超微半導體 (AMD) 2005 Q2 法說會逐字稿

Ladies and gentlemen, welcome to AMD's Q2 '05 earnings conference. At this time all lines are in a listen-only mode. Later there will be an opportunity for questions, instructions will be given at that time. If you should require assistance During the call, please press star then zero and as a reminder this conference is being recorded. I would now like to turn the conference over to Director of Investor Relations, Mike Haase. Please go ahead, sir.

女士們、先生們，歡迎參加 AMD 2005 年第二季財報會議。此時所有線路均處於只聽模式。稍後將有機會提問，屆時將給予說明。如果您在通話過程中需要協助，請按星號然後按零，提醒您本次會議正在錄音。現在，我想將會議交給投資者關係總監 Mike Haase。先生，請繼續。

Thank you. And welcome to AMD's second 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. This call is a live broadcast and will be replayed at www.amd.com and www.streetevents.com. Telephone replay number is 800-475-6701. Outside of the United States the number is 320-365-3844. The access code for both is 787311. The telephone replay will be available for the next 10 days starting at 7 p.m. PST tonight. For your planning purposes I want to call to your attention an upcoming Amd event. We will be hosting our Analyst Day in Sunnyvale, California the morning of November 15th. We will be sending out invitations in a few months for that.

謝謝。歡迎參加 AMD 第二季財報電話會議。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；以及我們的首席銷售和行銷長 Henri Richard。本次電話會議為現場直播，將在 www.amd.com 和 www.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 787311。電話重播將於晚上 7 點開始，持續 10 天。太平洋標準時間今晚。為了您的規劃目的，我想提請您注意即將舉行的 Amd 活動。我們將於 11 月 15 日上午在加州桑尼維爾舉辦分析師日活動。我們將在幾個月內發出邀請。

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 our current expectations as set forth in the forward-looking statements. 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 business and risk factors setting forth information that could cause actual results to differ materially from those in our forward-looking statements. 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, and AMD's Quarterly Report on Form 10-Q for the quarter ended March 27, 2005. With that I'll turn it over to 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。敬請投資人注意，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前瞻性陳述中所述的當前預期有重大差異。半導體產業整體波動較大，市場狀況尤其難以預測。由於我們的實際結果可能與我們今天的計劃和預期存在重大差異，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業務和風險因素，其中列出了可能導致實際結果與我們的前瞻性陳述存在重大差異的信息。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 表年度報告和 AMD 截至 2005 年 3 月 27 日的 10-Q 表季度報告。說完這些，我將把發言權交給赫克托·魯伊斯 (Hector Ruiz)。

Thank you, Mike. In the second quarter of 2005 AMD continued to show solid momentum gains in our microprocessor business. And in our Spansion Flash Memory operation we saw a moderate quarterly increase in revenues driven by increased demand for our Second-Generation MirrorBit Flash Memory products. MirrorBit revenues were up nearly 50% over the prior quarter and over half of our MirrorBit revenue in the quarter was from Second-Generation MirrorBit products. We are now in full production on our 110nm MirrorBit, 256Mb part and are seeing a broad adoption of this new technology among key OEMs across the wireless segment. We are pleased that SAGEM is using our 512Mb single-chip NOR Flash memory in their feature-reach mobile phones. We're likewise pleased with our Ornand code execution having seen the first 90nm silicon in the second quarter. In the meantime we remain on track with our plan for a more independent expansion, re-engineering the business model, reducing expenses, and stream lining operations.

謝謝你，麥克。2005 年第二季度，AMD 的微處理器業務持續呈現強勁成長動能。在我們的 Spansion 快閃記憶體業務中，我們看到季度收入適度成長，這得益於對我們第二代 MirrorBit 快閃記憶體產品的需求增加。MirrorBit 營收較上一季成長近 50%，本季超過一半的 MirrorBit 營收來自第二代 MirrorBit 產品。我們目前已全面投入 110nm MirrorBit、256Mb 零件的生產，並且看到無線領域的主要 OEM 廣泛採用了這項新技術。我們很高興 SAGEM 在其功能齊全的手機中使用我們的 512Mb 單晶片 NOR 快閃記憶體。我們對 Ornand 代碼的執行也感到很滿意，因為我們在第二季度看到了第一款 90nm 矽片。同時，我們仍在繼續執行更獨立的擴張計劃、重新設計業務模式、削減開支和簡化營運。

As I mentioned on this call the last quarter, our processor business continued not simply to grow, but to accelerate thanks to the strong adoption of the AMD64 Processor Platform. This second quarter of '05 was another high watermark for us on several key measures, an all time quarterly record for microprocessor of revenue, an all time quarterly record for mobile processor of revenues, and an all time quarterly record for server processor revenues. As a result we delivered an all time record for quarterly operating profits in the processor business. Second quarter processor revenues were up from the prior quarter bucking typical seasonal trends and up almost 40% over the prior year. For the record, this is the eighth consecutive quarter of 20-plus percent year-on-year growth. And the largest quarter-on-quarter expansion since the launch of the AMD64 Platforms.

正如我在上個季度的電話會議上提到的那樣，我們的處理器業務不僅繼續成長，而且由於 AMD64 處理器平台的大力採用而加速發展。2005 年第二季度，我們在幾項關鍵指標上都創下了新的高點，微處理器收入創下了季度歷史新高，行動處理器收入創下了季度歷史新高，伺服器處理器收入也創下了季度歷史新高。結果，我們在處理器業務上創造了季度營業利潤的歷史新高。第二季處理器營收較上一季有所成長，打破了典型的季節性趨勢，比去年同期成長了近 40%。據記錄，這是連續第八個季度實現年增20%以上。這是自 AMD64 平台推出以來最大的季度環比增長。

We're particularly pleased with the growth projectory of our AMD Opteron family. AMD Opteron revenues nearly doubled over the prior quarter reflecting surge in demand for our customer's growing product offering. Sun, HP, IBM, and many other OEMs announced new systems based on our Dual-Core AMD Opteron family. And we continue to work with our partners to fully develop the explosive Blade Server opportunity with the launch of IBM's LS20 and the HP ProLiant BL45p. Our partnership with Sun has generated tremendous momentum in the enterprise where the combination of AMD Opteron and Solaris 10 have become the reference platform for many x64 deployments. Sun's V40z server broke the world record for 8-way x86 performance achieving over 2.5 times the performance of the latest 4-way MP Xeon processor based servers.

我們對 AMD Opteron 系列的成長預測感到特別高興。AMD Opteron 的營收比上一季幾乎翻了一番，這反映了我們客戶不斷增長的產品供應需求的激增。Sun、HP、IBM 和許多其他 OEM 都宣布推出基於我們的雙核心 AMD Opteron 系列的新系統。我們將繼續與合作夥伴攜手，透過推出 IBM LS20 和 HP ProLiant BL45p 來充分開發爆炸性的刀鋒伺服器機會。我們與 Sun 的合作在企業中產生了巨大的發展勢頭，其中 AMD Opteron 和 Solaris 10 的組合已成為許多 x64 部署的參考平台。Sun 的 V40z 伺服器打破了 8 路 x86 效能的世界紀錄，其效能是最新基於 4 路 MP Xeon 處理器的伺服器的 2.5 倍以上。

With the launch of our AMD Athlon 64 X2 Processors we are now the only company with a complete dual-core offering from servers to business and consumer desktops. In the thin-and-light segment we are seeing a strong demand for our new AMD Turion 64 Processor Platform which has captured more than 60 design wins since its launch. Meanwhile on the marketing front we are proud to be working hand-in-hand with HP on the HP Special Edition LiveStrong Notebook reflecting our proud support of Lance Armstrong and the Discovery Channel Team, as well as the Lance Armstrong Foundation. $50 from the purchase of every one of these notebooks will go directly to support the cancer survivorship cause of the Lance Armstrong Foundation.

隨著 AMD Athlon 64 X2 處理器的推出，我們現在是唯一一家提供從伺服器到商業和消費者桌上型電腦的完整雙核心產品的公司。在輕薄領域，我們看到了對新款 AMD Turion 64 處理器平台的強勁需求，該平台自推出以來已獲得 60 多項設計大獎。同時，在行銷方面，我們很榮幸能與惠普攜手合作推出惠普特別版 LiveStrong 筆記型電腦，體現了我們對蘭斯阿姆斯壯、探索頻道團隊以及蘭斯阿姆斯壯基金會的鼎力支持。每購買一本筆記本，其中的 50 美元將直接用於支持蘭斯阿姆斯壯基金會的癌症倖存者事業。

Our success in the enterprise continues. We now can claim more than 75 of the companies on the Forbes Global 100 AMD64 customers, up from 55 last quarter. Our transition to 90nm is complete with world-class yields resulting in continued capacity expansion to meet the growing demand for AMD products and solutions. Our Fab 36 remains on schedule and on budget with production starts planned in the first quarter of 2006. We continue with the great support of our partners on a steady path toward reinventing the competitor dynamics of the microprocessor industry. With the successful launch of our Dual-Core AMD Opteron and Athlon 64 X2 processors, AMD64 has truly become the gold standard in 64-bit computing. At this point I would like to ask Bob to review the results of the quarter, as well as the outlook.

我們在企業中的成功仍在繼續。現在，我們可以宣稱《富比士》全球 100 強 AMD64 客戶中的公司有 75 多家，比上一季的 55 家有所成長。我們已完成向 90nm 的過渡，並實現了世界一流的產量，從而持續擴大產能，滿足對 AMD 產品和解決方案日益增長的需求。我們的 Fab 36 按照計劃和預算順利進行，計劃於 2006 年第一季開始生產。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。隨著我們的雙核心 AMD Opteron 和 Athlon 64 X2 處理器的成功推出，AMD64 真正成為了 64 位元運算的黃金標準。現在我想請鮑伯回顧一下本季的業績以及前景。

Thanks, Hector. AMD had a good second quarter. We had solid execution across the board with exceptional CPG performance and good directional progress in our Spansion operation. Our Microprocessor business established all-time quarterly records in total sales, server processor sales, mobile processor sales, gross income, and operating income. Our microprocessor business continues -- clearly continues to gain momentum. For AMD overall sales were $1.26 billion, flat from the second quarter of last year and in a seasonally slow second quarter up three percentage points compared to the first quarter of 2005. We recorded net income for the quarter of $11 million amounting to an earnings per share of $0.03. Second quarter gross margin was 39% compared to 34% in the first quarter of 2005. This improvement was largely due to record CPG gross margins. Second quarter marketing, general, and administrative costs grew 8% as compared to the first quarter of 2005 largely due to record microprocessor sales, particularly with large global OEMs driving increased marketing investments. Cash flow from operations was $265 million for the quarter and EBITDA was $345 million.

謝謝，赫克托。AMD 第二季表現良好。我們的執行力全面穩健，CPG 表現優異，Spansion 營運也取得了良好的方向性進展。我們的微處理器業務在總銷售額、伺服器處理器銷售額、行動處理器銷售額、總收入和營業收入方面創下了季度歷史新高。我們的微處理器業務繼續進行——顯然繼續獲得發展勢頭。AMD 的整體銷售額為 12.6 億美元，與去年第二季度持平，由於第二季度屬於季節性淡季，因此比 2005 年第一季增長了三個百分點。本季我們的淨收入為 1,100 萬美元，每股收益為 0.03 美元。第二季毛利率為 39%，而 2005 年第一季為 34%。這項改善主要歸功於創紀錄的 CPG 毛利率。第二季的行銷、一般和管理費用與 2005 年第一季相比成長了 8%，這主要是由於微處理器銷量創下紀錄，尤其是全球大型 OEM 廠商加大了行銷投資。本季經營現金流為 2.65 億美元，EBITDA 為 3.45 億美元。

Switching to the business segment highlights, CPG had a record breaking quarter. CPC sales were $767 million, another new record which represents a 38% increase over the same period a year ago. We also grew two percentage points from the first quarter of this year in a typically seasonal down quarter. Units in the quarter increased by 22% over the same period a year ago, but were down 4% from the first quarter. In the quarter we saw an especially strong sales in China, North America, and all of our high-growth markets. We continue to gain momentum in the commercial market driven by AMD Opteron Processor penetration in the enterprise space. Microprocessor ASPs increased 6% compared to the first quarter and new sales records were established in both server and mobile. CPG's operating income of $110 million established a new high watermark in the quarter, up again from the record levels of the first quarter of this year. Year-over-year CPG's operating income has increased a strong 92% from the 58 million in the second quarter of 2004. CPG's gross margin increased from the first quarter and was a record high 59%.

談到業務部門亮點，CPG 本季創下了紀錄。CPC 銷售額達 7.67 億美元，再創歷史新高，比去年同期成長 38%。在典型的季節性下滑季度中，我們的銷售額也比今年第一季成長了兩個百分點。本季銷量較去年同期成長 22%，但較第一季下降 4%。本季度，我們在中國、北美以及所有高成長市場的銷售均表現尤為強勁。受 AMD Opteron 處理器在企業領域的滲透推動，我們在商業市場持續獲得發展動力。微處理器平均售價較第一季上漲6%，伺服器和行動裝置均創下新的銷售紀錄。CPG 本季的營業收入達到 1.1 億美元，創下新高，再次高於今年第一季的創紀錄水平。CPG 的營業收入較 2004 年第二季的 5,800 萬美元年增了 92%。CPG的毛利率較第一季增加，達到創紀錄的59%。

Now switching to the Memory Group business. We continue to execute on a strategy which we embarked on over two years ago to make Spansion a financially independent organization. Flash Memory, as you know, is a capital intensive business and our strategy designed to give Spansion direct access with the capital markets going forward. In a very competitive market Flash Memory sales were $462 million down 31% compared from the second quarter of 2004, but up 3% from the first quarter of this year. We shipped 12% more units compared to the first quarter and ASPs were down again. We recorded a $90 million operating loss in our Memory Group in the quarter, a $20 million improvement from the first quarter in what continues to be a very challenging supply/demand environment. Most of our improvement is associated with strong demand for our Second-Generation 256Mb MirrorBit parts. The Memory Group's gross margin increased in the quarter to mid single-digits.

現在轉向記憶集團業務。我們繼續執行兩年前開始實施的策略，使 Spansion 成為一個財務獨立的組織。如您所知，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。在競爭非常激烈的市場中，快閃記憶體銷售額為 4.62 億美元，與 2004 年第二季相比下降了 31%，但比今年第一季成長了 3%。與第一季相比，我們的出貨量增加了 12%，平均售價再次下降。本季度，我們的記憶集團營業虧損 9,000 萬美元，在持續充滿挑戰的供需環境下，比第一季減少了 2,000 萬美元。我們的大部分改進都與第二代 256Mb MirrorBit 零件的強勁需求有關。記憶集團的毛利率在本季成長至中等個位數。

Turning to the balance sheet, cash balance is into the second quarter at $1.22 billion, a $135 million increase from the prior quarter. In the second quarter we received funds from the German Government and Fab 36 partners for meeting certain milestones and running our first engineering test wafers. Second quarter capital expenditures were $303 million down from $518 million in the first quarter with the majority of the investment going into our microprocessor business. Inventories were up as planned from the first quarter by $65 million, mostly in CPG as we prepare for anticipated strong second half of the year.

從資產負債表來看，第二季現金餘額為 12.2 億美元，較上一季增加 1.35 億美元。第二季度，我們收到了來自德國政府和 Fab 36 合作夥伴的資金，用於實現某些里程碑並運行我們的第一批工程測試晶圓。第二季的資本支出為 3.03 億美元，低於第一季的 5.18 億美元，其中大部分投資用於我們的微處理器業務。庫存按計劃較第一季增加了 6500 萬美元，主要集中在 CPG 領域，我們正在為預計強勁的下半年做好準備。

Now let's talk outlook. AMD's outlook statements are based on current expectations. The following statements are forward-looking and actual results could differ materially depending on market conditions. AMD expects microprocessor sales to grow to exceed normal seasonal patterns. Due to the Spansion filing of the SEC Form S-1, AMD is not providing guidance for the Flash Memory business. Based on the continued ramp of Fab 36, an increased spending in marketing and legal, we anticipate total AMD third quarter operating expenses to increase by approximately 8%. Our capital expenditure forecast remains unchanged from our prior guidance, approximately $1.5 billion for the year. In summary, we are very pleased with our progress and we believe we will continue to see further improvements in the coming quarters. With that I will turn it back over to Hector.

現在我們來談談展望。AMD 的展望聲明是基於當前預期。以下聲明具有前瞻性，實際結果可能因市場狀況而有重大差異。AMD 預計微處理器的銷量成長將超過正常的季節性模式。由於 Spansion 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。基於 Fab 36 的持續擴張以及行銷和法律支出的增加，我們預計 AMD 第三季總營運費用將增加約 8%。我們的資本支出預測與先前的指引保持不變，全年約為 15 億美元。總而言之，我們對我們的進展感到非常滿意，我們相信在接下來的幾個季度我們將繼續看到進一步的改善。說完這些，我將把它交還給赫克托。

Thank you, Bob. I would like to close by underscoring this strong progress that we have made in transforming AMD in our industry. Because I believe that we have done some rather remarkable things in a fairly tight time frame, we have seen the technology leadership mantling processors, first, by deploying AMD64, a superior industry standard 64-bit architecture. And more recently, by introducing our dual-core technology, the only real dual-core technology for industry standard computing platforms. We have gained remarkable ground with many of the world's most demanding OEMs, established a strong and growing footprint in the enterprise, and we have grown our presence in key high-gross geographies, such as, China, India, Eastern Europe, and Latin America. We have built one of the most impressive manufacturing operations in the semiconductor industry and with our APM technology created the capacity to make rapid technology transitions in response to market needs.

謝謝你，鮑伯。最後，我想強調一下我們在產業中推動 AMD 轉型所取得的重大進展。因為我相信我們在相當緊迫的時間內完成了一些相當了不起的事情，我們看到技術領先地位已經覆蓋了處理器，首先是透過部署 AMD64，這是一種卓越的行業標準 64 位元架構。最近，我們推出了雙核心技術，這是唯一適用於業界標準運算平台的真正雙核心技術。我們與世界上許多要求最嚴格的原始設備製造商 (OEM) 合作取得了顯著進展，在企業中建立了強大且不斷增長的影響力，並且我們在中國、印度、東歐和拉丁美洲等主要高收入地區的業務也不斷擴大。我們已經建立了半導體行業最令人印象深刻的製造業務之一，並利用我們的 APM 技術創造了根據市場需求快速進行技術轉型的能力。

Finally, we continue to attract the best and the brightest minds in the industry. All here for one reason, to reinvent the competitive balance of the microprocessor industry. It is an important story, an exciting story, and it is only just beginning to really unfold. And to complete it we need to preserve a world where the market place decides what innovations to reward and consumers are free to choose without the constraints of an abusive monopolist. In short, we need a fair and open competitive playing field. [indiscernible] we are working to change the industry, the world, and we are highly motivated about the prospects of helping to create a market place that is better for our customers and consumers and businesses around the world. Once again, I want to thank each and every AMD employee for remaining laser focus on the task of creating the world's most innovative semiconductor products and technologies. And I want to encourage them to view our continued progress as the source of great motivation to finish the job of reinventing in our industry. Thank you. Back to Mike Haase for Q&A.

最後，我們持續吸引業界最優秀、最聰明的人才。這一切只有一個目的：重塑微處理器產業的競爭平衡。這是一個重要的故事，一個令人興奮的故事，而且它才剛開始真正展開。為了實現這一目標，我們需要維護這樣一個世界：市場決定獎勵哪些創新，消費者可以自由選擇，而不受壟斷者的束縛。簡言之，我們需要一個公平、開放的競爭環境。 [音訊不清晰] 我們正在努力改變這個行業、改變這個世界，我們對幫助創造一個對我們的客戶、消費者和全球企業都更好的市場充滿熱情。我再次感謝每一位 AMD 員工始終專注於創造世界上最具創新性的半導體產品和技術。我想鼓勵他們將我們不斷的進步視為完成產業重塑工作的巨大動力來源。謝謝。回到 Mike Haase 的問答環節。

Thanks Hector. Operator, if we could start the polling session for Q&A please.

謝謝赫克托。接線生，我們可以開始問答投票環節嗎？

Certainly. Ladies and gentlemen, [OPERATOR INSTRUCTIONS]. And our first question comes from Mark Edelstone with Morgan Stanley. Go ahead, please.

當然。女士們、先生們，[操作員指示]。我們的第一個問題來自摩根士丹利的馬克·埃德爾斯通。請繼續。

Hi, good afternoon, guys and great gross margins there in processors. I guess a couple of questions if I could, one, could you guys just give us kind of a view of what you see as the tone of overall business in the PC market? I certainly know that you guys are gaining share, but how does the overall tone of the market look to you? And then I've got a follow-up.

大家下午好，處理器的毛利率很高。我想問幾個問題，第一，你們能否為我們介紹一下你們所看到的 PC 市場整體業務的基調？我當然知道你們的市佔率正在增加，但你們覺得市場的整體基調如何？然後我有一個後續行動。

Hello, Mark, this is Henri. We are actually seeing a favorable environment in the PC business, both in the consumer and in the commercial segments. And I'm fairly optimistic for the second half of this year. As you know the new technologies that we are offering to the market are being adopted. But of course starting from our low market share the only way we can look is up.

你好，馬克，我是亨利。事實上，我們看到個人電腦業務（無論是消費領域還是商業領域）的環境都十分良好。我對今年下半年相當樂觀。如您所知，我們向市場提供的新技術正在被採用。但當然，從我們較低的市佔率來看，我們唯一的出路就是往上。

Okay, fair enough. Then Bob for you, on the margins, your gross margins I think in CPG are up about 500 basis points sequentially, yet operating margins are only up about 200. Can you just talk about what's going on there? And when should we start to see better fall through on the gross margins down to the operating level in CPG?

好吧，夠公平。那麼鮑勃，關於利潤率，我認為 CPG 的毛利率環比上漲了約 500 個基點，但營業利潤率僅上漲了約 200 個基點。你能談談那裡發生了什麼事嗎？我們什麼時候才能開始看到 CPG 的毛利率下降到營業水準？

Yes, sure, Mark. First, just to remind you and everyone, that we continue -- we will continue to see increased investments particularly in Fab 36 in ramping of the R&D costs. As we talked about at the Analyst Day in last November, that number is around 200 million year-on-year, and so we will see that continued progress as time goes on from a quarter-to-quarter standpoint. In the current quarter about $20 million of the increase in operating costs was in the R&D line almost exclusively for Fab 36. Second, SG&A is up quarter-on-quarter and that's really driven by the microprocessor business. As we continue to launch a series of new products in the current quarter and as we go forward you will still see those relatively high levels of investments as we continue to activate those launches and actually get traction in the market place. So --.

是的，當然，馬克。首先，只是為了提醒您和大家，我們將繼續——我們將繼續看到投資增加，特別是對 Fab 36 的投資，以增加研發成本。正如我們在去年 11 月的分析師日上所討論的那樣，這個數字同比增長了約 2 億，因此，隨著時間的推移，從季​​度角度來看，我們將看到這一增長持續。本季營運成本增加約 2,000 萬美元，幾乎全部用於 Fab 36 的研發線。其次，銷售、一般及行政費用 (SG&A) 環比上漲，這主要得益於微處理器業務。隨著我們在本季度繼續推出一系列新產品，隨著我們繼續啟動這些產品的發布並在市場上獲得關注，您仍會看到相對較高的投資水平。所以 - 。

Just one last follow-up then, if I could, could you just give us the latest thinking on when and how much of an impact we'll see on Fab 36 depreciation and at the same time if you have a view on the roll-off of Fab 30 that would be helpful?

那麼，最後一個後續問題，如果可以的話，您能否給我們提供關於何時以及在多大程度上影響 Fab 36 折舊的最新想法，同時，如果您對 Fab 30 的停產有什麼看法，那會有幫助嗎？

Not ready to go into that kind of detail at this moment, Mark. But for the question, most of the depreciation of Fab 36 will not take place in the beginning of next year because that's actually when we will actually turn the facility on to run production material. So right now the depreciation bill is mostly associated with the building and the building infrastructure.

馬克，現在還沒準備好討論這些細節。但對於這個問題，Fab 36 的大部分折舊不會在明年年初發生，因為那時我們才會真正啟動該設施來運行生產材料。因此，目前的折舊費用主要與建築物和建築基礎設施有關。

So we should sort of see it kicking in some time in Q1?

那麼我們應該會在第一季的某個時候看到它發揮作用嗎？

That's right.

這是正確的。

Thanks, a lot guys.

非常感謝大家。

And I will, as we get closer to the Analyst Day in November, I will give you much more granularity of the depreciation mix between the roll-off of Fab 30 and the increments of Fab 36.

隨著 11 月分析師日的臨近，我將為您提供有關 Fab 30 的淘汰和 Fab 36 的增量之間的折舊組合的更詳細資訊。

Great. I appreciate it. Thanks a lot.

偉大的。我很感激。多謝。

Sure.

當然。

Your next question is from Krishna Shankar with JMP Securities. Please go ahead.

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

Yes, you had a nice increase in ASPs here going into Q2. Can you comment on the potential for further ASP increases as you go through the second half of '05 especially given the makeshift towards mobile and servers?

是的，進入第二季度，你們的平均銷售價格有了很大的成長。您能否評價一下 2005 年下半年平均售價進一步上漲的可能性，特別是考慮到向行動和伺服器的過渡？

Yes, Krishna, this is Henri again. While clearly we have momentum in both our mobile and our server business. They both command better ASP than the desktop business and so just mechanically because of that we expect to continue to see some ASP improvement in the second half of '05.

是的，克里希納，我又是亨利。顯然，我們的行動業務和伺服器業務都發展勢頭強勁。它們的平均售價都比桌上型電腦業務要高，因此從機械角度來看，我們預計 2005 年下半年的平均售價將繼續有所提高。

Will that be offered as you get more competitive in mobile and servers, are you seeing increase in terms of competitors -- the pricing environment and mobile and servers, can you comment on that?

隨著您在行動和伺服器領域的競爭力增強，您是否會提供這種服務，您是否看到競爭對手的增加——定價環境和行動和伺服器，您能對此發表評論嗎？

Well, of course the competition is tough, but we have superior products, particularly, in the server space. And so we're in a situation where particularly because the customers are buying solutions and then just technology, we believe that we have a good opportunity to maintain or even grow our ASP in the server area with the adoption of dual-core technology. In the mobile space, which is a little closer to the desktop space, it is very competitive. But we've demonstrated with Turion 64 that we can get access to ASPs that are very close to our competitor.

嗯，競爭當然很激烈，但我們有優質的產品，特別是在伺服器領域。因此，我們處於這樣的情況，特別是因為客戶購買的是解決方案而不是技術，我們相信，透過採用雙核心技術，我們有很好的機會維持甚至提高我們在伺服器領域的 ASP。在與桌面領域稍近的行動領域，競爭非常激烈。但我們已經透過 Turion 64 證明，我們可以獲得非常接近競爭對手的 ASP。

Great. And then on the flash business, I realize you can't say much given that you're on registration. But despite -- I mean regardless of the IP environment or the prospects for profitability in the flash business, AMD is committed to -- I mean, would you consider just spending this off as a tax base enough to shareholders even if you can't raise new capital for Spansion?

偉大的。然後關於閃存業務，我意識到由於您正在註冊，所以您不能說太多。但是儘管——我的意思是無論 IP 環境或閃存業務的盈利前景如何，AMD 都致力於——我的意思是，即使您無法為 Spansion 籌集新資本，您是否會考慮將其作為足夠的稅基支付給股東？

This is Hector. We have a plan that we sent out with, Bob, outlining his topic when he talked that started three years to make Spansion an independent entity and eventually financially spinning it off or becoming a public company. We are very happy with the progress. We are pleased with where we are. It is a great organization with great people. Awesome technology, great products, and we are pleased with the progress we are making and will continue to make.

這是赫克托。我們有一個計劃，已經發送給 Bob，概述了他的主題，即從三年前開始將 Spansion 打造為獨立實體，並最終在財務上將其剝離或成為一家上市公司。我們對這項進展感到非常高興。我們對目前的狀況感到滿意。這是一個偉大的組織，擁有偉大的人才。出色的技術，優質的產品，我們對正在取得的進步以及將繼續取得的進步感到滿意。

Thank you.

謝謝。

Thank you. We will now go to the line of Michael Masdea with CSFB. Please go ahead.

謝謝。我們現在來談談瑞士信貸第一波士頓銀行的 Michael Masdea。請繼續。

Yes, thanks a lot. Maybe Henri there is a fair amount of tightness being talked about from your competitor. Is that having any impact on your business? And I guess the concern here is that we have two better than seasonal quarters, is there any chance we're building inventory here?

是的，非常感謝。亨利，也許你的競爭對手正在談論相當多的緊張局勢。這對您的業務有影響嗎？我想這裡令人擔心的是，我們有兩個比季節性更好的季度，我們有機會在這裡建立庫存嗎？

So first of all, on the first part of your question, clearly we are hearing rumors about tightness from our competitor. But the reality is that if you look at the success we have had with Turion 64, those designs were where we basically started months ago. The products are brought to market and, frankly, the ability of our competition to execute their own plan has less and less of an affect on us. Our products are differentiated enough today so that they stand on their own. What was the second part of your question?

首先，關於您問題的第一部分，我們顯然聽到了來自競爭對手的緊張傳言。但事實是，如果你看看我們在 Turion 64 上的成功，你會發現這些設計基本上是我們幾個月前開始的。產品推向市場後，坦白說，我們的競爭對手執行其計劃的能力對我們的影響越來越小。如今，我們的產品已經夠獨特，可以自成一派。你的問題的第二部分是什麼？

Just in that tightness that's out there, are you seeing -- do you think there is any double ordering -- any concern about inventory being built out there?

就在這種緊張的情況下，您是否看到 - 您認為是否存在重複訂購 - 是否擔心庫存增加？

No, and certainly for our part, I can not talk for the rest of the industry, but for our part we are managing inventories very, very tightly.

不，當然就我們而言，我不能代表整個行業發言，但就我們而言，我們正在非常嚴格地管理庫存。

Great. And just a follow-up on the processor side, dual-core you seem to be doing quite well. How do you think your market share is versus your competition? They seem to be talking a little bit more muted on that front. And then, why do you think that is? What are the customers looking for out there in dual-core that you guys seem to be providing?

偉大的。從處理器方面來看，雙核心處理器似乎做得很好。您認為您的市佔率與競爭對手相比如何？他們在這個問題上的言論似乎比較低調。那麼，您認為這是為什麼呢？客戶對於你們提供的雙核心產品有何要求？

Well, clearly, first I want to make sure everybody understands we are the only company shipping real dual-core technology and not two processor on a chip. And it so happens that the customers that are looking for that type technology and performance in the market place understand the difference between the two. As a result of that, and again, I encourage you to ask our customers, what they are telling us is that when they look at their backlog and pipeline of dual-core orders, we seem to be out gunning the competition by quite a margin. And based on the current technology we believe this is going to continue. In the server space, clearly the combination of the efficiency of our dual-core architecture and our superior thermal envelope makes the dual-core Opteron the absolute winner, particularly, in enterprise customers that are very concerned today about their power bill and their ability to leverage their existing data centers. So I believe that in both implementation, clients and server we have the upper hand in the quarters to come.

好吧，顯然，首先我想確保每個人都明白，我們是唯一一家採用真正雙核心技術的公司，而不是在晶片上採用兩個處理器。事實上，市場上尋求此類技術和性能的客戶了解兩者之間的差異。因此，我再次鼓勵您詢問我們的客戶，他們告訴我們，當他們查看積壓的雙核訂單和通路訂單時，我們似乎以相當大的優勢領先於競爭對手。基於目前的技術，我們相信這種情況將會持續下去。在伺服器領域，我們的雙核心架構的效率和卓越的散熱性能相結合，顯然使雙核心 Opteron 成為絕對的贏家，特別是對於當今非常關心電費和利用現有資料中心的能力的企業客戶而言。因此我相信，在未來幾個季度中，我們在實施、客戶端和伺服器方面都佔上風。

Thanks. And good execution, guys.

謝謝。大家，執行得很好。

Your next question is from Joseph Osha with Merrill Lynch. Please go ahead.

您的下一個問題來自美林證券的 Joseph Osha。請繼續。

Hi, guys. I know that you don't disclose an actual processor and end market breakdown, but could you give me maybe a sense as to among server desktop and mobile which grew more quickly and more slowly in relative terms? And then I have a follow-up.

嗨，大家好。我知道您沒有透露實際的處理器和終端市場細分，但您能否告訴我，在伺服器桌面和行動裝置中，相對而言哪個成長更快，哪個成長較慢？然後我有一個後續問題。

Yes, Joe, we don't give too much granularity, but clearly with an 89% growth quarter-on-quarter from server I have to confess that it is the fastest growing part of our portfolio.

是的，喬，我們不會給出太多細節，但顯然伺服器季度環比增長 89%，我不得不承認這是我們產品組合中增長最快的部分。

Okay. Any comments on whether desktop or mobile grew more quickly this quarter?

好的。對於本季桌面端和行動端哪個成長更快，您有何評論？

Well, clearly, I mean again, you have server, then mobile, then desktop.

嗯，顯然，我的意思是，你有伺服器，然後是行動設備，然後是桌面。

Okay, fair enough. Second question for Bob, obviously, the R&D is going to wang around here as you pull some of those test wafers into production costs. But setting that aside and looking also at the SG&A business, is there any target operating model you would care to articulate for the processor business in terms of what these operating costs will look like once we are where we want to be?

好吧，夠公平。問鮑伯的第二個問題，顯然，當你將一些測試晶圓納入生產成本時，研發成本就會增加。但拋開這一點，再看看銷售、一般和行政費用 (SG&A) 業務，您是否願意為處理器業務闡明一個目標營運模式，即當我們達到我們想要的目標時，這些營運成本將會是什麼樣的？

Well, I'll talk more, Joe, of -- just to remind you what I said at the -- our Analyst Conference in November, the microprocessor business, there is no reason to expect the microprocessor business, when we get to the right altitude to be in the 20 to 25% operating income level. Obviously, it will take awhile to get there. Clearly we need to digest the building of the new 300mm facility, get it into production mode, et cetera. But that's our expectation of where that business needs to be as a 25% -- 20 to 25% operating income level.

好吧，喬，我會多談一些——只是為了提醒你我在 11 月的分析師會議上說過的話，關於微處理器業務，沒有理由期望當我們達到正確的高度時，微處理器業務的營業收入會達到 20% 到 25% 的水平。顯然，要達到這個目標還需要一段時間。顯然，我們需要消化新 300 毫米設施的建設，使其進入生產模式等等。但我們的預期是，該業務的營業收入水準需要達到 25% - 20% 到 25%。

Okay.

好的。

With a 55 to 60% gross margin.

毛利率為55%至60%。

Okay. You had indicated third quarter seasonal microprocessor. Would you care to share with me maybe a range as to what you regard as seasonal?

好的。您曾指出第三季的季節性微處理器。您願意與我分享您認為的季節性範圍嗎？

Sure, Joe, this is Henri again. As we look back the last four years of post-bubble, on average the it's about 8%.

當然，喬，我又是亨利。回顧泡沫破裂後的最後四年，平均成長率約為 8%。

Okay. Last question then, not to sort of be a kill-joy here, but I look at the margins you are generating on your personal conductivity business and that's 14 million operating loss there. Why not just shut this puppy down? That would certainly help a lot in terms of the margins that you are reporting.

好的。那麼最後一個問題，我並不是想掃大家的興，但我看了看你們在個人傳導業務上產生的利潤，那裡的營運虧損是 1400 萬美元。為什麼不乾脆把這隻小狗關掉呢？就您報告的利潤率而言，這肯定會有很大幫助。

Joe this is Hector. First of all, as you probably would expect, and I hope you would expect that every good company will have some sort of an investment business of looking out in the horizon. We call this Horizon III opportunities. Horizon I meaning in the near-term, Horizon II is usually 18 months out, Horizon III is beyond that. We are really incrementing here a lot of ideas about the future of the home, the entertainment, the possibility that x86 will eventually be a very strong enabler for the handheld communications digital conversion products. We have, frankly, very high expectations that this is going to yield results. So to think of it as a business like all the others that should turn around in a quarter or two is unrealistic. But also understand the need for that to continue to improve. And frankly, we expect this business not to lose money next year.

喬，這是赫克托。首先，正如您可能想到的，我希望您也想到，每個優秀的公司都會有某種形式的放眼未來的投資業務。我們稱之為「地平線 III」機會。Horizo​​n I 指的是近期，Horizo​​​​n II 通常指的是 18 個月後，Horizo​​​​n III 指的是更遠的時期。我們確實在這裡增加了很多關於家庭、娛樂的未來的想法，以及 x86 最終成為手持通訊數位轉換產品的強大推動力的可能性。坦白說，我們對此抱有很高的期望，希望它能有成果。因此，認為它和其他所有企業一樣，能夠在一兩個季度內扭虧為盈是不切實際的。但也明白需要繼續改進。坦白說，我們預計這項業務明年不會虧損。

Okay. Thank you very much.

好的。非常感謝。

We now have a question from Ben Lynch with Deutsche Bank. Please go ahead.

我們現在有來自德意志銀行的本·林奇 (Ben Lynch) 的問題。請繼續。

Yes, hi you guys. Bob, I know in Q1 you had an unspecified amount of Flash inventory write-down. Would you be willing to specify what that was now and whether it had any sort of contribution to the 2Q gross margin jump? Particularly, when I look at the COGS line it sort of jumped 60 million in Q1 and then fell again 50 million or so in Q2.

是的，大家好。鮑勃，我知道在第一季度，你們有未指定金額的 Flash 庫存減記。您願意具體說明一下這是什麼，以及它對第二季毛利率的成長是否有任何貢獻嗎？特別是，當我查看 COGS 線時，它在第一季躍升了 6000 萬，然後在第二季度又下降了 5000 萬左右。

Ben, thanks for the question. I'm actually not going to go to that level of specificity in the answer, but can definitely give you the sense, we ran under utilized factories in our Spansion operation in the first quarter. As we actually qualified the 256 mega -- Mb part -- MirrorBit part we actually ran the production operations much harder in the second quarter. Obviously, that contributed to the movement quarter-on-quarter in cost absorption.

本，謝謝你的提問。我實際上不會在答案中達到那麼具體的程度，但可以肯定地讓你感覺到，我們在第一季的 Spansion 運營中工廠的利用率不足。由於我們實際上已經獲得了 256 兆（Mb）部分（MirrorBit 部分）的認證，因此我們在第二季度實際上更加努力地開展生產運營。顯然，這有助於成本吸收的環比變化。

Okay. And how much -- you don't want to give a sort of a rough feel for -- I mean, it just seems there's a -- a 60 million in Q1 which sort of more or less nearly all came back again in Q2 into the -- [multiple speakers].

好的。至於具體金額——你不想給出一個粗略的印象——我的意思是，似乎第一季有 6000 萬美元，而第二季幾乎全部回流到了——[多位發言者]。

Well, as I said in my opening comments, we strategically built inventory in our microprocessor business in the quarter, as we anticipate a very strong second half. So most of our inventory build movement was in the microprocessor business.

嗯，正如我在開場白中所說的那樣，我們在本季策略性地建立了微處理器業務的庫存，因為我們預計下半年的表現會非常強勁。因此，我們的大部分庫存建設活動都集中在微處理器業務上。

Great. And the second question I have, maybe this is for Henri, you said that you dual-core Opteron in the Press Release contributed to the 90% Q-and-Q server growth. Any feeling for the actual contribution? Clearly if you have some volume versus none it's going to contribute by default. And also do you have any comments you would like to make on your volume or penetration or whatever, expectations for dual-core Opteron?

偉大的。我的第二個問題是問亨利的，您在新聞稿中說雙核心 Opteron 對 Q-and-Q 伺服器 90% 的成長做出了貢獻。對於實際貢獻有什麼感覺嗎？顯然，如果你有一些交易量而不是沒有交易量，它將默認做出貢獻。另外，您對雙核心 Opteron 的銷售、滲透率或其他方面的期望有何看法？

Well, Ben, again, I don't want to give too much granularity. As far as dual-core server products we have 100% market share. That's pretty simple.

好吧，本，再說一遍，我不想給太多細節。就雙核心伺服器產品而言，我們擁有100％的市佔率。這很簡單。

Yes, and it doesn't have a price.

是的，而且它沒有價格。

So [multiple speakers] the failure of our competition to execute.

因此[多位發言者]我們的競爭對手未能執行。

Yes.

是的。

As far as the contribution of dual-core to our Opteron surge, the only thing I would tell you is that it is at the high-end of our expectations.

至於雙核心對我們 Opteron 激增的貢獻，我唯一想告訴你的是，它達到了我們預期的高端。

Okay. Thanks very much.

好的。非常感謝。

Thank you. Our next question is from Tad LaFountain with Wells Fargo. Please go ahead.

謝謝。我們的下一個問題來自富國銀行的 Tad LaFountain。請繼續。

Yes, a couple of questions in regard to the balance sheet. The comprehensive loss through the -- appears to be running about $200 million. Can you shed any light on that?

是的，關於資產負債表有幾個問題。綜合損失似乎高達 2 億美元。您能解釋一下嗎？

Well, obviously that's where the change in currency takes place, on the balance sheet. You know, the currency has been moving around quite a bit over an extended period of time with a movement in a different direction in the second quarter from the 130 levels to the 120 levels. That's where the offset goes when you do the re-evaluation of the assets and with the bulk of our microprocessor assets sitting in Dresden, Germany, euro-base, that's where you get the change. And there also I would mention too and the yen has been moving around also. We have a fairly large exposure to yen with our JV1, 2, and 3 factories in Aizu-Wakamatsu.

嗯，顯然這就是貨幣變動發生的地方，在資產負債表上。您知道，貨幣在較長一段時間內一直在波動，第二季的走勢方向與 130 水平不同，跌至 120 水平。這就是當您重新評估資產時抵消額發生的地方，由於我們的大部分微處理器資產位於德國德累斯頓的歐元基地，因此這就是您得到變化的地方。我還想提一下，日圓也一直在波動。我們在會津若鬆的合資工廠 1、2 和 3 對日圓的依賴相當大。

Okay. So does that explain what is happening with the differences between CapEx depreciation and the net plant and equipment account?

好的。那麼這是否解釋了資本支出折舊和淨廠房及設備帳戶之間的差異呢？

That's right.

這是正確的。

Okay. Great. And did you utilize any foundry for the Flash operation in the second quarter or is that all down the road?

好的。偉大的。你們在第二季是否利用任何代工廠來開展 Flash 業務，還是說這一切都是以後的事？

We did not utilize any foundry on the Fab side, but we are outsourcing a fair amount of product on the back-end. And for the future I would refer just to what we said in the S-1 Form relative to that which we continue to amend at the end of each quarter as the results of each quarter continue to accumulate.

我們在晶圓廠方面沒有使用任何代工廠，但我們在後端外包了相當數量的產品。對於未來，我只會參考我們在 S-1 表格中所說的內容，隨著每季的結果不斷累積，我們會在每季末繼續修改這些內容。

Okay. And as the OpEx bills forecast for the third quarter has there been a significant ramp in the legal expense to date or is that something that's just going to be lost in the ships of the overall corporate development?

好的。正如第三季的營運支出預測一樣，迄今為止的法律費用是否出現了大幅成長，還是說這部分費用將會在整個企業發展過程中被忽略？

In the magnitude of how much money we spend for everything we do, it gets lost in the rounding from that perspective.

從這個角度來看，我們為每件事花費的金錢數量在四捨五入時就被忽略了。

Thanks a lot.

多謝。

Thank you.

謝謝。

Thank you. Our next question is from 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. With respect, and understanding you can't comment much on Flash, just with particular what you have seen in Q2, would you -- are you experiencing the price pressure more from the lack of really adoption of feature phones at the high-end? Or is this something more competitive driven or is it just purely supply/demand? If you could give us a little color on what the dynamics are going on in the Flash market, that would be very helpful?

謝謝。恕我直言，我理解您無法對 Flash 發表太多評論，只是特別針對您在第二季度看到的情況，您是否更多地感受到價格壓力，因為高端功能手機的普及率不足？或者這是由競爭驅動的還是純粹的供需關係？如果您能為我們介紹一下 Flash 市場的動態，那會很有幫助嗎？

Well, Michael, I'll give you a little granularity there because actually it is been a mix bag of good and bad news. I mean the pressure on pricing in the embedded space and on the NOR Flash proper has actually dampened a little bit. We had that stable ASPs on those two categories, lower end embedded densities and NOR Flash, higher density and NOR Flash in the wireless segment. All of the price pressure was really concentrated in the MCPs where we continue to see a very tough environment. And so that is for the feature reach phones and some of the higher end products, complex products where there is still a fight out there. But so it is not as tough as it was in Q1 where really the price pressure was across the board, all regions, all segments.

好吧，邁克爾，我會給你稍微詳細地介紹一下，因為實際上這是好消息和壞消息。我的意思是嵌入式領域和 NOR Flash 本身的定價壓力實際上已經減輕了一點。我們在這兩個類別上都有穩定的平均銷售價格，低端嵌入式密度和 NOR Flash，無線領域的高密度和 NOR Flash。所有的價格壓力實際上都集中在 MCP 上，我們繼續看到那裡的環境非常艱難。因此，對於功能性手機和一些高階產品、複雜產品而言，仍存在競爭。但目前的情況並不像第一季那麼嚴峻，當時價格壓力實際上是全方位的，所有地區、所有領域。

And can -- any comments whether or not towards the end of the quarter you saw any stabilization in the MCP price?

並且—您是否能評論一下在本季度末您是否看到 MCP 價格趨於穩定？

No.

不。

Okay. And then just with respect to Q3 with Flash, I know you obviously can't say any comments there, but normal seasonality looking historically backwards, what was normal seasonal growth typically in Q3 for you with respect to Flash?

好的。然後就第三季的 Flash 而言，我知道您顯然無法對此發表任何評論，但從正常的季節性來看，對於您而言，第三季 Flash 的正常季節性成長通常是多少？

We really can't go there with -- I'd love to answer the question, but I really can't.

我們真的不能去那裡——我很想回答這個問題，但我真的不能。

Sure. Okay. That's fine. Thanks a lot.

當然。好的。沒關係。多謝。

We will now go to Jim Covello with Goldman Sachs. Please go ahead.

我們現在請高盛的 Jim Covello 來發言。請繼續。

Good afternoon. Thanks so much. Quick question relative to the comment about bedded and seasonal growth in the third quarter. How much of that do you expect from bedded and seasonal market growth versus AMD share gains? Thanks very much.

午安.非常感謝。關於第三季床位數和季節性成長的評論的快速問題。您預計，與 AMD 的市佔率成長相比，基礎性和季節性市場成長將佔多大比例？非常感謝。

When we say -- let me think -- make sure I understand what you ask. Because I thought we said it very clearly, what we think the market is going to be seasonal and we expect to do better, that means we have to gain share.

當我們說「讓我想想」時，請確保我明白您的要求。因為我認為我們已經說得很清楚了，我們認為市場將會具有季節性，我們期望做得更好，這意味著我們必須獲得份額。

Understood. Okay. That's helpful. And then question on the outsourcing of the Flash, and I wasn't quite sure if you were saying this is what you couldn't comment on or there was something else you couldn't comment on. But could you comment at all on the potential going forward to outsource your production on the Flash side to TSMC or one of the other foundries?

明白了。好的。這很有幫助。然後是關於 Flash 外包的問題，我不太確定您是否說這是您無法評論的事情，還是有其他您無法評論的事情。但是，您能否評論一下未來將快閃生產外包給台積電或其他代工廠的可能性？

The only thing I can say to that is that we have outlined our plans in the S-1 filing which we continue to modify at the end of each quarter. We just did that last quarter and we will do that again some time in the near future here. And I will have to refer you to that because that is a look-ahead kind of comment.

我唯一能說的是，我們已經在 S-1 文件中概述了我們的計劃，並且我們將在每個季度末繼續修改這些計劃。我們上個季度剛剛這樣做了，不久的將來我們還會再做一次。我必須向你提及這一點，因為這是一種前瞻性的評論。

Thank you.

謝謝。

Your next question is from Glen Yeung with Smith Barney. Go ahead, please.

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

I have a few questions about legal fees. Is there a way we should think about legal fees looking out over the next several quarters?

我對律師費有幾個疑問。我們是否應該考慮一下未來幾季的法律費用？

Again, as I said, in totality it is relatively immaterial to the total of what we spend. But I think at this point I will continue to give guidance on total operating expenses each quarter and each quarter phone call which is why I did for the first time actually give you some guidance to where we are going in total AMD quarter-on-quarter.

再說一遍，正如我所說，總體而言，這與我們的支出總額相比相對不重要。但我認為此時我將繼續在每個季度和每個季度的電話會議上就總營運費用提供指導，這就是為什麼我第一次真正為您提供有關 AMD 季度環比總體情況的指導。

Okay. And Bob, I'm not sure if I heard this correctly, but I think you said that processor gross margins were 59% in the reported quarter; did I hear that right?

好的。鮑勃，我不確定我是否聽錯了，但我認為你說的是報告季度處理器的毛利率為 59%；我沒聽錯吧？

You got that right.

你說得對。

Okay, so if --.

好的，那如果--。

All-time record.

歷史最高紀錄。

If we look forward given that's kind of within or close to the high-end of the range you expect it to be in, should we think about the improvement and profitability really from this point forward being -- really being driven on the OpEx side?

如果我們展望未來，考慮到這在某種程度上處於或接近您預期的範圍的高端，我們是否應該考慮從現在開始的改進和盈利能力 - 真正受到營運支出方面的推動？

Well, first comment on gross margin, gross margins will toggle between the 55 and 60 in any given quarter depending on the mix of what we ship. The real leverage will be in growing the topline and getting some continuing operating at 55 to 60% kind of range and then in getting dilution in the other cost structure below that.

嗯，首先要評論一下毛利率，根據我們運送的產品組合，毛利率在任何一個季度都會在 55 和 60 之間切換。真正的槓桿作用在於增加營業收入並保持 55% 至 60% 左右的持續運營，然後稀釋低於該水平的其他成本結構。

Right. Okay. And then I guess one other question associated with that, we hear all the time that your major competitor is tight. How are you guys in terms of Fab utilization? You obviously have been gaining share, growing a lot of units. Where do you guys sit on utilization rates?

正確的。好的。然後我想與此相關的另一個問題是，我們總是聽說你的主要競爭對手很緊張。你們的 Fab 使用率怎麼樣？顯然，你們的市佔率不斷擴大，銷量也成長了很多。你們的利用率如何？

Our factors are fully utilized. And when we look at the second quarter on a global basis, we were able to meet customer demand. However, I have to say that there were segments in some regions and segments in some markets where we were tight. But as the total we were able to meet the demand. And when you look at the -- our expectation that the second quarter will be healthy and the fact that we build some plant inventory at the end of the second quarter where 80-plus percent of it was due to server products, it kind of gives you an idea that our expectation is continuing to gain share in those segments.

我們的因素被充分利用了。當我們從全球角度看第二季時，我們能夠滿足客戶的需求。然而，我必須說，在某些地區和某些市場中，我們在某些​​細分領域表現得比較緊張。但總的來說我們能夠滿足需求。當您看到——我們預期第二季業績將會健康，而且我們在第二季末建立了一些工廠庫存，其中 80% 以上是伺服器產品，這讓您感覺到我們預期這些領域的份額將繼續增長。

That's very helpful. Thank you very much.

這非常有幫助。非常感謝。

We will now go to David Wong with A.G. Edwards. Please go ahead.

我們現在將和 A.G. Edwards 一起拜訪 David Wong。請繼續。

Thank you very much. When we look at the 4% sequential drop in units shipped and how you described servers versus network versus desktops, it looks like your desktop units dropped by at least that amount. Are you seeing that the desktop market is actually below seasonal, although, in an aggregate you're above seasonal or are you sort of pacing rapidly equal to the market or do you think you are losing some share here?

非常感謝。當我們看到出貨量連續 4% 的下降，以及您如何描述伺服器、網路和桌上型電腦時，看起來您的桌上型電腦數量至少下降了那麼多。您是否發現桌面市場實際上低於季節性，儘管總體而言，您的市場高於季節性，或者您的步伐是否與市場同步，或者您是否認為您在這裡失去了一些份額？

I'll take that one. Actually as you know we have a very healthy business in the European market. The European markets are traditionally the ones that are the most seasonal when it comes to our business. And so actually when we look at Q2 we had very healthy desktop business in all of the high-growth markets. And we had the expected seasonal decline in the two large mature markets; North America and Europe. Overall, I don't think we've lost share.

我要那個。實際上，正如您所知，我們在歐洲市場的業務非常健康。對於我們的業務而言，歐洲市場傳統上是最具季節性的市場。因此，實際上，當我們回顧第二季時，我們在所有高成長市場中都擁有非常健康的桌面業務。我們預期兩個大型成熟市場將出現季節性下滑；北美和歐洲。總體而言，我認為我們的市場佔有率並未下降。

All right. Thank you very much.

好的。非常感謝。

We will now go to the line of Tim Luke with Lehman Brothers. Please go ahead.

我們現在來談談雷曼兄弟公司的 Tim Luke。請繼續。

Thank you. I was wondering if you might be able to share the percentage that was Mirror Bit in the Flash area in this past quarter?

謝謝。我想知道您是否可以分享上個季度 Flash 領域中 Mirror Bit 的百分比？

It's basically double-digit, obviously improving given the growth. It is now north of 20%, but I don't want to give you more detail than that.

基本上是兩位數，顯然隨著成長而改善。現在超過 20%，但我不想告訴你更多細節。

I was also wondering, in the first quarter you had shared with us, I think that -- I think you said that 90% of the incremental growth had come from emerging markets, and I was wondering how you had seen the incremental growth or just generally in terms of regional color. Thank you.

我還想知道，在第一季度，您與我們分享了 90% 的增量增長來自新興市場，我想知道您是如何看待增量增長的，或者只是從區域色彩的角度來看待增量增長。謝謝。

Yes, so the second quarter was slightly different in the sense that there was a lot of growth coming from the emerging market, continuing momentum in those markets. But more in the client space. And, of course, we had very solid growth coming from the mature market and the server space. So you could think of it as now we have two engines of growth.

是的，第二季略有不同，因為新興市場實現了很大成長，而這些市場繼續保持成長勢頭。但更多的是在客戶端空間。當然，我們在成熟市場和伺服器領域實現了非常穩健的成長。所以你可以認為我們現在有兩個成長引擎。

And do you have a market share number for servers I think in the 4-way area you had said you got to 27% in 4-way. I was wondering if you had an update on that?

您有伺服器的市佔率數字嗎？我認為在 4 路領域，您說過 4 路伺服器的市場佔有率達到了 27%。我想知道您是否有關於此事的最新消息？

Well, Tim, it is a little early to tell you because, of course, our -- the competition is going to announce there own numbers later and we rely on external sources to look at that. But we've always said that we wanted to exit 2005 crossing the threshold of a 10% market share and I think we continue to execute like we did in the second quarter this is going to become a reality.

好吧，蒂姆，現在告訴你還為時過早，因為當然，我們的競爭對手稍後會公佈他們自己的數據，而我們依靠外部來源來查看這些數據。但我們一直說，我們希望在 2005 年結束時突破 10% 的市佔率門檻，我認為，只要我們繼續像第二季那樣執行，這個目標就會成為現實。

Thank you very much.

非常感謝。

We will now go to Tom Thornhill with UBS. Go ahead, please.

我們現在將聯絡瑞銀的湯姆索恩希爾 (Tom Thornhill)。請繼續。

Congratulations on the execution and servers. You can had UBS to your list of financial-related customers.

祝賀執行和伺服器。您可以將瑞銀加入您的金融相關客戶名單。

Thank you.

謝謝。

The question I have is related to cash flow. Rob, if you could walk us through the funds flow outlook here based on the -- you said your CapEx number has not changed, it is still 1.5 billion. And the cash flow from operations year-to-date is running a little over 500. How do we match those up as we go through the second half of the year?

我的問題與現金流有關。羅布，如果你能向我們介紹這裡的資金流動前景，根據你說的——你的資本支出數字沒有變化，仍然是 15 億美元。今年迄今的經營現金流略高於 500。在下半年，我們該如何將這些結合起來？

Obviously, we're at the midway point, so cap expenditures are roughly the same in the second half as they are in the first half. We anticipate, as we said, seasonally the second half is better than the first half, so cash flows from operations will improve, but your math is not too far off from that standpoint. The part not to forget is the grants and subsidies we continue to receive as we did in the second quarter throughout the year on the Fab 36 project.

顯然，我們正處於中間點，因此下半年的資本支出與上半年大致相同。正如我們所說，我們預計下半年的季節性表現將好於上半年，因此經營現金流將會改善，但從這個角度來看，你的計算結果並不太差。不要忘記的是，我們在整個第二季度為 Fab 36 計畫繼續獲得補助和補貼。

That's supposed to be a couple hundred million for the year, isn't it?

那一年的收入應該有幾億美元吧？

That's right. Actually it is north of a couple hundred.

這是正確的。實際上它位於北面幾百公尺處。

Okay. So the delta will be met through increased cash flow from operations in the second half of the year?

好的。那麼，這一增量將透過下半年增加的營運現金流來滿足嗎？

That's right.

這是正確的。

Okay. Thank you very much.

好的。非常感謝。

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. Then next we'll have John Lau with Jefferies Company. Please go ahead.

謝謝。接下來我們請到 Jefferies Company 的 John Lau。請繼續。

Great. Thank you very much. Wanted to circle back on to your comments. You mentioned China and emerging markets were strong and there has been some concerns about North America and Europe. Are you seeing overall normal strength and that the overall markets are doing well? And I have a follow-up. Thank you.

偉大的。非常感謝。想重新回顧一下您的評論。您提到中國和新興市場表現強勁，但人們對北美和歐洲有些擔憂。您是否看到整體實力正常且整體市場表現良好？我還有一個後續問題。謝謝。

Hi, John, yes I'd like to say that earlier, I don't have any concerns with our mature markets. Again, partly because of the starting point for us. We have tremendous opportunity for growth in the commercial space. Those are materializing today with the success of Opteron, but there's still a lot of client business we can go after. And clearly in the high-growth markets we have lots of opportunities because of the strength of our offering, the portfolio that's increasing, and also some of the local relationships that are becoming extremely successful like, for example, Lenovo in China.

你好，約翰，是的，我之前就說過，我對我們成熟的市場沒有任何擔憂。再一次，部分原因是我們的起點。我們在商業領域擁有巨大的成長機會。如今，隨著 Opteron 的成功，這些目標正在成為現實，但我們仍然可以爭取大量客戶業務。顯然，在高成長市場中，我們擁有大量機會，這得益於我們產品實力雄厚、產品組合不斷增加，以及一些非常成功的本地合作關係，例如中國的聯想。

Great and a follow-up to that, you had mentioned MirrorBit and Ornand as great products and targeting them for handsets. Is there any major migration yet to a unified memory architecture or is it just on a selective model and the mainstream stays with your NOR Flash and MirrorBit? Thank you.

非常好，接下來您提到 MirrorBit 和 Ornand 是出色的產品，並且針對的是手機市場。是否有任何重大遷移到統一記憶體架構，或者它只是一種選擇性模型，主流仍保留 NOR Flash 和 MirrorBit？謝謝。

The only comment that we can make there at this time is to repeat what we said before is that MirrorBit is a technology that frankly, fragments itself into four or five different ways of doing it. One of them is very NAND like and that's Ornand. And we're as we just said we have silicon out of 90nm in Ornand and it looks very encouraging as we expect it.

目前我們唯一能說的是重複我們之前說過的話：MirrorBit 是一種坦白說可以分成四、五種不同實現方式的技術。其中之一非常像 NAND，那就是 Ornand。正如我們剛才所說，我們在 Ornand 擁有 90nm 矽片，它看起來非常令人鼓舞，正如我們預期的那樣。

Great. Thank you.

偉大的。謝謝。

Our final question will come from Christopher Danely with JPMorgan Chase. Go ahead, please.

我們的最後一個問題來自摩根大通的克里斯多福‧丹尼利 (Christopher Danely)。請繼續。

Hey, thanks guys for squeezing me in. I just had a few quick follow-ups. You talked about '05 CapEx, any direction on '06 CapEx?

嘿，謝謝大家擠進我。我只是進行了一些快速的跟進。您談到了 05 年資本支出，那麼 06 年資本支出有何方向？

Not at this point.

目前還不行。

Up or down, you can't comment on that?

無論是上漲還是下跌，您都無法對此發表評論嗎？

No, we're not ready to comment on that.

不，我們還沒有準備好對此發表評論。

That's fine. How about the percentage of Athlon 64 processors in the quarter?

沒關係。本季Athlon 64處理器的佔比如何？

Well, obviously, it continues to go up. One of the important data points is that we basically finished the end of life of our older architecture, our case seven architectures. So going forward, all of the processors that will go in the market are really based on the AMD64 architecture, whether they are both Athlon 64 or Sempron or Opteron or Turion products.

嗯，顯然它還在繼續上漲。其中一個重要資料點是，我們基本上完成了舊架構（即七種架構）的生命週期終結。因此，展望未來，所有進入市場的處理器實際上都是基於 AMD64 架構的，無論是 Athlon 64、Sempron、Opteron 還是 Turion 產品。

Sure. And you guys talked about the relative growth of server, desktop, and laptop. Can you give us a rough break out by of the percentage of revs by server, desktop, and laptop in the quarter?

當然。你們談到了伺服器、桌上型電腦和筆記型電腦的相對成長。您能否粗略地列出本季伺服器、桌上型電腦和筆記型電腦的轉速百分比？

I wish I could, but I am really not prepared to give you that level of granularity.

我希望可以，但我真的不准備給你那麼詳細的資訊。

Okay. I'll try one more then. Real quick on the inventory, it came up a little bit as expected. Can we assume that inventory is going to go down in days in Q3, Q4, and do you guys have a target inventory in terms of either days or dollars?

好的。那我再試一次。庫存很快就清點完畢，正如預期的那樣。我們是否可以假設庫存在第三季、第四季的天數會下降，你們是否有以天數或美元為單位的目標庫存？

You've kind of got it right. I mean, we're at the situation where we're running as much silicon as possible with high expectations in the second half of the year. As we hit our expectations inventories will drift downward as time goes on from that standpoint. Our channel inventory is very light at this point in time, as someone asked the question before. We feel like we are managing inventory as tightly as possible.

你說得有點正確。我的意思是，我們現在的情況是，我們正在盡可能地生產矽片，並對下半年抱有很高的期望。從這個角度來看，當我們達到預期時，庫存將隨著時間的推移而下降。正如之前有人問到的那樣，目前我們的通路庫存非常少。我們感覺我們正在盡可能嚴格地管理庫存。

I see. So I guess, you guys have over 100 days of inventory. Can you just give us a little confidence in why that should be okay when your leading competitor has like 65, I believe?

我懂了。所以我猜，你們的庫存有超過 100 天。我認為，當您的主要競爭對手已經達到 65 個時，您能否給我們一點信心，說明為什麼這應該是可以的？

Well, we are confident with the model right now because let me start with the channel which is a significant part of our go-to-market strategy. We had actually depleted channel inventory this last quarter. That means we are really managing tight and well and in terms of the total days of inventory as our expectations for growth continue, we expect that to improve. We don't expect that to worsen.

嗯，我們現在對該模型很有信心，因為讓我從通路開始，它是我們進入市場策略的重要組成部分。我們上個季度實際上已經耗盡了渠道庫存。這意味著我們確實管理得非常嚴格和良好，就庫存總天數而言，隨著我們對成長的預期持續，我們預期情況會有所改善。我們預計情況不會惡化。

Got it. Okay, thanks a lot, guys. Great quarter.

知道了。好的，非常感謝大家。很棒的一個季度。

Thank you. All right. Thank you very much. That concludes the call. Thank you for your participation.

謝謝。好的。非常感謝。通話到此結束。感謝您的參與。

Thank you. And ladies and gentlemen, this conference will be available for replay after 7:45 p.m. today through midnight, Monday July 25th. You may access the AT&T Executive Playback Service at anytime by dialing 1-800-475-6701 and entering the access code 787311. International callers dial 320-365-3844 using the same access code, 787311. That does conclude our conference for today. Thank you for your participation and for using AT&T Executive Teleconference. You may now disconnect.

謝謝。女士們、先生們，本次會議將於晚上 7:45 後提供重播。從今天到 7 月 25 日星期一午夜。您可隨時撥打 1-800-475-6701 並輸入存取代碼 787311 存取 AT&T 高階主管回放服務。國際來電者撥打 320-365-3844，使用相同的接取碼 787311。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。