超微半導體 (AMD) 2016 Q3 法說會逐字稿

Greetings and welcome to the Advanced Micro Devices third-quarter 2016 earnings conference call.

大家好，歡迎參加 AMD 2016 年第三季財報電話會議。

(Operator Instructions)

（操作員指示）

As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Ruth Cotter, Chief Human Resources Officer, for Advanced Micro Devices. Ms. Cotter, you may begin.

提醒一下，本次會議正在錄製中。現在我很高興向大家介紹主持人、美國超微公司首席人力資源長露絲‧科特 (Ruth Cotter)。科特女士，你可以開始了。

Thank you, and welcome to AMD's third-quarter conference call. 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 IR.AMD.com.

謝謝，歡迎參加 AMD 第三季電話會議。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 網站 IR.AMD.com 上找到。

Participants on today's conference call are Lisa Su, our President and Chief Executive Officer; and Devinder Kumar, our Senior Vice President, Chief Financial Officer, and Treasurer. This is a live call, and will be replayed via webcast on AMD.com.

今天電話會議的參與者包括我們的總裁兼執行長蘇姿豐 (Lisa Su)；以及我們的資深副總裁、財務長兼財務長 Devinder Kumar。這是一次現場通話，並將透過 AMD.com 上的網路直播重播。

I'd like to highlight a few dates for you this afternoon. Lisa Su will present at the Credit Suisse PMT conference on November 30 in Arizona. I will present at the NASDAQ investor program on November 30 in the UK. Devinder Kumar will present at the Barclays Global Technology Media and Telecommunications Conference in December in San Francisco. And our fourth quarter quiet time will begin at the close of business on Friday, December 16, 2016.

今天下午我想向大家重點介紹幾個日期。 Lisa Su 將於 11 月 30 日在亞利桑那州舉行的瑞士信貸 PMT 會議上發表演講。我將於 11 月 30 日在英國納斯達克投資者計畫上發表演講。 Devinder Kumar 將於 12 月在舊金山舉行的巴克萊全球科技媒體和電信會議上發表演講。我們的第四季靜默期將於 2016 年 12 月 16 日星期五下班後開始。

Before we begin, let me remind everyone that third-quarter 2016 was a 14-week quarter, and we expect to record our extra week in the fourth quarter of 2016. Today's discussion contains 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.

在我們開始之前，請允許我提醒大家，2016 年第三季度是一個 14 週的季度，我們預計將在 2016 年第四季度記錄額外的一周。今天的討論包含前瞻性陳述，基於我們目前所看到的環境。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。

Additionally, please note that we will be referring to non-GAAP figures during the call, except for revenue, which is on a GAAP basis. The non-GAAP financial measures referenced are reconciled to their most directly comparable GAAP financial measures in the press release and CFO commentary, posted on our website at QuarterlyEarnings.AMD.com.

此外，請注意，我們將在電話會議中引用非 GAAP 數據，但收入除外，因為收入是基於 GAAP 計算的。所引用的非 GAAP 財務指標與新聞稿和 CFO 評論中最直接可比較的 GAAP 財務指標進行了協調，這些評論發佈在我們的網站 QuarterlyEarnings.AMD.com 上。

Please refer to the cautionary statements in today's earnings press release and CFO commentary for more information. You'll also find detailed discussions about our risk factors and our filings with the SEC, and in particular, AMD's quarterly report on Form 10-Q for the quarter ended June 25, 2016. With that, I would like to hand the call over to Lisa. Lisa?

請參閱今天的收益新聞稿和財務長評論中的警告聲明以獲取更多資訊。您還將找到有關我們的風險因素和向美國證券交易委員會提交的文件的詳細討論，特別是 AMD 截至 2016 年 6 月 25 日的 10-Q 表季度報告。接下來，我想將電話交給麗莎。麗莎？

Thank you, Ruth, and good afternoon to all those listening in today. Our strong third-quarter results highlight the progress we have made across AMD this past year, as we improved our financial performance by delivering great products. Third-quarter revenue of $1.3 billion increased 27% sequentially and 23% from the year-ago period, driven by upside demand for our graphics products, and record semi custom sales.

謝謝你，露絲，祝今天收聽節目的各位下午好。我們強勁的第三季業績凸顯了 AMD 在過去一年中取得的進步，我們透過提供優質的產品提高了財務業績。第三季營收為 13 億美元，比上一季成長 27%，比去年同期成長 23%，這得益於圖形產品需求的上升以及創紀錄的半客製化銷售。

In addition to the significant revenue growth, we also achieved several financial and operational milestones in the quarter. We strengthened our balance sheet and improved our P&L through a series of capital markets transactions that reprofiled and reduced our debt. We also signed a strategic amendment to our Wafer Supply Agreement with GLOBALFOUNDRIES that provides sourcing flexibility and financial predictability. Most importantly, we delivered non-GAAP net income in the quarter, based on strong execution of our product road map, and growing momentum across our business.

除了營收大幅成長之外，我們在本季還實現了多項財務和營運里程碑。我們透過一系列資本市場交易來重塑和減少債務，從而增強了資產負債表並改善了損益表。我們也與格芯簽署了晶圓供應協議的策略性修訂，以提供採購靈活性和財務可預測性。最重要的是，基於我們產品路線圖的強勁執行以及整個業務的成長勢頭，我們在本季度實現了非 GAAP 淨收入。

Looking at our Computing and Graphics segment, we had solid growth in the quarter. Revenue increased 9% sequentially, and 11% from the year-ago period, driven by improved sales of mobile APUs and discrete GPUs. Mobile processor revenue and unit shipments increased for the fourth straight quarter, as 7th-generation APU shipments continued ramping, highlighted by the launch of our new PRO Series APUs earlier this month with HP.

從我們的計算和圖形部門來看，本季我們實現了穩健的成長。受行動 APU 和獨立 GPU 銷售成長的推動，營收季增 9%，年增 11%。行動處理器營收和單位出貨量連續第四個季度成長，因為第七代 APU 的出貨量持續成長，本月稍早我們與惠普合作推出了新的 PRO 系列 APU。

Customer and partner excitement for our Zen-based desktop product, Summit Ridge, is growing as we successfully passed several key engineering and design win milestones in the quarter. We provided our first competitive performance preview of Summit Ridge in the quarter, and believe we will have a very competitive offering for the $4 billion high performance desktop processor market. We are working closely with our infrastructure partners and customers, in preparation for the launch in early 2017.

隨著我們在本季成功實現幾個關鍵的工程和設計里程碑，客戶和合作夥伴對我們基於 Zen 的桌面產品 Summit Ridge 的興奮感日益高漲。我們在本季度提供了 Summit Ridge 的第一個競爭性性能預覽，並相信我們將為價值 40 億美元的高效能桌上型電腦處理器市場提供極具競爭力的產品。我們正在與基礎設施合作夥伴和客戶密切合作，為 2017 年初的發布做準備。

In graphics, we had a very strong quarter, with discrete GPU revenue and unit shipments growing by double-digit percentages sequentially and year-over-year. The launch of our expanded family of Polaris desktop GPUs, and our first full quarter of RX 480 sales drove our highest quarterly channel GPU revenue and ASP since early 2014. Radeon RX GPUs now account for more than 50% of our channel GPU revenue.

在圖形領域，我們本季表現非常強勁，獨立 GPU 收入和單位出貨量環比和同比均實現了兩位數的百分比增長。我們擴展的 Polaris 桌上型電腦 GPU 系列的推出以及 RX 480 的第一個完整季度的銷售推動了我們自 2014 年初以來最高的季度通路 GPU 收入和 ASP。 Radeon RX GPU 現在占我們通路 GPU 收入的 50% 以上。

Polaris GPUs continued to gain traction based on their leadership performance in VR and on the rapidly expanding number of software titles that feature the latest generation of APIs, like DirectX 12 and Vulkan. Our progress in the quarter was punctuated by Oculus, announcing a limited edition Oculus-ready PC, powered by an AMD FX processor, and Radeon RX 470 GPU that brings the cost of entry for a VR-ready system down to $500 for the first time. This is a meaningful milestone for consumers, and I am excited that AMD is enabling the ecosystem, and driving broader adoption of VR, by making premium experiences available at such an attractive price point.

Polaris GPU 憑藉其在 VR 領域的領先表現以及採用最新一代 API（如 DirectX 12 和 Vulkan）的軟體數量的迅速增長而繼續獲得關注。我們本季的進展因 Oculus 而受到矚目，該公司宣布推出限量版 Oculus-ready PC，該 PC 搭載 AMD FX 處理器和 Radeon RX 470 GPU，首次將 VR-ready 系統的入門成本降至 500 美元。對於消費者來說，這是一個意義重大的里程碑，我很高興 AMD 能夠以如此誘人的價格提供優質體驗，從而推動生態系統的發展，並推動 VR 的更廣泛應用。

We also delivered our fourth straight quarter of sequential revenue growth for our professional graphics products. In addition to solid workstation sales growth, we expanded our presence in the server GPU market, as HP announced availability of multiple Radeon options across their traditional and blade server offerings. And just last week, we announced the collaboration with Alibaba Cloud, China's largest cloud provider, to deploy Radeon PRO server GPUs across their datacenters to expand the scale and services of their global cloud offering.

我們的專業圖形產品收入也連續第四個季度實現成長。除了工作站銷售穩定成長之外，我們還擴大了在伺服器 GPU 市場的影響力，因為惠普宣佈在其傳統和刀鋒伺服器產品中推出多種 Radeon 選項。就在上週，我們宣布與中國最大的雲端供應商阿里雲合作，在其資料中心部署 Radeon PRO 伺服器 GPU，以擴大其全球雲端產品的規模和服務。

We now have material server GPU engagement with multiple cloud datacenter providers, demonstrating that our strategy to grow our presence in this profitable market by delivering superior performance with Radeon PRO hardware, in conjunction with industry-standard programming tools and APIs, is beginning to pay off. Now, turning to our enterprise embedded and semi-custom segment.

現在，我們與多家雲端資料中心供應商在材料伺服器 GPU 方面展開合作，這表明，我們透過 Radeon PRO 硬體結合產業標準程式設計工具和 API 提供卓越效能，擴大在這個利潤豐厚的市場中的影響力的策略已開始取得成效。現在，轉向我們的企業嵌入式和半客製化部分。

Revenue increased 41% sequentially, and 31% from the year-ago period, driven by record semi- custom sales, which included the ramp of three new FinFET-based products powering the Xbox One S, updated PlayStation 4, and our new design win in the Sony PlayStation 4 Pro. We are on track to grow semi-custom unit shipments and revenue for the third straight year, demonstrating our leadership in high-performance gaming technologies for the very successful game console market. We expect fourth-quarter revenue to be down seasonally, as we transition from our annual semi custom sales peak in the third quarter.

營收季增 41%，比去年同期成長 31%，這得益於創紀錄的半客製化銷售，其中包括為 Xbox One S 提供動力的三款基於 FinFET 的新產品、更新的 PlayStation 4 以及我們在索尼 PlayStation 4 Pro 中的新設計勝利。我們預計連續第三年實現半客製化單位出貨量和收入的成長，展現我們在非常成功的遊戲機市場高效能遊戲技術領域的領導地位。由於我們從第三季的年度半客製化銷售高峰過渡，我們預計第四季營收將出現季節性下降。

Our embedded product sales grew sequentially, as our newer design wins reached production. In server, our Zen-based high-performance processor remains on track for introduction in the first half of 2017. We successfully passed several silicon and platform technical milestones in the quarter, and have secured multiple new design wins across OEM, enterprise, and cloud providers.

隨著我們新設計的成果投入生產，我們的嵌入式產品銷售額持續成長。在伺服器方面，我們基於 Zen 的高效能處理器仍有望在 2017 年上半年推出。我們在本季成功突破了多個矽片和平台技術里程碑，並獲得了 OEM、企業和雲端供應商的多項新設計訂單。

In closing, as I complete my second year as CEO of AMD, I am pleased with the solid progress we have made across the Company on multiple operational, product, and financial fronts. We are executing our long-term strategy, and a set of near term priorities that I believe provide AMD with significant opportunities over the next 18 to 24 months, to drive top line revenue growth, operating margin expansion, and free cash flow generation.

最後，在我擔任 AMD 執行長的第二年，我對公司在營運、產品和財務等多個方面取得的穩定進展感到高興。我們正在執行我們的長期策略和一系列近期優先事項，我相信這些將為 AMD 在未來 18 到 24 個月內提供重大機遇，以推動營收成長、營業利潤率擴大和自由現金流產生。

We have strengthened the core of the Company, by clearly defining the markets where we have technology and expertise to win; bringing a laser focus to our product execution around our graphics and microprocessor road map; creating deeper, more lasting relationships with strategic customers; monetizing our assets and valuable IP with two joint ventures in China; and reengineering our balance sheet to increase our cash balance and reduce debt. I want to thank the thousands of AMDers whose determination this past year has allowed us to put in place the financial and operational foundation to drive growth and profitability.

我們透過明確界定我們擁有技術和專業知識可以贏得的市場，加強了公司的核心地位；圍繞我們的圖形和微處理器路線圖，重點關注我們的產品執行；與戰略客戶建立更深厚、更持久的關係；通過在中國的兩家合資企業將我們的資產和寶貴的知識產權貨幣化；並重新設計我們的資產負債表以增加現金餘額並減少債務。我要感謝數以千計的 AMD 員工，他們的決心讓我們在過去的一年裡建立了推動成長和獲利的財務和營運基礎。

In 2017, with Zen and Vega, we are focused on delivering our strongest product portfolio in over a decade, capable of unlocking multiple growth pillars for our business across the data center, gaming, and high performance graphics and PC markets. I am proud of what we have accomplished, and I believe that the best is yet to come. Now, I'd like to turn the call over to Devinder, to provide some additional color on our third-quarter financial performance.

2017 年，憑藉 Zen 和 Vega，我們致力於提供十多年來最強大的產品組合，為我們在資料中心、遊戲、高效能圖形和 PC 市場的業務解鎖多個成長支柱。我為我們所取得的成就感到自豪，我相信最好的還在後頭。現在，我想將電話轉給 Devinder，以便他能為我們的第三季財務業績提供一些額外的資訊。

Thank you, Lisa, and a very good afternoon to everyone. In the third quarter, we achieved another milestone in our progress as we return to non-GAAP net income profitability. The third-quarter financial performance was driven by strong demand for our semi custom SoCs, higher graphics revenue, and positive free cash flow.

謝謝你，麗莎，祝大家午安。第三季度，我們實現了另一個里程碑，非公認會計準則淨收入恢復獲利。第三季的財務表現受到我們半客製化 SoC 的強勁需求、更高的圖形收入以及正的自由現金流的推動。

We executed a series of capital markets transactions that have significantly improved our balance sheet, and turned that profile, and will reduce interest expense beginning in Q4. We also finalized a long-term strategic Wafer Supply Agreement with GLOBALFOUNDRIES.

我們執行了一系列資本市場交易，顯著改善了我們的資產負債表，扭轉了這一狀況，並將從第四季度開始減少利息支出。我們也與格芯達成了長期策略晶圓供應協議。

Third-quarter revenue was $1.3 billion, up 27% sequentially, driven by higher sales of our record semi custom SoCs and higher graphics processor sales. The year-over-year revenue increased 23%, driven by higher sales of our semi custom SoCs, client mobile processors, and graphics processors.

第三季營收為 13 億美元，季增 27%，這得益於我們創紀錄的半客製化 SoC 銷量成長以及圖形處理器銷量成長。由於半客製化 SoC、客戶端行動處理器和圖形處理器的銷量成長，營收年增 23%。

Non-GAAP gross margin was 31%, flat from the prior quarter, driven by a richer mix of PC and graphics products, offsetting lower margin semi custom product. Non-GAAP operating expenses were $353 million, up $11 million from the prior quarter, due to increased R&D investment. We recognized $24 million of net licensing gains, associated with our server JV with THATI. Non-GAAP operating income was $20 million this quarter, up $67 million from the prior quarter.

非公認會計準則毛利率為 31%，與上一季持平，這得益於 PC 和圖形產品組合的豐富，抵消了利潤率較低的半定制產品的影響。非公認會計準則營運費用為 3.53 億美元，較上一季增加 1,100 萬美元，原因是研發投入增加。我們確認了與 THATI 的伺服器合資企業相關的 2,400 萬美元淨許可收益。本季非公認會計準則營業收入為 2,000 萬美元，較上一季增加 6,700 萬美元。

Third-quarter other net expense was $63 million, mostly consisting of a $61 million loss related to debt retirement. The equity loss in the ATMP JV was $5 million based on our 15% JV ownership stake. Non-GAAP net income was $27 million, with earnings per share of $0.03.

第三季其他淨支出為 6,300 萬美元，其中大部分是與債務償還相關的 6,100 萬美元損失。根據我們 15% 的合資企業所有權股份計算，ATMP 合資企業的股權損失為 500 萬美元。非公認會計準則淨收入為 2,700 萬美元，每股收益為 0.03 美元。

Non-GAAP EPS was calculated using 865 million diluted shares of common stock, which includes 12 million shares associated with the equity offering that closed late in the third quarter. Included in our GAAP operating loss and GAAP net loss is a $340 million charge associated with our fixed amendment to the WSA with GLOBALFOUNDRIES. Adjusted EBITDA was $103 million, compared to $36 million in the prior quarter.

非公認會計準則每股收益是使用 8.65 億股稀釋普通股計算得出的，其中包括與第三季末結束的股票發行相關的 1,200 萬股。我們的 GAAP 營業虧損和 GAAP 淨虧損包括與 GLOBALFOUNDRIES 對 WSA 進行固定修訂相關的 3.4 億美元費用。調整後的 EBITDA 為 1.03 億美元，而上一季為 3,600 萬美元。

Now, turning to the business segments. Computing and Graphics revenue was $472 million, up 9% from the prior quarter, and up 11% year-over-year, primarily due to increased sales of GPUs and client mobile APUs. Computing and Graphics segment operating loss was $66 million, compared to $81 million the prior quarter, primarily due to higher revenue.

現在，轉向業務部門。運算和圖形收入為 4.72 億美元，較上一季成長 9%，較去年同期成長 11%，主要由於 GPU 和客戶端行動 APU 的銷售成長。計算和圖形部門的營運虧損為 6,600 萬美元，而上一季為 8,100 萬美元，這主要是由於收入增加。

Enterprise embedded and semi custom revenue was $835 million, up 41% from the prior quarter, and 31% higher year-over-year, driven by higher semi custom SoC sales. Operating income of this segment was $136 million, up from $84 million in the prior quarter, primarily driven by higher revenue.

企業嵌入式和半客製化收入為 8.35 億美元，較上一季成長 41%，年增 31%，這得益於半客製化 SoC 銷售額的增加。該部門的營業收入為 1.36 億美元，高於上一季的 8,400 萬美元，主要得益於收入的增加。

Turning to the balance sheet, our cash and cash equivalents totaled $1.3 billion at the end of the quarter, up $301 million from the end of the prior quarter, including $274 million remaining from the proceeds of our capital market transaction. Excluding this amount, the cash was $984 million, as compared to $957 million last quarter. Free cash flow was a positive $20 million in the third quarter.

談到資產負債表，本季末我們的現金和現金等價物總額為 13 億美元，比上一季末增加 3.01 億美元，其中包括我們資本市場交易所得的 2.74 億美元。除去這筆金額，現金為 9.84 億美元，而上一季為 9.57 億美元。第三季自由現金流為正 2,000 萬美元。

Inventory was $772 million, up $29 million or 4% from the end of the prior quarter, in support of holiday season GPU and semi custom product sales expectations in the first part of the fourth quarter. Total wafer purchases from GLOBALFOUNDRIES in third quarter were $168 million, and we continue to expect overall wafer purchases of approximately $650 million in 2016, including $155 million purchased in early 2016, as part of the fixed amendment to the WSA.

庫存為 7.72 億美元，比上一季末增加 2,900 萬美元或 4%，以支持第四季度上半部分假日季 GPU 和半客製化產品的銷售預期。第三季從格芯採購的晶圓總額為 1.68 億美元，我們繼續預期 2016 年晶圓總採購量約為 6.5 億美元，其中包括 2016 年初採購的 1.55 億美元，作為 WSA 固定修正案的一部分。

Debt as of the end of the quarter was $1.6 billion, down from the prior quarter, due to our significant debt reduction effort. During the third quarter, we raised approximately $1.4 billion in cash, as a result of issuing $690 million of common stock, which includes the exercise of an underwriter's option to purchase 15% or $90 million of additional common stock, and the issuance of $700 million in 2 1/8% convertible notes due in 2026. We used the majority of these funds to redeem outstanding term debt through cash tender offers, and we paid off the outstanding ABL balance of $226 million.

由於我們大力削減債務，截至本季末的債務為 16 億美元，較上一季下降。第三季度，我們籌集了約 14 億美元現金，包括發行 6.9 億美元普通股，其中包括行使承銷商選擇權購買 15% 或 9,000 萬美元的額外普通股，以及發行 7 億美元 2026 年到期的 2 1/8% 可轉換票據。我們利用這些資金中的大部分透過現金要約收購贖回了未償還的定期債務，並償還了 2.26 億美元的未償還 ABL 餘額。

In addition, early in the fourth quarter, another $105 million of convertible notes were issued as part of the exercise of an underwriter's option, bringing the total principal amount of the 2026 convertible notes to $805 million. We also redeemed the remaining principal debt balance of $208 million of the 2020 senior note, which was our most expensive debt. This debt has now been fully paid off.

此外，第四季初，作為承銷商選擇權行使的一部分，又發行了 1.05 億美元的可轉換票據，使 2026 年可轉換票據的總本金達到 8.05 億美元。我們也贖回了 2020 年優先票據剩餘的 2.08 億美元本金債務餘額，這是我們最昂貴的債務。目前這筆債務已經全部還清。

The debt reductions and issuance of the new convertible notes due 2026 that occur in the third quarter and early in the fourth quarter will result in approximately $55 million of annualized cash interest savings, beginning in the fourth quarter. Please refer to today's CFO written commentary for further details of the capital markets transactions and debt on the balance sheet. Free cash flow in the third quarter was a positive $20 million, compared to a negative $106 million in the second quarter of 2016, primarily due to increased revenue, improvement in working capital, and a reduction in capital expenditures.

第三季和第四季初進行的債務削減和 2026 年到期的新可轉換票據的發行將導致從第四季開始節省約 5,500 萬美元的年度現金利息。有關資產負債表上的資本市場交易和債務的更多詳細信息，請參閱今天的首席財務官書面評論。第三季的自由現金流為正 2,000 萬美元，而 2016 年第二季為負 1.06 億美元，這主要歸因於收入增加、營運資本改善以及資本支出減少。

Now turning to our fourth quarter 2016 outlook, a 14 fiscal week quarter, as it has an extra week. We expect revenue to decrease 18% sequentially, plus or minus 3%, primarily driven by a seasonal decline in our semi custom business, and an improvement in our CG business. Revenue at the midpoint of guidance would be up 12% year-over-year. Non-GAAP gross margin to be approximately 32%.

現在轉向我們的 2016 年第四季度展望，這是一個 14 個財政週的季度，因為它有額外的一周。我們預計營收將環比下降 18%，上下浮動 3%，這主要受半客製化業務季節性下滑和 CG 業務改善的影響。預計中位數收入將年增 12%。非公認會計準則毛利率約32%。

Non-GAAP operating expenses to be approximately $350 million. IP monetization licensing gain to be approximately $25 million. To maintain non-GAAP operating profitability, non-GAAP interest expense, taxes and other to be approximately $32 million. Cash and cash equivalents to be up, in line with our guidance of ending 2016 with positive free cash flow, excluding cash from capital market transactions, and the net proceeds from the ATMP JV.

非公認會計準則營運費用約為 3.5 億美元。 IP貨幣化許可收益約2500萬美元。為了維持非公認會計準則下的營業獲利能力，非公認會計準則下的利息支出、稅金及其他費用約為 3,200 萬美元。現金和現金等價物將會增加，符合我們對 2016 年底實現正自由現金流的指導，不包括來自資本市場交易的現金和 ATMP JV 的淨收益。

Inventory to be down to approximately $660 million. Basic share count to be approximately 930 million, including 115 million shares related to the third-quarter equity issuance. And we now expect full-year revenue growth to be up approximately 6% from 2015, based on the midpoint of fourth quarter revenue guidance.

庫存降至約 6.6 億美元。基本股數約為 9.3 億股，其中包括與第三季股票發行相關的 1.15 億股。根據第四季營收預期的中位數，我們目前預計全年營收成長率將比 2015 年成長約 6%。

In closing, we are very pleased with the progress we have made in the third quarter. With focused execution we continue to build a solid financial foundation for the Company. In just the last three months alone, we achieved non-GAAP net income profitability, amended the WSA with GLOBALFOUNDRIES across multiple years, and deleveraged and derisked the balance sheet with our capital markets transaction, such that over the next five years, there is less than $200 million of term debt due.

最後，我們對第三季的進展感到非常滿意。透過專注的執行，我們繼續為公司建​​立穩固的財務基礎。僅在過去三個月，我們就實現了非公認會計準則淨收入盈利，多年來修改了與格芯的 WSA，並通過資本市場交易去槓桿和降低資產負債表風險，使得未來五年到期的定期債務不到 2 億美元。

We look forward to continued execution, and further improving our financial performance. With that, I'll turn it back to Ruth. Ruth?

我們期待繼續執行並進一步提高我們的財務表現。說完這些，我就把話題轉回露絲。露絲？

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

謝謝你，Devinder。接線員，我們很樂意向觀眾提問。

(Operator Instructions)

（操作員指示）

Our first question today is coming from Matt Ramsay from Canaccord Genuity. Please proceed with your question.

我們今天的第一個問題來自 Canaccord Genuity 的 Matt Ramsay。請繼續您的問題。

Thank you very much. Good afternoon. Obviously a lot has gone on in the last quarter. I figured I would ask a couple things about Zen, since that's been one of the things that's most topical, in my conversations with investors.

非常感謝。午安.顯然，上個季度發生了很多事情。我想我會問一些關於禪宗的問題，因為這是我與投資者交談中最熱門的話題之一。

Lisa, you talked about in your prepared remarks, there are multiple OEM engagements and design wins for desktop, and also the same on server. Maybe you could do a little bit to expand upon those? The timing of launch of each, and in particular in the server market, the focus, whether that be enterprise, or whether that be cloud-based. Thank you.

Lisa，您在準備好的發言中提到，桌面領域有多個 OEM 合作和設計勝利，伺服器領域也是如此。也許您可以稍微擴充一下這些內容？每款產品的推出時機，特別是在伺服器市場，重點是企業級還是基於雲端的。謝謝。

Absolutely, Matt. Thanks for your question, and as you said, it's been a very busy quarter for us. As it relates to Zen, we are on track to launch in the first half of the year, for both our desktops and our servers. The desktop launch will go first, and it is on track for the first quarter, and then the server launch will go in the second quarter.

當然，馬特。感謝您的提問，正如您所說，這對我們來說是一個非常忙碌的季度。就 Zen 而言，我們計劃在今年上半年推出適用於我們的桌上型電腦和伺服器的產品。桌面版將首先推出，預計將在第一季推出，然後伺服器版將在第二季推出。

We've had a wide amount of sampling that's gone on in the third quarter. We have multiple customers on both the PC side, as well as the server side, who have working hardware now in their labs. They're bringing up their platforms and software, and we're very pleased with how smoothly it's coming up, actually.

我們在第三季進行了大量的抽樣調查。我們在 PC 端和伺服器端都有多個客戶，他們的實驗室中現在都有可用的硬體。他們正在推出他們的平台和軟體，事實上，我們對它的順利進展感到非常高興。

So you asked specifically about the server side. Our focus on servers is really across the OEM business, including enterprise, as well as the cloud data centers. And I think the key for us is we're getting a lot of interest from our partners, and we continue to work with them to bring up their systems. But I think we are optimistic about where we are in the Zen bring-up, and the Zen launch cycle.

所以你具體詢問了伺服器端。我們對伺服器的關注實際上涵蓋了 OEM 業務，包括企業以及雲端資料中心。我認為對我們來說關鍵的是我們從合作夥伴那裡獲得了極大的興趣，並且我們將繼續與他們合作來完善他們的系統。但我認為我們對 Zen 的啟動和發布週期持樂觀態度。

Thank you for that. That's helpful. I guess as a follow-up there, in the server market, I think obviously your GPU primary competitor has had some very stellar traction with server acceleration around GPUs, and you highlighted in the prepared remarks some wins and engagements that you had on Polaris, and I assume on Vega for server acceleration.

謝謝你。這很有幫助。我想作為後續問題，在伺服器市場，我認為顯然您的 GPU 主要競爭對手在 GPU 周圍的伺服器加速方面已經取得了非常出色的成績，並且您在準備好的評論中強調了您在 Polaris 上取得的一些勝利和參與，我認為在 Vega 上也取得了一些伺服器加速方面的成績和參與。

Maybe you could expand on that commentary a bit, what you're investing there, how the GPUOpen, or the OpenCL Environment is developing relative to the CUDA environment in server acceleration, and just what proportion of your GPU business could be driven by that server opportunity in the long term? Any commentary there would be great. Thanks.

也許您可以稍微擴展一下這個評論，您在那裡投資了什麼，GPUOpen 或 OpenCL 環境相對於伺服器加速中的 CUDA 環境是如何發展的，以及從長遠來看，您的 GPU 業務中有多少比例可以由該伺服器機會推動？任何評論都很棒。謝謝。

Yes. So let's talk overall about our graphics business. So when you look at our graphics business, certainly we're very pleased with the progress that we've made on the consumer side, with Polaris. But we've also mentioned that we've made good progress on the professional graphics side, including both workstations, as well as server GPUs.

是的。那麼讓我們全面談談我們的圖形業務。因此，當您查看我們的圖形業務時，我們當然對 Polaris 在消費者方面取得的進展感到非常滿意。但我們也提到，我們在專業圖形方面取得了良好的進展，包括工作站和伺服器 GPU。

I think the market is certainly very receptive to growth in the server GPU area. I was just at the Alibaba Cloud computing conference last week, where we announced our collaboration with them. They're actually using parts that are pre-Polaris and pre-Vega. We were demoing a GPU-based cloud server based on some of our FirePro technology, using hardware-based virtualization.

我認為市場肯定非常樂意接受伺服器 GPU 領域的成長。我上週剛參加了阿里雲端運算大會，我們在會上宣布了與他們的合作。他們實際上使用的是 Polaris 和 Vega 之前的零件。我們正在示範基於部分 FirePro 技術的基於 GPU 的雲端伺服器，使用基於硬體的虛擬化。

I think the main feedback that we've gotten from them, as well as multiple other cloud engagements, is the hardware looks very good. We're working with them on the overall infrastructure and software to bring that up, and we believe that the products are very competitive in this market. And the market is nice because it's certainly margin accretive, to the consumer side of the business.

我認為我們從他們以及其他多個雲端運算合作夥伴那裡得到的主要回饋是硬體看起來非常好。我們正在與他們合作開發整體基礎設施和軟體來實現這一目標，我們相信我們的產品在這個市場上非常有競爭力。這個市場很好，因為它對消費者確實可以增加利潤。

So we do expect as we bring out Vega in the first half of 2017, that will certainly strengthen the product portfolio. But there's a lot of interest in the cloud space around what we're doing with Radeon PRO and on the server GPU side.

因此，我們確實期望，隨著我們在 2017 年上半年推出 Vega，這肯定會加強產品組合。但是，人們對我們在 Radeon PRO 和伺服器 GPU 方面的雲端空間工作非常感興趣。

Thank you very much. I'll get back in queue. Appreciate it.

非常感謝。我會回到隊列中。非常感謝。

Thank you. Our next question today is coming from Ross Seymore from Deutsche Bank. Please proceed with your question.

謝謝。我們今天的下一個問題來自德意志銀行的羅斯·西摩。請繼續您的問題。

(Operator Instructions)

（操作員指示）

We can go to the next caller, operator. Thank you.

我們可以接聽下一位來電者了，接線生。謝謝。

Certainly. Our next question is coming from Mark Lipacis from Jefferies. Please proceed with your question.

當然。我們的下一個問題來自 Jefferies 的 Mark Lipacis。請繼續您的問題。

I had two questions. First one, on the Alibaba deal, so this is not a new set of products you're developing, it's products you already have. And can you talk about, to the extent this is a cloud services offering versus deep learning applications, that they might be doing with your products? And I guess when I think about the architecture, I normally think about having an X86 processor sitting next to the GPU. I was wondering is it logical to assume that Zen is the natural X86 pairing with your GPUs in the Ali deployments?

我有兩個問題。首先，關於阿里巴巴的交易，這不是您正在開發的一組新產品，而是您已經擁有的產品。您能否談談，就雲端服務產品與深度學習應用而言，他們可能會使用您的產品做什麼？我想，當我考慮架構時，我通常會想到在 GPU 旁邊放置一個 X86 處理器。我想知道，假設 Zen 是阿里部署中與 GPU 的自然 X86 配對是否合理？

Sure, Mark. So again, I think on the Alibaba deployment, it is the beginning of what we expect to be a long-term collaboration. So the work today is being done on a pre-Polaris base, but we do expect that will upgrade as we go forward.

當然，馬克。因此，我認為阿里巴巴的部署是我們期待的長期合作的開始。因此，今天的工作是在 Polaris 之前的基礎上進行的，但我們確實希望隨著我們的前進，這項工作能夠不斷升級。

I think the key is, there are many, many applications, but what we're starting from is a GPU base cloud server application, so in virtualized environments, you can imagine cloud gaming or remote workstation-type environments which need a lot of graphics horsepower, as well as virtual desktop environments. And I think as we go forward, certainly, we view the opportunity to expand that into a broader set of workloads, as well as obviously on the CPU side as well. We think the cloud is a very important market for us to focus on, on both the GPU and the CPU side, and we're ramping up our efforts there.

我認為關鍵是，有很多很多的應用程序，但我們從基於 GPU 的雲端伺服器應用程式開始，因此在虛擬化環境中，您可以想像需要大量圖形功能的雲端遊戲或遠端工作站類型的環境，以及虛擬桌面環境。我認為，隨著我們不斷前進，我們當然會看到將其擴展到更廣泛的工作負載的機會，當然在 CPU 方面也是如此。我們認為雲端運算是我們重點關注的一個非常重要的市場，無論是在 GPU 方面還是 CPU 方面，我們都在加大這方面的努力。

Great. A follow-up if I may. Last night Tesla announced that it was using NVIDIA for their self-driving car, but on the conference call Elon Musk, I think the expression he used, was that it was a tight decision between NVIDIA and AMD, which suggests that you're further along in solutions for deep learning and neural networking than most, including myself, thought.

偉大的。如果可以的話，我會繼續跟進。昨晚，特斯拉宣布將使用 NVIDIA 來製造他們的自動駕駛汽車，但在電話會議上，馬斯克（Elon Musk）的表達方式是，這是 NVIDIA 和 AMD 之間的一個艱難決定，這表明你們在深度學習和神經網路解決方案方面的進展比包括我在內的大多數人想像的要快。

And so I was wondering, can you talk about your efforts in deep learning and artificial intelligence, how big is that business now? Do you have anything in that business now? And how do you grow that, going forward? Thank you.

所以我想知道，您能談談您在深度學習和人工智慧方面的努力嗎？現在這項業務規模有多大？您現在從事那項業務嗎？那麼您未來將如何發展這項業務呢？謝謝。

Sure, Mark. So look, there is a lot of interest in the deep learning space overall, and certainly our GPUs are very applicable to that space. So when we look at competitiveness and all that stuff, we think we can be very competitive there.

當然，馬克。所以看起來，人們對深度學習領域總體上很感興趣，而且我們的 GPU 肯定非常適合該領域。因此，當我們考慮競爭力和所有這些東西時，我們認為我們可以在那裡非常有競爭力。

We will be talking more about our strategy in the coming quarters, so maybe let me refer to that, Mark. But I think suffice it to say, I think we looked at GPUs as overall secular growth, whether you're talking about consumer, professional workstations, server GPUs, or any of this machine learning area. So we're going to continue to invest and lean in, in those areas.

我們將在接下來的幾個季度中更多地討論我們的戰略，所以也許讓我參考一下，馬克。但我認為可以說，我們將 GPU 視為整體的長期成長，無論您談論的是消費者、專業工作站、伺服器 GPU 還是任何機器學習領域。因此，我們將繼續在這些領域進行投資和投入。

Thank you.

謝謝。

Thank you. Our next question today is coming from John Pitzer from Credit Suisse. Please proceed with your question.

謝謝。我們今天的下一個問題來自瑞士信貸的約翰‧皮策。請繼續您的問題。

Lisa, Devinder, nice job on the quarter. I guess, Devinder first. Just going to the December quarter guidance, you're characterizing it as seasonal.

Lisa、Devinder，本季表現不錯。我猜，首先是 Devinder。僅查看 12 月季度指南，您就將其描述為季節性的。

I know the trappings of talking about normal seasonal, because there's so much variance around it, but it does seem like in prior quarters, where you had a 14th week, that extra week actually did help revenue a little bit. I'm just kind of curious within the context of the December quarter guidance, how you're thinking about that extra week, both on the revenue line and on expenses.

我知道談論正常季節性的含義，因為它周圍存在很大差異，但在前幾個季度，似乎有第 14 週，額外的一周確實對收入有一點幫助。我只是有點好奇，在 12 月季度指引的背景下，您如何看待額外一周的收入和支出。

I think if you look at a 14-week quarter, I think, John, you're right, it depends upon many factors. Our 14-week quarter is in the Q4 time frame, which is this quarter we are in. On the revenue side, I would say looking at it overall, there's not much of an impact, as the extra week falls during the holiday season, when a large portion of our operations and our customers are in shutdown mode. There is an impact on the expense side, but that's already contemplated within the guidance of OpEx that I gave, the $350 million due to the extra week.

我認為如果你看一下 14 週的季度，約翰，你是對的，這取決於許多因素。我們的 14 週季度是在第四季的時間範圍內，也就是我們現在所在的這個季度。在收入方面，我想說從總體來看，影響並不大，因為額外的一周是在假期期間，當時我們的大部分營運和客戶都處於停工狀態。這會對費用方面產生影響，但這已經考慮到了我給出的營運支出指引中，即額外一周造成的 3.5 億美元。

That's helpful. And then Lisa, a little bit longer term. Over the last several quarters, you've been somewhat forced to try to manage profitability levels to that breakeven line, given the lack of revenue growth.

這很有幫助。然後是麗莎，時間稍微長一點。在過去的幾個季度中，由於收入成長不足，您不得不設法將獲利水準控制在盈虧平衡點。

But now that you're on this path of more sustainable revenue growth, I'm just curious as you think about R&D specifically, how should we think about your desire to want to invest in higher rates, as revenue begins to grow from these levels? Because clearly, as Mark talked about on the last question, you've got a lot of potential new areas and opportunities to go after. Can you give us a sense as to what -- to what degree you think you've been under-investing in R&D and how we should think about R&D investments over the next several quarters, as revenue growth resumes?

但是現在您已經走上了更永續的收入成長之路，我只是很好奇，當您具體考慮研發時，當收入開始從這些水平增長時，我們應該如何看待您想要投資更高利率的願望？因為顯然，正如馬克在上一個問題中談到的那樣，你有很多潛在的新領域和機會可以去追求。您能否告訴我們，您認為您在研發方面的投資不足到什麼程度，以及隨著營收成長的恢復，我們應該如何看待未來幾季的研發投資？

Absolutely, John. I think it's fair to say that we've been very prudent in how we've invested overall. If you look at our operating expenses, 2016 to 2015, although we've been relatively flat overall, we've actually increased R&D, relative to other elements of the P&L.

當然，約翰。我認為可以公平地說，我們的整體投資方式非常謹慎。如果你看一下我們 2016 年到 2015 年的營運費用，儘管我們總體上相對持平，但相對於損益表的其他要素，我們實際上增加了研發費用。

But as we see revenue growth and as we've seen progress over the last couple of quarters, I think you've also seen us increase our R&D spend. I think there are several areas that we see as very large opportunities, and we talked about some of the graphics areas in the previous question with Mark. I also think in the data center, there's a large opportunity for us on the CPU side, as Zen fully comes to market.

但隨著我們看到收入成長以及過去幾季的進展，我想您也看到我們增加了研發支出。我認為有幾個領域蘊藏著巨大的機遇，我們在上一個問題中與馬克討論了一些圖形領域。我還認為，隨著 Zen 全面進入市場，我們在資料中心的 CPU 方面將面臨巨大的機會。

So I think we have an opportunity to invest a bit more in R&D as our revenue grows, but we're still going to be very prudent with how we do that. I think the key metric there in terms of being net income profitable this quarter, ensuring that we get free cash flow positive from operations for the full year, those are all important metrics for us, and we're going to continue to manage very diligently.

因此，我認為隨著收入的成長，我們有機會在研發方面投入更多，但我們仍將非常謹慎地進行投資。我認為，本季淨收入獲利的關鍵指標是確保我們全年從營運中獲得正的自由現金流，這些對我們來說都是重要的指標，我們將繼續非常努力地管理。

That's helpful. Thank you. Congratulations.

這很有幫助。謝謝。恭喜。

Thank you. Our next question today is coming from David Wong from Wells Fargo. Please proceed with your question.

謝謝。今天的下一個問題來自富國銀行的 David Wong。請繼續您的問題。

Do you expect GPU sales will grow sequentially in the December quarter, and what about computing revenues?

您是否預計 12 月季度 GPU 銷售額將較上季成長？計算收入又如何？

Yes, so David, I think we would expect overall that the CG business or the Computing and Graphics business will grow in Q4. The EESC business will be down. And then within the Computing and Graphics business, I would expect growth on both the graphics, as well as the computing side.

是的，大衛，我認為我們總體上預計 CG 業務或計算和圖形業務將在第四季度實現成長。歐洲經濟與社會委員會的業務將會下滑。然後在計算和圖形業務中，我預計圖形和計算方面都會有所增長。

Great. And do you have any new semi custom wins you can tell us about, or at least give us some idea of what the momentum is in the pipeline?

偉大的。您有什麼新的半客製化勝利可以告訴我們嗎，或者至少讓我們了解一下目前的勢頭如何？

Yes, I think on the semi custom side, David, I will say that we previously announced three, and that's the number that we'll talk about today. Two of them are now known, and they're both in the game console area, one is outside of game console. I will say that we have some very good active discussions on future products and applications, and we'll update more as we get further along.

是的，我認為在半定制方面，大衛，我想說我們之前宣布了三個，這就是我們今天要討論的數字。目前已知其中兩個，它們都在遊戲機區域，一個在遊戲機外面。我想說的是，我們就未來的產品和應用進行了一些非常好的積極討論，並且隨著進展我們會更新更多資訊。

Great. Thanks.

偉大的。謝謝。

Thanks, David.

謝謝，大衛。

Thank you. Our next question is coming from Blayne Curtis from Barclays. Please proceed with your question.

謝謝。下一個問題來自巴克萊銀行的布萊恩‧柯蒂斯。請繼續您的問題。

This is Chris Hemmelgarn on for Blaine. With Summit Ridge launching in Q1 of 2017, how would you expect the channel to ramp that? Do you see it ramping pretty fully in the first couple quarters of the year, or are you looking for more normal PC seasonality?

我是克里斯‧赫默加恩 (Chris Hemmelgarn)，取代布萊恩。 Summit Ridge 將於 2017 年第一季推出，您預計該管道將如何推動這項進程？您是否認為它會在今年前幾季全面成長，還是您認為 PC 市場會出現更正常的季節性變化？

I would expect that there will be a relatively good initial demand for Summit Ridge, that may be not quite at the seasonal patterns. From where we see, Summit Ridge is playing in a space in the high end desktop, that we currently aren't offering a product. So we believe we'll be competitive certainly with Core I5 as well as Core I7, and we will be launching in those areas.

我預計 Summit Ridge 的初始需求會相對較好，但可能不太符合季節性模式。從我們的情況來看，Summit Ridge 正在高階桌面領域佔有一席之地，而我們目前還沒有提供相關產品。因此，我們相信我們肯定會與 Core I5 和 Core I7 具有競爭力，並且我們將在這些領域推出產品。

Thanks very much. Then looking at the GPU side of things, you saw some pretty nice share gains in the first half of this year with the legacy portfolio. Any metrics you can give to help frame how the business did in the first full quarter with Polaris? And any further color you can provide on how you see the share situation progressing into the year-end.

非常感謝。然後從 GPU 方面來看，你會看到今年上半年傳統產品組合的市佔率成長相當不錯。您能提供哪些指標來幫助描述 Polaris 在第一季的業務表現？您能否進一步說明您認為年底前股票情勢將如何發展。

We're very happy with how Polaris ramped in Q3. The customer demand across all geographies was very strong. Q3 was primarily a channel-based quarter. With our board partners, and as some of you noted, in the early part of Q3, we actually had some supply constraints, given the customer demand. We did catch up towards the end of the quarter.

我們對 Polaris 在第三季的成長感到非常滿意。所有地區的客戶需求都非常強勁。第三季主要是基於通路的季度。與我們的董事會合作夥伴一樣，正如你們中的一些人所指出的，在第三季度初期，考慮到客戶需求，我們實際上遇到了一些供應限制。我們確實在本季末趕上了。

So very pleased with how that's ramped. I think it's a very competitive market. We've leaned into VR, and we've leaned into our work with CX12 and I think you can see in some of the benchmarks that we're doing very well there. As we go into Q4, in addition to the channel partners continuing to ramp, you should expect some OEMs launching in Q4 more broadly. And so Polaris is off to a very strong start.

我對這項進展感到非常高興。我認為這是一個競爭非常激烈的市場。我們已經傾向於 VR，我們已經傾向於 CX12 的工作，我想您可以從一些基準測試中看到我們在這方面做得非常好。隨著我們進入第四季度，除了通路夥伴繼續加強之外，您還應該期待一些 OEM 廠商在第四季度更廣泛地推出產品。因此，Polaris 取得了非常強勁的開局。

Thanks very much, Lisa, and congrats on the strong quarter.

非常感謝，麗莎，恭喜本季業績強勁。

Thank you. Our next question is coming from Stacy Rasgon from Bernstein Research. Please proceed with your question.

謝謝。我們的下一個問題來自伯恩斯坦研究公司的 Stacy Rasgon。請繼續您的問題。

I first wanted to ask about the second sourcing ability embedded in the new Wafer Supply Agreement. So you've said that you're going to be doing some second sourcing, starting in 2017. I wonder, did that push to actually seek out that supply diversification come from you, or was it from specific requests from your customers? And given that, how do you make the decision on which products to manufacture at GLOBALFOUNDRIES versus manufacture somewhere else?

我首先想問的是新晶圓供應協議中嵌入的第二種採購能力。所以您說過，從 2017 年開始，您將進行一些二次採購。我想知道，尋求供應多樣化的推動力實際上是來自您自己，還是來自客戶的具體要求？那麼，您如何決定哪些產品在 GLOBALFOUNDRIES 生產，哪些產品在其他地方生產？

Sure, Stacy. Let me start with that. I think, relative to our second sourcing or our supply sourcing flexibility, I think we make it on a product-by-product basis, based on where we are in the business. So we will have multiple products in 14-nanometer and 16-nanometer that will be sourced across foundries, and similarly when we talked about the Wafer Supply Agreement, we mentioned 7-nanometer as being a key target node for that.

當然，史黛西。讓我從那開始。我認為，相對於我們的第二採購或供應採購彈性，我們會根據我們的業務狀況，逐一產品地進行採購。因此，我們將擁有多個 14 奈米和 16 奈米產品，這些產品將從代工廠採購，同樣，當我們談到晶圓供應協議時，我們提到 7 奈米是其關鍵目標節點。

Relative to how we make the decisions, I think it's a combination of factors. It includes the complexity of the product. It includes the timing, customers, all kinds of things. So I think that's part of our product planning process.

關於我們如何做出決定，我認為這是多種因素共同作用的結果。它包括產品的複雜性。其中包括時間、客戶、各種各樣的事情。所以我認為這是我們產品規劃過程的一部分。

Got it. But did the customers themselves have a hand in driving you to make that push to second source?

知道了。但是，客戶本身是否也促使您尋求第二來源呢？

I think that's one element, but frankly, I think what's more important to me is, I need to commit a strong, five-year product road map to the customers, and so we want to make sure that we have all the flexibility to ensure nothing happens. I'll give you just a little bit of context, Stacy, because I think you know our business well.

我認為這只是一個因素，但坦白說，我認為對我來說更重要的是，我需要向客戶承諾一個強大的五年產品路線圖，因此我們希望確保我們擁有所有的靈活性，以確保不會發生任何事情。史黛西，我給你介紹一下背景，因為我認為你對我們的業務很了解。

In this past six months, we've ramped five new FinFET products. It's the fastest transition we have ever made in a process node, and it's gone really, really well. And I think what's helped us with that is the fact that we've had two sources ramping at the same time.

在過去的六個月中，我們推出了五種新的 FinFET 產品。這是我們迄今為止在製程節點上實現的最快的轉變，而且進展非常順利。我認為對我們有幫助的是，我們有兩個來源同時增加。

Got it. For my follow-up, I just want to get some clarification on the timing of the Summit Ridge and Zen launches. You said Summit Ridge launches obviously in Q1 2017. You had said before that you were going to be shipping at least some product in Q4 of this year. Is that still true? And around the server launch in Q2, does that mean the volume is actually in Q3?

知道了。作為後續行動，我只是想澄清一下 Summit Ridge 和 Zen 發射的時間。您說 Summit Ridge 顯然會在 2017 年第一季推出。您之前說過，您將在今年第四季推出至少部分產品。現在還是這樣嗎？在第二季伺服器啟動前後，這是否意味著交易量實際上是在第三季？

So I think our expectation is, we may ship some production samples in Q4, but the volume launch for desktop will be in Q1, and that's consistent with everything that we've planned into the business. And as it relates to server, I think it's a little early to tell. I think we'll go through our process, and our customers' processes, and we'll have more color on that, as we get into next year.

所以我認為我們的預期是，我們可能會在第四季度推出一些生產樣品，但桌面的批量推出將在第一季度，這與我們在業務中計劃的所有事情一致。由於它與伺服器有關，我認為現在說還為時過早。我認為，隨著明年的到來，我們將逐步完成我們的流程以及客戶的流程，並對此進行更詳細的闡述。

Got it. Thank you.

知道了。謝謝。

Thank you. Our next question today is coming from Ambrish Srivastava from BMO Capital Markets. Please proceed with your question.

謝謝。今天的下一個問題來自 BMO 資本市場的 Ambrish Srivastava。請繼續您的問題。

In your prepared remarks, you mentioned semi custom's decline and computing graphics to be up. Implies you'll have a pretty rich mix for Q4. Why is GM guided up only 1% given the really strong mix for 4Q?

在您準備好的發言中，您提到了半定制的衰落和電腦圖形的興起。意味著第四季你的業績將相當豐富。鑑於第四季的強勁表現，為何通用汽車的預期股價僅上漲 1%？

If you look at it from an overall standpoint, let's talk about Q2 to Q3, first of all. Q2 to Q3, we had a significant ramp in the semi custom space, which led to significant revenue in the EESC side, and we were able to manage the margin flat quarter on quarter, which we are pleased with. Going to Q4, essentially with the Computing and Graphics business, that's what Lisa said ramping, and then EESC business, in particular semi custom coming down. The gross margin is up a percentage point, primarily due to the mix in revenue between the two segments.

如果從整體來看，我們先來談談Q2到Q3。從第二季度到第三季度，我們在半客製化領域的業務有了顯著的成長，這為 EESC 方面的收入帶來了可觀的提升，而且我們能夠保持利潤率與上一季持平，對此我們感到滿意。進入第四季度，主要是計算和圖形業務，這就是 Lisa 所說的成長，然後是 EESC 業務，特別是半客製化業務的下降。毛利率上升了一個百分點，主要由於兩個部門的收入組合。

Okay. And for a follow-up, a question on the cash balance. Looked like you're guiding cash to be up in 4Q, and looks like you have some excess cash after the transactions you've done in the quarter, and looks like you might be up over your $1 billion target balance. How do you plan on using the excess cash, or where would you reinvest that cash?

好的。接下來是關於現金餘額的問題。看起來您預計第四季度的現金會增加，而且看起來您在本季度完成的交易後還有一些剩餘現金，而且看起來您的餘額可能會超過 10 億美元的目標。您計劃如何使用多餘的現金，或者您將把這些現金再投資到哪裡？

I think right now, as you observe, it's through the end of Q3 we did have some remaining net proceeds from the capital market transactions. After completing what we did in the early part of Q4, we have about $162 million of remaining net proceeds.

我認為現在，正如您所觀察到的，到第三季末，我們確實從資本市場交易中獲得了部分剩餘的淨收益。完成第四季初期的工作後，我們剩餘的淨收益約為 1.62 億美元。

What we plan to do with it, I think from a long-term strategy, that hasn't changed. Our plan is to continue to delever the balance sheet, reduce debt towards our longer-term targets getting to the net debt cash neutral that I talked about previously, and getting the leverage ratio down to about 2 times from a longer term standpoint.

我認為，從長期策略來看，我們計劃用它做什麼並沒有改變。我們的計劃是繼續降低資產負債表的槓桿率，減少債務，以實現我們的長期目標，即達到我之前談到的淨債務現金中性，並從長期角度將槓桿率降至 2 倍左右。

Operator, we'll take two more questions, please.

接線員，請再回答兩個問題。

Certainly. Our next question today is coming from Joe Moore from Morgan Stanley. Please proceed with your question.

當然。我們今天的下一個問題來自摩根士丹利的喬·摩爾。請繼續您的問題。

Lisa, you talked about a $4 billion performance desktop opportunity. What's your thinking in terms of what you can eventually attain of that, just how are you thinking about your potential for market share? And can you give us some sense for, when you have a chip like this, that you have enthusiasm about, how quickly it can ramp into that segment? Thank you.

麗莎，你談到了價值 40 億美元的高效能桌面機會。您認為最終可以實現什麼目標？您認為您的市佔率潛力如何？您能否告訴我們，當您擁有這樣一款讓您充滿熱情的晶片時，它能多快進入該領域？謝謝。

Yes. So I think if you look at our PC market share, as it's published by Mercury, we're talking about somewhere around 10%, plus or minus. I think we view that historically we've been higher than that in the PC market, and certainly the desktop market, especially the desktop channel market. We're fairly well-known by that customer set.

是的。因此，我認為，如果你看一下我們的 PC 市場份額，正如 Mercury 所發布的，我們所談論的是在 10% 左右，上下浮動。我認為從歷史上看，我們在個人電腦市場，尤其是桌上型電腦市場，尤其是桌上型電腦通路市場的份額一直都高於這個水準。我們在該客戶群中相當知名。

So we're enthusiastic about Summit. We think the performance is right on the mark with what we wanted to achieve. And we're hopeful that as we launch into the first quarter, that there will be a good, solid ramp in that business.

所以我們對 Summit 充滿熱情。我們認為這項表現完全符合我們想要達到的目標。我們希望，隨著第一季的到來，該業務將出現良好、穩健的成長。

Okay. Great. And then, how are you thinking about as you think about bringing that chip to market, when will you make it available for third party benchmarks and sort of get a broader marketing program beyond the launch you've done?

好的。偉大的。然後，當您考慮將該晶片推向市場時，您是如何考慮的？您什麼時候會讓它用於第三方基準測試，並在您所做的發布之外開展更廣泛的行銷計劃？

I would expect certainly there are a lot of confidential benchmarks at the moment, but in terms of third party benchmarks, you would expect that in the first quarter.

我預計目前肯定會有很多機密基準，但就第三方基準而言，你會預期在第一季。

Thank you very much.

非常感謝。

Thank you. Our final question today is coming from Chris Rolland from Susquehanna Financial Group. Please proceed with your question.

謝謝。我們今天的最後一個問題來自 Susquehanna Financial Group 的 Chris Rolland。請繼續您的問題。

Congrats on a great quarter, and nice to see it all coming together. We don't have September sell-through data yet. It's hard to predict holiday season, what it's going to look like for consoles. Perhaps the past two quarters' growth in EESC might be outpacing expectations for consoles.

恭喜本季取得如此出色的成績，很高興看到一切進展順利。我們還沒有九月的銷售數據。很難預測假期期間遊戲機的銷售情況會是如何。也許過去兩個季度 EESC 的成長可能會超出遊戲機的預期。

So my question is, first of all, is that right? Is there something that's helping your guy's units here, like initial channel stocking for the PS4 Slim or the PS4 Pro? And how should we think about the size of the benefit that you're going to get from initial channel stocking there?

所以我的問題是，首先，這是對的嗎？有什麼事情可以幫到你們公司的單位嗎，例如 PS4 Slim 或 PS4 Pro 的初始通路庫存？我們應該如何考慮您從那裡的初始通路庫存中獲得的利益規模？

So, Chris, I think the game console shouldn't be really looked at on a quarterly level, when you're looking at sell-in and sell-out. It's so different from the other markets. I would say on an annual basis, everything trues up. The thought process is, in Q2 and Q3, there is a bit of build ahead as the customers are really building for the holiday season. And the customers do so much of their business in the last six weeks of the year. That's when all of the inventory is drained.

所以，克里斯，我認為當你專注於銷售量和銷售量時，不應該真正以季度層級來看待遊戲機。它與其他市場有很大不同。我想說，從年度來看，一切都是真的。我們的想法是，在第二季度和第三季度，會有一些提前建設，因為客戶正在為假期做準備。顧客的大部分生意都是在每年的最後六週進行的。那時所有庫存都會被消耗殆盡。

My view is that if you look on an annual basis, the game console business is doing quite well. We expect units to be up. We expect revenue for the business to be up for us, and the quarterly transitions are less important. It's more, we want to ensure that we're meeting our customers' build cycles, so that they get to build everything that they want, and get it into their channels. But from my standpoint, I think it's a very well-managed system.

我的看法是，如果從年度角度來看，遊戲機業務表現相當不錯。我們預計單位數量將會上升。我們預期業務收入將會上升，季度轉型不再那麼重要。更重要的是，我們希望確保滿足客戶的建置週期，以便他們能夠建立他們想要的一切，並將其納入他們的管道。但從我的角度來看，我認為這是一個非常好的管理系統。

Great. Congrats on a great quarter.

偉大的。恭喜本季取得優異成績。

Operator, that concludes today's call. If you could wrap it up, please, that would be great.

接線員，今天的通話到此結束。如果您能將其總結一下，那就太好了。

Certainly. That does conclude today's teleconference. You may disconnect your line at this time, and have a wonderful day. We do thank you for your participation today.

當然。今天的電話會議到此結束。此時您可以斷開線路，祝您有美好的一天。我們非常感謝您今天的參與。