超微半導體 (AMD) 2005 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by and welcome to a AMD's Q-1 '05 earnings conference call. (OPERATOR INSTRUCTIONS). As a reminder, today's conference call is being recorded. I would now like to turn the conference over to your host for today -- or opening speaker -- Director of Investor Relations at AMD, Mike Haase. Please go ahead

女士們、先生們，感謝各位的支持，歡迎參加 AMD 2005 年第一季財報電話會議。 （操作員指令）。提醒一下，今天的電話會議正在錄音。現在，我想將會議交給今天的主持人——或者說開幕演講者——AMD 投資者關係總監 Mike Haase。請繼續

Thank you, everyone. Welcome to AMD's first 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 Chief Sales and Marketing Officer.

謝謝大家。歡迎參加 AMD 第一季財報電話會議。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；以及我們的首席銷售和行銷長 Henri Richard。

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 776654. The telephone replay will be available for the next 10 days, starting at 7 p.m. Pacific time tonight.

本次電話會議為現場直播，將在 amd.com 和 streetevents.com 上重播，電話重播號碼為 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 776654。電話重播將在接下來的 10 天內提供，從晚上 7 點開始。今晚太平洋時間。

For your planning purposes, I want to call to your attention two upcoming AMD events: On April 21 we will be hosting our second AMD Offline Anniversary Event in New York City. And that's next Thursday, April 21st. Also, on June 10, AMD will host a technology focused Analysts' Day, also in New York City. For that event, we'll be sending out invitations next month.

為了您的規劃目的，我想提請您注意即將舉行的兩場 AMD 活動：4 月 21 日，我們將在紐約市舉辦第二屆 AMD 線下週年紀念活動。那是下週四，4 月 21 日。此外，6 月 10 日，AMD 還將在紐約舉辦以技術為重點的分析師日活動。對於該活動，我們將於下個月發出邀請。

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.

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。

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 discuss in detail our risk factors and our business [inaudible - background noise]. 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 26, 2004.

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存在重大差異，我鼓勵您查看我們向美國證券交易委員會提交的文件，我們在其中詳細討論了我們的風險因素和我們的業務[聽不清楚 - 背景噪音]。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 2004 年 12 月 26 日的 10-K 表格年度報告。

With that, I will turn it over to Hector Ruiz

我將把話題交給 Hector Ruiz

Thank you, Mike.

謝謝你，麥克。

The first quarter of 2005 was a continuation of the same two themes that defined our fourth quarter of 2004. We saw strong momentum across our microprocessor business, leading to a quarter of record sales and record operating income for AMD on that side of the business. And we saw continued challenges in the flash memory market, including a seasonally down quarter, a continued state of over supply and strong pricing pressure.

2005 年第一季延續了 2004 年第四季的兩個主題。我們的微處理器業務發展勢頭強勁，AMD 該業務的季度銷售額和營業收入均創歷史新高。我們看到快閃記憶體市場持續面臨挑戰，包括季節性下滑、持續的供應過剩狀態和強大的價格壓力。

We have taken aggressive action to improve both our immediate and long-term prospects for our memory business. First, through both process and design enhancements, we have brought in the performance footprint of our 256 megabit MirrorBit product and expanded shipments to include three of the top 10 wireless phone manufacturers. We experienced a rise in [inaudible] unit shipments in the quarter, a sign of steady industry demand for our new flash memory products. In addition, we achieved substantive revenue for our 110 nanometer MirrorBit products.

我們已採取積極行動來改善我們記憶體業務的近期和長期前景。首先，透過製程和設計的改進，我們擴大了 256 兆位元 MirrorBit 產品的效能足跡，並將出貨量擴大到包括十大無線電話製造商中的三家。本季我們的[聽不清楚]單位出貨量有所成長，顯示產業對我們的新快閃記憶體產品的需求穩定。此外，我們的110奈米MirrorBit產品也獲得了可觀的收入。

Second, Spansion filed an SEC form S-1 today. This is a continuation of a strategy that we began putting in place over two years ago when we recognized the need to enable completely different business models in each of our two businesses, as well as the need to expand our options to fund this capital intensive operation while enhancing AMD shareholder value.

其次，Spansion 今天向美國證券交易委員會提交了 S-1 表格。這是我們兩年前開始實施的一項策略的延續，當時我們認識到，需要在我們的兩項業務中實現完全不同的商業模式，以及需要擴大我們的選擇來為這項資本密集型業務提供資金，同時提高 AMD 股東價值。

After filing the S-1, we have undertaken a number of actions to significantly reduce our expenses, including the streamlining operations, continuing to align manufacturing utilization to our level of demand, and working to reduce costs associated with AMD and Fujitsu service agreements. As a result to this filing, SEC rules place limitations on our [inaudible - highly accented language) concerning the flash business in this session.

在提交 S-1 後，我們採取了一系列措施來大幅削減開支，包括精簡營運、繼續使製造利用率與我們的需求水準保持一致，以及努力降低與 AMD 和富士通服務協議相關的成本。由於此次提交，美國證券交易委員會 (SEC) 規則對我們在本次交易中涉及的快閃記憶體業務進行了限制。

Our processor business is not just growing. It's accelerating, thanks to the strong adoption of the AMD 64 processor platform across channels, segments, and geographies. The first quarter of 2005, processor revenues were up 31% year-on-year, and sales of both our AMD Opteron and AMD Athlon 64 processors, more than doubled from the period a year ago.

我們的處理器業務不僅僅是在成長。由於 AMD 64 處理器平台在各個通路、各個領域和各個地區被廣泛採用，這項進程正在加速。2005年第一季度，處理器營收比去年同期成長了31%，我們的AMD Opteron和AMD Athlon 64處理器的銷量比去年同期成長了一倍多。

As a reminder, the growth rate is actually higher than our overall processor growth rate in 2004, and we have grown faster than the processor market in both 2004 and believe we have in the first quarter of 2005 as well. We are particularly proud of AMD 64 adoption among our strategic OEM customers.

提醒一下，這一成長率實際上高於我們 2004 年的整體處理器成長率，而且我們在 2004 年的成長速度也高於處理器市場的成長速度，相信在 2005 年第一季也是如此。我們對我們的策略 OEM 客戶採用 AMD 64 感到特別自豪。

In the first quarter, Sun Microsystems launched their second generation V20z and V40z servers, featuring AMD Opteron processors models 252 and 852. HP expanded their Enterprise class offering with the addition of the ProLiant DL 385, the BL 25 p, and the BL 35 p server blades and the xw9300 Workstation.

第一季度，Sun Microsystems 推出了第二代 V20z 和 V40z 伺服器，採用 AMD Opteron 處理器型號 252 和 852。HP 增加了 ProLiant DL 385、BL 25 p、BL 35 p 伺服器刀鋒和 xw9300 工作站，擴展了其企業級產品。

Based on the strength of our AMD Opteron brand, we continued our unprecedented growth in the server and enterprise segments, adding new global enterprise class customers, including Akamai, Cable and Wireless, EDS, Goodyear, Honda, Lucas Films, MBNA, Met Life of Mexico, and Syntel, among many others in the first quarter.

憑藉 AMD Opteron 品牌的強大實力，我們在第一季繼續在伺服器和企業領域取得前所未有的成長，並增加了新的全球企業級客戶，其中包括 Akamai、Cable and Wireless、EDS、Goodyear、Honda、Lucas Films、MBNA、Met Life of Mexico 和 Syntel 等。

We now claim that over 55% of the companies in the Forbes Global 100 have satisfied AMD 64 customers. That is up from 40% last quarter. AMD 64 base processors now represent 63% of our processor business, the result of expanding demand, continued strong yields, and world-class manufacture and execution. By the end of 2005, we expect nearly 100% of all CPG processors to be based on our industry-leading AMD 64 technology.

我們現在聲稱，《富比士》全球 100 強企業中超過 55% 的公司已經讓 AMD 64 位客戶感到滿意。這一比例比上一季的 40% 有所上升。AMD 64 位元基礎處理器目前占我們處理器業務的 63%，這是需求不斷擴大、產量持續強勁以及世界一流的製造和執行的結果。到 2005 年底，我們預計幾乎 100% 的 CPG 處理器都將基於我們業界領先的 AMD 64 技術。

Our transition to 90 nanometers is ahead of schedule with better-than-expected yields, resulting in continued capacity expansion to meet the growing demand for AMB products and solutions. Our 536 remains on schedule and on budget. And as a matter of fact, [inaudible] silicon started this quarter with production plan in the first half of 2006.

我們向 90 奈米的過渡提前完成，產量也好於預期，從而持續擴大產能，滿足對 AMB 產品和解決方案日益增長的需求。我們的 536 項目仍按計劃進行，且在預算之內。事實上，[聽不清楚] 矽片本季就開始生產，生產計畫在 2006 年上半年實施。

We continued our innovation leadership in the processor industry with the first public demonstrations of AMD 64 dual-core systems on existing Sun, Cray, and HP servers and workstations.

我們首次在現有的 Sun、Cray 和 HP 伺服器和工作站上公開展示 AMD 64 雙核心系統，繼續保持我們在處理器產業的創新領導地位。

As some of you may know, we are ahead of schedule on our dual-core AMD Opteron processor. In fact, we have been shipping samples to customers and partners since January, and unlike our competition, AMD 64 was built from the ground up to be multi-core. And unlike our competition, AMD 64 dual-core fits inside the same thermal envelope as our single-core processors. Therefore, in response to customer demand, and because of our rapid qualification cycle, we can confirm that we will indeed be launching our highly-anticipated AMD Athlon dual-core processor, the industry's first x 36 dual-core server processor, in New York next Thursday. We'll also preview our AMD Athlon 64 dual-core processor for desktops and notebooks.

你們中的一些人可能已經知道，我們的雙核心 AMD Opteron 處理器的開發進度已經提前了。事實上，自一月份以來，我們就一直在向客戶和合作夥伴發送樣品，與我們的競爭對手不同，AMD 64 從一開始就是多核心的。與我們的競爭對手不同的是，AMD 64 雙核心處理器與我們的單核心處理器具有相同的散熱範圍。因此，為了回應客戶的需求，並且由於我們的認證週期較短，我們可以確認，我們確實將於下週四在紐約推出備受期待的 AMD Athlon 雙核心處理器，這是業界首款 x 36 雙核心伺服器處理器。我們還將預覽適用於桌上型電腦和筆記型電腦的 AMD Athlon 64 雙核心處理器。

With AMD 64 dual-core technology, consumers and enterprise customers are going to be able to use their PCs, servers, and workstations in ways that they have never before. And to complement our growing server leadership, we're expanding our footprint in the enterprise with the launch of the AMD Turion 64 mobile technology, the first 64-bit processor family designed specifically for thin and light notebooks.

借助 AMD 64 雙核心技術，消費者和企業客戶將能夠以前所未有的方式使用他們的個人電腦、伺服器和工作站。為了鞏固我們在伺服器領域的領先地位，我們正在擴大在企業領域的影響力，推出 AMD Turion 64 行動技術，這是第一個專為輕薄筆記型電腦設計的 64 位元處理器系列。

Finally, we're thrilled that there [inaudible] manufacturing by Microsoft of their Windows XP Pro 64-bit edition was announced in the last couple of weeks. The first customer reactions and the reactions of those developers that have downloaded this edition believe it to be outstanding and phenomenally robust. And I would like to take the time now to thank, personally, our team on Microsoft, our partners and friends who have worked so diligently and hard to be able to make this a reality.

最後，我們很高興微軟在過去幾週宣布將生產 64 位元版本的 Windows XP Pro。第一批客戶的反應和下載了此版本的開發人員的反應都認為它非常出色且非常強大。現在，我想藉此機會親自感謝微軟團隊、合作夥伴和朋友，他們為實現這一目標付出了辛勤和艱辛的努力。

We continue with the great support of our partners on a steady path toward re-inventing the competitive dynamics of the microprocessor industry. Our Spansion team has taken swift and effective action to position themselves for immediate success, and we remain and plan to create the conditions for sustainable success in Spansion with the filing of the S-1.

在合作夥伴的大力支持下，我們將持續穩定地重塑微處理器產業的競爭態勢。我們的 Spansion 團隊已採取迅速有效的行動，為立即取得成功做好了準備，我們將繼續併計劃透過提交 S-1 文件為 Spansion 的可持續成功創造條件。

At this point, I would like to ask Bob to review the results of the quarter as well as the outlook.

現在，我想請鮑伯回顧一下本季的業績以及前景。

Thanks, Hector. As Hector pointed out, the first quarter was a quarter of contrast across our two major businesses. Unfortunately, the negatives more than offset the positives, and we were disappointed in our results.

謝謝，赫克托。正如赫克託所指出的，第一季是我們兩大業務形成對比的一個季度。不幸的是，負面因素遠遠超過了正面因素，我們對結果感到失望。

For AMD, sales were $1.2 billion, essentially flat with the first quarter of last year, and in a seasonally slow quarter, down slightly, 3% compared to the fourth quarter of 2004. We recorded a disappointing operating loss for the quarter of $46 million, due to the performance of our Memory business. Our loss per share was $0.04.

AMD 的銷售額為 12 億美元，與去年第一季基本持平，並且處於季節性淡季，與 2004 年第四季度相比略有下降，下降了 3%。由於記憶體業務的業績不佳，我們本季的營運虧損令人失望，為 4,600 萬美元。我們的每股虧損為 0.04 美元。

Gross margin declined to 34% for the quarter, below the 41% we reported in the fourth quarter and a 3.6 percentage point decline from the first quarter of last year. This decline was driven by a combination of very competitive flash memory pricing, intentional factory slow downs in the flash memory business, and to a lesser extent, the Euro foreign exchange effects.

本季毛利率下降至 34%，低於第四季報告的 41%，比去年第一季下降了 3.6 個百分點。造成此下降的因素包括快閃記憶體定價競爭非常激烈、工廠故意放緩快閃記憶體業務生產速度，以及歐元匯率的影響（但影響程度較小）。

Research and development spending was $253 million in the quarter, flat from the prior quarter. As previously guided, first quarter marking general and administrative costs decreased 14% as compared to the fourth quarter of 2004, closer to third quarter, 2004 levels. Cash flow from operation was $251 million for the quarter, and EBITDA was $331 million.

本季研發支出為 2.53 億美元，與上一季持平。如先前所預測的，第一季的一般和行政成本與 2004 年第四季相比下降了 14%，更接近 2004 年第三季的水平。本季經營現金流為 2.51 億美元，EBITDA 為 3.31 億美元。

Now, I'll switch to the business overview for the quarter. I'll start with computation product group. In a typically seasonable down quarter, CPG sales were $750 million, a new record, and a 31% increase over the same period a year ago. It was a 3% improvement from the fourth quarter.

現在，我將轉到本季度的業務概覽。我將從計算產品組開始。在典型的季節性下滑季度中，CPG 銷售額達到 7.5 億美元，創下新高，比去年同期成長 31%。與第四季相比，成長了 3%。

Unit sales in the quarter increased over the same period a year ago by 28%, and we saw strong demand in high-growth regions, particularly greater China. Overall, ASPs increased compared with the fourth quarter, and a new sales record were established both our server and mobile processor segments.

本季單位銷售額較去年同期成長 28%，我們看到高成長地區（尤其是大中華區）的需求強勁。總體而言，與第四季度相比，平均售價有所上漲，伺服器和行動處理器部門均創下了新的銷售記錄。

CBG's operating income of $92 million established a new high watermark in the quarter, up from the record levels of fourth quarter. This represents the seventh consecutive quarter of profitability for CPG. CPG gross margins slight -- decreased slightly from the fourth quarter, but with a healthy 54%.

CBG 的營業收入為 9,200 萬美元，創下本季新高，高於第四季的創紀錄水準。這標誌著 CPG 連續第七個季度獲利。CPG 毛利率略有下降——較第四季略有下降，但仍保持在健康的 54%。

Now, switching to our Memory business. As you know now, Spansion filed a form S-1 today and as Hector outlined a few moments ago, we are executing a strategy on which we embarked on two years ago to make Spansion a financially independent organization. This will allow us to create a consistently successful flash memory business. Flash memory is a a capital intensive business and our strategy is designed to give Spansion direct access to the capital markets going forward.

現在，轉到我們的記憶體業務。正如您現在所知，Spansion 今天提交了 S-1 表格，正如 Hector 剛才所概述的，我們正在執行兩年前開始實施的一項策略，旨在使 Spansion 成為一個財務獨立的組織。這將使我們能夠創建持續成功的快閃記憶體業務。快閃記憶體是一項資本密集型業務，我們的策略旨在讓 Spansion 未來能夠直接進入資本市場。

In a typically seasonable down first quarter, flash memory sales were $447 million, down 29% from the first quarter of 2004, and down 11% from the fourth quarter of last year. Despite industrywide oversupply, we shipped approximately 10% more units compared to the fourth quarter. We recorded a $110 million operating loss in our memory group in the quarter, a $71 million greater loss than we recorded in the fourth.

在通常呈現季節性下滑趨勢的第一季度，快閃記憶體銷售額為 4.47 億美元，比 2004 年第一季下降 29%，比去年第四季下降 11%。儘管整個行業供應過剩，但我們的出貨量與第四季相比仍增加了約 10%。本季度，我們的記憶體部門營運虧損 1.1 億美元，比第四季增加了 7,100 萬美元。

Through active expense management, first quarter spending was down from the fourth quarter, but this was more than offset by ASP decline and planned factory slow-downs. Our memory group's gross margin declined significantly in the quarter, approaching zero.

透過積極的費用管理，第一季的支出較第四季度有所下降，但這被平均售價的下降和計劃中的工廠減速所抵消。我們記憶體集團的毛利率在本季大幅下降，接近零。

Turning to the balance sheet: Cash balance was ended the first quarter at $1.1 billion. First quarter capital expenditures were $518 million, up from $470 million in the fourth quarter. We managed inventories down for the fourth quarter by $29 million, due to planned factory slow-downs in our flash memory business.

轉向資產負債表：第一季末的現金餘額為 11 億美元。第一季資本支出為 5.18 億美元，高於第四季的 4.7 億美元。由於我們快閃記憶體業務的計畫工廠減產，第四季度我們的庫存減少了 2,900 萬美元。

Now let's talk about the outlook. [Inaudible] are based on current expectations. The following statements are made -- are forward-looking and actual results could differ materially depending on market conditions. In a typical seasonable down second quarter, AMD expects processor sales to be flat or down slightly. Due to Spansion's filing of the SEC form S-1 today, AMD is not providing guidance for the flash memory business.

現在我們來談談前景。 [聽不清楚]是基於目前的預期。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。在典型的季節性下滑的第二季度，AMD 預計處理器銷量將持平或略有下降。由於 Spansion 今天向美國證券交易委員會提交了 S-1 表格，AMD 不會為快閃記憶體業務提供指導。

Second quarter operating expenses for AMD, which include research and development, marketing and general administrative expenses, are expected to increase by approximately 5% in the second quarter, mostly due to Fab 36 startup costs.

AMD 第二季度的營運費用（包括研發、行銷和一般管理費用）預計將增加約 5%，主要原因是 Fab 36 的啟動成本。

In summary, we're pleased with our computation -- for CPG performance and look forward to executing on the strategy for flash memory business over the coming quarters.

總而言之，我們對 CPG 效能的運算感到滿意，並期待在未來幾季執行快閃記憶體業務策略。

With that, I'll turn it back to Hector.

說完這些，我就把它交還給赫克托。

Thank you, Bob. Let me close by make a few comments on AMD's growing role as an innovation leader in our industry. Those of you who have followed us for awhile know that AMD has always been a fiercely competitive company. Many have said that we're the poster child for competition, and we're proud of that.

謝謝你，鮑伯。最後，我想就 AMD 作為我們行業創新領導者日益增強的作用發表一些評論。那些關注我們一段時間的人都知道，AMD 一直是一家競爭激烈的公司。許多人說我們是競爭的典型代表，我們對此感到自豪。

We also hope that you have noticed that with less than 10% of the resources of our competitor, we have methodically seized the mantel of innovation leadership in our industry. Our flawless conversion to 90 nanometer is our most recent example of innovation in manufacturing. Thanks to our automated precision manufacturing, our APM software, we can very efficiently ramp to mature yields leading to reduced time-to-market [inaudible] technologist.

我們也希望您已經注意到，我們僅利用了競爭對手不到 10% 的資源，就已經有系統地奪得了產業創新領導地位。我們完美地轉換為 90 奈米是我們製造領域創新的最新例子。由於我們的自動化精密製造和 APM 軟體，我們可以非常有效率地提高成熟產量，從而縮短產品上市時間 [聽不清楚] 技術人員。

Meanwhile, we have extended our innovation leadership into the design area, employing a customer-centric approach to design that has resulted in innovations such as PowerNow, the advanced power management technology that results in cooler microprocessor systems, years ahead of the competition; Hypertransport, our industry standard high through-put chip-to-chip interface; our Direct Connect Architecture, AMD innovative approach to system architecture that eliminates the bottlenecks that would otherwise hold back performance improvements in 64-bit and especially in multicore processor implementations; and of course, AMD 64, the first seamless migration path to provide the 64-bit processing power, and the only one designed with multi-core in mind.

同時，我們將創新領導力延伸到了設計領域，採用以客戶為中心的設計方法，並取得了許多創新，例如 PowerNow，這是一種先進的電源管理技術，可以使微處理器系統的溫度更低，領先競爭對手數年；Hypertransport，我們的產業標準高吞吐量晶片到晶片介面；我們的直接連接架構是 AMD 創新的系統架構方法，它消除了阻礙 64 位元和特別是多核心處理器實現效能提升的瓶頸；當然還有 AMD 64，這是第一條提供 64 位元處理能力的無縫遷移路徑，也是唯一一條在設計時考慮到多核心的路徑。

The industry has taken notice. Last month, AMD was the processor company on hand representing the hardware industry for Microsoft's partner, Summit, celebrating the launch of their 64-bit OS with the developer community.

業界已註意到了這一點。上個月，AMD 作為代表硬體產業的處理器公司出席了微軟合作夥伴 Summit 的活動，與開發者社群一起慶祝其 64 位元作業系統的發布。

Next week, AMD will keynote the National Association of Broadcasters' conference and demonstrate how the power of our 64-bit technology allows the nation's top graphics and recording artists to be more creative and more productive than ever before. We will also celebrate the second anniversary of AMD Opteron, where we will officially confirm our time-to-market leadership in the deployment of x86 based dual-core micro processors.

下週，AMD 將在全國廣播協會會議上發表主題演講，並展示我們的 64 位技術如何讓全國頂尖的圖形和錄音藝術家比以往更具創造力和生產力。我們也將慶祝 AMD Opteron 發布兩週年，屆時我們將正式確立我們在基於 x86 的雙核心微處理器部署方面的上市時間領先地位。

We are leading the industry by bringing new ideas to market, we're turning technology into concrete benefits for our customers and their end-users, and we're gaining the recognition of industry leaders for the value of our innovations that they'll bring to the market and to end-users.

我們透過將新理念推向市場來引領產業，我們將技術轉化為客戶及其最終用戶的具體利益，並且我們正在獲得行業領導者對我們將為市場和最終用戶帶來的創新價值的認可。

But for our Company to be able to advance our innovation leadership position, and for end-users to gain the benefits of these innovations, we must compete in an environment of fair and open competition, where our and their customers enjoy the freedom to choose the best technology in the market, without the intervention of illegal business practices. And that is why we applaud the work of the Japan Fair Trade Commission in their recent decision to condemn anticompetitive behavior in our industry in Japan.

但為了使我們公司能夠提升我們的創新領導地位，並讓最終用戶獲得這些創新的好處，我們必須在公平公開的競爭環境中競爭，我們和他們的客戶可以自由選擇市場上最好的技術，而不受非法商業行為的干預。這就是為什麼我們對日本公平貿易委員會最近譴責日本產業反競爭行為的決定表示讚賞。

From this point forward, we are expecting a much more balanced competitive playing field in Japan, and we're hopeful that regulators and business leaders around the world will follow suit to protect their consumers and create an environment of freedom of choice and fair and open competition in this highly competitive crucible of innovation.

從現在開始，我們期待日本的競爭環境更加均衡，我們也希望世界各地的監管機構和商界領袖能夠效仿，保護消費者，並在這個競爭激烈的創新熔爐中創造一個自由選擇、公平公開競爭的環境。

Thank you, and I want to turn this back to Mike Haase for the Q&A.

謝謝，我想把這個問題交還給 Mike Haase 進行問答。

Thank a lot, Hector. For the Q&A session, any flash questions regarding the first quarter, we will happily address. However, due to S-1 filing, we will not answer any forward-looking Flash Memory questions. With that, I'll turn it back over to the Operator and we'll begin the Q&A session.

非常感謝，赫克托。對於問答環節，任何有關第一季的突發問題，我們都很樂意解答。然而，由於 S-1 申請，我們不會回答任何有關快閃記憶體的前瞻性問題。說完這些，我將把麥克風交還給操作員，然後我們將開始問答環節。

And thank you. (OPERATOR INSTRUCTIONS) Our first question comes from the line of Joe Osha with Merrill Lynch. Please go ahead

謝謝你。 （操作員指示）我們的第一個問題來自美林證券的喬·奧沙。請繼續

Hi, folks. Congratulations in filing the deal. A couple of questions. First, Hector, can you give us a little more color on the transition to 90 nanometer and maybe, if you can, comment on 60 -- what 65 nanometer looks like in terms of what the plan for starts and outs is.

大家好。恭喜您達成交易。有幾個問題。首先，赫克托，您能否向我們詳細介紹一下向 90 奈米的過渡，如果可以的話，請您評論一下 60 到 65 奈米的啟動和退出計劃。

Okay, Joe. Let me start by saying that, you know, we had a plan to achieve complete conversion by the end of the second quarter in terms of ways for starts. We're very much on target to do that. We expect to accomplish it this quarter.

好的，喬。首先我要說的是，您知道，我們計劃在第二季末實現完全轉換。我們非常有望實現這一目標。我們預計本季將完成這一目標。

The one area where we have experienced a -- better than we have planned is in the area of defectivity. For those of you in the industry, that turns into yields, and we had hoped to reach defectivity levels at the point in time that we're competitive with 130, then that actually, we ended up doing that considerably ahead of that. And so we're very pleased with those -- the yields as a result of that. We had previewed that, as I said in my remarks, to the automated precision manufacturing technology that we've developed for many years.

我們經歷的一個比我們計劃的更好的領域是缺陷領域。對於業內人士來說，這會轉化為產量，我們曾希望在與 130 競爭時達到缺陷率水平，但實際上，我們最終將遠遠領先於這一水平。因此，我們對由此產生的收益感到非常滿意。正如我在演講中所說，我們已經預覽了我們多年來開發的自動化精密製造技術。

So, we're pretty -- very much confident that we're going to get there here pretty quick. We're talking about just a few more weeks before we're totally converted to 100% away for starts in 90 nanometers.

因此，我們非常有信心我們能夠很快實現這一目標。我們談論的只是再過幾週，我們就能完全轉換為 100% 的 90 奈米製程。

In terms of 65 nanometers, the work we're doing is jointly developed with IBM. We have been running now engineer and silicon use and study grants to provide the technology. We're very excited about the progress we're making there, and we expect that early in the life cycle of Fab 36, which is expected to be in the first half of next year, we will be building some 65 nanometer product. I can't tell you anymore than that now because, frankly, it's a lot of customer and product [inaudible] that we're making and it will be later on in the year where we will be able to have more clarity on that

在65奈米方面，我們正在做的工作是與IBM共同開發的。我們現在一直在運行工程師和矽片使用和研究補助金來提供該技術。我們對在那裡的進展感到非常興奮，我們預計在 Fab 36 生命週期的早期（預計在明年上半年），我們將生產一些 65 奈米產品。我現在不能告訴你更多，因為坦白說，我們正在製造很多客戶和產品[聽不清楚]，今年晚些時候我們才能更清楚地了解這一點

Okay, thanks. Just two quickies and then I'll go away. First, can you say anything qualitative about Opteron, either revenue or volume? And then secondly, question for Bob. I see there are still some pretty substantial losses attaching to this personal connectivity business. Do your comments about reducing costs in any way apply to those? And what should we expect in terms of the operating losses there? And that's it for me.

好的，謝謝。只要快速做兩下，然後我就走開。首先，您能否對 Opteron 的營收或銷售做出任何定性評價？其次，問鮑伯一個問題。我發現個人連接業務仍然存在相當大的損失。您關於降低成本的評論是否適用於這些？那麼，對於那裡的經營損失，我們應該預期到什麼程度呢？對我來說就是這樣。

Joe, this is Henri. With regards to some color on Opteron, I'll just tell you that we grew both revenue and units double digits.

喬，這是亨利。關於 Opteron 的一些細節，我只想告訴你，我們的收入和銷售都實現了兩位數的成長。

Is that sequentially?

是按順序嗎？

Yes.

是的。

All right, thank you

好的，謝謝

On your final question, Joe, on the PCS business, at the $30 million, you can see our cost structure is clearly well north of that. The key issue is volume. We continue to be -- have favorable press and opportunities for presenting ourselves in the PC area. but that's the key to that business, turning it around. We're comfortable with the level of investment we have at this point

喬，關於你的最後一個問題，關於 PCS 業務，在 3000 萬美元的規模下，你可以看到我們的成本結構明顯高於這個數字。關鍵問題是數量。我們繼續在 PC 領域獲得良好的媒體報告和展示自己的機會。但這正是該業務的關鍵，扭轉局面。我們對目前的投資水準感到滿意

Okay, thank you very much.

好的，非常感謝。

Thank you for your question. Our next question comes from the line of Adam Parker with Sanford Bernstein. Please go ahead.

感謝您的提問。我們的下一個問題來自桑福德伯恩斯坦的亞當帕克。請繼續。

Hi. A couple of questions here. I'm not sure I understand the moving parts for your operating margins in the CPG. I mean, it looks like you're, what, 12.2% here, down from 13.2%. 13.2 a couple of quarters ago, despite the additional revenue. So I'm trying to understand the moving parts. Is it mix or pricing, given you said you had record units, server, notebook, [inaudible] ramp, better yields, better -- how do I think about the operating margins not going up here over the last couple quarters?

你好。這裡有幾個問題。我不確定我是否了解 CPG 中營業利潤率的變動部分。我的意思是，看起來你這裡的支持率是 12.2%，低於 13.2%。儘管收入有所增加，但幾個季度前仍為 13.2。所以我試著去了解其中的活動部分。是產品組合還是定價？鑑於您說您​​擁有創紀錄的單位、伺服器、筆記型電腦、[聽不清楚] 坡道、更好的收益率、更好——我如何看待過去幾季的營業利潤率沒有上升？

We are building Fab 36

我們正在建造 Fab 36

So it's just depreciation and other costs -- startup costs?

所以它只是折舊和其他成本——啟動成本？

It's not depreciation --

這不是折舊——

Well, it's 4 million

嗯，是400萬

It's just pure startup costs associated with starting up a brand new 300 nanometer facility of hiring people and putting in chemicals and gases, et cetera

這只是啟動一個全新的 300 奈米設施的純粹啟動成本，包括僱用人員、投入化學品和氣體等

All right, so, given you said revenue's flat to slightly down in Q-2, and you said 5% up, ex growth, should I assume that your CPG operating margins are lower again in the second quarter?

好的，那麼，鑑於您說第二季度的收入持平或略有下降，並且您說增長了 5%，不包括增長，我是否應該假設您的 CPG 營業利潤率在第二季度再次下降？

I don't want to give guidance in either direction there

我不想在這方面給予任何指導

But your revenue's flat-to-down and your costs are up. Is that correct?

但您的收入持平甚至下降，而成本卻上升了。對嗎？

That's exactly what we said. Yes

我們就是這麼說的。是的

Okay, and lastly, what do you guys plan on doing with your tools in Fab 36? A couple of years from now, once they're no longer sort of suitable for making microprocessors?

好的，最後，你們打算用 Fab 36 中的工具做什麼？幾年後，它們就不再適合用來製造微處理器了？

I think you probably meant Fab 30

我想你可能指的是 Fab 30

30. Sorry. Yes. Yes.

30.對不起。是的。是的。

You know, we actually feel very optimistic about having such a wonderful facility. First of all, it's a world-class manufacturing facility with great people and as we expand the footprint of x86, which is rapidly gaining acceptance outside of the more traditional PC business -- and I mean that for example in industrial embedded as well as consumer electronics -- our projections are that we will be able to benefit from having an outstanding facility in place there. And to put it just in a brief sense of summary, our plan is to fill that sucker

你知道，我們實際上對擁有如此出色的設施感到非常樂觀。首先，它是一個世界一流的製造工廠，擁有優秀的人才，隨著我們擴大 x86 的足跡，x86 在更傳統的 PC 業務之外迅速獲得認可 - 我的意思是，例如在工業嵌入式和消費電子產品中 - 我們預計，我們將能夠從那裡擁有一流的設施中受益。簡單來說，我們的計畫就是填補這個空缺

So, you're going to use those tools -- you know, once they're no longer good for processors, what are you going use the tools for?

那麼，您將要使用這些工具——您知道，一旦它們不再適用於處理器，您將要用這些工具來做什麼？

For those things. Because these are pretty state-of-the-art tools. They're capable of going down to 90 nanometers as they are today, because that's what we're building, and in some cases, where we're talking about products that may not require the, you know, the bleeding, leading-edge performance, they're cable of actually doing better than that. So we expect that [inaudible] of that factory to be quite considerable. And with minor investments, much less significant than you would expect from a new factory, we believe we have a 10-year life in that factory, easily.

為了那些東西。因為這些都是相當先進的工具。它們能夠達到今天的水平，即 90 奈米，因為這就是我們正在建造的，在某些情況下，當我們談論的產品可能不需要最先進的性能時，它們實際上可以做得更好。因此我們預期該工廠的[聽不清楚]規模將相當可觀。而且只需少量投資，比新建工廠所需的投資要少得多，我們相信該工廠可以輕鬆維持 10 年。

And so, what -- the depreciation of the tools will be how many years?

那麼，工具的折舊需要多少年？

We depreciate wafer fab, 200 millimeter wafer fab in five years

我們在五年內折舊晶圓廠，200毫米晶圓廠

Five years Okay

五年好嗎

It's quite depreciated by the time we get out in time.

等我們及時出來的時候，它已經貶值了很多。

Okay. And then, sorry, one last thing. On the CapEx and depreciation for CPG over the next few quarters, can you give any kind of guidance there?

好的。然後，抱歉，還有最後一件事。關於未來幾季 CPG 的資本支出和折舊，您能給任何指導嗎？

It's unchanged from where we were before. We're still talking total corporation of $1.5 billion for the year, with the bulk of it being for CPG to build up Fab 36

它和我們以前的情況一樣，沒有任何變化。我們仍在討論今年公司總投資 15 億美元，其中大部分將用於 CPG 建設 Fab 36

So if you did 500, around, you expect the same amount here and then the big dropoff in the back half? In CapEx?

因此，如果您做了 500 左右，您預計這裡的數量相同，然後後半部分會大幅下降？在資本支出方面？

That's right.

這是正確的。

Okay, thank you.

好的，謝謝。

-- loaded as we put it in the first set of tools.

——按照我們在第一組工具中放置的方式進行載入。

Okay. Thanks.

好的。謝謝。

Thank you for your question. Our next question from Ben Lynch with Deutsche Bank. Please go ahead

感謝您的提問。下一個問題來自德意志銀行的本‧林奇 (Ben Lynch)。請繼續

Yes, hi, guys. You alluded to this, Hector, a bit, in your discussion, but there has been increasing talk about all these dual-core introductions over the last few weeks. Could you give AMD's perspective on how important you think dual-core is in 2005 and sort of separately for the server and the desktop segments, and also what you see as the -- I know you touched on this a little bit -- the respective pros and cons of the AMD and the Intel approaches.

是的，大家好。赫克托，你在討論中稍微提到了這一點，但過去幾週關於這些雙核介紹的討論越來越多。您能否從 AMD 的角度談談雙核心在 2005 年的重要性，以及對伺服器和桌上型電腦領域分別有何不同，還有您所看到的 — — 我知道您稍微提到了這一點 — — AMD 和英特爾方法各自的優缺點是什麼。

Let me make a couple of comments on the sequence of the choice we made in how we introduced dual-core and then I will ask Henri to make other comments relative to what the product and the market match to needs and applications.

讓我就我們推出雙核心的選擇順序發表幾點評論，然後我會請亨利就產品和市場與需求和應用的匹配發表其他評論。

First of all, we made the decision to put all our emphasis in the beginning in the server part of the market because that is the one that is ready to -- to jump on the exploitation of this technology. And our customers, as you will see later when they become more public next Thursday with the announcements of their products, it's -- there's an awful lot of excitement about the performance, the capability, the power footprint, the value of what dual-core's going to bring to the server and the enterprise.

首先，我們決定將所有重點放在伺服器市場，因為這個市場已經準備好利用這項技術。而我們的客戶，正如您將在下週四公開發布其產品時看到的那樣，他們對雙核心處理器將為伺服器和企業帶來的效能、功能、功耗和價值感到非常興奮。

We believe that over time, this technology will find incredibly powerful uses also in the client, but that, we believe that time sequence makes sense because there's today today no software that can really optimize this product in the client space.

我們相信，隨著時間的推移，這項技術也將在客戶端找到非常強大的用途，但我們相信時間順序是有意義的，因為今天沒有任何軟體能夠真正在客戶端領域優化該產品。

So that's the sequence that we chose and though you will see as we get a more public and crisp in our announcement next week, that because of the dependence of that client being an offshoot of the core of the server, that the time in between those two actually can be quite small.

這就是我們選擇的順序，儘管您會看到，隨著我們下週的公告變得更加公開和清晰，由於客戶端作為伺服器核心的分支的依賴性，這兩者之間的時間實際上可能非常小。

Henri, could you comment on the other part?

亨利，你能評論一下另一部分嗎？

Yes, Hector. Well, I think you already positioned a large part of the answer. Clearly, in the service space is the immediate usage and benefits for the end-users of the old core technology, providing it's implemented correctly. And in the desktop space and the client space in general, I think there is -- we don't see a single-core performance being dethroned by dual core until such time that the software system will be ready to take advantage. At which time we're very comfortable that our technology will be a leader, like it is today, in single-core absolute performance.

是的，赫克托。嗯，我想你已經定位了很大一部分答案。顯然，在服務領域，只要正確實施，舊核心技術的最終用戶就可以立即使用並獲得好處。而在桌面空間和一般的客戶端空間中，我認為——我們不會看到單核心效能被雙核心取代，直到軟體系統準備好利用這一優勢。到那時，我們非常有信心，我們的技術將像今天一樣，在單核心絕對性能方面處於領先地位。

And then, for the last part of your question, Ben, I think -- to use an analogy, can you take a car and then put two four-cylinder engines into the hood. That doesn't make it a V-8. And so I think that there's a very large difference between AMD 64, and the fact that it's been architectured from day one to be a multi-core architecture, and Intel's approach of taking two processors and gluing them on a chip with a bus that's already insufficiently sized for a single processor.

然後，對於你問題的最後一部分，本，我想——打個比方，你能把一輛車放在引擎蓋裡，然後安裝兩個四缸引擎嗎？這並不意味著它是 V-8。因此，我認為 AMD 64 與英特爾的方法有很大區別，AMD 64 從第一天起就被設計為多核心架構，而英特爾的方法則是將兩個處理器粘在一個晶片上，而該晶片的總線尺寸已經不足以容納單個處理器。

Great. I have a followup then on -- sorry, not far, but just related question on Flash. Q-1, of course, not Q-2. Operating profit deteriorated by something like 70 million and rev deteriorated by 60 million. That says a lot there. If I assume that -- you said units were up 10%. I don't know if this is a device units or megabit units, typically megabit units go up faster than device units, but could we think that pricing pressure was as bad as 21%, Q-on-Q? That's just looking the revenue and the unit numbers you gave would suggest?

偉大的。我有一個後續問題——抱歉，不是很深入，但只是關於 Flash 的相關問題。當然是 Q-1，不是 Q-2。營業利潤減少了約 7,000 萬，收入減少了 6,000 萬。這說明了很多問題。如果我假設—您說單位數量上漲了 10%。我不知道這是設備單位還是兆比特單位，通常兆比特單位的增長速度比設備單位快，但我們是否可以認為定價壓力環比下降 21%？那隻是看收入，您給的單位數字代表什麼？

It's a tad high, but we're definitely in those big double-digit numbers

雖然有點高，但我們肯定達到了兩位數

Okay, and there was no ability via MirrorBit or just shrinking a little bit more to really offset any of that?

好的，沒有辦法透過 MirrorBit 或只是稍微縮小一點來真正抵消這些影響嗎？

Henri could probably add a little color

Henri 或許可以加入一點顏色

Yes, I think you have to remember that this is the first quarter of the year in the the Wireless base. The large customer, the strategic customers are renegotiating their yearly contracts. So actually, the price pressure is two-fold. There was a tremendous amount of pressure in the market just as the business was going on. But also you also you had a reset of some of the large contracts with the market makers in the Wireless space.

是的，我想你必須記住，這是無線基地今年的第一季。大客戶、策略客戶正在重新談判他們的年度合約。因此實際上價格壓力是雙重的。業務開展之際，市場面臨巨大壓力。但您也重新設定了與無線領域做市商的一些大型合約。

So some of it is pure erosion and price pressure, and some of it is just readjustment of the pricing levels in the market as new technologies come to market

因此，其中一些是純粹的侵蝕和價格壓力，而另一些只是隨著新技術進入市場而對市場定價水平的重新調整

Great. Thank you very much.

偉大的。非常感謝。

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

謝謝。我們的下一個問題來自摩根士丹利的馬克·埃德爾斯通。請繼續。

Good afternoon, guys. Hector, a question. You gave a little bit more detail on the 90-nanometer ramp in terms of where the starts are going. But for the first quarter, can you give us what the average outs were? So, what percentage of outs on average in the quarter were 90-nanometer versus 130?

大家下午好。赫克托，有一個問題。您提供了有關 90 奈米坡道的更多細節，說明了起點在哪裡。但是對於第一季度，您能告訴我們平均出局數是多少嗎？那麼，本季平均有多少比例的出貨量是 90 奈米，有多少比例是 130 奈米？

You know, Mark, I don't think I -- off the top of my head I would know the answer right now. All I can tell you is that, you know, the wafer starts, which -- it's kind of the more traditional thing we look at -- will be 100% here in another few weeks by the end of the quarter. And that's -- you know, and maybe extrapolate back. I would say the ramp has accelerated in the -- between -- in the first and second quarter, is probably the steepest part of the ramp. So, we're -- I don't even want to guess the number. But those first and second quarter are the steepest accelerations

你知道，馬克，我不認為我現在就能立刻知道答案。我只能告訴你，你知道，晶圓的啟動——這是我們關注的更傳統的事情——將在本季度末的幾週內達到 100%。那是——你知道，也許可以推斷出來。我想說的是，在第一季和第二季之間，成長速度加快了，這可能是成長最陡峭的部分。所以，我們——我什至不想猜測這個數字。但第一季和第二季是成長最快的

Okay. I guess what I'm trying --

好的。我想我正在嘗試的是——

Mark, I'll try to give you a little bit different color on that. You know with -- I'll call it a relatively good cycle time, but cycle times in the 12-week kind of time period, you know, basically you will have all the die output in the third quarter being close to the 90 nanometer. So, we're pretty far down the pike as we -- as we closed out the first quarter. As Hector said, most of the starts in the second will convert all into 90-nanometer and the bulk of the output in the third quarter is all 90. So, per die, you've actually [inaudible].

馬克，我會嘗試給你一些不同的解釋。您知道 - 我將其稱為相對較好的周期時間，但是在 12 週的時間段內的周期時間，您知道，基本上第三季度的所有晶片產量都接近 90 奈米。因此，當我們結束第一季時，我們已經走了很遠了。正如Hector所說，第二季的大部分開工將全部轉為90奈米，第三季的大部分產量也將全部為90奈米。因此，對於每個骰子，你實際上[聽不清楚]。

Okay. I guess what I'm struggling with a little bit, Bob, is from a product perspective, your mix was richer in the quarter, yet the gross margins in CPG are down maybe 200 or 300 basis points sequentially. I'm assuming that that's all because you basically were trading off larger -- AM 64 die, basically, and that the full leverage of the transition, though, 130 -- from 130 to 90 nanometer, hasn't fully flown through the PNL yet

好的。鮑勃，我想我有點困惑的是，從產品角度來看，本季度你的產品組合更加豐富，但 CPG 的毛利率卻比上一季度下降了 200 或 300 個基點。我認為，這都是因為你基本上是在權衡更大的尺寸 — — AM 64 晶片，而從 130 奈米到 90 奈米的轉變的全部槓桿作用尚未完全通過 PNL

That's correct. I mean, we're still in the early stages of seeing the positive impact of the reduced cost structure to 90 nanometer. So there's more to come over the next two quarters from the conversion of 90 nanometer

沒錯。我的意思是，我們仍處於看到降低至 90 奈米的成本結構所帶來的正面影響的早期階段。因此，未來兩個季度，90 奈米轉換將帶來更多成果

Okay. So, I guess to look at it another way, if you're mixed in change in Q-2, I'm expecting then, unless we had a dramatic shift in pricing in the industry, that your gross margins and CPG would expand,

好的。所以，我想換個角度來看，如果你在第二季的變化是混合的，我預計，除非我們的行業定價發生巨大變化，否則你的毛利率和 CPG 將會擴大，

That's a reasonable assumption

這是一個合理的假設

Okay. Just two quick questions on Flash, if I could. Again, relating to the quarter. Were there any either write-downs or reserves taken in the flash business to deal with the adverse pricing conditions?

好的。如果可以的話，我只想問兩個關於 Flash 的簡單問題。再次，與本季相關。快閃記憶體業務中是否有任何減記或儲備來應對不利的定價條件？

Not on pricing. We were -- on inventory, of course, we continue to take the appropriate levels of reserves required of inventory, and we did step up inventory reserves in the quarter in the memory business

不涉及定價。當然，在庫存方面，我們繼續保持適當的庫存儲備水平，並且在本季度，我們確實增加了內存業務的庫存儲備。

Okay, I'm guessing that that partially explains some of the gross margin deterioration there?

好的，我猜這可以部分解釋那裡毛利率下降的原因？

Yes

是的

And then just lastly, our contacts would suggest that at least from a -- a little momentum perspective, the flash business started to improve as the quarter was progressing. Is that a fair statement?

最後，我們的聯絡人表示，至少從一點動力角度來看，隨著本季的進展，快閃記憶體業務開始改善。這是一個公平的說法嗎？

Can't answer that one, Mark. Sorry.

馬克，我無法回答這個問題。對不起。

Okay, thanks a lot, guys. And nice job on the Spansion spin,

好的，非常感謝大家。Spansion 的旋轉做得很好，

Thank you.

謝謝。

Thank you. Our next question comes from the line of Tim Luke, Lehman Brothers. Please go ahead

謝謝。我們的下一個問題來自雷曼兄弟的 Tim Luke。請繼續

Thanks. I was wondering if you could just clarify, Bob, with respect to the expenses that you suggest will be up 5%, whether that relates to overall AMD expenses

謝謝。鮑勃，我想知道您是否可以澄清一下，關於您建議的費用將增加 5%，這是否與 AMD 的整體費用有關

No, it's primarily -- I kind of think of it this way. I mean, as Hector said, you know, we started the first wafer start in the engineering mode and Fab 36, so it's mostly associated with Fab 36, of actually exercising the tools, so it's mostly R&D. Some of it will be marketing. As usual, that moves with the seasonality of the business, but the bulk of -- it's all CPG and it's mostly Fab 36.

不，主要是——我有點這麼認為。我的意思是，正如赫克託所說，你知道，我們在工程模式和 Fab 36 中啟動了第一個晶圓，所以它主要與 Fab 36 相關，實際使用工具，所以它主要是研發。其中一些將是行銷。像往常一樣，這會隨著業務的季節性而變化，但大部分都是 CPG，而且主要是 Fab 36。

And with respect to the flash in the first quarter, do you have a percentage that the MirrorBit represented in the first quarter?

關於第一季的閃存，MirrorBit 在第一季所佔的百分比是多少？

Tim, MirrorBit was in the same range that it's been the last two previous quarters. Double digit

提姆，MirrorBit 的股價與前兩季持平。兩位數

Okay And then, if you could possibly comment on the Turion and how we should think about that in terms of a framework for expectations.

好的，然後，如果您可以評論一下 Turion 以及我們應該如何從期望框架的角度來考慮它。

Sure. Well, you know, we announced the Turion 64 platform during Q-1. We made very good progress in terms of the design and activity of [inaudible] and you should look at Q-2 as the quarter where you are going to see those design wins turn into platforms launched into the market by our customers with, you know, acceleration in terms of the volumes in Q-3 and Q-4. So, Q-1 involves the technology, Q-2, you're going to see the products, and then Q-3 and Q-4, we're going to start to see the ramp of sales

當然。嗯，您知道，我們在第一季發布了 Turion 64 平台。我們在 [聽不清楚] 的設計和活動方面取得了非常好的進展，您應該將第二季度視為一個季度，您將看到這些設計勝利轉化為我們的客戶向市場推出的平台，並且，您知道，第三季度和第四季度的銷量將加速增長。因此，Q-1 涉及技術，Q-2，你會看到產品，然後 Q-3 和 Q-4，我們將開始看到銷售額的成長

Just one other thing for Bob. Just, on the shape of the year and the progression of the margins, how should we think about the operating margin progressing in CPG as the costs go lower for Fab 36?

對鮑伯來說還有一件事。只是，根據今年的情況和利潤率的成長，隨著 Fab 36 成本的降低，我們該如何看待 CPG 的營業利潤率的成長？

Well, Fab 36 actually continues to increase throughout the year as we continue to ramp the capacity, hire more employees, et cetera. So we've got a cost increase that is building for Fab 36. On the other side, though, on the positive side, we'll see the full benefits of the 90-nanometer conversion and the continued penetration into the richer markets on the ASP fronts. So you've kind of got balancing between both sides of the equation.

嗯，隨著我們不斷提高產能、僱用更多員工等，Fab 36 實際上全年都在持續成長。因此，Fab 36 的成本正在增加。但另一方面，從積極的一面來看，我們將看到 90 奈米轉換的全部好處以及在 ASP 方面繼續滲透到更富裕的市場。因此你需要在等式的兩邊取得平衡。

Thank you

謝謝

With additional capacity, you know, unit capacity that comes online, so we're not at the top of the house.

你知道，有了額外的容量，也就是上線的單位容量，所以我們就不再處於最高位置了。

If you could just clarify to the extent you're able comment on it, the goal entering the IPO is that you will IPO a percentage of Spansion and then distribute the rest to shareholders? Is that the structure, why you can't provide any details, that you're looking at?

如果您能澄清一下，在您能夠評論的範圍內，首次公開募股的目標是將 Spansion 的一部分股份公開發行，然後將剩餘的股份分配給股東？這是您正在查看的結構嗎？為什麼您不能提供任何細節？

No, that's not what the document says.

不，文件上不是這麼說的。

Could you clarify that then

能澄清一下嗎

Basically, the document says we will do the initial IPO for the appropriate structure to capitalize that business. AMD will still be the significant owner of that business.

基本上，該文件表示我們將以適當的結構進行首次公開募股，以使該業務資本化。AMD 仍將是該業務的主要所有者。

And the majority shareholder?

大股東呢？

Yes.

是的。

So, it will be consolidated within your results going forward

因此，它將合併到您未來的結果中

We -- as we stated in the S-1, our goal is not to consolidate that business. We think through that process of actually doing the IPO, that will probably move us to a level that consolidation would not be allowed

正如我們在 S-1 中所述，我們的目標不是合併該業務。我們認為，透過實際進行 IPO 的過程，這可能會讓我們達到不允許合併的水平

To be a minority interest line in your income statement

成為損益表中的少數股東權益行

That's correct

沒錯

Thank you very much.

非常感謝。

But, please read the document. I think it's fairly clear in the document.

但是，請閱讀該文件。我認為文件中已經說得很清楚了。

So, for modeling purposes, that's what we should frame as?

那麼，為了建模的目的，我們應該將其建構為這樣嗎？

Yes

是的

Thank you

謝謝

And thank you for your question. Our next question is from the line of Michael Masdea with CSFB. Please go ahead.

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

Yes, thanks a lot. Maybe Henri can give us a little bit of color on Japan, the markets, [inaudible] a little bit behind us, hopefully. Is that a market where your market share's a little bit lower? And what's the dynamics of that market in terms of mix that you typically see over there?

是的，非常感謝。也許亨利可以給我們介紹日本、市場，[聽不清楚] 以及我們身後的情況，希望如此。在那個市場中你們的市佔率是不是有點低？從您通常看到的組合來看，該市場的動態是什麼樣的？

Well, I think what is really relevant today in the Japanese market is the introduction of our Turion brand. This is a very competitive offering that we've got. Clearly, some of the recent events are allowing us to take a different stance, in terms of how we want to attack the opportunity that's in front of us in the Japanese market. We have a very good product that is available, and I'm obviously expecting some market share gains in the Japanese market and with our Japanese OEM partners.

嗯，我認為今天在日本市場真正相關的是我們的 Turion 品牌的推出。這是我們提供的一個非常有競爭力的產品。顯然，最近發生的一些事件讓我們能夠採取不同的立場，考慮如何抓住日本市場為我們帶來的機會。我們有非常好的產品，我顯然期望在日本市場以及與我們的日本 OEM 合作夥伴的合作下能夠獲得一些市場份額。

Okay. And then on the dual-core side, we've seen some pricing from your competitors start to leak out there. Help us understand kind of what the cost structure looks like, going from single-core and dual-core, and I believe it's a little different between you and your competitor.

好的。在雙核心方面，我們看到一些來自競爭對手的定價資訊開始洩漏。幫助我們了解從單核心到雙核心的成本結構是什麼樣的，我相信您和您的競爭對手之間會有所不同。

And then, what are you expecting for pricing? Is pricing going to move much relative to the single-core of similar specs?

那麼，您對定價有什麼期望呢？與類似規格的單核心相比，價格會有很大的變動嗎？

Well, you know, I cannot talk about my competitor's pricing strategy, but our strategy is very clear. We believe that dual-core brings significant value to the enterprise in the server space. They're probably not proposing a product there because they can't. There is a significant premium for performance in the server environment, and we intend to take advantage of that opportunity that is in front of us.

嗯，你知道，我不能談論我的競爭對手的定價策略，但我們的策略非常明確。我們相信雙核心能為伺服器領域的企業帶來巨大的價值。他們可能不會在那裡推薦產品，因為他們做不到。伺服器環境中的效能有顯著的優勢，我們打算利用擺在我們面前的這個機會。

As far as the client's space, as I stated before, we need to wait until the software ecosystem is ready to take full advantage of dual-core implementation. And at that time, based on our customers' feedback, we'll be ready to take advantage of that opportunity.

就客戶端空間而言，正如我之前所說，我們需要等到軟體生態系統準備好充分利用雙核心實作。屆時，我們將根據客戶的回饋，準備好利用這個機會。

Great. This last question's for Hector. Hector, you said earlier you've got 10% of the resources of your competitor. You've obviously made a number of shifts in the computing landscape with some technology you introduced recently. You feel like you can continue to survive with that kind of 10% rate, or do you look to expand that over time, now that you're more focused on the processor business?

偉大的。最後一個問題是問赫克託的。赫克托，你之前說過你擁有競爭對手 10% 的資源。您最近推出的一些技術顯然對計算領域產生了許多影響。您覺得在 10% 的利率下可以繼續生存下去嗎？或者說，隨著您現在更加專注於處理器業務，您是否希望隨著時間的推移擴大這一利率？

Well, we've always stated our goal is to become a relevant and significant player in the industry. And so long as we're operating in an environment of free and open and fair competition, we have complete confidence that we'll we continue to out-innovate the competition and gain the trust and business that our customers are going to wish to give us.

嗯，我們一直表示我們的目標是成為業界中具有影響力和重要性的參與者。只要我們在自由、開放和公平的競爭環境中運營，我們就完全有信心繼續在創新上超越競爭對手，贏得客戶對我們的信任和業務。

Great, thanks.

太好了，謝謝。

Thank you for your question. Our next question is from the line of Krishna Shankar with JMP Securities

感謝您的提問。下一個問題來自 JMP 證券的 Krishna Shankar

Lost him.

失去了他。

Between Sempron and Athlon 64, in terms of the PC mix, and for the new dual-core Opteron launch, will the new product support things such as PCI Express, DDR-2 memory, and will it incorporate your PowerNow savings technology?

就 PC 組合而言，在 Sempron 和 Athlon 64 之間，對於新推出的雙核心 Opteron，新產品是否會支援 PCI Express、DDR-2 記憶體等，並且是否會採用您的 PowerNow 節能技術？

I'm sorry, Krishna. You were cut out at the beginning. I didn't hear the beginning of your question, but I guess that you were asking if there was a shift between Q-4 and Q-1 in our mix between Sempron and Athlon 64? Is that the question?

對不起，克里希納。你一開始就被淘汰了。我沒有聽到您問題的開頭，但我猜您是在問在我們將 Sempron 和 Athlon 64 混合時 Q-4 和 Q-1 之間是否存在轉變？這是問題嗎？

Yes, how did your value as a performance mix do, Q-4 to Q-1? As Sempron --

是的，您的績效組合價值如何？ Q-4 到 Q-1？作為 Sempron——

Well, we're seeing an increase. There was an increase in AMD 64 base product overall. And within those architecture, obviously, the Athlon 64 grew faster than Sempron. As I indicated, if you recall, in Q-4, we had a very good surprise, a very strong success on Sempron, but in Q-1, we came back to a more balanced ratio of Sempron to Athlon 64, in favor of Athlon 64.

嗯，我們看到了成長。AMD 64 基礎產品整體增加。在這些架構中，Athlon 64 的成長速度顯然比 Sempron 更快。正如我所指出的，如果您還記得的話，在第四季度，我們獲得了一個非常驚訝的結果，在 Sempron 上取得了非常大的成功，但在第一季度，我們又回到了 Sempron 與 Athlon 64 更平衡的比例，傾向於 Athlon 64。

And then, the second part of your question, relative to dual-core, I guess you wanted to understand our strategy from the DDR1 to DDR2 transition and PCI express support?

然後，您問題的第二部分，相對於雙核，我想您想了解我們從 DDR1 到 DDR2 的過渡以及 PCI Express 支援的策略？

That's correct

沒錯

Okay. Well, PCI express, two sets are available to date that support the AMD64 platform, across all variation of it, in the mobile space, in the desktop space, and in the server space. Relative to DDR1 versus DDR2, as you know, the direct connect architecture places a very different problematic, in terms of system performance, on the table. We don't need DDR2 to exceed the performance of our competitor on DDR2. We have a planned transition to DDR2 in 2006 that we're working in concert with our [inaudible - heavily accented language] partners and customers to make in a timely fashion, when finally DDR2 will provide a performance enhancement to our architecture.

好的。嗯，PCI Express，目前有兩套支援 AMD64 平台的套件，涵蓋其所有版本，包括行動領域、桌面領域和伺服器領域。如您所知，相對於 DDR1 和 DDR2，直接連接架構在系統效能方面提出了非常不同的問題。我們不需要 DDR2 超越我們競爭對手在 DDR2 上的表現。我們計劃在 2006 年過渡到 DDR2，我們正在與我們的 [聽不清楚 - 帶有濃重口音的語言] 合作夥伴和客戶一起合作，以便及時完成過渡，最終 DDR2 將為我們的架構提供效能增強。

We are very confident that we will continue to have superior benchmark capability, based on DDR1, well into 2006.

我們非常有信心，到 2006 年，我們將繼續擁有基於 DDR1 的卓越基準測試能力。

Okay. And can you also comment on your chipsets for Turion 64? Who are your partners in terms of the mobile chipset and Wireless LAN solutions.

好的。您能評論一下 Turion 64 晶片組嗎？在行動晶片組和無線區域網路解決方案方面，你們的合作夥伴是誰？

Sure. Well, you know, we took an approach of a mobile platform for Turion 64. The chipset partners that we have are the usual chipset partners that you find in the [inaudible] namely, ATI, nVidea, VIA, SiS, and others. And as far as the wireless connectivity, you've got of course Broadcom, Atheros, and others. So, it's the usual ecosystem that you find around AMD platforms

當然。嗯，你知道，我們採用了針對 Turion 64 的行動平台的方法。我們的晶片組合作夥伴是您在 [聽不清楚] 中常見的晶片組合作夥伴，即 ATI、nVidea、VIA、SiS 等。至於無線連接，當然有 Broadcom、Atheros 和其他公司可供選擇。所以，這是你在 AMD 平台周圍常見的生態系統

And can you articulate a little bit your own sort of open platform strategy, versus your competitors' more closed platform approach? Can you talk a little bit about your platform strategy going forward?

您能否稍微闡述一下您自己的開放平台策略，與競爭對手的更封閉的平台方法相比？能稍微談談您未來的平台策略嗎？

Well, let's talk about it in the -- for at least the next 12 months. I believe that there is an awful lot of technology transitions occurring in the platforms, particularly in Wireless space where the standards keep evolving in improvement and performance and a lot players are making a concerted investment in the core competency they have.

好吧，讓我們至少在未來 12 個月內討論這個問題。我相信平台上正在發生大量的技術轉變，特別是在無線領域，該領域的標準在改進和性能方面不斷發展，許多參與者正在對其核心競爭力進行協同投資。

Let me use the example of [inaudible] just as one. Here's a company that's totally focused on being a premier company in that space. I believe it's our duty, our responsibility, to offer our customers the choice of best-in-class in each of these categories, and I believe that, at least in the foreseeable future, you're going to see players that -- like the ones Henri mentioned, where customers will have the opportunity to actually select the platform. They will have best-in-class in every one of the components, not only just on the CPU, but on the peripheral circuitry that they will want and need

讓我以[聽不清楚]為例。這是一家全心全意致力於成為該領域一流公司的公司。我相信，我們的責任和義務是為我們的客戶提供每個類別中最佳的選擇，我相信，至少在可預見的未來，你會看到像亨利提到的那樣的參與者，客戶將有機會真正選擇平台。他們將擁有一流的每一個組件，不僅僅是在 CPU 上，而且在他們想要和需要的外圍電路上

Great. And finally, can you give us some sense for how rapidly the Turion 64 could ramp up in the second half of the year and the ASPs there versus your premium Athlon 64 ASPs on the desktop?

偉大的。最後，您能否告訴我們，Turion 64 在今年下半年的銷售成長速度有多快，以及與高階 Athlon 64 在桌上的 ASP 相比，Turion 64 的平均售價會有多高？

You know, Krishna, it's a little early. As I indicated, our customer platforms are going to be out in the market in Q-2. What we have seen to date is from an acceptance perspective in the OEM community, it's our fastest design win, visible velocity in the mobile space, because it's a very competitive offering. I will translate into end-user and corporate users buying the product of our customers. It's too early to tell. But we expect to see, obviously, an increase in share in the mobile space, thanks to the Turion 64 platform

你知道，克里希納，現在有點早。正如我所指出的，我們的客戶平台將在第二季上市。到目前為止，從 OEM 社群的接受度來看，這是我們最快的設計勝利，在行動領域速度明顯加快，因為它是一款非常有競爭力的產品。我將轉化為最終用戶和企業用戶購買我們客戶的產品。現在下結論還為時過早。但我們預計，由於 Turion 64 平台，行動領域的份額將顯著增加

Thank you.

謝謝。

Thank you for your question. Our next question comes from the line of Glen Yeung with Smith Barney. Please go ahead.

感謝您的提問。我們的下一個問題來自 Smith Barney 的 Glen Yeung。請繼續。

Thank you very much. Hector, I think I heard you say that you were going to be at 100% 64-bit architecture at some point. I didn't catch the timing of that. Could you just reiterate that?

非常感謝。赫克托，我想我聽到你說過，你最終會採用 100% 64 位元架構。我沒注意到那個時間。能再重申一下嗎？

That's right. We believe that by the end of the year we'll be at nearly 100% of all of our CPG microprocessors, be AMD 64-based

這是正確的。我們相信，到今年年底，我們所有 CPG 微處理器幾乎 100% 都將基於 AMD 64

Okay. And then maybe, Bob, to expand on that, if all else were to be equal, can you talk about what kind of impact that would have on gross margins and then sort of as a subtext to that, is there a way to think about the mix between Athlon 64 and Sempron? Is there a target mix that you guys are looking for?

好的。那麼，鮑勃，也許可以進一步闡述一下，如果其他所有因素都相同，您能否談談這會對毛利率產生什麼樣的影響，然後作為潛台詞，有沒有辦法考慮 Athlon 64 和 Sempron 之間的混合？你們正在尋找目標組合嗎？

It's not -- I'll make a couple of comments and then Henri can add color to that, too, as well. We build our strategy on some fairly powerful and unique platforms inside AMD. For example, the process technology is identical for all of our products and the core technology is fairly similar so that you can think of all the AMD 64-base processors as being relative to each other, so if we dial them in as we build the products and our desire, as we've shown for the last couple of quarters, since the gross rate of servers and mobile have been faster, as would expect, because that's what the market is -- the direction the market is going.

不是——我會發表一些評論，然後亨利也可以對此進行補充。我們的策略建立在 AMD 內部一些相當強大和獨特的平台上。例如，我們所有產品的工藝技術都是相同的，核心技術也相當相似，因此您可以將所有 AMD 64 位元處理器視為彼此相關的，因此如果我們在構建產品時撥打它們，我們的願望，正如我們在過去幾個季度所展示的那樣，由於伺服器和行動裝置的毛利率一直更快，正如預期的那樣，因為這就是市場 - 市場的發展方向。

We expect that those two segments, server and mobile, to continue to outpace the growth of any other segment, and for us to be able to dial that in as appropriate, based on our customers. I, believe that all of that leads, then, to an improved utilization of our factory, an improved utilization of our technology, and -- as expected -- and our gaining position in the strengthening in the market, leads to improved margins. Our expectation is that margins will continue to improve

我們預計伺服器和行動這兩個領域的成長速度將繼續超過其他任何領域的成長速度，並且我們能夠根據客戶需求，適當地調整這一領域。我相信，所有這些都將提高我們工廠的利用率，提高我們技術的利用率，而且——正如預期的那樣——我們在市場中的地位不斷提高，從而提高了利潤率。我們預計利潤率將持續提高

Great. Actually, I need one more for Henri. As we think about dual- core, we've done some work that suggests that your competitor's dual-core parts are something like 80% bigger, but recognizing that they have a different architecture or a different approach than you have. Can you maybe give us a feel for relative to that bogy of 80%, whether or not your dual-core is above or below that watermark?

偉大的。事實上，我還需要一個給亨利。當我們考慮雙核心時，我們做了一些工作，表明您的競爭對手的雙核心部件大約要大 80%，但我們認識到他們採用與您不同的架構或不同的方法。您能否讓我們感受一下相對於 80% 這個標準，您的雙核心是否高於或低於這個水位線？

You mean -- is that a die size question?

您的意思是——這是一個晶片尺寸的問題嗎？

Die size, yes.

模具尺寸，是的。

Yes. Clearly, we know our die size is smaller than our competitor. But again, I want to stress the the fact they don't have dual-core parts. They have two processors glued on the same chip.

是的。顯然，我們知道我們的晶片尺寸比競爭對手的要小。但我再次強調，它們沒有雙核心部件。他們將兩個處理器黏在同一晶片上。

Exactly. I guess I mean relative -- not relative to their part, but relative to your single-core

確切地。我想我的意思是相對——不是相對於他們的部分，而是相對於你的單核

Oh, no. I don't have that off my head. But again, I think that as you will see the competition forum in the desktop space, relative to dual-core or two processor on the chip versus single-core, the high-end of the market, where the performance matters, single-core processor, particularly as our Athlon 64 FX brand continues to gain wide acceptance in that community, will outpace any dual-core offering for quite a while. So, you know, again, in the performance market, we see our single-core processor retain the performance lead.

哦，不。我還沒有忘記這一點。但是，我認為，正如您在桌面領域的競爭論壇中看到的，相對於雙核或晶片上的兩個處理器與單核的競爭，在性能至關重要的高端市場中，單核處理器，特別是我們的 Athlon 64 FX 品牌在該領域繼續獲得廣泛認可，將在相當長的一段時間內超越任何雙核產品。所以，你知道，在效能市場上，我們看到我們的單核心處理器保持了效能領先地位。

As far as the penetration of dual-core in the value markets, we believe that it will eventually happen, but it's not immediately and that we'll be prepared by then to have a competitive offering when our customers require it

至於雙核心處理器在價值市場的滲透，我們相信它最終會發生，但不會立即發生，屆時我們將做好準備，在客戶需要時提供具有競爭力的產品。

Okay. By the way, I'm an FX 55 user and it's plenty fast. So, it's great. Thanks.

好的。順便說一句，我是 FX 55 用戶，它的速度非常快。所以，這很棒。謝謝。

Well, thank you for your vote of confidence.

好吧，感謝您的信任。

Thank you for your question. Our next question comes from Chris Danely with J.P. Morgan. Please go ahead.

感謝您的提問。下一個問題來自摩根大通的克里斯丹利 (Chris Danely)。請繼續。

Hey, thanks, guys. Just a quick clarification and a few questions. So, can we assume that the IPO is going to happen this quarter? Or has that not been determined?

嘿，謝謝大家。只是想簡單澄清一下並提出幾個問題。那麼，我們可以假設 IPO 將在本季進行嗎？或尚未確定？

[Laughter.] Good try

[笑聲] 不錯的嘗試

Hey, you know. Zero for 1.

嘿，你知道的。1 為零。

How about a couple of non-flash questions. On the CPU business, gross margins in the mid-50s, obviously, a pretty good level there. You know, traditionally, been up and down. What do you see as sort of the normalized gross margin on your CPU business and what do you see as the range? I mean, we're talking 50 to 60%? Or 45 to 55? Can you just give us your thoughts on that?

有幾個非閃光問題怎麼樣？就 CPU 業務而言，毛利率在 50% 左右，顯然這是一個相當不錯的水平。你知道，傳統上，總是起起伏伏。您認為 CPU 業務的標準化毛利率是多少？其範圍是多少？我的意思是，我們說的是 50% 到 60%？還是 45 到 55？您能告訴我們您對此的看法嗎？

Yes. This is Bob. I'll give you my thoughts. I mean, 50, 55, is -- 54, what I reported today -- is fairly normal. Clearly with volume, depending on exactly what mix we shift, what die we shift, et cetera, we'll move that around fairly quickly on a small revenue base. But our goal is to be north of 60. So, you know, where we continue to try to move the organization to 60, and that's through continued cost reductions of conversion -- conversion to factories of 90 nanometers, and continued penetration in the markets we've never played in before

是的。這是鮑伯。我會告訴你我的想法。我的意思是，50、55，也就是──54，我今天報告的數字，是相當正常的。顯然，就數量而言，取決於我們轉移的組合、轉移的模具等等，我們會在較小的收入基礎上相當快地轉移。但我們的目標是達到 60 以上。所以，你知道，我們繼續嘗試將​​組織規模擴大到 60，這是透過持續降低轉換成本——轉換為 90 奈米工廠，並繼續滲透到我們從未涉足過的市場。

Sure. And then can you guys comment on the 300--millimeter ramp?

當然。那你們能評論一下 300 毫米的坡道嗎？

What we can tell you right now is that the factory build occurred on schedule and on budget. And we started engineering silicon this quarter, so we're running currently engineering in the factory and it's already buttoned up and it's a gorgeous factory. Really executing fairly well. And our plan is to start running actually prototype silicon towards the end of the year and be in production the first half of next year

我們現在可以告訴您的是，工廠的建設按計劃和預算進行。我們本季開始進行矽片工程，因此我們目前正在工廠內進行工程，一切已經準備就緒，這是一座華麗的工廠。確實執行得相當好。我們的計劃是在今年年底開始運行原型矽片，並於明年上半年投入生產

Great. And then, last question, what is the inventory mix between flash and CPUs?

偉大的。然後，最後一個問題，快閃記憶體和 CPU 之間的庫存組合是怎樣的？

We don't give that level of granularity, but clearly in the flash business, part of my comments of some of the gross margin issue is we slowed the factories down because the demand environment is so slow. So bottom line is we got a little bit more inventory on the flash side than we do on the microprocessor side

我們沒有給出這種程度的詳細說明，但顯然在快閃記憶體業務中，我對部分毛利率問題的評論是，我們放慢了工廠的生產速度，因為需求環境太慢了。所以，我們的快閃記憶體庫存比微處理器庫存略多一些

Great, thanks.

太好了，謝謝。

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

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

Thank you very much. With IPO -- and presumably there is going to be quite a bit of change to the balance sheet -- Bob, do you have any goals in terms of your maximum level of debt or minimum level of net cash over the next year to two?

非常感謝。隨著 IPO——大概資產負債表會發生相當大的變化——鮑勃，在未來一到兩年內，您對最高債務水平或最低淨現金水平有什麼目標嗎？

Not ready to actually talk about that, since we have a long way to go through the SEC process, et cetera, et cetera. But that's something I will talk about in the future as we go through that. But we still are working. Overall, we think a healthy company should be having debt-to-capital ratio of about 20%. So, long-term, we have not taken our sights off that. So that's what we will continue to target. But obviously, that is not going to happen in a very quick period of time, but that's where we're trying to get to.

還沒有準備好真正談論這個問題，因為我們還有很長的路要走，透過美國證券交易委員會的流程等等。但這是我將來在我們討論這個問題時會談論的事情。但我們仍在努力。總體而言，我們認為一家健康的公司的債務資本比率應該在 20% 左右。因此，從長遠來看，我們不會放棄這一點。這就是我們將繼續努力的目標。但顯然，這不會在很短的時間內發生，但這就是我們正在努力實現的目標。

Just one quick followup on that. If I understand correctly from the S-1 filing, AMD is not selling any of its portion in this IPO. There will be no cash infusion as a result of this IPO, but there will be balance sheet improvement because debt goes away. Is that correct?

對此我只想進行一次快速的跟進。如果我對 S-1 文件的理解正確的話，AMD 不會出售其在本次 IPO 中的任何股份。此次 IPO 不會帶來現金注入，但由於債務消失，資產負債表將會改善。對嗎？

Yes. The IP -- the cash proceeds from from the IPO are for the Spansion organization

是的。IP——IPO 的現金收益將用於 Spansion 組織

Yes. Great. Thank you.

是的。偉大的。謝謝。

Thank you. Our next question is from the line of Michael McConnell with Pacific Crest Securities. Please go ahead

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

Thank you. Bob, I don't know if you already addressed this. If we were to back out the startup costs in Q-1, what would operating margins have been in CPG?

謝謝。鮑勃，我不知道你是否已經解決了這個問題。如果我們取消第一季的啟動成本，那麼 CPG 的營業利潤率是多少？

Don't want to go there

不想去那裡

Okay. Looking at kind of the above-seasonal growth you have seen in Q-1 and Q-2 -- and you're expecting in Q-2, is this more a function of you taking advantages, do you believe, with some of the product shortages from your competitor, or is it more just a healthier market and just some ASP improvement as well?

好的。從第一季和第二季的季節性成長來看，以及您對第二季的預期，您認為這是否更多的是您利用競爭對手產品短缺的優勢的結果，還是僅僅是因為市場更加健康，平均售價也得到了改善？

We believe -- and again, Henri can add to that -- but, we -- you know, if you look at our growth rate in 2004 over 2003, [inaudible] we grew 29% in the microprocessor business. We believe that is significantly higher than the market for the processors. In the first quarter, we drew 31% year-on-year. We also think that is also higher. That, I think, is an indication that the products that we are creating and building are products that are allowing us to win. And winning is gaining share and doing it while making money. I think the processor business has demonstrated that over the last several quarters.

我們相信 — — 亨利可以再次補充這一點 — — 但是，我們 — — 你知道，如果你看看我們 2004 年相對於 2003 年的增長率，[聽不清] 我們的微處理器業務增長了 29%。我們認為這明顯高於處理器的市場價格。第一季度，我們年增了31%。我們也認為這也更高。我認為，這表明我們正在創造和製造的產品能夠讓我們獲得成功。而成功就是要獲得市場份額，並且同時賺錢。我認為處理器業務在過去幾個季度已經證明了這一點。

And just how would you characterize the overall PC market heading into Q-2, just from a higher level, desktop versus mobile?

那麼，從更高的層面（桌上型電腦與行動裝置）您如何描述第二季度的整體 PC 市場？

Well, right now what we're seeing is a healthy market. You know, one of the characteristics of the first quarter was that it was very linear for us. As you know, second quarter is always a little more back-end loaded. It's a tough quarter to close because of some of the seasonality factors in Europe.

嗯，現在我們看到的是一個健康的市場。您知道，第一季的特點之一就是它對我們來說非常線性。如您所知，第二季的後端負載總是會更大一些。由於歐洲的一些季節性因素，本季的收尾工作十分艱難。

But you know, again, to build on what Hector said, we have two growth engines that were not traditionally in our business model. First, our server business is definitely growing and we're winning big-time, particularly in the Fortune 500 space. And secondly, our high growth markets. A large portion of our growth in the first quarter was derived from exceptional growth in the high-growth markets, where we believe we have a very solid offering, and -- markets like India or greater China or Russia are proving to be extremely good markets where seasonality is less effective than in the mature markets of Europe or North America

但你知道，再次重申赫克託所說的，我們有兩個傳統商業模式中沒有的成長引擎。首先，我們的伺服器業務確實在成長，我們取得了巨大的成功，特別是在財富 500 強領域。其次，我們的高成長市場。我們第一季的成長很大一部分來自於高成長市場的出色成長，我們相信我們在這些市場擁有非常穩固的產品和服務，事實證明，像印度、大中華區或俄羅斯這樣的市場是非常好的市場，因為這些市場的季節性不像歐洲或北美的成熟市場那麼明顯。

And has China -- the strength in China continued thus far into Q-2?

那麼，中國——中國的強勢是否延續到第二季​​？

Absolutely

絕對地

Thank you.

謝謝。

And thank you for your question. Next question from the line of Chris Caso with FBR. Please go ahead

感謝您的提問。下一個問題來自 FBR 的 Chris Caso。請繼續

Yes, hi. I was wondering if you could give some color, and to the extent that you can at this point, I realize it's early. But into the cost structure of AMD, once the IPO is completed and, more specifically, in terms of where the operating expenses might lie for a CPG-only business

是的，你好。我想知道您是否可以提供一些細節，就目前而言，我意識到現在還為時過早。但一旦 IPO 完成，AMD 的成本結構，更具體地說，對於僅從事 CPG 業務的營運費用可能在哪裡

I think that's, to be honest, I think that's too premature to answer that kind of question. There is so much information in the S-1 that we'll have to execute to, so I don't think I can answer that question at this moment

老實說，我認為現在回答這類問題還為時過早。S-1 文件中包含太多信息，我們需要根據這些信息來執行，所以我認為我現在無法回答這個問題

Okay, that's fair. I'll try another one.

好的，這很公平。我會嘗試另一個。

With regard to, you know, performance of the CPG group in Q-1, if you could give some color on the desktop business as a whole. Was that in line with what you'd expect normal seasonality? A little better, a little worse, what you can tell us in terms of units and revenue in the business?

關於 CPG 集團第一季的業績，您能否對整個桌面業務進行一些介紹？這符合您預期的正常季節性嗎？稍微好一點，稍微差一點，能告訴我們業務單位和收入方面的狀況嗎？

Well, I'm not going to give you too [inaudible] except to say that we had an ASP increase prior to Q-1, and that was led by the desktop business, as we continued to take advantage of the excellent positioning of Athlon 64 and Sempron.

好吧，我不會給你太多[聽不清楚]，只能說我們在第一季之前的平均銷售價格有所增加，這是由桌上型電腦業務推動的，因為我們繼續利用 Athlon 64 和 Sempron 的卓越定位。

We also had a very strong quarter in the channel. It was typically a desktop-driven piece of the business. So, the desktop business continues to do very well for us, but clearly, we see a lot of growth opportunity in server and mobile

本季度，我們在通路方面也表現非常強勁。它通常是桌面驅動的業務部分。因此，桌面業務對我們來說仍然表現良好，但顯然，我們在伺服器和行動領域看到了許多成長機會

Okay, thanks.

好的，謝謝。

Thank you for your question. Our next question from John Barton with Wachovia Securities. Please go ahead

感謝您的提問。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. On the topic of ASPs, you commented that obviously, they were up sequentially in the first quarter. If you were to narrow that calculation down to just AMD 64, quarter-on-quarter, how did ASPs track?

非常感謝。關於平均售價 (ASP) 的話題，您評論說，顯然，第一季的平均售價環比上漲。如果您將計算範圍縮小到 AMD 64，那麼季度環比平均售價如何？

I'm going to give you more granularity than what I said, which is, you know, our ASP increase was led by desktop. And we had stable ASPs on the two other segments.

我將向您提供比我所說的更詳細的信息，也就是說，我們的 ASP 成長是由桌面推動的。我們在另外兩個領域擁有穩定的平均售價。

Okay. And, Bob, you had commented that there were operating cost savings in the March quarter, in the first quarter for Spansion. Could you give us some idea of the magnitude of the savings, quarter-on-quarter?

好的。鮑勃，您曾說過，Spansion 第一季即三月的營運成本有所節省。您能否告訴我們季度季後節省的幅度是多少？

They're in the tens of millions of dollars. But obviously, wasn't anywhere near close enough since the loss expanded by $70 million, quarter-on-quarter

它們的價值高達數千萬美元。但顯然，這還遠遠不夠，因為虧損比上一季擴大了 7,000 萬美元

Right. Then final question, if I could. Obviously, tax benefit in the recently closed quarter, how should we be thinking about tax as we look at the next several quarters?

正確的。那麼最後一個問題，如果可以的話。顯然，最近結束的一個季度的稅收優惠，那麼展望接下來的幾個季度，我們應該如何考慮稅收？

We're still at the same point. We're, effectively, 10% kind of range. It will move around a little bit, depending on actually where the jurisdiction of the tax consequence takes place, but 10% for modeling is not a bad number

我們仍處於同一點。實際上，我們的範圍是 10%。它會稍微變動，取決於實際發生稅務後果的管轄地，但 10% 對於建模來說不是一個壞數字

Thank you.

謝謝。

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

接線員，我們還想回答兩個問題。

Thank you. Our next question comes from the line of Steve Lister with UBS. Please go ahead.

謝謝。我們的下一個問題來自瑞銀的史蒂夫·利斯特。請繼續。

Yes. This is Steve Eliscu for Tom Thornhill. Follow-up to a prior question regarding filling Fab 30. Wanted to better understand what you feel is the market opportunity for x86 processors in the embedded and the consumer markets.

是的。我是湯姆·索恩希爾 (Tom Thornhill) 的史蒂夫·埃利斯庫 (Steve Eliscu)。關於填充 Fab 30 的先前問題的後續問題。想要更了解您認為 x86 處理器在嵌入式和消費市場的市場機會是什麼。

We believe that there is a fairly large opportunity and a strong desire for people in the industrial segment of the market. These are people like Telcos, people who like make switches for telecommunications environment, to really exploit the benefits that Opteron has as an embedded product, and we have seen a very large interest in that. We believe that market is large, and when you look at the total embedded potential market for x-86, frankly, it's up in around $2 billion. So it's a fairly sizeable market. We think we deserve a big chunk of that today. We're a very small player in it. Therefore, that is one factor.

我們相信，工業領域市場存在相當大的機會，人們也有強烈的願望。這些人就像電信業者，他們喜歡為電信環境製造交換機，真正利用 Opteron 作為嵌入式產品的優勢，我們看到他們對此有極大的興趣。我們相信這個市場很大，當你看看 x-86 的整個嵌入式潛在市場時，坦白說，它的價值約為 20 億美元。所以這是一個相當大的市場。我們認為我們今天應該得到其中很大一部分。我們在這個領域中扮演的角色非常小。因此，這是一個因素。

But when you go to the other extreme of the curve, you are now into the much lower cost and lower power and smaller, you know, footprint applications, where you look at a variety of consumer electronics and that brings us into the digitalized -- digital convergence. I'm going to ask Henri to make some comments on digital convergence, because we believe that, for us, it gives us a great opportunity to expand the footprint of x-86, on quite a different strategy than the competition has

但當你走到曲線的另一個極端時，你會發現成本更低、功耗更低、佔用空間更小的應用，你會看到各種各樣的消費性電子產品，這將我們帶入數位融合。我將請亨利對數位融合發表一些評論，因為我們相信，對我們來說，這為我們擴大 x-86 的足跡提供了一個很好的機會，其策略與競爭對手截然不同。

Yes. What we have seen in the consumer electronic space is obviously a set of market makers that are not traditional PC market makers that have seen a business model develop in the PC industry that is not a favorable -- you know, it's basically a vendor-driven industry rather than a customer-driven industry.

是的。我們在消費電子領域看到的顯然是一群市場製造者，他們不是傳統的個人電腦市場製造者，他們看到個人電腦行業發展出一種不利的商業模式——你知道，它基本上是一個由供應商驅動的行業，而不是由客戶驅動的行業。

Consumer electronics, historically, has been a customer-driven industry. They want to retain that business model. And so we're seeing a lot of interest for x86-based solution manufactured by AMD, because we are seen as a friendly partnership-oriented company in that space.

從歷史上看，消費性電子產品一直是一個由客戶驅動的行業。他們希望保留這種商業模式。因此，我們看到人們對 AMD 生產的基於 x86 的解決方案非常感興趣，因為我們被視為該領域的一家友好合作夥伴導向的公司。

Great. As a followup, regarding 64 bits, just clarification on Sempron. So, you plan to actually market that as 64-bit processor. Is that correct?

偉大的。作為後續，關於 64 位，僅對 Sempron 進行澄清。所以，您計劃將其作為 64 位元處理器進行行銷。對嗎？

Yes, we have always been clear that there is a differentiation between Athlon 64 and Sempron. It's not based on whether it's 32 bit or 64 bit. They address different markets. Sempron is for the value-conscience buyer, Athlon 64 is for the performance-driven buyer.

是的，我們一直都很清楚，Athlon 64 和 Sempron 之間存在著差異。它不是基於它是 32 位元還是 64 位元。它們針對不同的市場。Sempron 適合注重價值的買家，而 Athlon 64 則適合注重效能的買家。

But we've also made very clear that our ambition is to lead this industry, the pervasive 64-bit computing, and as such, it wouldn't make sense for us to keep alive 32-bit processors which, frankly, are rapidly becoming something of the past and, therefore, you should expect that at some point in time the entire lineup of AMD 64-based processors from AMD will be 64-bit enabled

但我們也明確表示，我們的目標是引領這個行業，引領普及的 64 位元運算，因此，繼續使用 32 位元處理器對我們來說毫無意義，坦白說，32 位元處理器正在迅速成為過去，因此，您應該可以預料到，在某個時間點，AMD 所有基於 AMD 64 位元的處理器產品線都將支援 64 位元

And that's before the end of this year?

那是在今年底之前嗎？

Most likely

最有可能的

Okay. And just one final question. If you could comment if you believe you'll be shipping material volumes of dual-core desktop and notebook processors this year.

好的。最後一個問題。如果您認為今年您將會出貨大量的雙核心桌上型電腦和筆記型電腦處理器，請評論一下。

The answer is yes.

答案是肯定的。

Okay. Thank you.

好的。謝謝。

Thank you. Our final question comes from the line of Simona Jankowski with Goldman Sachs. Please go ahead

謝謝。我們的最後一個問題來自高盛的 Simona Jankowski。請繼續

Hi. Thank you very much. I just wanted to ask you on the inventory. What do you think your inventory will be in Q22 directionally? Do you think [inaudible] going to be slowing down some of your fabs? And also, what is your target for later on in the year as far as basic Inventory?

你好。非常感謝。我只是想問你有關庫存的問題。您覺得Q22你們的庫存會有什麼方向？您是否認為[聽不清楚]會減慢您的一些晶圓廠的生產速度？另外，就基本庫存而言，您今年稍後的目標是什麼？

First, I can't comment on Flash. That would be forward-looking guidance, so I can't comment there.

首先，我無法評論 Flash。這將是前瞻性的指導，所以我無法對此發表評論。

Micro processors, you know, we clearly build to the market demand, and as we have stated before, we're executing quite well in that business and so we're bringing on additional capacity to service the market so that we will continue to be extraordinarily higher growth rate than our competition. So, inventory to me is not an issue in the microprocessor business.

你知道，微處理器是我們明確根據市場需求而構建的，正如我們之前所說，我們在該業務上表現相當不錯，因此我們正在增加額外的產能來服務市場，以便我們能夠繼續保持比競爭對手高得多的增長率。因此，對我來說，庫存不是微處理器業務的問題。

What is your comfortable range for basic inventory?

您對基本庫存的舒適範圍是多少？

We're very comfortable. Actually, I don't give that level of granularity, but we're very comfortable in the microprocessor business

我們非常舒服。實際上，我沒有給出這種程度的粒度，但我們在微處理器業務方面非常熟悉

Thank you very much.

非常感謝。

Okay, that concludes the call. I want to thank everyone for participating and hopefully a number of you will show up at our dual-core launch next Thursday as well. Thank you very much.

好的，通話結束。我要感謝大家的參與，希望你們中的一些人也能參加我們下週四的雙核發表會。非常感謝。

Thank you, and Ladies and gentlemen, today's conference call is being made available for replay starting today at 7 p.m. Pacific time and running through Saturday, April 23, 2005. You may access our service by dialing 1-800-475-6701 and entering today's access code of 776654. Internationally, you may reach us by dialing 320-365-3844, again with the access code of 776654. [OPERATOR INSTRUCTIONS].

謝謝大家，女士們、先生們，今天的電話會議將於今天晚上 7 點開始重播。太平洋時間，持續至 2005 年 4 月 23 日星期六。您可以撥打 1-800-475-6701 並輸入今天的接入碼 776654 來存取我們的服務。在國際上，您可以撥打 320-365-3844 聯絡我們，接入碼也是 776654。 [操作員說明]。

That does conclude our conference call for today. We thank you for your participation as well as for using AT&T's executive teleconference service. You may now disconnect.

今天的電話會議就到此結束了。我們感謝您的參與以及使用 AT&T 的高階主管電話會議服務。您現在可以斷開連線。