超微半導體 (AMD) 2013 Q4 法說會逐字稿

Good afternoon. My name is Huey, and I will be your conference operator for today. At this time I would like to welcome everyone to AMD's fourth quarter 2013 earnings conference call. All lines have been placed on a listen-only mode at this time. After the speakers' remarks you will be invited to participate in a question-and-answer session.

午安.我叫休伊，今天我將擔任你們的會議主持人。現在，我歡迎大家參加 AMD 2013 年第四季財報電話會議。目前所有線路均已置於只聽模式。演講者發言結束後，您將被邀請參加問答環節。

As a reminder, this conference is being recorded today.

提醒一下，今天正在錄製這次會議。

I would now like to turn the conference over to Ms. Ruth Cotter, Vice President of Investor Relations for AMD. Please go ahead.

現在，我想將會議交給 AMD 投資者關係副總裁 Ruth Cotter 女士。請繼續。

Thank you, and welcome to AMD's fourth quarter and year-end earnings conference call.

謝謝，歡迎參加 AMD 第四季和年終收益電話會議。

By now, you should have had the opportunity to review a copy of our earnings release and the CFO commentary and slides. If you have not reviewed these documents, they can be found on AMD's website at quarterlyearnings.amd.com. This is a live call and will be replayed via webcast on amd.com.

現在，您應該已經有機會查看我們的收益報告副本以及財務長的評論和投影片。如果您尚未查看這些文檔，可以在 AMD 的網站 quarterlyearnings.amd.com 上找到。這是一次現場通話，並將透過 amd.com 上的網路直播重播。

Participants joining us on today's call are Rory Read, our President and Chief Executive Officer, Devinder Kumar, our Senior Vice President and Chief Financial Officer, and we will also have Lisa Su, our Senior Vice President and General Manager of Global Business Unit who will participate in the QA portion of the call.

參加今天電話會議的人員包括我們的總裁兼執行長 Rory Read、我們的高級副總裁兼財務長 Devinder Kumar，我們的高級副總裁兼全球業務部總經理 Lisa Su 也將參加電話會議的品質保證部分。

I would like to highlight a few dates for you. Devinder will attend the Goldman Sachs conference on February 12. Our first quarter quiet time will begin at the close of business on March 14. And lastly, we intend to announce our first quarter 2014 earnings on April 17. Dial-in information for that call is expected to be provided in mid March.

我想向你們重點介紹幾個日期。Devinder 將於 2 月 12 日出席高盛會議。我們的第一季靜默期將於 3 月 14 日下班後開始。最後，我們計劃於 4 月 17 日公佈 2014 年第一季的收益。該電話的撥入資訊預計將於三月中旬提供。

Please note that the non-GAAP financial measures referenced on this call are reconciled to their most directly comparable GAAP financial measure in the press release and CFO commentary posted on our website, quarterlyearnings.amd.com. Before we begin the call today, let me remind everyone that today's discussions contain forward-looking statements based on the environment as we currently see it. Those statements are based on current beliefs, assumptions and expectations, speak only as of the current date, and as such, involve risks and uncertainties that could cause actual results to differ materially from our current expectations.

請注意，本次電話會議中引用的非 GAAP 財務指標與我們網站 quarterlyearnings.amd.com 上發布的新聞稿和 CFO 評論中最直接可比較的 GAAP 財務指標相協調。在我們今天開始電話會議之前，請允許我提醒大家，今天的討論包含基於我們當前所見環境的前瞻性陳述。這些聲明是基於當前的信念、假設和期望，僅代表當前日期的觀點，因此涉及風險和不確定性，可能導致實際結果與我們當前的預期有重大差異。

Please refer to the cautionary statement in our press release for more information. You will also find detailed discussions about our risk factors in our filings with the SEC and in particular, AMD's quarterly report on Form 10-Q for the quarter ended September 28, 2013.

請參閱我們新聞稿中的警告聲明以了解更多資訊。您也可以在我們向美國證券交易委員會 (SEC) 提交的文件中找到有關我們的風險因素的詳細討論，特別是 AMD 截至 2013 年 9 月 28 日的 10-Q 表季度報告。

Now with that, I would like to hand the call over to Rory. Rory?

現在，我想把電話交給羅裡。羅裡？

Thank you, Ruth.

謝謝你，露絲。

We made good progress last year in executing our three-step strategic turnaround to restructure, accelerate, and ultimately transform AMD. We completed our restructuring, creating a more efficient business model with significantly lower operating expenses. We also accelerated our business, generating strong revenue growth and a return to profitability in the second half of the year by successfully ramping our strong and diverse set of new products. As we move forward, we will continue to strategically transform AMD as we diversify our portfolio and drive a larger percentage of our revenue from the semi custom, ultra low power client, embedded, dense server and professional graphics high growth markets.

去年，我們在執行重組、加速並最終改造 AMD 的三步驟策略轉型方面取得了良好進展。我們完成了重組，創造了更有效率的業務模式，並大幅降低了營運費用。我們也加速了業務發展，透過成功推出強大且多樣化的新產品，我們在下半年實現了強勁的收入成長並恢復了獲利能力。隨著我們不斷前進，我們將繼續對 AMD 進行策略轉型，實現產品組合多元化，並從半客製化、超低功耗客戶端、嵌入式、密集伺服器和專業圖形高成長市場中獲取更大比例的收入。

In the fourth quarter, we delivered revenue of $1.59 billion, an increase of 9% sequentially, and 38% from the year-ago period, while increasing profitability. We exceeded the goal we set for the semi-custom and embedded businesses to generate 20% of our revenue by the fourth quarter of 2013. We believe this validates the strategy we outlined two years ago to embrace the trends reshaping the industry. We remain on track for our growth businesses to generate approximately 50% of our revenue by the end of 2015.

第四季度，我們的營收為 15.9 億美元，季增 9%，年增 38%，同時獲利能力也有所提高。我們超額完成了為半客製化和嵌入式業務設定的目標，即到 2013 年第四季度，該業務將占我們總收入的 20%。我們相信，這驗證了我們兩年前提出的順應重塑產業趨勢的策略。我們仍有望實現成長業務的穩定發展，到 2015 年底將創造約 50% 的收入。

All of this work is underscored by the improved execution across the AMD Company as we hit our key product, IP development, supply chain, and financial milestones in 2013. Our flawless semi-production custom ramp propelled the business in the fourth quarter and allowed us to meet the strong demand for Sony and Microsoft game consoles. Combined, Sony and Microsoft reported selling more than 7 million units in less than two months. This is more than double the number of prior generation consoles sold in their first quarter of introduction. We expect this momentum will continue as we increase game console, SoC shipments for the year and pursue new wins from our semi-custom design pipeline.

所有這些工作都突顯了 AMD 公司執行力的提升，因為我們在 2013 年實現了關鍵產品、IP 開發、供應鏈和財務里程碑。我們完美的半生產客製化坡道推動了第四季度的業務成長，並使我們能夠滿足對索尼和微軟遊戲機的強勁需求。索尼和微軟報告稱，不到兩個月的時間內，兩款遊戲機的銷售量總計超過 700 萬台。這一數量是上一代遊戲機推出後第一季銷量的兩倍多。我們預計，隨著我們今年遊戲機和 SoC 出貨量的增加以及從我們的半客製化設計流程中取得新的勝利，這種勢頭將持續下去。

Our embedded business achieved sequential revenue growth increases throughout 2013. We have secured design wins to drive further growth and expect continued momentum as we begin offering both X-86 and ARM-based solutions in 2014.

我們的嵌入式業務在 2013 年全年實現了連續的收入成長。我們已獲得設計勝利，以推動進一步成長，並預計在 2014 年開始提供基於 X-86 和 ARM 的解決方案時將繼續保持這一勢頭。

In dense servers, we remain on track to launch one of the industry's first 64-bit ARM server SoCs in 2014. Our unique position offering both X86 and ARM solutions, combined with our years of experience in the server market and industry-leading fabric technology, differentiates us as we bring an expanded set of solutions to this important market. We remain on track to begin sampling our new ARM-based SoCs later this quarter, and we are seeing strong interest from both traditional server OEMs and end customers like cloud providers.

在密集伺服器領域，我們仍有望在 2014 年推出業界首批 64 位元 ARM 伺服器 SoC 之一。我們擁有提供 X86 和 ARM 解決方案的獨特優勢，加上我們在伺服器市場多年的經驗和業界領先的結構技術，使我們在為這個重要市場帶來擴展的解決方案方面脫穎而出。我們仍計劃在本季稍後開始對新的基於 ARM 的 SoC 進行採樣，並且我們看到傳統伺服器 OEM 和雲端供應商等最終客戶都表現出濃厚的興趣。

Our professional graphics business set a record for the full year revenue in 2013. We believe we can drive additional growth based on incremental focus and investments we are making to further strengthen our product offerings, expand our work with key software developers, and secure more design wins. Apple's new Mac Pro desktop with dual AMD FirePro GPUs is a perfect example of our momentum in this margin-accretive market.

我們的專業圖形業務在2013年創下了全年收入的最高紀錄。我們相信，透過不斷關注和投資，我們可以進一步推動成長，進一步加強我們的產品供應，擴大與主要軟體開發商的合作，並獲得更多的設計勝利。蘋果新款 Mac Pro 桌上型電腦配備雙 AMD FirePro GPU，完美體現了我們在這個利潤成長市場的強勁勢頭。

Now, turning to our traditional businesses, as we said during our last earnings call, we expected GPU revenue to rebound as we accelerate the transition to our new R9 and R7 graphics chips, and that is what happened. Strong demand for our latest graphics chips drove a significant sequential increase in GPU revenue and ASP. Our strategy to attack the desktop add inboard channel worked well in the quarter, and we expect this trend to continue. We believe we are well positioned to gain graphics market share in 2014 based on continued channel momentum, secured wins for our new R7 and R9 discrete mobile GPUs, and strong adoption in the professional graphics space.

現在，談到我們的傳統業務，正如我們在上次財報電話會議上所說的那樣，隨著我們加速向新的 R9 和 R7 圖形晶片的過渡，我們預計 GPU 收入將會反彈，事實也確實如此。對我們最新圖形晶片的強勁需求推動了 GPU 收入和 ASP 的大幅連續成長。我們進攻桌面附加內建管道的策略在本季度取得了良好的效果，我們預計這一趨勢將會持續下去。我們相信，憑藉持續的通路發展勢頭、新款 R7 和 R9 獨立行動 GPU 的成功以及專業圖形領域的廣泛應用，我們完全有能力在 2014 年贏得圖形市場份額。

We also delivered our third straight quarter of desktop processor revenue in the fourth quarter, largely driven by increased shipments of our higher end APUs and FX CPUs. We also began shipping the desktop version of our newest APU, Kaveri in December, and we believe it will fuel future growth by delivering a significant performance advantage versus competitive offerings. Kaveri supports our mantle API for better gaming experience, and is the industry's first product to integrate HAS features that can improve performance and power efficiencies when running modern workloads.

我們也在第四季度連續第三個季度實現了桌上型電腦處理器營收成長，這主要得益於高階 APU 和 FX CPU 出貨量的增加。我們也於 12 月開始發售最新 APU Kaveri 的桌面版本，我們相信它將透過提供比競爭產品更顯著的效能優勢來推動未來的成長。Kaveri 支援我們的 mantle API，可提供更好的遊戲體驗，並且是業界第一款整合 HAS 功能的產品，可在運行現代工作負載時提高效能和電源效率。

The consumer notebook market remains soft in the fourth quarter. We focused on improving mix and reducing downstream inventory with our customers. We have secured a number of premium notebook design wins for Kaveri, and also have solid adoption of our next generation low power Mullins and Beema SoCs, which deliver twice the performance per watt of our previous offerings.

第四季消費筆記型電腦市場依然疲軟。我們專注於改善客戶產品組合併減少下游庫存。我們為 Kaveri 贏得了多項高階筆記型電腦設計訂單，而我們的下一代低功耗 Mullins 和 Beema SoC 也已被廣泛採用，其每瓦性能是我們之前產品的兩倍。

We believe we are taking the right steps to create a more predictable and balanced PC business moving forward by continuing to drive a richer product mix, by focusing on parts of the market where we are under represented and have significant growth opportunities. For instance, we have secured a significant number of new commercial client design wins with Tier 1 OEMs which will launch in the second half of the year.

我們相信，我們正在採取正確的措施，透過繼續推動更豐富的產品組合，透過專注於我們代表性不足且具有重大成長機會的市場部分，創造一個更可預測和更平衡的 PC 業務。例如，我們已與一級原始設備製造商 (Tier 1 OEM) 達成大量新的商業客戶設計協議，這些協議將於今年下半年推出。

We continue to believe that the PC market will be down for the year. As we discussed during the last earnings call, our planning assumptions are based on a 10% decline in the market. Since that call, we are seeing some signs that parts of the market may be stabilizing. Given where we are in the quarter, it is too early to know if these signals will continue or not. We are managing the business to the base assumption, but we are ready and poised to take advantage of any upside as it materializes.

我們仍然相信今年個人電腦市場將會下滑。正如我們在上次收益電話會議上所討論的那樣，我們的規劃假設是基於市場 10% 的下滑。自從那次電話會議以來，我們看到一些跡象表明部分市場可能正在穩定下來。考慮到本季的狀況，現在判斷這些訊號是否會持續還為時過早。我們正在根據基本假設管理業務，但我們已做好準備，隨時利用任何可能實現的優勢。

So, in summary, for 2013 we hit key milestones in our multi-year strategic turnaround. We completed our restructuring, creating a more efficient operating model. We accelerated our business by ramping a strong set of new and diverse products across both traditional and new growth businesses. Our semi-custom embedded offerings delivered more than 20% of our revenue in the fourth quarter, and we returned AMD to profitability and positive free cash flow in the second half of the year.

總而言之，2013 年我們在多年策略轉型中取得了關鍵里程碑。我們完成了重組，創造了更有效率的營運模式。我們透過在傳統業務和新興成長業務中推出一系列強大的新產品和多樣化產品來加速我們的業務。我們的半客製化嵌入式產品在第四季度貢獻了超過 20% 的收入，並且我們在下半年使 AMD 恢復了盈利能力並實現了正的自由現金流。

Now, in 2014, our next objective is to achieve revenue growth and profitability at the net income level for the full year, as we leverage our differentiated IP and products to further expand our growth businesses, participate across a broader part of the traditional PC market, to create a more balanced and consistent revenue stream, and to continue to pursue efficiencies in our business model that will further reduce operating expenses.

現在，在2014年，我們的下一個目標是實現全年收入成長和淨收入水準的獲利，因為我們將利用差異化的智慧財產權和產品進一步擴大我們的成長業務，參與更廣泛的傳統PC市場，創造更平衡和一致的收入來源，並繼續追求我們商業模式的效率，進一步降低營運費用。

We are midway through our multi-year turnaround and feel very good about the progress we have made to date and our abilities to continue to meet our commitments. We have built a solid foundation from which we can continue to transform AMD into a more diverse Company, delivering consistent revenue growth and profitability.

我們正處於多年轉型期的中期，對迄今為止所取得的進展以及繼續履行承諾的能力感到非常滿意。我們已經建立了堅實的基礎，可以繼續將 AMD 轉變為更多元化的公司，實現持續的收入成長和獲利能力。

Now, I would like to turn the call over to Devinder. Devinder?

現在，我想將電話轉給 Devinder。德文德？

Thank you, Rory.

謝謝你，羅裡。

2013 was a year of many accomplishments for AMD as we completed the first two phases of our three phase transformation plan. We completed the copper reset and restructuring and had solid execution in the second half of 2013.

2013 年是 AMD 取得許多成就的一年，我們完成了三階段轉型計畫的前兩個階段。我們完成了銅重置和重組，並於2013年下半年穩步執行。

At the beginning of 2013, we laid out a number of key financial goals as part of that plan, specifically, to return to profitability and positive free cash flow in the second half of the year, to reduce our operating expenses by more than 20% from Q1 2012 levels, and to generate more than 20% of our revenues from our semi-custom and embedded products. I am happy to report we achieved and exceeded all of those goals.

2013 年初，作為該計劃的一部分，我們制定了一系列關鍵財務目標，具體包括：在下半年恢復盈利能力和正自由現金流，將營運費用在 2012 年第一季度的基礎上降低 20% 以上，並使半定制和嵌入式產品的收入佔總收入的 20% 以上。我很高興地報告我們實現並超越了所有這些目標。

In addition, we maintained cash balances above our optimal balance of $1.1 billion throughout 2013, and stabilized the business with solid execution and financial discipline. All of this provides a good foundation as we enter 2014 and continue our strategy transformation.

此外，我們在 2013 年全年保持現金餘額高於 11 億美元的最佳餘額，並透過穩健的執行和財務紀律穩定了業務。這一切為我們進入2014年、持續推動策略轉型奠定了良好的基礎。

Let me share some specifics for 2013. We achieved revenue of $5.3 billion, gross margin of 37%, non-GAAP operating expenses of $1.9 billion, down 14% year-over-year, non-GAAP operating income of $103 million, up from $45 million in 2012, capital expenditures of $84 million, down significantly from $133 million in 2012, and finally, we exited 2013 with cash balances, including marketable securities, of $1.2 billion, and increased available liquidity by $500 million through establishing a secured revolving line of credit.

讓我分享一下 2013 年的一些具體情況。我們實現了 53 億美元的收入，37% 的毛利率，19 億美元的非公認會計準則運營費用，同比下降 14%，1.03 億美元的非公認會計準則運營利潤，較 2012 年的 4500 萬美元有所增長，8400 萬美元的資本支出，較 2012 年的 1300 萬美元有所增長，8400 萬美元的資本支出，較 2012 年的 1313 13.億美元的現金餘額（包括有價證券），並透過建立擔保循環信貸額度增加了 5 億美元的可用流動資金。

Now, let me turn to the specifics of the fourth quarter of 2013. Revenue for the fourth quarter of 2013 was $1.59 billion, an increase of 9%, from the third quarter and an increase of 38% from the fourth quarter of 2012. The increase was driven by very strong performance in our graphics and visual solutions segment, driven by increased revenue from our semi-custom SoCs and our new R7 and R9 series of GPU products, which more than offset the decline in revenue in our computing solutions segment.

現在我來談談2013年第四季的具體情況。2013 年第四季營收為 15.9 億美元，較第三季成長 9%，較 2012 年第四季成長 38%。這一增長得益於我們圖形和視覺解決方案部門的強勁表現，這得益於我們半定制 SoC 和新 R7 和 R9 系列 GPU 產品的收入增長，這大大抵消了我們計算解決方案部門收入的下降。

Gross volume was 35%, down 1 percentage point sequentially, in line with our expectations as sales of our semi-custom SoCs grew significantly and formed a larger mix of overall revenue. The fourth quarter financial results include a $7 million benefit from the sale of inventory reserved in the third quarter of 2012, as compared to a similar $19 million benefit in the prior quarter.

總銷量為 35%，比上一季下降 1 個百分點，符合我們的預期，因為我們的半定制 SoC 的銷量大幅增長，並在整體收入中佔據了更大的比重。第四季財務業績包括 2012 年第三季保留庫存銷售收益 700 萬美元，而上一季的類似收益為 1,900 萬美元。

Non-GAAP operating expenses were $462 million, above our targeted level of $450 million, primarily due to high expenses in sales and marketing during the holiday period, and employee-related performance-related programs. Non-GAAP operating income was $91 million, and non-GAAP net income was $45 million, both of which exclude a net benefit of $48 million from legal settlements in the quarter. We delivered non-GAAP earnings per share of $0.06 and adjusted EBITDA of $165 million, excluding a net $48 million benefit from legal settlements.

非公認會計準則營運費用為 4.62 億美元，高於我們 4.5 億美元的目標水平，主要原因是假期期間銷售和行銷費用高昂，以及與員工相關的績效相關計劃。非公認會計準則營業收入為 9,100 萬美元，非公認會計準則淨收入為 4,500 萬美元，均不包括本季來自法律和解的 4,800 萬美元淨收益。我們實現的非公認會計準則每股收益為 0.06 美元，調整後息稅折舊攤銷前利潤為 1.65 億美元，不包括法律和解帶來的 4,800 萬美元淨收益。

Now turning to the business segments. Computing solutions segment revenue was $722 million, down 9% sequentially, primarily due to decreased chip set and notebook unit shipments. Computing solutions operating loss was $7 million as compared to an operating income of $22 million in the third quarter, primarily due to decreased levels in revenue and higher marketing and employee-related performance plan expenses.

現在轉向業務部門。計算解決方案部門營收為 7.22 億美元，季減 9%，主要原因是晶片組和筆記型電腦出貨量下降。計算解決方案營運虧損為 700 萬美元，而第三季的營運收入為 2,200 萬美元，這主要是由於收入水準下降以及行銷和員工相關績效計畫費用增加。

Graphics and visual solutions segment revenue was $865 million, up 29% sequentially, driven by increased shipments of game consoles, semi-custom SoCs and our R7 and R9 series of GPU products. Graphics and visual solutions segment operating income was $121 million, up from $79 million in the prior quarter, primarily due to higher revenue.

圖形和視覺解決方案部門營收為 8.65 億美元，比上一季成長 29%，這得益於遊戲機、半客製化 SoC 以及我們的 R7 和 R9 系列 GPU 產品的出貨量增加。圖形和視覺解決方案部門的營業收入為 1.21 億美元，高於上一季的 7,900 萬美元，主要原因是收入增加。

Turning to the balance sheet, our cash, cash equivalents, and marketable securities balance, including long-term marketable securities, was $1.2 billion, in line with our expectations and flat from the third quarter. Inventory was $884 million, down $38 million sequentially, primarily due to higher shipments of products in our graphics and visual solutions segments.

談到資產負債表，我們的現金、現金等價物和有價證券餘額（包括長期有價證券）為 12 億美元，符合我們的預期，與第三季持平。庫存為 8.84 億美元，比上一季減少 3,800 萬美元，主要原因是圖形和視覺解決方案部門的產品出貨量增加。

Our total wafer purchases from GLOBALFOUNDRIES in 2013 were approximately $960 million, lower than the previously estimated $1.15 billion, due to lower fourth quarter purchases. There were no penalties associated with this reduction. We are actively working on our 2014 wafer supply agreement with GLOBALFOUNDRIES based on our full year demand expectations with a goal to manage inventory flat to down year-over-year.

2013 年我們從 GLOBALFOUNDRIES 採購的晶圓總額約為 9.6 億美元，低於先前估計的 11.5 億美元，原因是第四季採購量較低。此次減量並未帶來任何處罰。我們正根據全年需求預期，積極與格芯就 2014 年晶圓供應協議進行磋商，目標是使庫存與去年同期持平或下降。

Also, in the first quarter of 2014, we paid GLOBALFOUNDRIES the final $200 million payment related to the reduction of our take-up pay, wafer obligation commitments, in 2012. That as of the end of the quarter was $2 billion, flat from the prior quarter. During the quarter, we repurchased approximately 50 million of our outstanding 6% 2015 convertible senior notes in the open market, and these purchases were funded by utilizing our secured line of credit revolver.

此外，2014 年第一季度，我們向格芯支付了最後一筆 2 億美元款項，這筆款項與 2012 年減少的承接費和晶圓義務承諾有關。截至本季末，這一數字為 20 億美元，與上一季持平。在本季度，我們在公開市場上回購了約 5,000 萬張未償還的 6% 2015 年可轉換優先票據，這些購買資金均來自我們的擔保信用額度循環信貸。

Now, turning to the outlook, for the first quarter of 2014, AMD expects revenue to decrease 16% sequentially, plus or minus 3%. We expect computing solutions segment revenue to be down in line with seasonality, and we expect graphics and visual solutions revenue to be down, coming off a strong Q4 for our semi-custom SoCs.

現在，展望未來，AMD 預計 2014 年第一季營收將季減 16%，上下浮動 3%。我們預計計算解決方案部門的收入將隨著季節性因素而下降，我們預計圖形和視覺解決方案的收入也將下降，因為我們的半客製化 SoC 在第四季度表現強勁。

Non-GAAP gross margin is expected to be approximately 35%. Non-GAAP operating expenses, I expect it to be approximately $420 million, driven by lower sales and marketing expenses, accelerated IP reuse and rebalancing of resources in some of our businesses. Inventory is expected to be approximately flat from fourth quarter levels, and cash, cash equivalents and marketable securities are expected it to be approximately $1 billion.

非公認會計準則毛利率預計約35%。非公認會計準則營運費用，我預計約為 4.2 億美元，主要原因是銷售和行銷費用降低、知識產權再利用加速以及部分業務資源重新平衡。庫存預計與第四季水準基本持平，現金、現金等價物和有價證券預計約為 10 億美元。

On cash, we have had two important cash reference points over the past year. One, our optimal cash balance target of $1.1 billion, and the other, our target minimum cash level of $700 million. In light of the progress in the transformation of our business model, with the more predictable revenue stream from our growth businesses, and the availability of $500 million of liquidity available under our secured revolving line of credit, we are revising our optimal cash level to be approximately $1 billion and our target minimum cash to $600 million.

關於現金，過去一年我們有兩個重要的現金參考點。一是我們的最佳現金餘額目標是 11 億美元，二是我們的目標最低現金水準是 7 億美元。鑑於我們業務模式轉型的進展，以及我們成長業務的收入流更加可預測，以及我們有擔保循環信貸額度下可用的 5 億美元流動資金，我們將最佳現金水準修改為約 10 億美元，將目標最低現金修改為 6 億美元。

For the full-year 2014, we expect revenue to increase year-over-year, non-GAAP operating expenses to be in the range of approximately $420 million to $450 million per quarter, depending on the timing of R&D expenses and the revenue profile, taxes of approximately $3 million per quarter to be net income profitable for the year, inventory to be flat to down year-over-year, capital expenditures of approximately $120 million, to be free cash flow positive for the year, and finally, to maintain cash, cash equivalents and marketable securities balances in the optimal zone of $1 billion and above the target minimum of $600 million.

就2014年全年而言，我們預計收入將同比增長，非公認會計準則運營費用每季度將在約4.2億美元至4.5億美元之間，具體取決於研發費用的時間和收入狀況，每季度約300萬美元的稅收將使全年淨收入獲利，庫存將與去年同期持平或下降，資本支出約為1.2億美元，全年自由現金流為正，最後，將現金、現金等價物和有價證券餘額保持在10億美元的最佳區間，高於6億美元的最低目標值。

In summary, we achieved critical milestones in the first two phases of our strategy transformation during 2013 and delivered solid financial performance in the fourth quarter. We remain focused on maintaining the operational and financial discipline that we demonstrated in 2013 as we embark on the third phase of our strategic transformation with the goal of transitioning 50% of our revenue to high growth markets by the end of 2015.

綜上所述，我們在2013年策略轉型的前兩個階段取得了關鍵的里程碑，並在第四季度取得了穩健的財務表現。我們將繼續致力於維持 2013 年所展現的營運和財務紀律，同時開始我們策略轉型的第三階段，目標是到 2015 年底將 50% 的收入轉移到高成長市場。

With that, I will turn it back to Ruth. Ruth?

說完這些，我就把話題轉回露絲。露絲？

Thank you, Devinder. Operator, we would be now pleased for you to poll the audience for questions?

謝謝你，Devinder。接線員，我們現在很高興您能向觀眾提問？

Sure thing.

當然可以。

(Operator Instructions)

（操作員指示）

One moment for phone questioners to queue. And it looks like our first question will come from the line of David Wong with Wells Fargo. Please go ahead. Your line is open.

請電話提問者排隊等候片刻。看起來我們的第一個問題將來自富國銀行的 David Wong。請繼續。您的線路已開通。

Thank you very much. Your microprocessor APU ASPs have been doing very well recently. What do you expect going forward in the March quarter? Does Kaveri help ASPs to rise?

非常感謝。你們的微處理器 APU ASP 最近表現得非常好。您對三月季度的未來有何預期？Kaveri 是否有助於 ASP 的上漲？

Hi, David, this is Lisa. Let me answer that question.

你好，大衛，我是麗莎。讓我來回答這個問題。

We have been working hard on the mix of our product portfolio in both desktop and notebook, and we saw a nice uptick in Q4. I think going forward we do have a strong set of products. We will have to see how 2014 unfolds, but Kaveri, we're very pleased with the performance and the launch in the desktop channel. You will be seeing that in the notebooks, and we will also be introducing our new Mullins and Beema product later on in the year as well. We will continue to work on the mix of the computing solutions ASPs going forward.

我們一直在努力完善桌上型電腦和筆記型電腦的產品組合，並在第四季度看到了良好的成長。我認為展望未來我們確實擁有一系列強大的產品。我們將拭目以待 2014 年的進展，但 Kaveri，我們對桌面頻道的表現和發布感到非常滿意。您將在筆記本中看到這一點，我們還將在今年稍後推出新的 Mullins 和 Beema 產品。我們將繼續致力於混合計算解決方案 ASP。

Okay, great. And my other question, Devinder, we -- you did very well on the profitability in the December quarter. Will you be able to keep net income flat or positive as you go into the seasonal lull?

好的，太好了。我的另一個問題是，Devinder，你們 12 月季度的獲利表現非常出色。當進入季節性淡季時，您能否保持淨收入穩定或為正？

I think as we give the guidance for Q1, if you do the math, that's how it comes out, David. And our goal is obviously to be profitable for the year. And for Q1, with the revenue and the gross margin and OpEx profile that we have, our goal is to be breakeven or better from a profitability standpoint.

我認為，當我們給出第一季的指導時，如果你計算一下，你會發現結果就是這樣的，大衛。我們的目標顯然是實現今年的獲利。對於第一季，根據我們的收入、毛利率和營運支出狀況，我們的目標是從獲利角度實現收支平衡或更高。

Great. Thanks very much.

偉大的。非常感謝。

Thank you, sir. And it looks like our next question in queue will come from the line of Hans Mosesmann with Raymond James. Please go ahead. Your line is now open.

謝謝您，先生。看起來我們的下一個問題將來自 Raymond James 的 Hans Mosesmann。請繼續。您的線路現已開通。

Yes, thanks. A question on your ARM strategy and Seattle, based on what you have seen over the past quarter, has the opportunity in servers in that particular area, has that increased? Has it been the same, or is it less? Thanks.

是的，謝謝。關於您的 ARM 策略和西雅圖的問題，根據您過去一個季度的觀察，該地區的伺服器機會是否增加？和以前一樣嗎，還是更少了？謝謝。

Hans, on the server strategy and the ARM strategy with our Seattle product, I think our view is that the opportunity is definitely there. We have always said that ARM is a longer term opportunity in terms of how it folds into the server market. But what we've seen is continued interest in our ARM product portfolio, not just from traditional server vendors, but also from some of the cloud vendors. So, we're very pleased with the progress with that, and we will continue to work hard with that strategy.

漢斯，關於我們西雅圖產品的伺服器策略和 ARM 策略，我認為我們的觀點是機會肯定存在。我們一直說，就 ARM 如何進入伺服器市場而言，它是一個長期機會。但我們看到，人們對我們的 ARM 產品組合的興趣持續增加，不僅來自傳統的伺服器供應商，也來自一些雲端供應商。因此，我們對這項進展感到非常滿意，並將繼續努力實施這項策略。

And Hans, also remember that we really want to continue to leverage ARM, not only across the server space, but also into embedded and potentially into the semi-custom space as it gives us increased capability. We think that ambidextrous part of the strategy and our leadership in 64-bit compute will give us a significant opportunity and an expansion in TAM that will give us long-term opportunity to expand revenue.

漢斯，請記住，我們確實希望繼續利用 ARM，不僅在伺服器領域，而且還要進入嵌入式領域，甚至可能進入半客製化領域，因為它可以增強我們的能力。我們認為，該策略的靈活部分以及我們在 64 位元運算領域的領導地位將為我們帶來重大機會和 TAM 的擴展，這將為我們提供長期擴大收入的機會。

Thanks. If I can -- if I may, a follow-on, the Beema and Mullins APUs seem to go right at -- they go up against Bay Trail from Intel. I asked the question last time, and I would like to ask it again because I didn't get the proper answer, I suppose. What is the competitive advantage of Beema and Mullins versus Bay Trail? Thanks.

謝謝。如果可以的話 — — 如果可以的話，接下來，Beema 和 Mullins APU 似乎可以直接與英特爾的 Bay Trail 競爭。我上次問過這個問題，我想再問一次，因為我想我沒有得到正確的答案。Beema 和 Mullins 與 Bay Trail 相比的競爭優勢是什麼？謝謝。

Okay, Hans, let me try to answer that for you. Mullins and Beema are really targeted at the low power APU space. We just showed some of the latest performance metrics at CES, and what you will see is that on graphics performance, it is substantially better. We're talking about 250% better than the comparable Bay Trail products.

好的，漢斯，讓我試著回答你這個問題。Mullins 和 Beema 真正瞄準的是低功耗 APU 領域。我們剛剛在 CES 上展示了一些最新的效能指標，您將看到，在圖形效能方面，它有了顯著的提升。我們談論的是比同類 Bay Trail 產品好 250% 的產品。

And what is different is on the compute performance, where we had traditionally been not as strong, we see significant performance improvements. So, I think we feel very good about our positioning versus Bay Trail. We're continuing to be very aggressive with how we position our products in this space, and we will look for a balanced business going forward there.

不同的是，在運算效能方面，我們傳統上表現不那麼強，但現在我們看到了顯著的效能提升。因此，我認為我們對於自己相對於 Bay Trail 的定位感到非常滿意。我們將繼續積極地定位我們在該領域的產品，並尋求未來業務的平衡發展。

Great, thanks.

太好了，謝謝。

Thank you, sir. And our next phone question will come from Chris Rolland with FBR. Please go ahead, your line is open.

謝謝您，先生。我們的下一個電話問題來自 FBR 的 Chris Rolland。請繼續，您的線路已開通。

Thanks for taking the question. Perhaps you can talk about the staggered geographic launch of the TS4 in Japan in February. I thought this might have made the GPU business a little less seasonable than normal than we might have expected. And then also, I know you guys don't guide two quarters ahead, but given that staggered launch, what does that do for second quarter seasonality, as well? Maybe we can get some color there. Thank you very much.

感謝您回答這個問題。也許您可以談談 2 月在日本分階段推出 TS4 的情況。我認為這可能會使 GPU 業務的季節性比我們預期的要差一些。而且，我知道你們不會預測未來兩個季度的情況，但考慮到分階段推出，這對第二季的季節性有什麼影響？也許我們可以在那裡得到一些顏色。非常感謝。

Okay, Chris, let me start, and then maybe Devinder and Rory can add. When you look at the game console market, it is a five-, seven-year market. When you look at the first year of launch, there are those different components, as you talked about, in terms of the staggered launch. If you look at how it has progressed, Q4 was a very strong quarter. When you look at the launch quarter and the number of units sold that our customers have reported, double what you have seen in previous launches.

好的，克里斯，讓我開始，然後也許德文德和羅裡可以補充。當你觀察遊戲機市場時，你會發現它是一個五到七年的市場。當你回顧發布的第一年時，你會發現，正如你所說，在分階段發布方面存在著不同的組成部分。如果你看一下它的進展情況，你會發現第四季是一個非常強勁的季度。當您查看發布季度和我們的客戶報告的銷售單位數量時，您會發現其數量是先前發布的兩倍。

When we look into Q1, we do expect a strong quarter, as well. And looking into 2014, you would expect that the second half will be stronger than the first half, but I would guide you to look at when the major titles are released for the various game consoles to see when -- what you will see a little bit of. I wouldn't call it seasonality, but I would call it a little bit of uptick as the -- as that happens. So, I think strong -- expect strong momentum in 2014 off of the 2013 console launch.

當我們展望第一季時，我們確實也預期這是一個強勁的季度。展望 2014 年，您可能會認為下半年會比上半年更加強勁，但我想引導您關註一下各種遊戲機上主要遊戲的發佈時間，看看您何時會看到一些什麼。我不會稱之為季節性，但我會稱之為隨著這種情況發生而出現的小幅上漲。因此，我認為強勁——預計 2014 年將迎來 2013 年遊戲機發布的強勁勢頭。

Okay, great. Thank you. And if you look at PC processors in, let's say 2012, you guys were down, last year you guys were about breakeven on an operating profit basis. So, even though you guys have PC units down, how are you looking at profitability for that PC processor division in terms of operating profit for 2014?

好的，太好了。謝謝。如果你看一下 2012 年的 PC 處理器，你會發現你們的銷量下滑了，而去年你們的營業利潤基本上達到收支平衡。那麼，儘管你們的 PC 銷量下降了，但從 2014 年的營業利潤來看，你們如何看待 PC 處理器部門的獲利能力呢？

Well, clearly, Chris, our focus is to continue on the next phase of this multi-year strategy we laid out two years ago. In 2014, our next goal is to drive full-year revenue growth and profitability at the net income level for the full year. As we look at that, we think it is a combination of our expansion into the new growth markets, like embedded, professional graphics, semi-custom, low power client, et cetera, dense server, but also it is about the opportunities we see in the PC market. We believe the PC market will continue to be down in 2014. But we see an opportunity for us to continue to move in areas where we're underrepresented.

好吧，克里斯，顯然，我們的重點是繼續兩年前製定的多年期戰略的下一階段。2014年，我們的下一個目標是推動全年收入成長，並在全年淨收入水準上實現盈利。從我們的角度來看，我們認為這是我們向新興成長市場擴張的結合，例如嵌入式、專業圖形、半客製化、低功耗客戶、密集伺服器等，但這也與我們在 PC 市場看到的機會有關。我們認為2014年PC市場仍將持續低迷。但我們看到了繼續在代表性不足的領域前進的機會。

Historically, we have dominated that lower entry point of consumer notebook. Where we see opportunity is to continue to build on the momentum we've seen in the revenue of the desktop channel and then continue to expand into the commercial client segment. These are two key areas where we can provide leadership, and we have been underrepresented in the past. These will give us an opportunity to expand., and they're also areas that tend to have better growth performance than consumer notebook, because clearly, consumer notebook in the entry space has been affected by the tablet.

從歷史上看，我們一直佔據消費性筆記型電腦的低階市場。我們看到的機會是繼續鞏固我們在桌面管道收入方面看到的勢頭，然後繼續擴展到商業客戶領域。這是我們能夠發揮領導作用的兩個關鍵領域，但過去我們的代表性不足。這些將為我們提供擴張的機會，而這些領域的成長表現往往比消費筆記型電腦更好，因為顯然，入門級消費筆記型電腦已經受到平板電腦的影響。

But that commercial area and desktop has been stronger and more resilient. We think that, as we mix up the stack, will continue to give us opportunity to produce profitability. In terms of A8s and A10s, it was a record, record year -- record quarter, excuse me, in terms of A8s and A10s up the stack, which is a perfect example of what we're trying to do and why we saw the expansion on ASPs.

但商業領域和桌面領域更加強大，更具彈性。我們認為，隨著我們混合堆疊，我們將繼續獲得產生獲利的機會。就 A8 和 A10 而言，這是一個創紀錄的年份——對不起，就 A8 和 A10 而言，這是一個創紀錄的季度，這完美地說明了我們正在嘗試做的事情以及為什麼我們看到 ASP 的擴展。

Yes, I can add on top of that, Rory talked about the product and the financial -- I mean the business execution. From a financial standpoint, obviously this is in the midst of a transformation, and our focus that each stand alone has to be profitable, and we will adjust resources and assets from time to time. And that's you why you have seen, even in the computing solutions business, despite the fact that they were down from a revenue standpoint over the quarters, essentially for that segment, we were close to breakeven, and that's the way we are going to manage in 2014 as we go forward.

是的，我還可以補充一點，羅裡談到了產品和財務——我的意思是業務執行。從財務角度來看，顯然這正處於轉型之中，我們的重點是每個獨立公司都必須獲利，並且我們會不時調整資源和資產。這就是為什麼你們會看到，即使在計算解決方案業務中，儘管從收入角度來看，這幾個季度有所下降，但基本上對於該部門而言，我們已接近收支平衡，而這也是我們在 2014 年將繼續保持的管理方式。

Great, thanks. And thanks for that extra color, Devinder.

太好了，謝謝。感謝 Devinder 提供的額外顏色。

You're welcome.

不客氣。

Thank you. And our next phone question will come from the line of Stacy Rasgon with Sanford Bernstein.

謝謝。我們的下一個電話問題來自 Sanford Bernstein 的 Stacy Rasgon。

I wanted to dig in a little bit first into the cash balance. For this quarter you were at $1.2, billion, but you didn't take about $190 million in wafers you were due, and you also cut your CapEx versus your guidance, which would have dropped you well below $1 billion, had all that come through. Now you're dropping, I guess, your optimal target and your minimum target, and you're attributing that to a better outlook on the business. But how can we read that as anything other than cash balances are coming in lower than what you thought and so you're guiding down your targets in order to adjust to that reality? What's the confidence that we have on the cash balance going forward?

我想先深入了解現金餘額。本季您的營業收入為 12 億美元，但您沒有拿到應得的約 1.9 億美元的晶圓，而且您還削減了資本支出，與預期不符，如果所有這一切都實現，您的營業收入將遠低於 10 億美元。我想，現在你放棄了你的最佳目標和最低目標，並將其歸因於對業務的更好展望。但是，除了現金餘額低於您的預期之外，我們怎麼能理解這一點呢？因此，您要降低目標以適應現實情況？我們對未來的現金餘額有何信心？

Stacy, I think if you look at it from the standpoint of where you started, first of all with the lower wafer prices in Q4, taking those wafers in Q4, the cash would have been paid in Q1, would not have affected the Q4 cash balance. So, that is where we ended up from a Q4 standpoint of the $1.2 billion.

史黛西，我認為如果你從一開始的角度來看，首先，由於第四季度晶圓價格較低，拿第四季度的晶圓來說，現金會在第一季度支付，不會影響第四季度的現金餘額。因此，從第四季的角度來看，我們的最終目標是 12 億美元。

And I know you are familiar with the GLOBALFOUNDRIES piece of it. We had $200 million due to GLOBALFOUNDRIES in Q1 2014, and that money has been paid. And our business model has transformed with more predictability of revenue, as I said in my prepared remarks, in particular with the semi-custom game console business. And therefore, I am very comfortable with the viewpoint of resetting the cash balance to the $1 billion for the optimal range and $600 million minimum.

我知道您對 GLOBALFOUNDRIES 的部分很熟悉。2014 年第一季度，我們欠格芯 2 億美元，這筆錢已經支付。正如我在準備好的演講中所說，我們的商業模式已經發生了轉變，收入更加可預測，特別是半客製化遊戲機業務。因此，我非常同意將現金餘額重置為 10 億美元的最佳範圍和 6 億美元的最低限度的觀點。

On top of that, as you probably read, we closed a secured revolver line of credit, what we call the ABL in Q4, of which we have $500 million available. So, when you take our cash balances as of the ends of Q4 2013, look forward to our profitability on the full year basis for 2014, I am confident we can be free cash flow positive for the year, despite having paid the $200 million of GLOBALFOUNDRIES, which we did in the early part of January.

除此之外，正如您可能讀到的那樣，我們在第四季度關閉了有擔保的循環信用額度（我們稱之為 ABL），其中我們有 5 億美元可用。因此，當您查看我們截至 2013 年第四季度末的現金餘額，展望我們 2014 年全年的盈利能力時，我相信我們今年的自由現金流可以達到正值，儘管我們已經在 1 月初向 GLOBALFOUNDRIES 支付了 2 億美元。

And Stacy, if you take a look, what a year -- a difference a year makes. At the end of 2012, our cash balance is basically exactly the same a year later at the end of 2013, and arguably, probably the most difficult PC market in history. And I think we executed the plans that we laid out, quarter by quarter, to deliver that. And now we're moving into the next phase as we continue to accelerate our business based on the new products we have identified, the new growth markets. That's our objective, to deliver free cash flow positive for 2014, as we deliver net income positive for the full year, and revenue growth for the full year.

史黛西，如果你看一下，你會發現這一年發生了多大的變化。2012 年底，我們的現金餘額與一年後的 2013 年底基本相同，可以說，這可能是史上最困難的 PC 市場。我認為我們已經逐季度執行了製定的計劃，以實現這一目標。現在，我們正進入下一階段，繼續根據我們已確定的新產品和新增長市場加速我們的業務發展。我們的目標是，在 2014 年實現自由現金流為正，全年淨收入為正，全年營收成長。

Got it. That's helpful. For my follow-up, I wanted just to verify something on the GLOBALFOUNDRIES. It looks like they forgave some of the commitment. You said there were no penalties from the reduction. Does that mean there are no penalties? There weren't any and there won't be any forthcoming, or is that part of -- are you negotiating that as part of the 2014? Because the last time you couldn't take the wafers, you wound up still paying for them, you just had a little more time to pay for them. Are we basically done with the 2013 commitment at this point?

知道了。這很有幫助。對於我的後續行動，我只是想驗證一下 GLOBALFOUNDRIES 的一些情況。看起來他們免除了一些承諾。您說減稅不會帶來任何懲罰。這是否意味著沒有處罰？沒有任何進展，也不會有任何進展，或者這是其中的一部分——你們是否正在作為 2014 年談判的一部分？因為上次你無法取走晶圓，所以你仍然需要付款，只是你有更多的時間付款。我們現在基本上已經履行了 2013 年的承諾了嗎？

The 2013 WSA is completed. There are no associated penalties with the reduced wafers we took in Q4.

2013 年 WSA 已完成。我們在第四季減少的晶圓產量沒有受到相關處罰。

Got it, so now it is all about 2014, okay. Thank you, guys. Appreciate it.

明白了，現在一切都與 2014 年有關，好的。謝謝你們。非常感謝。

Thank you, sir. And it looks like our next question in queue will come from John Pitzer from Credit Suisse.

謝謝您，先生。看起來我們的下一個問題將來自瑞士信貸的約翰·皮策 (John Pitzer)。

Hi, this is Andrew Paik dialing in for John. I had a question about your seasonality commentary for computing solution. You said C1Q 2014 revenue is expected to be down, partially being driven by seasonality of computing solution. Do you view seasonality as down missing with that particular business?

你好，我是 Andrew Paik，替 John 接聽。我對您的計算解決方案的季節性評論有疑問。您說 2014 年第一季的營收預計會下降，部分原因是計算解決方案的季節性影響。您是否認為該特定業務缺乏季節性？

You said on the compute business? Is that what you were saying?

您說的是計算業務嗎？這就是你所說的嗎？

Yes, computing solutions business.

是的，計算解決方案業務。

Our view is that we see seasonality in line in 1Q, and I think that is good improvement from what we have seen over the past several quarters as we move through this transition. We're looking for our compute business to deliver at-seasonal trends, historical trends in 1Q.

我們的觀點是，第一季的季節性是一致的，我認為這與過去幾季的情況相比，在我們經歷這一轉變的過程中，已經有了很好的改善。我們希望我們的計算業務能夠在第一季呈現季節性趨勢和歷史趨勢。

And if you remember, I said in the last earnings call that we weren't going to lean into Q4. We took that opportunity to prepare and control and burn down inventory, as well as position us for 2014. And I think what you are going to see, based on our guidance, is that compute will fall back into line with the historical trends, and I think that is good improvement.

如果你還記得的話，我在上次財報電話會議上說過，我們不會傾向第四季。我們利用這個機會做好準備、控制和消耗庫存，並為 2014 年做好準備。我認為，根據我們的指導，您將會看到計算能力將重新回到歷史趨勢的水平，我認為這是一個很好的進步。

Yes, I think I wasn't clear with my question. I just wanted to get a better sense of how you view seasonality of your computing solutions for C1Q. I guess, is that somewhat like [bar] mixing with digits quarter over quarter, or? I just wanted what you -- how you view seasonality for that particular business.

是的，我認為我的問題沒有表達清楚。我只是想更了解您如何看待 C1Q 計算解決方案的季節性。我猜，這有點像 [bar] 季度複季度地混合數字，是嗎？我只是想知道您如何看待該特定業務的季節性。

Yes, we normally -- it varies from year to year, but let's say around 8%, 7%, 8% or so.

是的，我們通常——它每年都會有所不同，但大約在 8%、7%、8% 左右。

Okay, got it. And as my follow-up, you said you expect revenue to be up year over year in 2014. Do you expect both business segments to perform, and if so, do you expect one particular business segment to outperform the other?

好的，明白了。接下來我想問的是，您曾表示，預計 2014 年的營收將年增。您是否預期這兩個業務部門都會表現良好？如果是，您是否預期其中一個業務部門的表現會優於另一個？

We wouldn't -- we are in the transformation year of a multi-year transformation. We have given the guidance for the quarter, and we will lay that out. We do see an opportunity for us to deliver revenue growth for the full year and that net income profitability for the full year. But we're not going to break -- generally, we do not break that out at this point as we move through this transformation.

我們不會－我們正處於多年轉型中的轉型年。我們已經給出了本季度的指導，我們將予以公佈。我們確實看到了實現全年收入成長和全年淨收入利潤的機會。但我們不會打破——一般來說，我們不會在進行這項轉變的過程中打破這一點。

Okay, got it. Thank you very much.

好的，明白了。非常感謝。

Thank you, sir.

謝謝您，先生。

Thank you. And our next question in the queue will come from the line of Romit Shah with Nomura. Please go ahead.

謝謝。我們的下一個問題來自野村證券的 Romit Shah。請繼續。

Thanks so much, guys. Rory, I was hoping, I realize it is January, but I was hoping to get some more color for your revenue target for 2014. You are guiding for growth, but being that the Street is modeling north of 15% growth, I think we're hoping for a little bit more color. Are you thinking more single-digit growth, or are you a little bit more optimistic than that?

非常感謝大家。羅裡，我知道現在是一月份，我希望能夠對你 2014 年的收入目標有更多的了解。您為成長提供了指導，但由於華爾街預測的成長幅度超過 15%，我認為我們希望看到更具體的數據。您認為成長率會更高，還是會稍微樂觀一點？

Yes, so from my perspective, I think as we have gone through a very difficult and unprecedented 2013 from a market perspective, I continue to believe the PC market will be down in 2014 a similar amount, and as we have discussed in our last call, we are basing our plannings on that assumption. We see some parts of the market stabilizing for sure in this early part of the year. But as we have got to CES, we have got kind of a mixed story there. So, I think that from our perspective, we are going to manage our business to that 10% base assumption, and if we do see upside, we are going to take advantage of it.

是的，從我的角度來看，由於我們經歷了從市場角度來看非常困難和前所未有的 2013 年，我仍然相信 PC 市場在 2014 年將出現類似的下滑，正如我們在上次電話會議中討論的那樣，我們是根據這一假設制定計劃的。我們看到今年年初部分市場肯定正在趨於穩定。但當我們來到 CES 時，我們聽到的故事有點複雜。因此，我認為從我們的角度來看，我們將按照 10% 的基本假設來管理我們的業務，如果我們確實看到了上行空間，我們就會利用它。

Given we're in this very unpredictable stage of the market and we're also in this transformation, I think it is prudent for us to give the guidance quarter by quarter as we move through this transformation. We've shown our ability to deliver and execute quarter by quarter, and I think what we're saying is we see the opportunity to drive that revenue growth for the year. Let's get a couple more quarters under the belt. We will lay that out as the year goes on and see how the industry begins to unfold, and we will lay out the year as we go. I think that's the prudent way to handle it.

鑑於我們正處於市場非常難以預測的階段，而我們也正處於這種轉型之中，我認為在我們經歷這一轉型的過程中，我們謹慎的做法是逐季度提供指導。我們已經展示了我們逐季度交付和執行的能力，我認為我們所表達的是，我們看到了推動全年收入成長的機會。讓我們再多花幾個季度的時間。隨著時間的推移，我們將製定計劃，觀察行業如何發展，然後製定全年計劃。我認為這是謹慎的處理方式。

Yes, I agree. On PCs, which sub segments would you say are showing the highest degree of stabilization today?

是的，我同意。在個人電腦方面，您認為哪些細分市場目前表現出最高程度的穩定性？

I think there is an early part to that. I think there is no doubt that the ex-fee expiration has driven some activity in the commercial segment. It is one of the reasons Lisa and John Byrne and their teams have targeted the opportunity. You are going to see a substantial increase in the number of SKUs that we have, the number of models that we have in the commercial segment. I think that has done better over the past several quarters, I think it will continue to do better.

我認為這還有早期階段。我認為，毫無疑問，除費到期推動了商業領域的一些活動。這是麗莎·伯恩和約翰·伯恩及其團隊瞄準這一機會的原因之一。您將看到我們擁有的 SKU 數量和商業領域的型號數量大幅增加。我認為過去幾季的表現已經更好了，而且我認為還會繼續更好。

I think the component channel has continued to do well. The area that has been the most difficult, and, obviously, most affected by the tablet migration has been entry level consumer notebook, and clearly, we were way over indexed in that space. Part of our strategy, diversify to the high growth market, and within the traditional market, diversify into the segments within that PC market where we see future growth. Lisa, you want to add anything else to that?

我認為組件頻道繼續表現良好。最困難且顯然受平板電腦遷移影響最大的領域是入門級消費筆記型電腦，顯然，我們在該領域的指數過高。我們的策略之一是向高成長市場多元化發展，並在傳統市場內向我們認為未來有成長潛力的 PC 市場細分領域中多元化發展。麗莎，你還想補充什麼嗎？

No, I think that covers it.

不，我想這就涵蓋了。

Great.

偉大的。

Thank you very much.

非常感謝。

Operator, we will take two more questioners, please.

接線員，請再回答兩位提問者的問題。

Understood ma'am. The next phone question will come from the line of Patrick Wang with Evercore. Please go ahead. Your line is open.

明白了，女士。下一個電話問題將來自 Evercore 的 Patrick Wang。請繼續。您的線路已開通。

Great, thanks a lot. For my first question, I want to see if you could talk a bit more about the semi-custom business console. Lots of moving pieces out there. A very, very strong ramp first -- through the first couple months here. How do you see the inventory situation? How much more demand do you think there is? I know you talked about expectations for growth year-over-year, but can you just help us frame some of your expectations there?

太好了，非常感謝。對於我的第一個問題，我想看看您是否可以多談談半客製化商務控制台。那裡有很多移動的部件。首先，在最初的幾個月裡，成長勢頭非常強勁。您如何看待庫存情況？您認為還有多少需求？我知道您談到了對同比增長的預期，但您能否幫助我們闡述您的一些預期？

Yes Patrick, let me try to give you some color on that. From everything that we see, the semi-custom launch has been very successful. Very strong uptake, both in sell-in as well as sell-through inventory. Of course, you will see more of that from our customer data. From the visibility that we see in 2014, we see also strong uptake and usually, as you know, these consoles tend to increase in numbers of units through the third and fourth year of console launch. So, we see 2014 as a strong year for the overall game console market in both the Sony and the Microsoft consoles.

是的，派崔克，讓我試著給你解釋。從我們所看到的一切來看，半客製化發射非常成功。無論是銷售庫存還是銷售庫存，吸收量都非常強勁。當然，您可以從我們的客戶資料中看到更多這樣的資訊。從我們在 2014 年看到的可見度來看，我們也看到了強勁的成長勢頭，而且通常，正如你所知，這些遊戲機在推出後的第三年和第四年，其銷量往往會增加。因此，我們認為 2014 年將是索尼和微軟遊戲機整體市場表現強勁的一年。

Okay, and just -- you're just referring to the -- can you talk a little bit about the profitability? I think a couple of quarters ago, you guys set a lower operating margin target there. How is the progress on that going, and how are the ASPs going to -- how should we think about ASPs trending over the next one to two years as the NRA comes off?

好的，只是——您只是提到——您能談談盈利能力嗎？我認為幾個季度前，你們設定了較低的營業利潤率目標。這項工作進展如何？ ASP 將如何發展？隨著 NRA 的結束，我們該如何看待未來一到兩年 ASP 的趨勢？

Yes, two parts. I think the time frame, and we were just starting to ship the product, margin guidance in the low double-digits. It came in at the teens, as I said, for Q3, and in Q4, really, we continued to improve. And over time, we believe that we can continue to increase the operating margin within that business. And that obviously benefits the operating margin of that business and the Company.

是的，兩個部分。我認為在時間框架內，我們剛開始運送產品，利潤率指導在兩位數以下。正如我所說，在第三季度，這一數字達到了十幾歲，而在第四季度，我們確實繼續進步。隨著時間的推移，我們相信我們可以繼續提高該業務的營業利潤率。這顯然有利於該業務和公司的營業利潤率。

As you can see, the evidence, if you go look at a GVS segment results for this particular quarter, Q4, and the 865% -- $865 million revenue, we had about 14% operating margin, and that is really good. I am not going to provide granularity of the operating margin for that particular part of the business on a go forward standpoint, but more looking at the operating margin trajectory between the businesses on the computing solutions on the one hand and GVS, and the graphics and visual solutions on the other.

如您所見，如果您查看本季度（第四季度）的 GVS 部門業績，以及 865% - 8.65 億美元的收入，我們的營業利潤率約為 14%，這真的很好。我不會從未來的角度提供特定業務部分的營業利潤率的粒度，而是更專注於計算解決方案業務與 GVS 以及圖形和視覺解決方案之間的營業利潤率軌跡。

And Patrick, on your question on ASPs and that trend, I think what I will say is that the ASP reductions are well understood and they are in our model. And with that, as Devinder said, we still expect over time to be able to improve the operating margins based on the execution of the products.

派崔克，關於你關於平均售價和趨勢的問題，我想我要說的是，平均售價的降低是眾所周知的，而且它已經包含在我們的模型中。正如 Devinder 所說，我們仍然期望隨著時間的推移能夠根據產品的執行情況提高營業利潤率。

All right. If I could squeeze in one last question, just on the dense server business, it is probably my favorite one of that you guys have. Could you talk a little bit about your go to market strategy? Do you think that you're going to see an uptake from OEMs first? Do you expect early success with direct quality customers? Just any sense of -- any color you can give on pace of penetration, things like that.

好的。如果我可以擠出最後一個問題，僅關於密集伺服器業務，這可能是我最喜歡的一個。能稍微談談您的行銷策略嗎？您認為您會先看到 OEM 的採用嗎？您是否期望早日獲得直接優質客戶的成功？任何感覺——任何你能給出的關於滲透速度的顏色，諸如此類。

Sure. Let me try to do that. In the dense server business, last quarter we announced Verizon as our first mega data center win with our C micro systems, and that was a big deal. And we see that as, really, a cloud customer going forward. As we look forward, our dense server business has both chip and system sales. And so I think on the system side, you will see more of the cloud customers and there are certainly a number of trials in progress. On the chip side, we're seeing interest from both traditional OEMs as they expand their dense server focus, as well as cloud customers and others looking to expand into the data centers. So, I would say the chip business, it is more mixed, on the system business, we are very focused on those newer workloads.

當然。讓我嘗試這樣做。在密集伺服器業務中，上個季度我們宣布 Verizon 憑藉我們的 C 微系統贏得了我們首個大型資料中心，這是一件大事。我們認為這確實是未來的雲端客戶。展望未來，我們的密集伺服器業務既有晶片銷售，也有系統銷售。因此我認為在系統方面，你會看到更多的雲端客戶，而且肯定有許多試驗正在進行中。在晶片方面，我們看到傳統 OEM 廠商對晶片的興趣，因為他們正在擴大其密集伺服器重點，而雲端客戶和其他希望擴展到資料中心的客戶也對此感興趣。所以，我想說晶片業務更加混合，在系統業務上，我們非常關注那些較新的工作負載。

Got you. Thanks so much.

明白了。非常感謝。

Thank you, sir. And we do have time for one final questioner. Our final question for today will come from the line of Srini Pajjuri with CLSA Securities. Please go ahead.

謝謝您，先生。我們還有時間回答最後一位提問。我們今天的最後一個問題來自里昂證券的 Srini Pajjuri。請繼續。

Thank you. Just one clarification, Devinder. Given your guidance, are you guiding at PC down seasonally, and -- which I think implies graphics to be down about 20% or so. I would have thought gross margins would improve a bit, just given the gross margin profile. I'm just wondering why they're not improving. And then as the business rebounds in Q2 and Q3, how should we think about gross margins? Thank you.

謝謝。只要澄清一點，Devinder。根據您的指導，您是否指導 PC 出現季節性下降，並且 - 我認為這意味著圖形下降約 20％ 左右。考慮到毛利率狀況，我原本以為毛利率會提高。我只是想知道為什麼他們沒有進步。那麼隨著第二季和第三季業務的反彈，我們該如何看待毛利率？謝謝。

I think if you look at it from the viewpoint of the computing solutions, like you said, down in line with seasonality, and Lisa mentioned earlier the 8%. On the graphics side, it is really a combination of the businesses within graphics, and then obviously the semi-custom business that obviously is going well from where we executed in Q4. And our customers continue to do well, even in Q1. The mix of the revenue obviously is going to lead to that 16% down guidance that we gave, and that is where the gross margin comes out. Given the mix of -- within the computing solutions and the graphics on the discrete basis and the semi-custom business.

我認為，如果從計算解決方案的角度來看，就像您所說的那樣，它會隨著季節性而下降，Lisa 之前提到的 8%。在圖形方面，它實際上是圖形業務的結合，顯然半定制業務從我們在第四季度的執行情況來看進展順利。即使在第一季度，我們的客戶仍然表現良好。收入組合顯然會導致我們給出的 16% 的下調預期，這就是毛利率的來源。考慮到計算解決方案和離散圖形以及半定制業務的混合。

Given that semi-custom is lower gross margin, my question is, as that business comes back in Q2 or Q3, is there further down side to your 35% forecast?

鑑於半客製化的毛利率較低，我的問題是，隨著該業務在第二季或第三季恢復，您的 35% 預測是否還會進一步下行？

I'm not going to go further out in the year, because it is really going to depend then, when you get into the later part of 2014, how our growth businesses do, how the semi-custom business evolves, given the launches that our customers are going to do in other parts of the world., and finally obviously on the PC market we have the transition going on.

我不會對今年的情況做進一步的預測，因為這實際上要取決於到 2014 年下半年，我們的成長業務如何表現，半定制業務如何發展，以及我們的客戶將在世界其他地區推出哪些產品，最後顯然在 PC 市場上我們正在進行轉型。

We are in the midst of a transformation, our business world is evolving. We have done, as you probably have tracked us the last few quarter, giving the guidance for the gross margin and meeting that gross margin guidance. And in Q1, the gross margin 35%, and we are going to continue to manage that, as we go through the year in 2014.

我們正處於變革之中，我們的商業世界正在不斷發展。正如您可能在過去幾個季度跟踪我們一樣，我們已經給出了毛利率指導並達到了該毛利率指引。第一季的毛利率為 35%，2014 年全年我們將繼續維持這一水準。

It is clear that we have been on this multi-year journey and clearly focused on positioning ourselves for this turn. I think 2013 is going to be remembered as a significant turning point in our history as we define this multi-year transformation to create a stronger and more profitable AMD. And as we look forward, I think you're seeing us target those segments that are going to have growth, look for those areas where we can expand our ASP where we have opportunity to get new business, and to choose those businesses that are going to produce the profitability long-term.

顯然，我們已經踏上了這段多年的旅程，並且明確地專注於為這一轉變做好準備。我認為 2013 年將會被銘記為我們歷史上的一個重要轉折點，因為我們定義了這一多年的轉型，以創造一個更強大、更有利可圖的 AMD。展望未來，我想您會看到我們瞄準那些將會成長的細分市場，尋找那些可以擴大平均銷售價格的領域，那些有機會獲得新業務的領域，並選擇那些能夠長期產生盈利的業務。

Additionally, we will manage the operating expense to deliver that. And you need to look at this as a body of work over the next two years. We have done the first two years. Think about where we were just a year ago, and where we are today. And think about where we can get to this year, because the next goal is growing the revenue for the full year, and that profitability and net income for the full year. And then by the end of 2015, 50% of our business comes from the new growth segments. That's a different AMD, and that is how we will manage, quarter by quarter, step by step, through this strategy.

此外，我們將管理營運費用以實現這一目標。你需要將其視為未來兩年​​的一項工作。我們已經完成了前兩年。想想一年前我們在哪裡，以及今天我們在哪裡。想想我們今年能取得什麼成就，因為下一個目標是增加全年收入，以及全年獲利能力和淨收入。到 2015 年底，我們 50% 的業務將來自新的成長領域。這就是不同的 AMD，我們將透過這個策略，逐季度、逐步地進行管理。

Thank you.

謝謝。

Thank you, operator. This concludes the call.

謝謝您，接線生。通話到此結束。

Thank you, presenters. And thank you, ladies and gentlemen. Again, this does conclude today's call. Thank you for your participation, and have a wonderful day. Attendees, you may now all disconnect.

謝謝各位主持人。謝謝你們，女士們，先生們。再次，今天的電話會議到此結束。感謝您的參與，祝您有美好的一天。各位與會者，現在你們都可以斷開連結了。