yes.

是的。

Units were up. ASPs were down, which, obviously, down more than the units.

單位數量上升。平均售價下降，顯然比單位銷售下降幅度更大。

And both would have been down sequentially at the beginning of the year?

而兩者在年初都會連續下降嗎？

You know, seasonally it's hard to tell at this point. Right now, seasonality would say units would be down. ASPs continue to be drifting in that direction.

你知道，從季節角度來看，目前還很難判斷。目前，季節性因素意味著產量將會下降。ASP 持續朝著這個方向發展。

Thank you, very much.

非常感謝。

Thank you.

謝謝。

And our next question is from the line of Krishna Shankar from JMP Securities. Please go ahead.

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

Yes, in the Flash business have you resolved the product trade that you talked about in the wireless segment?

是的，在Flash業務中，你們解決了無線領域中談到的產品交易嗎？

Yes, we had a 256-Megabit product that we had hoped to qualify in the fourth quarter. We had a glitch that required us to change a number of layers toward the end of the process, because there toward the end of the process we could address them rather fast. And as we speak, there are some customers that are already qualified the product, and we have a number of other customers in the process of doing so. So we expect that quarter -- that product to have an impact on sales this quarter.

是的，我們有一款 256 兆位元的產品，我們希望在第四季獲得認證。我們遇到了一個小故障，需要我們在流程結束時更改多個層，因為在流程結束時我們可以相當快地解決這些問題。正如我們所說，有些客戶已經對產品進行了認證，還有許多其他客戶正在認證過程中。因此我們預計該產品將對本季的銷售產生影響。

Okay. And on the processor business, can you elaborate a little bit more on the Turion 64 introduction and the platform strategy that you talked about earlier, both in terms of timing and features for the Turion 64?

好的。關於處理器業務，您能否更詳細地介紹一下 Turion 64 的推出以及您之前談到的平台策略，包括 Turion 64 的時間和功能？

For the Turion 64 mobile technology was officially announced at CES. We intend to have partners shipping the technology in the market towards the second part of the second quarter. And as far as the platform strategy, we have a series of ecosystem partners that are going to join us and provide Turion 64 certified platform that include, you know, both chipsets and wireless solutions to form a comprehensive and cost-optimized solution for the mobile market.

Turion 64 行動技術在 CES 上正式發表。我們打算讓合作夥伴在第二季的後半段將該技術推向市場。就平台策略而言，我們有一系列生態系統合作夥伴將加入我們並提供 Turion 64 認證平台，其中包括晶片組和無線解決方案，從而為行動市場提供全面且成本優化的解決方案。

And the final question is on how AMD sees the adoption of PCI Xpress and DDR2 memory, both for the PC space and server space, going forward, and your performance product lines?

最後一個問題是，AMD 如何看待 PCI Xpress 和 DDR2 內存在 PC 和伺服器領域的應用，以及你們的效能產品線？

All right. So, on the PCI Xpress, obviously, there is an aggressive conversion that's being driven in the industry. We have a number of platforms available on PCI Xpress. And we believe that that conversion will happen very rapidly on the basis of the cost structure of the solution. When it comes to DDR2, we believe that that transition will be slower because today DDR1 solution are still cheaper. And in particular, in the case of the AMD architecture, there is no performance benefit to moving to DDR2. So we obviously have a strategy to move to DDR2 technology at the right time, and we're working on that timing with our key partners.

好的。因此，在 PCI Xpress 上，顯然業界正在推動一場積極的轉變。我們在 PCI Xpress 上有許多可用的平台。我們相信，基於此解決方案的成本結構，這種轉變將會非常迅速地發生。談到 DDR2，我們認為這種轉變將會比較慢，因為今天 DDR1 解決方案仍然更便宜。特別是對於 AMD 架構而言，遷移到 DDR2 並不會提高效能。因此，我們顯然有一個在適當時間轉向 DDR2 技術的策略，並且我們正在與我們的主要合作夥伴一起努力實現這一目標。

Thank you.

謝謝。

And our next question is 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 (Andrew Root)。請繼續。

Thanks, very much. I'm curious as to what kind of traction you can report seeing in the enterprise desktop space following on your success in server, if that's started to radiate out at all into the desktop, and if that has any impact on the first quarter outlook, which is a little bit more robust and seasonal?

非常感謝。我很好奇，繼伺服器領域成功之後，您認為企業桌面領域有何發展趨勢？這種趨勢是否已經開始蔓延到桌面領域？這是否會對第一季的前景產生影響？第一季的前景是否更加強勁，更具季節性？

Well, obviously, when a Fortune 500 company is entrusting AMD with its server choices, which is a strategic choice for the enterprise, that bodes well for our ability to go and present client-based solution. In fact, out of the 40-plus members of the Forbes 100 list of companies, some of them already use both Opteron and client-based AMD solutions. I'm not going to disclose the details of this, but, obviously, or us as we walk into 2005, further penetration of the commercial client segment is a key priority on the strength of our Opteron offering.

嗯，顯然，當財富 500 強公司將其伺服器選擇委託給 AMD 時，這對企業來說是一個戰略選擇，這預示著我們有能力提供基於客戶的解決方案。事實上，在《富比士》 100 強企業榜單的 40 多家公司中，有些公司已經同時使用 Opteron 和基於客戶端的 AMD 解決方案。我不會透露這方面的細節，但顯然，當我們步入 2005 年時，進一步滲透商業客戶市場是我們依靠 Opteron 產品優勢的首要任務。

How many of the -- would any of those 40 companies using your client solutions have been customers before, or those are all new customers (inaudible)?

其中有多少——這 40 家使用你們客戶端解決方案的公司以前是你們的客戶，還是都是新客戶（聽不清楚）？

They're all new customers.

他們都是新顧客。

Okay. And then, how much, is the Sun launch of your new Opteron server line materially impacting your Q1, or is that sort of, we will see (inaudible)?

好的。那麼，Sun 推出的新款 Opteron 伺服器產品線對您的第一季有多大實質影響，或者說，我們將會看到（聽不清楚）？

One of the key differences between Q4 and Q1 when it comes to Opteron will be the number of platforms available to the market. If you look at our Opteron offering, there were still certain segments that were not available. For example, competitive blade solutions, more of the commercial-type of implementation of the Opteron technology. As we outlined in our analyst conference, all of these segments will be covered by our OEM partners in the first quarter. And when it comes specifically to Sun, one of the key influence that Sun has helped us tremendously in the ecosystem is in the software area. They are driving a very aggressive expansion of 64-bit based solutions in the software ecosystem, of course, in preparation of the highly anticipated launch of the Solaris 10 operating system.

就 Opteron 而言，第四季與第一季的一個主要區別在於市場上可用的平台數量。如果你看一下我們的 Opteron 產品，你會發現仍有某些部分尚未提供。例如，競爭性刀片解決方案，更多的是Opteron技術的商業化類型的實現。正如我們在分析師會議上概述的那樣，我們的 OEM 合作夥伴將在第一季涵蓋所有這些細分市場。具體來說，Sun 在生態系統中給予我們巨大幫助的一個關鍵影響是在軟體領域。他們正在軟體生態系統中積極推動基於 64 位元的解決方案的擴展，當然是為了準備備受期待的 Solaris 10 作業系統的發布。

And just one last quick question on Flash. Is there a price decline in the first quarter that would dictate a more significant breakdown of existing inventory than what it will cost to market?

最後一個關於 Flash 的簡短問題。第一季的價格是否會下降，導致現有庫存的細分比上市成本更為嚴重？

We don't think so at this point. We've been pretty conservative of our inventory evaluation. So the answer would be no, we don't think so.

目前我們可不這麼認為。我們對庫存評估一直非常保守。所以答案是否定的，我們不這麼認為。

So, could you absorb first -- fourth quarter-type move again in the (inaudible)?

那麼，您能否在（聽不清楚）中再次吸收第一季至第四季類型的舉措？

Absolutely.

絕對地。

Okay. Great. Thank you.

好的。偉大的。謝謝。

And our next question is from the line of Tom Thornhill from UBS. Please go ahead.

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

Yes. Could you review again the cash flow character -- parameters, and particularly relative to what was laid out in the November analyst meeting?

是的。您能否再次審查現金流特徵參數，特別是相對於 11 月分析師會議上提出的參數？

Yeah. Cash flow from operations, I won't go historically, you can pick that up. But going on a forward basis is capital expenditures will be $1.5 billion, which is identical to what we talked about at the analyst day. I'm flipping through my notes to make sure I say the exact right numbers. Depreciation for '05, you should model about $1.2 billion. And cash flow from operations will be about $1.2 billion, with an assumed increase in working capital, because we are assuming the business will continue to grow. Free cash flow will be relatively neutral, but that is counting the grants and subsidies we're going to receive from the European governments for Fab 36.

是的。經營活動產生的現金流，我就不從歷史角度講了，你自己可以自己看。但從未來來看，資本支出將達到 15 億美元，這與我們在分析師日討論的相同。我正在翻閱我的筆記以確保我說的數字準確無誤。05 年的折舊額應該約為 12 億美元。由於我們假設業務將繼續成長，因此假設營運資本增加，營運現金流將達到約 12 億美元。自由現金流將相對中性，但這包括了我們將從歐洲政府獲得的 Fab 36 撥款和補貼。

Okay. And then looking at the operating margin on CPG which came down a bit in the December quarter, but with MG&A coming down and gross margin looks like it's holding, should we -- should operating margins come back to the September quarter levels?

好的。然後看看 CPG 的營業利潤率，它在 12 月季度略有下降，但隨著 MG&A 的下降和毛利率看起來保持不變，我們是否應該 - 營業利潤率應該回到 9 月季度的水平？

Or better.

或者更好。

Or a little bit better?

或稍微好一點？

Yes. That's right.

是的。這是正確的。

All right.

好的。

As we talked about, we made fairly significant marketing investments in the second half of '04 to provide some liftoff, as we called it, for AMD64 client-based products. Most of those programs are coming to an end. So you will see a drop back to more historical rates in the microprocessor area in marketing. So with continued good gross margin, a little less investment in those areas will yield better operating income.

正如我們所說的，我們在 2004 年下半年進行了相當大的行銷投資，為 AMD64 客戶端產品提供了一些所謂的推動力。大多數項目即將結束。因此，您會看到微處理器領域的行銷率回落至歷史水準。因此，在毛利率持續良好的情況下，在這些領域減少一點投資將會帶來更好的營業收入。

Thank you.

謝謝。

Thank you.

謝謝。

And our next question is 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. Could you remind us of where you are with 110-nanometer transition in Flash, and if there's a -- what's left to generate as far as cost savings out of that?

是的。您能否提醒我們一下 Flash 中 110 奈米轉型的情況，以及如果還有什麼可以節省成本？

The 110-nanometer conversion to Flash will be fairly done here in the next quarter, completely. And now we're aggressively, as I mentioned earlier, due to the fact that we see a slow down in the market for at least a couple of quarters, we're going to take advantage of that to do everything we can to accelerate the next-generation even more than we had already planned. So although we're pleased with the fact that we led in the conversion to 110-nanometers, that's probably going to be a short-lived technology and move rapidly to the next node, which will be somewhere around 90-nanometers. As far as the cost that -- benefits of that, we're experiencing those as we speak. And one of the reasons I think we did not experience heavier losses in the quarter is that the cost competitiveness of that technology is fairly solid. We expect that to continue and improve throughout the rest of the year.

110 奈米到 Flash 的轉換將在下個季度全面完成。正如我之前提到的，由於我們看到市場至少在未來幾季內會放緩，我們現在正在積極行動，我們將利用這一機會，盡一切努力加速下一代產品的開發，甚至比我們原計劃的還要快。因此，儘管我們很高興能夠在向 110 奈米的轉換中處於領先地位，但這可能是一種短暫的技術，並將迅速轉向下一個節點，即 90 奈米左右。至於其成本和收益，我們正在體驗。我認為我們本季沒有遭受更大損失的原因之一是該技術的成本競爭力相當強。我們預計今年剩餘時間這種情況將持續並改善。

Okay. The transition or the qualification issue you had, was that at all related to either MirrorBit or to 110, or was that more just a manufacturing issue?

好的。您遇到的過渡或資格問題是否與 MirrorBit 或 110 有關，或只是製造問題？

No, it was one of those things that happens in this complex technology. First of all, it was a MirrorBit part. And it was a layout issue with part of the die, where when you layout this very complex high-dense parts, just a tiny, little gate somewhere in the wrong place, and we had to redo the mass head and do it over.

不，這只是在這種複雜技術中發生的事情之一。首先，它是 MirrorBit 的一部分。這是模具部分的佈局問題，當你佈局這個非常複雜、高密度的部件時，只要有一個很小的澆口出現在錯誤的位置，我們就必須重新製作質量頭並重新做一遍。

Okay. Thank you.

好的。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. Hector, you gave earlier in the call, some expectations for what MirrorBit would be as a percent of mix, which I think were the same numbers that you had given out in the third quarter. And I wanted to get a sense, listening to you discuss accelerating some technologies in Flash, whether or not we should expect that mix to maybe accelerate a bit faster?

謝謝。赫克托，你在電話會議早些時候給出了對 MirrorBit 的混合百分比的一些預期，我認為這些數字與你在第三季度給出的數字相同。而我想了解一下，聽您討論加速 Flash 中的某些技術，我們是否應該期望這種混合技術能夠加速得更快一些？

I think that would be the hope and the plan, and we're going to work as hard as [expletive] to make that happen. It's too early to try to change the guidance that we gave you before.

我想那就是我們的希望和計劃，我們會盡一切努力去實現它。現在試圖改變我們之前給你的指導還為時過早。

What are the actual barriers that prevent from you actually doing that any faster?

哪些實際障礙阻礙了您更快完成這項任務？

Well, there are a number of things that affect that. One is customer qualifications. You know, customers that are today in a floating gate device that to sign in their works, have to not requalify and justify the cost of that change. We think we -- the attraction that allows us to induce for to change is the fact that the cost is significantly different and customers are responding. But at this point in time, it will be hard to forecast if we can actually change that rate of response at this point.

嗯，有很多因素都會影響這一點。一是客戶資格。您知道，如今使用浮動閘極設備的客戶在簽署其作品時，不必重新認證並證明這種改變的成本是合理的。我們認為，促使我們做出改變的吸引力在於成本的顯著差異以及客戶的反應。但目前，我們很難預測自己是否真的能夠改變這種回應率。

Okay. And then just one other thought here, which is, at the analyst day, you talked about your outlook for 2005 PC unit growth of 10 percent. And now that we've come another month and change since that meeting, I wanted to get your sense as to whether or not you think 10 percent is still a reasonable target for '05, and how you think you're going to gain share in that year, i.e., is it fairly linear throughout the year that you'll keep gaining share, are there any sort of milestones we should be looking for?

好的。然後我還有另外一點想法，那就是在分析師日上，您談到了對 2005 年 PC 銷量成長 10% 的預期。現在距離那次會議已經過去一個月了，情況也發生了變化，我想了解一下您是否認為 10% 仍然是 2005 年的合理目標，以及您認為今年您的市場份額將如何增長，也就是說，在全年中您的市場份額是否會保持相當線性的增長，我們應該尋找什麼樣的里程碑？

I don't think there's anything we've seen in the last few weeks since the analyst that changes our view of 2005. We're very optimistic about 2005 in the IT world. I still believe that 64-bit technology will make an impact in 2005, as I said in the analyst meeting. I think we have an upcoming number of events that are very powerful, like the highly anticipated Solaris 10 release. It's an operating system, as well as Windows 64, which will happen in the first half of this year. All of that, I think, and combined with the value equation for our products makes us very optimistic that at the end of 2005, we'll be looking like we did today, where in 2004 we grew 29 percent in the processor business, which is significantly better than the market. And we're certainly counting that we will also do that again in 2005.

我認為，自從那位分析師以來，過去幾週我們沒有看到任何改變我們對 2005 年看法的事件。我們對 2005 年 IT 界的前景非常樂觀。我仍然相信64位元技術將在2005年產生影響，正如我在分析師會議上所說的那樣。我認為我們即將舉行的一系列活動都具有重大意義，例如備受期待的 Solaris 10 發布。它是一個作業系統，也是Windows 64，將在今年上半年推出。我認為，所有這些，再加上我們產品的價值方程式，使我們非常樂觀地認為，到 2005 年底，我們的業績將與今天一樣，2004 年我們的處理器業務增長了 29%，這明顯好於市場表現。我們確信 2005 年我們還會再這樣做。

Very good, thanks.

非常好，謝謝。

And our next question is from the line of John Lau from Banc of America Securities. Please go ahead.

我們的下一個問題來自美國銀行證券公司的 John Lau。請繼續。

Okay. Thank you. Back over to the Flash. You mentioned, Henri, that the ASPs will be drifting down -- drifting downward. For our modeling and longer-term contracts, can we expect additional pricing impact as new contracts such as handset Flash start this quarter?

好的。謝謝。回到 Flash。亨利，您提到過，ASP 將會下降——下降。對於我們的建模和長期合同，隨著本季度手機 Flash 等新合約的開始，我們是否可以預期會有額外的定價影響？

No. I think, as you know, John, we have a pretty good visibility. The wireless market is concentrated on relatively few accounts, with whom we have long-term relationships. So this is not where surprises are expected. The embedded marketplace, which is far more fragmented and relies heavily on the channel is where we've seen a lot of the turmoil. And, frankly, a lot of the smaller players in the NOR Flash market are taking desperate action to just manage for cash.

不。我認為，如你所知，約翰，我們的知名度相當高。無線市場集中在相對少數與我們保持長期合作關係的客戶身上。因此這並不會出現令人意外的情況。嵌入式市場更加分散，並且嚴重依賴管道，我們看到了許多動盪。坦白說，NOR Flash 市場中的許多小型企業都在採取絕望的行動來維持現金流。

Great. And then, finally, what is the typical seasonality that you anticipate for Flash in Q1, if you were to take a look at the overall market?

偉大的。最後，如果您看一下整個市場，您預計第一季 Flash 的典型季節性是什麼？

Your question is from a revenue perspective, units, bits?

您的問題是從收入角度來看的，單位、比特？

Actually, let's say, for example, units, typical for Q1.

實際上，我們以 Q1 的典型單位為例。

I believe flat, to down a few percent, maybe between 0 and 5 percent down.

我認為會持平，或下降幾個百分點，可能在 0% 到 5% 之間。

Great. Thank you, very much.

偉大的。非常感謝。

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

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

Thank you. Question on unit growth we've seen now in the industry. So if my model is correct, you guys saw about 11 percent unit growth in Q3. Looks like your units were well north of 15 percent in Q4. If you look at your competitor, they had units up about 15 percent in Q4 as well. Could you talk a little bit about inventory out there in the marketplace? Are there any, what kind of revisions you're putting out there to be sure there's no double ordering going on with some shortages out there in the channel, just anything on that side would be very helpful?

謝謝。關於我們目前看到的行業單位成長的問題。因此，如果我的模型正確的話，你們會看到第三季的單位成長率約為 11%。看起來您的單位在第四季的成長率遠高於 15%。如果你看看你的競爭對手，你會發現他們在第四季的銷量也成長了約 15%。您能談談市場上的庫存嗎？有沒有什麼，你們會做出什麼樣的修改來確保不會出現重複訂購的情況，以及頻道中是否存在短缺，任何這方面的措施都會很有幫助嗎？

Sure, first, our channel business had a record quarter, but it's been the case throughout 2004, both in units and in dollars. We continue to have to drive a very aggressive conversion of what we we call a tray processor, which are typically OEM processors, to what which we call product-in-a-box, which is a retail version of our processor. That, again, hit an all-time high as a percentage of the total channel business. And as weeks of inventory, we exited the year at the same level that we entered the year. And we have a policy to keep our weeks of inventory between 4 and 5 weeks. So we keep a very close leash on that aspect of the business.

當然，首先，我們的通路業務本季創下了紀錄，但 2004 年全年都是如此，無論從銷售量還是從美元來看都是如此。我們必須繼續積極推動所謂的托盤處理器（通常是 OEM 處理器）向我們所謂的盒裝產品（即我們處理器的零售版本）的轉變。這在整個通路業務中所佔的比例再次創下了歷史新高。就庫存週數而言，我們今年年底的庫存水準與年初相同。我們的政策是將庫存週數保持在 4 至 5 週之間。因此，我們對業務的這一方面保持著非常嚴格的控制。

You're relatively comfortable that double ordering, at this point, is not -- you're not having any of those issues with customers?

您目前對重複訂購的情況比較放心，您沒有遇到任何與客戶有關的問題嗎？

No, absolutely -- absolutely not. In fact, at the very high end of the spectrum, in some weeks, demand exceeds supply. It's a very strong market.

不，絕對不是。事實上，在某些星期，需求量甚至超過供應量。這是一個非常強勁的市場。

Okay. And then another question I have was just on Sempron, looking at, kind of, what happened with Q4, it was a surprise to some people. Is this looked at as -- could you talk a little bit, kind of, what the mix shift, what went on there in Q4? I assume most of it was a mix shift to Asia. Is this something that's going to be just a 1-quarter issue? Or is -- do you expect Sempron sales to continue to exceed that of AMD64 and lay a mix as we kind of get through the first -- the next 2 quarters or so of 2005? Thank you.

好的。然後我的另一個問題是關於 Sempron 的，看看 Q4 發生的事情，這對某些人來說是一個驚喜。這是否被視為——您能否稍微談一談，混合變化是怎樣的，第四季度發生了什麼？我認為大部分是向亞洲的混合轉移。這僅僅是一個季度的問題嗎？或者——您是否預計 Sempron 的銷量將繼續超過 AMD64，並在我們度過 2005 年第一季——接下來的兩個季度左右時，呈現混合趨勢？謝謝。

Well, I think, what we've seen in Q4 is really the result of a good positioning of our AMD Sempron brand. You're correct that part of the demand came out of Asia, but, frankly, the high-growth markets of Europe were also showing very strong demand. We continue to see also very good success in Latin America. And it seems to me that in those high-growth markets, the Sempron brand is very well accepted and, perhaps to a degree, is demonstrating better value for the user than our competitor. So, I don't expect that demand to go away. We, obviously want to make sure that in those markets we have a proper mix, and we participate in all aspects of the business. And we don't want to saturate the market with the ultra-value parts. So it's a matter of managing the brand and managing price positioning of our solution.

嗯，我認為，我們在第四季度看到的結果實際上是 AMD Sempron 品牌良好定位的結果。您說得對，部分需求來自亞洲，但坦白說，歐洲的高成長市場也表現出非常強勁的需求。我們在拉丁美洲也繼續看到非常好的成功。在我看來，在這些高成長市場中，Sempron 品牌非常受歡迎，在某種程度上，它比我們的競爭對手為用戶帶來了更好的價值。所以，我並不認為這種需求會消失。我們顯然希望確保在這些市場中我們擁有適當的組合，並且我們參與業務的各個方面。我們不想讓超值零件充斥市場。因此，這是一個管理品牌和管理我們解決方案的價格定位的問題。

Thank you.

謝謝。

And we have a question from the line of John Barton from Wachovia Securities. Please go ahead.

我們收到了來自美聯銀行證券公司的約翰巴頓的提問。請繼續。

Yes, thank you. On the topic of the Flash JV, just looking at the numbers of the operating loss, and then what was shipped off to Fujitsu, it would imply if I'm doing the math right, that the non-operating expense allocated to that division was about $3.5 million, which was down significantly from low-to-mid 20s over the last several quarters. Can you give us some insight as to why that number is changing the way it is, please?

是的，謝謝。關於 Flash JV 的話題，只要看一下營業虧損的數字，然後看看運往富士通的部分，如果我的計算正確的話，就意味著分配給該部門的非營業費用約為 350 萬美元，與過去幾個季度的 20% 左右相比大幅下降。您能否向我們解釋為什麼這個數字會發生這樣的變化？

I'm not sure I follow your math. I mean, we continue to have shared service models between the 2 business -- between AMD and the business. That has not changed very dramatically. Of course, we've tried to rein in as much cost as possible with the weak business environment. We will continue to do that on a go-forward basis.

我不確定我是否理解了你的數學。我的意思是，我們繼續在兩個業務之間（AMD 和該業務之間）共享服務模式。這一點並沒有發生太大的變化。當然，在商業環境疲軟的情況下，我們盡力控製成本。我們將繼續這樣做。

The operating loss reported was $39 million. It was about 16, 17 million shipped off to Fujitsu, which, like, represents 40 percent of the overall loss. And so the number I'm backing into is the difference between the operating loss and the total loss. And that spread looking like it's about 3.5 million versus, again, something in the mid 20s. Am I missing something in the bath -- in the math, Bob?

報告的營業虧損為 3900 萬美元。其中約有 1,600 萬到 1,700 萬台被運往富士通，佔總損失的 40%。所以我支持的數字是營業虧損和總虧損之間的差額。而且這個數字看起來大約是 350 萬，而實際數字大約在 20 多萬。鮑勃，我是不是漏掉了數學方面的一些東西？

No, I think you got the math right. So I -- I don't know that specific answer to your question, I guess is the real issue. But we can -- I think off-line we can figure that one out together.

不，我認為你的計算是正確的。所以我——我不知道你的問題的具體答案，我猜這是真正的問題。但我們可以——我認為我們可以在線下一起解決這個問題。

Fair enough. Then on the topic of gross margins, again, just trying to triangulate back into your data, my model would imply that gross margins for Flash went from somewhere in the mid 20s to, call it, somewhere in the mid-teens quarter-on-quarter. Am I in the ballpark on those numbers?

很公平。然後關於毛利率的話題，再次，只是試圖對您的數據進行三角測量，我的模型表明 Flash 的毛利率從 25% 左右上升到季度環比的 15% 左右。我對這些數字的估計準確嗎？

You're not wildly crazy.

你並沒有瘋狂。

Okay. Then, finally, the $49 million charge for the debt restructuring, from a line-item perspective, all the interest in other or was that broken across multiple lines?

好的。那麼，最後，從分項角度來看，4,900 萬美元的債務重組費用是否全部計入其他項目，還是分成多項？

No all -- except for the 2.9 million that's sitting in the restructuring line, the rest of it's in the interest income and other line on the P&L.

不是全部——除了重組項目中的 290 萬美元外，其餘的都在損益表中的利息收入和其他項目中。

Okay. And I lied. One last one. Just from the convertible interest add-back perspective, relatively 0 in this quarter, I believe, and then what are we look at going forward?

好的。我撒了謊。最後一個。僅從可轉換利息加回的角度來看，我認為本季相對為 0，那麼我們對未來的展望是什麼？

0 for this quarter because we lost money. So you're not seeing the diluted shares come in from the convertible. So it kind of depends on your model of how profitable you want us to be. But clearly, it'll be back in -- like it was in prior quarters, all of the other quarters of 2004. But at lesser count, remember, because we did retire 200 million of the 400 million 4.5 percent security.

本季為 0，因為我們虧損了。因此，您不會看到可轉換債券帶來的稀釋股份。所以這取決於您希望我們獲得多少利潤的模型。但顯然，它會回到——就像前幾季一樣，2004 年的所有其他季度也是如此。但請記住，這是較少的計數，因為我們確實撤回了 4 億 4.5% 擔保中的 2 億。

Thank you.

謝謝。

Our next question is from the line of Chris Danely from J.P. Morgan. Please go ahead.

我們的下一個問題來自摩根大通的 Chris Danely。請繼續。

Thanks, guys. Bob, just a follow-up on John's question. So that means that you guys think you'll be profitable in Q1?

謝謝大家。鮑勃，我只是想跟進約翰的問題。那麼，這意味著你們認為你們將在第一季實現盈利嗎？

Yes.

是的。

Great. And then, just another net on the CPU gross margins. So you think that they go up or stay flat in Q1 with the revenues of flat-to-down?

偉大的。然後，再看看 CPU 毛利率。所以您認為第一季的營收會上升還是持平，收入會持平或下降嗎？

We think we're on a path to continue to see progression in gross margin. It's obviously easier in a growth environment of the top-line than in a shrinking environment. I mean, there's no surprise in that. But with our cost reductions, and as Henri says, the continued mix management to actually participate in every segment of the market, we believe ASPs can continue to move in a northward basis, as they did, really, throughout 2004, except for the fourth quarter. And, therefore, gross margins will improve.

我們認為，毛利率將繼續上升。顯然，在營收成長的環境中比在營收萎縮的環境中更容易。我的意思是，這並不奇怪。但隨著我們降低成本，正如亨利所說，我們繼續進行組合管理以實際參與市場的每個部分，我們相信平均售價可以繼續向北移動，就像我們在 2004 年全年（第四季度除外）所做的那樣。因此，毛利率將會提高。

Okay. Great. And last question, on the inventories, it's getting up above 100 days. What are your plans for utilization rates in the first half of the year? Do you plan on bringing down that inventory and bringing down utilization rates, or just keep running like you are right now?

好的。偉大的。最後一個問題，關於庫存，庫存已經超過 100 天。您對上半年的使用率有何規劃？您是否計劃降低庫存並降低利用率，還是繼續保持目前的營運狀態？

It kind of depends on business. In the microprocessor business, we run every wafer we can run, maximizing the revenue for that facility based upon where we are and where we need to be for our customers. Flash, to be honest, we actually slowed down a little bit in the fourth quarter. It was a little late. But we're actually reviewing that as we speak to actually be more aggressive, as Hector said, to accelerate technology migration total 90-nanometer node, increase MirrorBit as a percentage of the total and actually move this inventory that we have.

這有點取決於業務。在微處理器業務中，我們運行每一個可以運行的晶圓，根據我們目前的位置以及我們需要為客戶服務的位置來最大化工廠的收入。Flash，說實話，我們在第四節實際上放慢了一點速度。有點晚了。但實際上，我們正​​在審查這一點，正如赫克託所說，我們實際上會更加積極地加速技術遷移到 90 奈米節點，增加 MirrorBit 在總量中的百分比，並實際轉移我們擁有的庫存。

Sure. So on that point, it doesn't sound like the CapEx is going to change?

當然。那麼從這一點來看，資本支出似乎不會改變？

No, not at this point. We'll obviously continue to review it. As we have, I think we've demonstrated good financial scrutiny on CapEx to try to modulate that with the business environment.

不，目前還不行。我們顯然會繼續審查它。正如我們所做的那樣，我認為我們已經對資本支出進行了良好的財務審查，並試圖根據商業環境進行調整。

Got it. Okay. Thanks a lot, guys.

知道了。好的。非常感謝大家。

Thank you.

謝謝。

And our next question is from Paul Leming from Soleil Securities. Please go ahead.

我們的下一個問題來自 Soleil Securities 的 Paul Leming。請繼續。

My question has been answered. Thanks, very much.

我的問題已得到解答。非常感謝。

Operator, we're going to take 2 more questions, please.

接線員，我們還想回答 2 個問題。

Very good. And our next question is from Allan Mishan from CIBC World Markets. Please go ahead.

非常好。下一個問題來自加拿大帝國商業銀行世界市場的艾倫‧米尚 (Allan Mishan)。請繼續。

Hi. Can you tell if desktop grew faster than server in unit terms this quarter, please?

你好。您能否告訴我本季桌上型電腦的單位成長速度是否比伺服器快？

Yes, we had -- are you talking -- in pure units, we had a slightly higher growth.

是的，您說的是，從純單位來看，我們的成長略高一些。

Great. And being that Sempron, I guess, is a consumer-oriented product and Q1 is generally not the big consumer quarter, would you expect for your ASPs to trend back up in Q1?

偉大的。我猜 Sempron 是一款面向消費者的產品，而第一季通常不是消費旺季，您是否預計您的平均售價會在第一季回升？

As a result of the mechanical mix, yes, we expect ASP to trends back up in Q1. Also because we expect, as I indicated previously, an acceleration in the Opteron server sales in Q1.

由於機械組合的影響，我們預計 ASP 在第一季將回升。也因為我們預計，正如我之前所說，第一季 Opteron 伺服器的銷售將會加速成長。

Right. Okay. Great. And just one last housekeeping one. Do you have a share-count number if you did the, I guess, what is it, $.05 without the $.13 charge?

正確的。好的。偉大的。最後一個家務事。如果您這樣做了，您有股票計數數字嗎？我猜，它是多少？沒有 0.13 美元的費用，是 0.05 美元嗎？

It's right in the 400 -- yes, the number would be right in the $410 million -- 410 million share range.

是的，這個數字正好在 4.1 億美元到 4.1 億股的範圍內。

Okay. Great. And just remind us what the break points are for when the different converts hit now that you did that change?

好的。偉大的。並且提醒我們，既然您進行了這樣的改變，那麼當不同的轉換發生時，斷點是什麼？

9 -- I think it's $.09 on the $200 million convert that's still out there, and $.20-some on the 500 million 4.75. Mike will check that if you want to call Mike back, but I -- that's in a ball -- that's a pretty good ballpark. It's 8 or 9, and just maybe north of 20.

9——我認為在仍存在的 2 億美元轉換中是 0.09 美元，在 5 億美元轉換中是 0.20 美元左右，即 4.75 美元。如果您想回電給麥克，麥克會檢查這一點，但是我 — — 那是一個相當不錯的球場。溫度是 8 或 9，甚至可能剛好超過 20。

Okay. Thanks, very much.

好的。非常感謝。

Sure.

當然。

And our final question is a follow-up from Ben Lynch of Deutsche Bank. Please go ahead.

我們的最後一個問題是德意志銀行的 Ben Lynch 提出的後續問題。請繼續。

Yes. Hi. Henri, it's a probably a question for you. You guys have pretty consistently been gaining revenue market share from Intel the last 18 months or so. And it looks like you lost some in Q4, although your unit share stayed sort of flattish. When do you think we could expect to see you guys, just based momentum and stuff, resuming your revenue share wins?

是的。你好。亨利，這可能是你問的一個問題。過去 18 個月左右，你們一直在從英特爾手中不斷獲取收入市場份額。儘管您的單位份額保持平穩，但看起來您在第四季度有所損失。您認為我們什麼時候可以看到你們，僅基於勢頭和其他因素，恢復你們的收入份額勝利？

Well, Ben, first I would remind you that, of course, we started from a pretty good performance in Q3 and had a high watermark. So quarter-to-quarter, indeed, we're not pleased with the fact that we lost a bit of revenue share. But on a year-to-year basis, we still achieved a pretty good performance in Q4. As we indicated, we believe that in Q1, the acceleration of our commercial segment efforts will pay dividends. And, of course, it's our strategy to continue to focus on gaining both revenue share and unit share, and not simply unit share.

好吧，本，首先我要提醒你，當然，我們在第三季的表現相當不錯，並且取得了很高的成績。因此，就季度而言，我們確實對損失一些收入份額感到不滿。但與去年同期相比，我們在第四季仍然取得了相當不錯的業績。正如我們所指出的，我們相信，在第一季度，我們商業部門努力的加速將會帶來回報。當然，我們的策略是繼續專注於獲得收入份額和單位份額，而不僅僅是單位份額。

One other comment I'd make, Ben, just make sure we're all -- we do not have a 14-week first quarter. 2005 is not our year to pick up that extra week versus our competitor. So just want to make sure that's on the table, you don't assume that. We are not the same. We've only got a 13-week quarter.

本，我還要說一點，請確保我們都沒有 14 週的第一季。 2005 年不是我們與競爭對手爭奪多一週優勢的一年。所以只是想確保這一點，你不要想當然地認為這一點。我們不一樣。我們的季度只有 13 週。

Yes. That's important as well. Thanks, very much.

是的。這也很重要。非常感謝。

Okay. Great. That concludes the call. Thank you, everyone, for your participation.

好的。偉大的。通話到此結束。謝謝大家的參與。

Thank you. And, ladies and gentlemen, once again as a reminder this conference is available for replay after 7:45 p.m. Pacific time today through January 28 at midnight. You may access the replay service by dialing 1-800-475-6701 and enter access code of 765351. International participants may dial 320-365-3844, and, again, use the same access code, 765351. 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，再次提醒大家，本次會議的錄影可在晚上 7:45 之後重播。太平洋時間今天至 1 月 28 日午夜。您可以撥打1-800-475-6701並輸入接取碼765351來存取重播服務。國際參與者可以撥打 320-365-3844，並再次使用相同的接入碼 765351。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。