英特爾 (INTC) 2001 Q1 法說會逐字稿

Good day everyone. Thank you for holding and welcome to the Intel Corporation's first quarter earnings results conference call. Today's call is being recorded. At this time, I would like to turn the call over to Lisa Anselio, Director of Investor Relations. Please go ahead madam.

今天是個好日子。感謝您召開並歡迎參加英特爾公司第一季財報電話會議。今天的通話正在錄音。現在，我想將電話轉給投資者關係總監 Lisa Anselio。請繼續，女士。

Welcome to the Intel's first quarter 2001 earnings conference call. Attending commenters are Andy Bryant, Chief Financial Officer and Paul S. Otellini General Manager, Intel Architecture Group. I would like to remind all of you on the call that Andy and Paul's presentations on this conference call are available on our investor relations website at www.intc.com. For the benefit of anyone who may not have seen the quarterly earnings report, revenue in the first quarter was $6.7 billion and earnings before acquisition related costs were $0.16 per share on a diluted basis. The earnings press release is available on the Internet at www.intc.com. The first quarter earnings report discusses Intel's business outlook and contains forward-looking statements. These particular forward-looking statements and all other statements that may be made on this call that are not historical facts are subject to a number of risks and uncertainties and actual results may differ materially. Please refer to our press release for more information on the risks factors that could cause actual results to differ.

歡迎參加英特爾 2001 年第一季財報電話會議。出席評論者包括英特爾架構事業部財務長 Andy Bryant 和總經理 Paul S. Otellini。我想提醒參加電話會議的所有人，安迪和保羅在本次電話會議上的演講可以在我們的投資者關係網站 www.intc.com 上找到。對於可能沒有看過季度收益報告的人來說，第一季的收入為 67 億美元，收購前相關成本攤薄後的每股收益為 0.16 美元。收益新聞稿可上網查詢：www.intc.com。第一季財報討論了英特爾的業務前景並包含前瞻性陳述。這些特定的前瞻性陳述以及本次電話會議中可能做出的所有其他非歷史事實的陳述都受到許多風險和不確定性的影響，實際結果可能會存在重大差異。請參閱我們的新聞稿，以了解有關可能導致實際結果不同的風險因素的更多資​​訊。

These specific forward-looking statements cover expectations for product mix and demand, revenue, gross margin, expenses, tax rate, interest from other income, capital spending, depreciation, amortization of goodwill, and other acquisition-related intangibles and supply. These statements do not reflect the potential impact of any mergers or acquisitions completed after March 31, 2001. I now want to introduce Andy Bryant who will discuss the first quarter report.

這些具體的前瞻性陳述涵蓋了對產品組合和需求、收入、毛利率、費用、稅率、其他收入利息、資本支出、折舊、商譽攤銷以及其他與收購相關的無形資產和供應的預期。這些陳述並不反映 2001 年 3 月 31 日之後完成的任何合併或收購的潛在影響。現在我想介紹安迪布萊恩特，他將討論第一季報告。

Thanks, Lisa. The high level summary of the first quarter is that the results were essentially consistent with the forecast as revised early March and business remains difficult with it overall. More specifically, our first quarter was characterized by rapid deterioration of business conditions, being first in falling demand for PCs in the US and later across all products and nearly all geography. Based on the ordering patterns of the quarter, it appears that the Intel Architecture business is returning to seasonal pattern. This conclusion is based upon increasing end of quarter trans-orders and strength in the distribution channel. In wireless or communications businesses, however, it is still saturating with no consistent ordering patterns emerging. Revenues in the first quarter at $6.7 billion were a little better than our March forecast that 22% from the fourth quarter and 16% from Q1 of 2000. Unit shipments of nearly all Intel products, microprocessors, and flash memory, and communication components were down from fourth quarter levels. Gross margins was $3.5 billion and declined 37% sequentially and 31% annually. Gross margin percentage at 51.7% within the upper half of our range of 51% plus or minus a couple of points; that is 11 points slower than a gross margin percentage in both the first and fourth quarter of 2000. This decline was primarily a function of the drop in the revenue. Other contributors were higher than normal inventory reserves in the communications products including flash memory and higher selling costs of competitors. ProForma operating income was $1.3 billion a decline of 57% of fourth quarter and 56% in the first quarter of 2000. Earnings per share of $0.16 were down from $0.38 in the first quarter a decline of 58% and down 79% from earnings per share of $0.43 in the first quarter of 2000, which included 9-cent gain for ____00:04:32. First quarter spending of $2.2 billion was down 11% from the previous quarter. This reduction is significant, but less than our March forecast a reduction of 15%. Although we made progress against the aggressive spending targets left at mid-quarter, we fell short essentially because we started late in the quarter and too much of the spending had already been committed. We will continue to focus on both discretionary spending and reduced head count inline with our previously announced goal. Gains on investments, interest, and other income totalled $254 million and exceeded our forecast of $180 million. The adoption this year of FAS 133, we reclassified as trading assets about $1.4 billion of hedged investment, both of which were previously carried as short and/or long-term investments. We now mark these investments to margin through our earning offset by the gains and losses on United Deliveries. Interest noted this quarter includes $45 million pretax onetime gain due to applying a new standard to equity revenues. Separately, Intel Capital recognized gains and portfolio of $428 million; however, these gains were offset by internal reserves resulting in no net gain in equity investments. Average shares with cash allowing diluted earnings per share were $6.9 billion shares down 1% from the previous quarter. During the quarter, we repurchased $29.4 million shares with a capital of $1 billion under an ongoing program.

謝謝，麗莎。第一季的總體總結是，結果與 3 月初修正的預測基本一致，整體業務仍然困難。更具體地說，我們第一季的特點是業務狀況迅速惡化，首先是美國對個人電腦的需求下降，然後是所有產品和幾乎所有地區的需求下降。從本季的訂購模式來看，英特爾架構業務似乎正在回歸季節性模式。這個結論是基於季末轉單量的增加和分銷管道的實力而得出的。然而，在無線或通訊業務中，它仍然處於飽和狀態，沒有出現一致的訂購模式。第一季的營收為67 億美元，略高於我們3 月的預測，比第四季成長22%，比2000 年第一季成長16%。幾乎所有英特爾產品、微處理器、快閃記憶體和通訊組件的單位出貨量都下降了從第四季的水平來看。毛利率為 35 億美元，季減 37%，年減 31%。毛利率為 51.7%，處於我們 51% 範圍的上半部分，上下浮動幾個百分點；這比 2000 年第一季和第四季的毛利率低了 11 個百分點。這種下降主要是收入下降的結果。其他因素包括快閃記憶體等通訊產品的庫存儲備高於正常水平以及競爭對手較高的銷售成本。預計營業收入為13 億美元，比2000 年第四季下降57%，比2000 年第一季下降56%。每股收益為0.16 美元，比第一季的0.38 美元下降58%，比每股收益下降79% 2000 年第一季的收益為 0.43 美元，其中 ____00:04:32 上漲了 9 美分。第一季支出為 22 億美元，較上一季下降 11%。這一減少幅度很大，但低於我們 3 月預測的 15% 的減少。儘管我們在季度中期制定的積極支出目標方面取得了進展，但我們的成績仍顯不足，因為我們在本季度末開始，而且已經承諾了太多支出。我們將繼續關注可自由支配支出和減少員工數量，以符合我們先前宣布的目標。投資、利息和其他收入收益總計 2.54 億美元，超過我們預測的 1.8 億美元。今年採用 FAS 133 後，我們將約 14 億美元的避險投資重新分類為交易資產，這兩項資產先前均屬於短期及/或長期投資。現在，我們透過我們的收入抵消聯合交付的損益，將這些投資標記為保證金。本季注意到的利息包括由於對股權收入採用新標準而產生的 4500 萬美元稅前一次性收益。另外，英特爾投資確認了 4.28 億美元的收益和投資組合；然而，這些收益被內部儲備所抵消，導致股權投資沒有淨收益。攤薄每股收益的現金平均股數為 69 億美元，較上一季下降 1%。本季度，我們根據一項正在進行的計劃，以 10 億美元的資本回購了 2,940 萬美元的股票。

Moving to the balance sheet, we billed $411 million of additional inventories in the first quarter with total inventories now at $2.7 billion, an increase of 18%. Inventory levels from some of our flash and other communications products as of our guidelines and as a result we are trying to know inventory reserves on these products. The results were not the primary issue to the margins involved in the quarter, but they were in noticeable factors. Microprocessor inventories were within our guidelines was at the upper limits of it level. The value of the securities in the Intel capital portfolio decreased from $3.7 to #3.3 billion, primarily the result of lower market valuations and sale of equity security. Cash in entire investments ended the quarter at $10.1 billion. Capital spending was $2.7 billion. Cash used for acquisitions was half a billion. As I have mentioned, we used $1 billion on stock buyback. In summary then for the first quarter, revenues were $6.7 billion, gross margin of 52%, operating income of 1.3 billion on 19% revenues, pretax income of $1.6 billion at 23% revenue, and earnings per share of $0.16. As we turn to the outlook for the second quarter, please keep in mind that all the forecast data excludes the effect of any new acquisitions that may be complete after March 31. Further, as I have said last quarter, our concerns with price forecast remain low and our outlook includes a high degree of uncertainty. We expect revenues in the second quarter to be between $6.2-6.8 billion. Normal seasonal pattern that leaves your forecast with slightly down revenues in the second quarter. Our expectations in couple of seasonal second quarter with a relatively wide range given the current guidance. Gross margin percentage in the second quarter was forecasted at 49% plus or minus a couple of points. The change from the first quarter is primarily because of lower microprocessor pricing and higher costs per units of the Pentium IV processors compared to the Pentium III. Spending including good will amortization in the second quarter should be between $2.2-3.3 billion roughly flat in the first quarter spending of #3.3 billion.

轉向資產負債表，第一季我們額外記入了 4.11 億美元的庫存，目前庫存總額為 27 億美元，成長了 18%。根據我們的指導方針，我們的一些快閃記憶體和其他通訊產品的庫存水平，因此我們正在嘗試了解這些產品的庫存儲備。結果並不是影響本季利潤率的主要問題，但它們是值得注意的因素。微處理器庫存在我們的指導方針範圍內，處於其水準的上限。英特爾資本投資組合中的證券價值從 3.7 美元下降至 33 億美元，主要是由於市場估值較低和出售股權證券的結果。本季末全部投資現金為 101 億美元。資本支出為 27 億美元。用於收購的現金為五億美元。正如我所提到的，我們用了 10 億美元用於股票回購。總而言之，第一季的營收為67 億美元，毛利率為52%，營業收入為13 億美元，佔營收的19%，稅前收入為16 億美元，佔營收的23%，每股盈餘為0.16美元。當我們展望第二季的前景時，請記住，所有預測數據均不包括3 月31 日之後可能完成的任何新收購的影響。此外，正如我上季所說，我們對價格預測的擔憂仍然存在低，我們的前景具有高度的不確定性。我們預計第二季營收將在 6.2 至 68 億美元之間。正常的季節性模式使您預測第二季的收入略有下降。鑑於目前的指導，我們對第二季的預期範圍相對較大。第二季毛利率預計為 49%，上下浮動幾個百分點。與第一季相比的變化主要是因為與奔騰 III 相比，奔騰 IV 處理器的微處理器定價較低且單位成本較高。第二季的支出（包括商譽攤銷）應在 220 至 33 億美元之間，與第一季的 33 億美元支出大致持平。

The spending increases in the second quarter across our usual second quarter increase in advertising our full quarter expenses will include acquired capital and a portion of the annual revenues delivered to most of the employees. Please note that salary increases with our annual compensation adjustments are generally effected on April 1, and as an effect to declared costs, we will differ half of these increases for most of our employees. We are seeing the values, we will differ all of the increases. Our estimate for interest and other income in the second quarter is $115 million with no net gain expected from Intel capital. As we look ahead to the rest of 2001, the charge of accurate forecast remains low. It appears that Intel Architecture business will return to the seasonal pattern trying more strength in the second half. By communications businesses, the end of decline of our core-related in the Intel architecture business are turning off to the higher growth rate. As a result, our expectation is that these businesses will have a longer and slow recovery beginning sometime early this year.

第二季的支出增加與我們通常的第二季廣告支出增加相比，我們整個季度的支出將包括收購的資本和交付給大多數員工的部分年收入。請注意，我們的年度薪資調整的加薪通常會在 4 月 1 日生效，並且由於申報成本的影響，我們將對大多數員工增加一半的加薪。我們正在看到這些值，我們將改變所有的增量。我們對第二季利息和其他收入的估計為 1.15 億美元，預計英特爾資本不會產生淨收益。當我們展望 2001 年剩餘時間時，準確預測的成本仍然很低。看來英特爾架構業務將在下半年回歸季節性格局，力爭下半年更加強勁。透過通訊業務，我們與核心相關的英特爾架構業務的下滑已經結束，正在轉向更高的成長率。因此，我們預計這些業務將從今年年初開始經歷更長且緩慢的復甦。

Our forecast for gross margin percentage for 2001 is 50%, plus or minus a few points. This assumes growth rate and units volumes in the second half of the year for the Intel Architecture business, lower microprocessor pricing previously noted, and higher ceiling costs associated with the Pentium IV processors. To manage inventory, we will adjust loading our package in accordance with demand, expect the financial impact adjustments to be slight. We did not publish annual forecast with spending, but we reiterate our commitment to the company-like cost-reduction programs announced earlier in March. Discretionary spending targets are aggressive; nearly all office-building projects have been stopped or postponed and hiring has been essentially growing. We still expect to reduce head count inclusive of new acquisitions, by 5000 employees by the end of the year, primarily ____ 00:11:23. Our expectation for R&D spending remains unchanged at $4.3 billion. We are on track to meet our 2001 target of $7.5 billion in capital spending, more than a third of which was invested in the first quarter. We view the investments as necessary to ensure we have leading-edge products and we have crossed a marginal buyer. Office-building projects have been delayed or stopped, albeit a small part of the total and the rest of the year. We will use the dollars almost exclusively to expand production and maintain our leadership in the 0.13-micron and 300-mm process technology. We expect to ship more products on 0.13-micron processor by mid-year and Pentium IV processor products in the fourth quarter. Our financial strategy is to reduce large central spending, or pursuing with investment and pricing that will make us more competitive. Our priorities are future earnings power and long-term stockholder value. We have the experience and resource to manage business in a smaller environment, and while business may be slow, the pace of technology is not. Our actions now will allow us to continue to develop the products for our customers that will make us successful in the long-term.

我們對 2001 年毛利率的預測是 50%，上下浮動幾個百分點。這是假設英特爾架構業務下半年的成長率和銷售量、前面提到的微處理器定價較低以及與奔騰 IV 處理器相關的最高成本較高。為了管理庫存，我們將根據需求調整包裹的裝載，預計財務影響調整將很小。我們沒有公佈年度支出預測，但我們重申了對三月初宣布的公司成本削減計劃的承諾。可自由支配的支出目標非常激進；幾乎所有辦公大樓專案都已停止或推遲，而招聘人數卻大幅增加。我們仍預計到今年年底將減少 5,000 名員工（包括新收購的員工），主要是 ____ 00:11:23。我們對研發支出的預期維持在 43 億美元不變。我們預計將實現 2001 年 75 億美元資本支出的目標，其中三分之一以上是在第一季投資的。我們認為這些投資是必要的，以確保我們擁有領先的產品，並且我們已經超越了邊際買家。辦公大樓項目已被推遲或停止，儘管只佔總數和今年剩餘時間的一小部分。我們將幾乎全部將這些資金用於擴大生產並保持我們在 0.13 微米和 300 毫米製程技術方面的領先地位。我們預計到年中將推出更多 0.13 微米處理器產品，第四季將推出奔騰 IV 處理器產品。我們的財務策略是減少大量的中央支出，或追求使我們更具競爭力的投資和定價。我們的首要任務是未來獲利能力和長期股東價值。我們擁有在較小環境中管理業務的經驗和資源，雖然業務可能會很慢，但技術的步伐卻並非如此。我們現在的行動將使我們能夠繼續為客戶開發產品，這將使我們長期成功。

Before I turn the meeting over to Paul, I'd like to mention that we will publish an update of our business outlook on June 7 and I will hold the analyst conference call, available by webcast on that day as well. With that, let me turn over to Paul for additional comments on the business.

在我將會議交給 Paul 之前，我想提一下，我們將在 6 月 7 日發布我們的業務前景更新，我將舉行分析師電話會議，當天也可以透過網路直播進行收聽。接下來，讓我向保羅詢問有關該業務的更多評論。

Thanks Andy. Overall the first quarter saw weak levels of demand in all geographies, as the slow down in PC sales spread to servers, networking, and communications. The Americans contributed the bulk of the decline in revenue, however we believe our drop in sales is greater than the underlined decline in PC sales. As our customers are working off microprocessor inventories and have exceeded the first quarter with CPU inventories at or very near their goals. Europe sales declined more than normal seasonality would indicate as consumer and business confidence is cautious in the face of the US slowdown. Sales in Japan were approximately flat from Q4 with retail and reseller volumes also approximately flat year-over-year. Despite the weakening economy in Japan, large business investments in IT increased year-over-year. In Asia-Pacific, consumption and sales in China and India continued to grow, although the export portions of our market in the apex were impacted by the slowdown in US and Europe. One bright spot in Q1 was our business through distribution channels worldwide. Sales out through these channels was up slightly from Q4 and our highest since Q1 of 2000. Business levels picked up over the course of the quarter and we exceeded the quarter with relatively low channel inventories. Microprocessor unit shipments and ASPs were down from Q4. The decline in ASP was almost entirely driven by a drop in shipments of our server products and by our decline in mobile product ASPs as we reset our pricing for our new high-speed mobile products. Desktop ASP was approximately flat and was aided by an increase in the performance to value mix driven by increased sales of the Pentium IV microprocessor.

謝謝安迪。整體而言，第一季所有地區的需求水平均疲軟，因為個人電腦銷售放緩蔓延至伺服器、網路和通訊領域。收入下降的主要原因是美國人造成的，但我們認為我們的銷售額下降幅度大於個人電腦銷售額的下降幅度。由於我們的客戶正在處理微處理器庫存，並且 CPU 庫存已經超過第一季度，達到或非常接近他們的目標。歐洲銷售下降幅度超過正常季節性，顯示消費者和企業信心面對美國經濟放緩持謹慎態度。日本的銷售額與第四季相比基本持平，零售和經銷商銷售也與去年同期基本持平。儘管日本經濟疲軟，大型企業對 IT 的投資卻逐年增加。在亞太地區，儘管我們的頂端市場的出口部分受到美國和歐洲經濟放緩的影響，但中國和印度的消費和銷售仍持續成長。第一季的一個亮點是我們透過全球分銷管道開展的業務。通過這些管道的銷售量比第四季度略有上升，是自 2000 年第一季以來的最高水平。本季度業務水平有所回升，並且我們以相對較低的渠道庫存超過了本季度。微處理器單位出貨量和平均售價較第四季下降。平均售價的下降幾乎完全是由於我們的伺服器產品出貨量下降以及我們重新設定新的高速行動產品的定價而導致行動產品平均售價下降所致。桌上型電腦平均售價基本持平，這得益於奔騰 IV 微處理器銷售量增加所帶來的效能與價值組合的提升。

During the first quarter, we shipped our $1 million Pentium IV and the product remains on track to be our fastest ramping Micro Architecture ever. Microprocessors unit volumes declined far more than normal seasonality would indicate. We believe there were two factors contributing to this. One is the general economic situation, which has led to a slowdown in sales of PCs and servers and secondly to a draw down of CPU inventories held by our customers from levels, which were well above their goals in December to ones, which generally meet their goals exceeding March. Production of our flagship Pentium IV continues to ramp and we are experiencing robust deals. This would allow us to accelerate the introduction of the $1.7 gigahertz version of this product allowing us to ship production volumes in March in anticipation of an April introduction. We have reached that pricing for this product as it ramps. Overall, we are pleased with the ability of the entire platform to achieve lower costs including the declines in the costs of RD RAM as volume grows. The net results as we now have major customer shipping Pentium IV systems as low as $1000.

第一季度，我們的 Pentium IV 出貨量達到 100 萬美元，該產品仍有望成為我們有史以來成長最快的微架構。微處理器單位銷售量的下降幅度遠超過正常季節性所顯示的水平。我們認為有兩個因素造成了這種情況。一是總體經濟情勢導致 PC 和伺服器銷售放緩，二是客戶持有的 CPU 庫存從遠高於 12 月目標的水平下降到總體滿足其目標的水平。目標超過三月。我們的旗艦產品奔騰 IV 的產量持續增加，並且我們正在經歷強勁的交易。這將使我們能夠加快推出該產品 1.7 GHz 版本的速度，使我們能夠在 3 月實現量產，並預計 4 月推出。隨著該產品的推出，我們已經達到了該定價。總體而言，我們對整個平台實現更低成本的能力感到滿意，包括隨著產量的成長 RD RAM 成本的下降。最終結果是我們現在主要客戶的 Pentium IV 系統出貨價格低至 1000 美元。

Looking forward, we have made major progress on our booked deal chipsets, which supports SD RAM and TDR for the Pentium IV, allowing us to achieve a wide variety of price and performance points. The SD RAM version of this chipset remains on track to intercept with the peak-selling season this year. The combination of these factors is allowing our customers to move the Pentium IV beyond consumer segments and increasingly target business users. Global and server processors were impacted by the Q1 slowdown, with units and revenues both down. We are still bullish on both of these market segments and introduced a number of new products in Q1 and servers we launched 900 megahertz large cash version of our Xeon family this product allowed one of our customers to achieve a new record for TPC's C transactions at 688,000 TPM and a 280 processor system. A new version Xeon based upon the Pentium IV micro architecture will be introduced in Q2. Additionally, the Itanium processor will move to full production this quarter with a number of customers planning to launch production systems.

展望未來，我們在預訂交易晶片組方面取得了重大進展，該晶片組支援 Pentium IV 的 SD RAM 和 TDR，使我們能夠實現各種價格和性能點。該晶片組的 SD RAM 版本仍有望趕上今年的銷售旺季。這些因素的結合使我們的客戶能夠將奔騰 IV 超越消費者細分市場，並越來越多地瞄準商業用戶。全球和伺服器處理器受到第一季經濟放緩的影響，銷售和收入雙雙下降。我們仍然看好這兩個細分市場，並在第一季推出了許多新產品和伺服器，我們推出了Xeon 系列的900 兆赫大型現金版本，該產品使我們的一個客戶實現了TPC C 交易的新紀錄，達到688,000 TPM 和 280 處理器系統。基於Pentium IV微架構的新版本Xeon將於第二季推出。此外，安騰處理器將於本季全面投產，許多客戶計劃推出生產系統。

Lastly, at IDEA we demonstrated the McKinley chip, our next generation of Itanium, running three server operating systems also at IDEA, we disclosed a new processor roadmap for ultra dense rocky mountain servers that will take advantage of Intel's low power technologies. In mobile our ultra-low voltage Pentium III processor was introduced in January, delivering the first the pc processor running below one volt and consuming less than half of watt of power. In March we introduced the industry's first one-gigahertz mobile processor and we remained on track to roll out our 0.13 mainframe product this year. Our chip set volumes declined only slightly from Q4 and we believe we have regained market segment share and chipsets during the quarter as we introduced new lower costs versions of our chipset supporting Pentium III and Celeron. In general, we did not see a build of chipset inventories at our OEM customers for entire one. In other product areas, flash revenue and unit shipments declined from a record Q4 levels as we experienced significant inventory corrections from our communications customers. Splendid ASP held flat as did average density shipped during the quarter. Shipments of strata flash memory grew again this quarter representing 28% of our total big shipments in Q1.

最後，在IDEA 上，我們展示了McKinley 晶片，我們的下一代安騰晶片，運行三個伺服器作業系統。還在IDEA 上，我們還披露了超密集落基山伺服器的新處理器路線圖，該路線圖表將利用英特爾的低功耗技術。在行動領域，我們於 1 月推出了超低電壓 Pentium III 處理器，這是首款運行電壓低於 1 伏特且功耗不到一半瓦的 PC 處理器。 3 月份，我們推出了業界首款 1GHz 行動處理器，預計今年將推出 0.13 大型主機產品。我們的晶片組銷量較第四季度僅略有下降，我們相信，隨著我們推出支援奔騰 III 和賽揚的晶片組的新的低成本版本，我們在本季度重新獲得了市場份額和晶片組。總的來說，我們沒有看到我們的 OEM 客戶建立完整的晶片組庫存。在其他產品領域，由於我們的通訊客戶對庫存進行了重大調整，快閃記憶體收入和單位出貨量從第四季度創紀錄的水平下降。 Splendid 的平均售價持平，本季平均出貨密度也持平。本季 Strata 快閃出貨量再次成長，佔第一季總出貨量的 28%。

In Q1, the slowdown extended to Intel network communication products reflecting industry wide trends. We concluded the acquisition of the Extel, which produces a voice over packet technology and Zercom extending the companies business to global platforms and exceed over the wireline and wireless networks. We also introduced the industries first integrated gigabit Internet controller, which we believe will accelerate the movement from fast Internet to gigabit speed. In summary, Q1 was a tough quarter. We remained committed to the long-term growth prospects for our business and are investing to come out stronger at the end of the cycle. We believe that our PC-related businesses have bottomed out and are planning for a seasonally stronger second half. Our computing product road map is the strongest in our history. With that, let me turn the meeting back over to Lisa.

第一季度，英特爾網路通訊產品的放緩反映了整個產業的趨勢。我們完成了對 Extel 的收購，該公司生產分組語音技術，而 Zercom 將公司業務擴展到全球平台，並超越了有線和無線網路。我們也推出了業界首款整合千兆網路控制器，我們相信這將加速網路從高速轉向千兆速度的轉變。總而言之，第一季是一個艱難的季度。我們仍然致力於業務的長期成長前景，並進行投資，以便在周期結束時變得更強大。我們相信我們的個人電腦相關業務已經觸底，並計劃下半年實現季節性強勁。我們的計算產品路線圖是我們歷史上最強大的。就這樣，讓我把會議轉回給麗莎。

Thanks Paul. We will now open the conference call for question and answer session. In the interest of moving along and giving other questioners a chance, please limit yourselves to one question.

謝謝保羅。我們現在將開始電話會議進行問答。為了繼續前進並給其他提問者一個機會，請限制自己只回答一個問題。

If you would like to ask a question today, please signal us by pressing * then 1 on your telephone keypad. We will take as many questions as time permits and we will proceed with the order that you signal us; again that is *1. Your first Mark Aldestone of Morgan Stanley.

如果您今天想提問，請按電話鍵盤上的 * 然後按 1 向我們發出信號。我們將在時間允許的情況下回答盡可能多的問題，並按照您向我們發出的命令進行操作；這又是*1。你的第一位摩根士丹利的馬克·奧爾德斯通。

Good afternoon. Paul if you can walk us through with what the ramp for 0.13 micron productions as we go through the year, you mentioned Nobel introduced in this summer and then P4 by yearend, when you start to see the crossover on a way for start basis for 0.13 micron?

午安. Paul，如果您能向我們介紹今年 0.13 微米生產的坡道，您提到今年夏天推出了 Nobel，然後到年底推出了 P4，屆時您將開始看到 0.13 微米生產的交叉。微米？

Oh, gosh, Mark. Not this year. I don't think I want to characterize it anymore granular than that. We are going to reuse the production, the process to RAM production of Pentium III versions with mobile from desktop and server products coming off from that. As you mentioned in the fourth quarter we will start ramping a version of the Pentium IV on 0.13 micron and that ramp will continue into the 2002 timeframe. What I would like you to have focussed on is on our goal to a have a crossover point of the Pentium IV versus the Pentium III production, and I think we have said before that our plan is to do that in the first quarter of 2002 and that is our goal is to try and bring internally 2001 if possible.

哦，天哪，馬克。今年不行。我認為我不想比這更細緻地描述它。我們將重複使用 Pentium III 版本的 RAM 生產流程，以及由此產生的桌面和伺服器產品的行動裝置。正如您在第四季度提到的，我們將開始推出 0.13 微米 Pentium IV 版本，並將持續到 2002 年。我希望您重點關注的是我們的目標，即在 Pentium IV 與 Pentium III 生產之間建立一個交叉點，我想我們之前已經說過，我們的計劃是在 2002 年第一季度實現這一點，並且我們的目標是盡可能將2001 年引入內部。

Paul, I want to know just the process fee with the crossover like then on Pentium IV base, 0.13-micron versions versus 0.18?

Paul，我想知道像當時 Pentium IV 基礎上的 0.13 微米版本與 0.18 微米版本的交叉製程費用？

I know that's what you asked but I really cannot characterize that at this point, Mark.

我知道這就是你問的，但我現在真的無法描述這一點，馬克。

Okay, thanks.

好的謝謝。

It will happen in 2002 not 2001.

它將發生在 2002 年，而不是 2001 年。

Moving on to the next question, this is Charley Glavin of CS First Boston.

繼續下一個問題，我是 CS First Boston 的 Charley Glavin。

Paul, in terms of being able to take a look in terms of a Q2 visibility the range is 6.2-6.9 is pretty wide, pattern Q2 even in best of times is a pretty tough quarter, how can you really gauge that you return to a full season pattern with such a range of down 7% to up 2%?

保羅，就第二季度能見度而言，範圍是 6.2-6.9 相當寬，即使在最好的情況下，第二季度也是一個相當艱難的季度，你如何才能真正判斷你是否回到了全季格局是這樣的下跌7%到上漲2%的幅度嗎？

Right Charles. This is Andy Bryant. First of all I recognize if we look back at the old historical leverage and slightly leverage or whatever, Q2 is going to be slightly down a little bit. If you look at the communications business right now, very uncertain there, we saw a pretty sharp drop in the first quarter. It is not all the share that we are returning to normal seasonal patterns there. So, I think what you are seeing in our forecast is a little more confidence than you almost see for a seasonal second quarter for the microprocessor business and a weaker forecast for the communication business.

對查爾斯。這是安迪·布萊​​恩特。首先，我認識到，如果我們回顧舊的歷史槓桿率和小幅槓桿率或其他什麼，第二季將略有下降。如果你現在看看通訊業務，那裡非常不確定，我們看到第一季出現了相當大的下降。我們在那裡恢復正常的季節性模式並不是全部。因此，我認為您在我們的預測中看到的微處理器業務的信心比您幾乎看到的第二季度的微處理器業務的信心要高一些，而通訊業務的預測則較弱。

So, Andy could you infer that the vapor starts at the beginning of Q2 are actually higher than the vapor starts in the beginning of Q1?

那麼，Andy，您能否推斷 Q2 開始時的蒸氣開始量實際上高於 Q1 開始時的蒸氣開始量？

Again, categorize it by business.

再次，按業務分類。

For the CPU business?

對於CPU業務？

If you are talking specifically about CPU business, it has been a pretty good guess, yes.

如果你具體談論 CPU 業務，那麼這是一個很好的猜測，是的。

Andy thanks.

安迪謝謝。

Moving on to Neville Valoporone of EKW.

接下來是 EKW 的 Neville Valoporone。

Yeah, this is Neville Valoporone, just a couple of questions you may want to answer one of them, as you do not have time. First is, have you in the last three months increased your goal of Pentium IV production this year, I believe I can sense that is your planning between 20-25 million have you increased that number, the second one is for Paul when you indicated the second quarter you think the market will bottom out. Is that because you believe some of your customers would start restocking inventory or you have any other granular micro evidence to indicate the demand might have stabilized or it will be picking up?

是的，我是 Neville Valoporone，您可能想回答其中幾個問題，因為您沒有時間。第一個是，您在過去三個月中是否增加了今年奔騰IV 產量的目標，我相信我可以感覺到您的計劃在20-2500 萬之間，您是否增加了這個數字，第二個是保羅，當您表示您認為第二季市場將會觸底。這是因為您相信您的一些客戶會開始補充庫存，或者您有任何其他細粒度的微觀證據表明需求可能已經穩定或將會回升？

Neville, let me take both of these. On the Pentium IV production goal, we have not really changed. We set this goal out late last year and we have been wrapping towards a very aggressive number for the course of this year and my characterization of trying to pull in the crossover from early 2002 to late 2001, I think it is indicative of that, number 7, I don't want to get into specifics about it. We believe we are in a very aggressive ramp and are very comfortable with our ability to hit those numbers at this point in time from a production standpoint. In terms of Q2 bottoming out and our visibility, it really is a couple of things coming together. I mentioned that our business through our distribution channels was very strong this quarter, in fact above Q4 and as good as it was a year ago. That is a very good indicative for us. Secondly, we had increased churns activity not just in the channel, but also from our multinational large customers in the month of March which to me, indicate that their ongoing business needs, require replenishment of our products to me. And thirdly, as we look at various inventories of our microprocessors, we seem to have very good goal from an over goal situation exceeding 2000 to a situation where their order is slightly in some cases, below goal exceeding March. Given those indicators, and the fact that we believe that there is still a very strong run rate business per share, I think that we are confident in predicting the bottoms out here.

奈威，讓我把這兩樣都拿走。關於Pentium IV的生產目標，我們並沒有真正改變。我們在去年年底設定了這個目標，今年我們一直在努力實現一個非常激進的數字，我的描述是試圖從 2002 年初到 2001 年底實現交叉，我認為這表明了這一點，數字7、我不想詳細說明這一點。我們相信我們正處於一個非常積極的成長階段，並且從生產的角度來看，我們對目前達到這些數字的能力感到非常滿意。就第二季的觸底反彈和我們的能見度而言，這確實是幾件事結合在一起的。我提到，本季度我們透過分銷管道的業務非常強勁，實際上高於第四季度，並且與一年前一樣好。這對我們來說是一個非常好的指示。其次，我們不僅在通路中增加了客戶流失活動，而且在三月我們的跨國大客戶也增加了客戶流失活動，這對我來說表明他們持續的業務需求需要向我補充我們的產品。第三，當我們查看微處理器的各種庫存時，我們似乎有很好的目標，從超過 2000 個的超額目標情況到在某些情況下訂單略低於超過 3 月份的目標的情況。考慮到這些指標，以及我們認為每股業務運行率仍然非常強勁的事實，我認為我們有信心預測這裡的底部。

Thanks, Paul.

謝謝，保羅。

Here is a question now from Joe Osho of Merrill Lynch.

美林證券公司的喬·奧修現在提出一個問題。

Thanks can you hear me? Part of, I think this pick up here, that you were just talking about obviously in March picks up sequentially, on February, is somewhere the indicators that we have shown April beginning to obviously ...it tends to be down sequentially, that's is off and off again, have you ever felt that it is a kind of separate those what might become just a snapback from a really depletion of the supply chain as opposed to actual real demand out there especially given how short visibility is?

謝謝你聽得到我說話嗎？我認為，您剛剛談到的這種回升的一部分，在 3 月份明顯在 2 月份連續回升，是我們在 4 月份開始明顯顯示的指標……它往往會連續下降，那就是斷斷續續地，你有沒有覺得這是一種分離，那些可能只是供應鏈真正耗盡而導致的快速恢復，而不是實際的實際需求，特別是考慮到可見度如此之短？

Not easily. The best leading indicators tend to be our distribution channel, which kind of chugged along since late Q4. The multinational have not, I think, taken their view of the business down to the zero, which is what we have been indicating right by their comment. By Michael Dell's comments in Business Week this week we will get 150 million units per year of business ...they don't go away overnight, and I think you will need to keep that in perspective that there was some normal technicality in Q1 and it was amplified to Intel by the inventory situation.

不容易。最好的領先指標往往是我們的分銷管道，自第四季度末以來一直在穩步發展。我認為，跨國公司並沒有將他們對業務的看法降至零，而這正是我們在他們的評論中所表明的。根據邁克爾戴爾本週在《商業周刊》上的評論，我們每年的業務量將達到1.5 億台……它們不會在一夜之間消失，我認為您需要保持這一觀點，即第一季存在一些正常的技術問題，英特爾的庫存情況放大了這一點。

Okay, it is true 150 million unit business don't go away overnight, but sometimes they can swell, so I am just ... clearly, I think you guys are seeing ... in our own check in Taiwan, indicate some, your people are feeling pretty good about March, but the other than that, I mean, do you have that same level of you know, sort of, I cannot characterize this as nonseasonal improvement, against April here?

好吧，確實，1.5 億單位的業務不會在一夜之間消失，但有時它們會膨脹，所以我只是……很明顯，我想你們正在看到……在我們台灣的檢查中，指出有些，你們的員工對三月感覺很好，但除此之外，我的意思是，你們是否有同樣的水平，我不能將這描述為與四月相比的非季節性改善？

Joe, as always I have said we are not forecasting a snapback to last year's business level. What we are saying, is we think we found a new business level, which we will now play on top of. So, while we were down in Q1, we don't think that is back in the second quarter, we think from a new lower stable business level; we have seen seasonality has been the driving factor as opposed to macroeconomics.

喬，我一如既往地說過，我們預計業務不會迅速恢復到去年的水平。我們所說的是，我們認為我們找到了一個新的業務水平，我們現在將在這個水平上發揮作用。因此，雖然我們在第一季出現下滑，但我們認為第二季不會出現這種情況，我們認為從新的較低的穩定業務水平來看；我們已經看到，與宏觀經濟相反，季節性是驅動因素。

Okay, thank you, Andy.

好的，謝謝你，安迪。

Now, from Bank of America, this is Doug Lee.

我是美國銀行的道格李 (Doug Lee)。

Hi, I was just wondering if you can give some comment on what your direct PC customers are telling you with regards to what their forecast might be for PC for the year?

您好，我只是想知道您是否可以對您的直接 PC 客戶告訴您的有關今年 PC 的預測發表一些評論？

Doug, it is really all over the map and it depends on the _____00:29:20, but it is hard to characterize a consensus at this point.

道格，這確實是一個全面的問題，這取決於 _____00:29:20，但目前很難達成共識。

Have you guys come up with your own forecast that you can share with us?

你們有自己的預測可以跟我們分享嗎？

Well, yes and no. If we have our forecast and we traditionally don't share that with you, and our ability to hear our forecast recently wouldn't indicate that we should share it with you.

嗯，是的，也不是。如果我們有我們的預測，而我們傳統上不會與您分享，並且我們最近能夠聽到我們的預測並沒有表明我們應該與您分享。

Okay, that is fair enough. I guess secondly on the Brookdale chip that is for DDR ...have you timing on when that might come out?

好吧，這很公平。我想其次是用於 DDR 的 Brookdale 晶片……你知道它什麼時候發布嗎？

Oh, it is the same chips that supports SD RAM, so it is with regard to the same silicon. So, what we are doing is we are validating the SD RAM burst and our plan is to have that in production for the peak selling season and the minute we finish the validation for DDR, we will release it. For, it that is just a matter of, whether that is one month or three months behind the SD RAM version.

哦，支援SD RAM的是同一個晶片，所以是同一個矽片。因此，我們正在做的是驗證 SD RAM 爆發，我們的計劃是在銷售旺季進行生產，一旦完成 DDR 驗證，我們就會發布它。因為，這只是一個問題，是比 SD RAM 版本晚一個月還是三個月。

Okay, so that is conceivable ... if everything goes well that could actually come out sometime this year?

好吧，這是可以想像的……如果一切順利的話，今年的某個時候就會出現？

I don't want to say that, it is a time lag behind the SD RAM version on, as you know, validation on a chip that is increasingly difficult, we want to make sure we get this one exactly right.

我不想這麼說，正如你所知，這比 SD RAM 版本存在時間滯後，晶片上的驗證越來越困難，我們希望確保我們得到的這個版本完全正確。

Understood, thank you very much.

明白了，非常感謝。

Continuing now from Wit SoundView here, this is Scott Randall.

現在從 Wit SoundView 繼續，我是 Scott Randall。

Thanks, two quick questions. First inventory, levels next quarter, would you anticipate those yet again in the processor side, understanding there is some vagaries to the sales side of it.

謝謝，兩個簡單的問題。第一個庫存，下個季度的水平，您是否會在處理器方面再次預期這些水平，因為了解其銷售方面存在一些變幻莫測的情況。

When I really based it on my speech here Scott, I really think we are getting towards macroeconomics, the only thing that might drive it up a little bit is ... as we ramp in the training costs, which is the higher cost per unit, I may end up with a little bit more as regards to these dollars, but I don't think anyone here will let me try.

當我真正基於斯科特在這裡的演講時，我真的認為我們正在走向宏觀經濟學，唯一可能推動它一點點增長的是......隨著我們增加培訓成本，即單位成本更高，我最終可能會得到更多關於這些美元的東西，但我認為這裡沒有人會讓我嘗試。

Secondly, I guess, Paul, in the press release, and in your commentary, talking about returning to normal seasonality, the 7-year average in Q3 is up 7%, up 9.6% in Q4, understanding that the second half is very invisible for all those, I guess. Would you argue those are impossible growth rates or is that something that you contemplated as being within the realm of possibilities as you see it?

其次，保羅，我想，在新聞稿中，在你的評論中，談到恢復正常的季節性，第三季度的7年平均增長了7%，第四季度增長了9.6%，了解下半年是非常看不見的我想對於所有這些。您是否認為這些成長率是不可能的，或者您認為這是在您認為的可能性範圍內？

Oh, you have got to ask ... to share our forecast with you. I don't think we are prepared to do that. I was pretty happy, just saying that we were looking towards, happy towards larger second half than the first half.

哦，您必須要求...與您分享我們的預測。我認為我們還沒有準備好這樣做。我很高興，只是說我們期待比上半場更大的下半場。

Okay, thank you.

好的謝謝。

The next question is from Charles Deutsche, Bear Stearns & Co.

下一個問題來自查爾斯·德意志銀行、貝爾斯登公司。

Hi. First is on seasonality, I guess, that it appears to be the point everyone needs clarification on ... have you been able to take a look at what is actually driving the recoveries on February and March from the manufacturing channel, the OEM ... in terms in end market progress, because there seems to be some clear signals that the IT budgets continue to look weak and indications are that other regions of the world are beginning to follow the US downward. Do you see that as out of sink with what you are seeing for your customers or do you think you understand what is going on in end market?

你好。首先是季節性，我想這似乎是每個人都需要澄清的一點……您是否能夠了解製造管道、OEM 真正推動 2 月和 3 月復甦的因素…… . 就終端市場進展而言，因為似乎有一些明確的訊號表明IT預算仍然疲軟，並且有跡象表明世界其他地區也開始追隨美國的下滑趨勢。您是否認為這與您為客戶看到的情況不符，或者您認為您了解終端市場正在發生什麼？

Well, I think it goes back to Andy's clarification earlier, we are not projecting the returns of the historic growth levels. We are projecting the returns to normal seasonality often at business level and every indication we have, suggest that the base level demand fits within that statement. What I am going to try and show next week at the analyst meeting in Europe is a more global view of the demand, and I think we are all kind of shell-shocked by the US phenomena right now. Only outside the US it is not nearly as weak in terms of purchases, confidence and sale levels.

嗯，我認為這可以追溯到安迪之前的澄清，我們並沒有預測歷史成長水準的回報。我們通常在業務層面上預測正常季節性的回報，而我們掌握的每一個跡像都表明基本水平的需求符合該聲明。下週在歐洲舉行的分析師會議上我將嘗試展示的是對需求的更全球化的看法，我認為我們現在都對美國的現象感到震驚。只有在美國以外的地區，購買量、信心和銷售水準才沒有那麼疲軟。

But, you still see the PC market growing at a secular rate on the unit basis in the mid teen's ... is that the number you used in the last couple of analyst meetings ... do you still see that as being valid?

但是，您仍然看到個人電腦市場在十幾歲左右的單位基礎上以長期速度增長……這是您在過去幾次分析師會議中使用的數字……您仍然認為這是有效的嗎？

Over a long term?

長遠來看？

Yes.

是的。

Yeah.

是的。

Okay, thanks.

好的謝謝。

Next is Dennis Goebel of Needham & Company.

接下來是李約瑟公司的丹尼斯‧戈貝爾。

Thank you. In the Europe ... do you believe you held during the last market share and microprocessors during the quarter?

謝謝。在歐洲...您認為您在本季度的最後一個市場份額和微處理器方面保持住了嗎？

It is a little soon for me to answer that question since our competitors have not released yet. My view is that market segments here tends to bounce around plus or minus a few points every quarter depending on various parameters. If we look back over the last five or six quarters though, our overall segment market share of the market really has not moved very much, plus or minus two points around is the number we have held for quite sometime. And I guess ... I expect this to stay there over the course of this year.

我現在回答這個問題還為時過早，因為我們的競爭對手還沒有發布。我的觀點是，根據各種參數，這裡的細分市場往往每季都會上下波動幾個點。但如果我們回顧過去五、六個季度，我們整個細分市場的市佔率確實沒有太大變化，正負兩個百分點是我們相當長一段時間以來一直持有的數字。我想……我預計這種情況將在今年持續存在。

And going through the second quarter guidance, can we assume that, assuming returns rate is consistent with what you have seen recently or are you assuming any improvement?

透過第二季的指導，我們是否可以假設，假設回報率與您最近看到的一致，或者您是否假設有任何改善？

In general, what we would expect is to see seasonal Q2 after Q1, maybe a little broader in the microprocessors business. It is difficult to answer the trends question, given the fact that people weren't placing orders for much of Q1 and we have low backlog and more pressure, which means you have by definition have to have higher returns orders. Basically, we think it is most covered by ... like Paul said earlier, the distribution channel, which extensively we feel going in weak product for the customers right now, and then trends with our OEM again when their rationale for immediate shipment relatively will actually have customers and orders as opposed to putting in inventories. If this continues since the indication is on a loose baseline so much the value becomes the guiding factor.

總的來說，我們預計第一季之後會出現季節性第二季度，微處理器業務的範圍可能會更廣一些。很難回答趨勢問題，因為人們在第一季的大部分時間都沒有下訂單，而且我們的積壓量較低且壓力較大，這意味著根據定義，您必須獲得更高回報的訂單。基本上，我們認為它最受...就像保羅之前所說的那樣，分銷渠道，我們廣泛認為現在為客戶提供的產品較弱，然後當他們立即發貨的理由相對較弱時，我們的OEM 再次出現趨勢實際上有客戶和訂單，而不是存貨。如果這種情況持續下去，因為指示處於寬鬆的基線上，那麼該值將成為指導因素。

Okay, thank you.

好的謝謝。

Now to Bill Packard at SG Cowen.

現在請聽 SG Cowen 的 Bill Packard。

Good afternoon. I was just wondering if you could help, I guess this is for Paul, reconcile question I have, which is if you are not losing market share and the Q4 is extremely strong, it seems interesting that we are on, that you would be cutting prices as aggressively, had a very successful model for years, when you had introduced your high-end product whatever it may be at that time at any price between $700 and $1000, and now you are being much more aggressive about them. I am curious it looks motivating that if it is not market share, it is ...

午安.我只是想知道你是否可以提供幫助，我想這是給保羅的，請協調我的問題，即如果你沒有失去市場份額並且第四季度非常強勁，我們正在進行的事情似乎很有趣，你會削減價格同樣激進，多年來一直有一個非常成功的模式，當時你以700 美元到1000 美元之間的任何價格推出了高端產品，無論當時是什麼，現在你對它們的態度更加激進。我很好奇它看起來很激勵，如果不是市場份額，那就是...

It is principally driven by two things really. One is about half of the product is very, very good and I think I mentioned in my comments that it was to the point where it accelerated the introduction of the 1.7 ... we had actually shipped volume in March around that product. As we begin to do that, we had to set the pricing for that and our intention was to price it to sell what we could Bill. One of the things that are important to us in the Pentium IV RAM is establishing that products position as the premier microprocessor in the industry. To do that, we want to move up the average megahertz per shipping or the average gigahertz in the case of Pentium IV and move it into the sweet spots in volume. The pricing moves that we are making this cycle allowed us to do that and to meet our volume goals in total.

它主要是由兩件事驅動的。一是大約一半的產品非常非常好，我想我在評論中提到它加速了 1.7 的推出……我們實際上在 3 月份就圍繞該產品發貨了。當我們開始這樣做時，我們必須為此設定定價，我們的目的是定價以出售我們可以開立的產品。 Pentium IV RAM 對我們來說重要的事情之一是確立該產品作為業界首要微處理器的地位。為此，我們希望提高每次運輸的平均兆赫茲或奔騰 IV 的平均千兆赫茲，並將其移至銷量最佳點。我們在本週期中採取的定價措施使我們能夠做到這一點並實現我們的整體銷售目標。

Do you think you can maintain ASPs while you are doing that?

您認為這樣做時可以維護 ASP 嗎？

Well, I gave you my comments on desktop ASPs in the first quarter, which was essentially flat and Andy indicated to you that one of the issues in Q2 is that we saw some pricing pressure on microprocessors coming out. That is across the board and reflects an overall average. One of the things I am very cautious about right now is when the server market is going to bounce back because it has such a significant impact on our overall selling process.

好吧，我向您介紹了第一季桌面 ASP 的評論，該季度基本上持平，Andy 向您表示，第二季的問題之一是我們看到微處理器面臨一些定價壓力。這是全面的，反映了總體平均水平。我現在非常謹慎的一件事是伺服器市場何時會反彈，因為它對我們的整體銷售流程有如此重大的影響。

Okay, thanks.

好的謝謝。

Continuing now with David Woo, ABN AMRO.

現在繼續與荷蘭銀行的 David Woo 合作。

Yes, hi. Can you talk a little bit about the non-microprocessors of the business on the subject of the flash memory ... these long-term contracts have had some controversy lately. I think it may be holding up the market place where weak pricing and volumes does in fact take place. On the subject of communication and IT ... your experience is very different from what CISCO was talking about yesterday in the pre-announcement conference call where their Enterprise business is sound and a solid double digit quarter and quarter both in Europe and in the US.

是的，嗨。您能否談談有關閃存主題的非微處理器業務…這些長期合約最近引起了一些爭議。我認為這可能會支撐市場，而實際上價格和成交量確實疲軟。關於通訊和 IT 主題…您的經驗與 CISCO 昨天在發布前的電話會議中所談論的非常不同，他們的企業業務表現良好，在歐洲和美國的季度和季度都實現了兩位數的穩定增長。

Dave, first I am going to answer your first question. At this point, our alternatives are holding, we have had no problems with our customers on those. What was your second question?

戴夫，首先我要回答你的第一個問題。在這一點上，我們的替代方案是有效的，我們與客戶在這些方面沒有任何問題。你的第二個問題是什麼？

The core IT business. In other words, your new products have _____00:38:58 and net cost and a bunch of other things, but if I were to look into the fiscal conference call yesterday, I guess your business is less server-provider oriented than Enterprise, but they basically said in both Europe and the US, they expect strong double-digit decline, sequential decline in their business, serving the Enterprise.

核心IT業務。換句話說，您的新產品有_____00:38:58 和淨成本以及一堆其他東西，但如果我要查看昨天的財務電話會議，我猜您的業務不像企業那樣以服務器提供商為導向，但是他們基本上表示，在歐洲和美國，他們預計業務將出現兩位數的強勁下降，連續下降，為企業服務。

I never seen communication business as opposed to our flash business. We have seen softness; we saw a sharp decline in the first quarter. I think I have mentioned we actually had to take some inventory reserves. I think that our business is being affected by a couple of things. The first thing is that you have recognition of the softness probably a quarter later than we saw microprocessors. We had much steeper growth ramps of the inventory pipelines ... I was hearing that business was greater and now you have seen the availability of used equipment on the after market, which is essentially a secondary part of inventory. So I guess, we are seeing softness in network communications as I said, I think it will be hopefully sometime later this year, we are going to see that business recover again, it is going to be weak for a while. Next question?

我從來沒有見過與我們的快閃記憶體業務相反的通訊業務。我們看到了溫柔；我們看到第一季急劇下降。我想我已經提到過我們實際上必須採取一些庫存儲備。我認為我們的業務受到一些因素的影響。首先，您可能比我們看到微處理器晚了四分之一才認識到這種柔軟性。我們的庫存管道成長幅度要大得多……我聽說業務量更大了，現在您已經看到了售後市場上二手設備的可用性，這本質上是庫存的次要部分。所以我想，正如我所說，我們看到網路通訊疲軟，我認為希望在今年稍後的某個時候，我們將看到業務再次復蘇，它將疲軟一段時間。下一個問題？

There is a question from Eric _____, Robertson Stevens.

艾瑞克____、羅伯森史蒂文斯提出了一個問題。

Thank you. I am sort of curious to learn what your strategy is, for other Pentium IV licensees, ie do you believe that you would need to sign new licensees on ships that is prior to your expected date of launch of Brookdale?

謝謝。我有點好奇您對其他奔騰 IV 授權商的策略是什麼，即您是否認為您需要在 Brookdale 預計推出日期之前在船上簽署新的授權商？

Well, our philosophy has not changed for those, Eric. We license third parties when we think they can add value to the industry and to our platform. We have announced at least one third party license already on the Pentium IV with us, and we are in discussion with other companies.

嗯，我們的理念並沒有改變，艾瑞克。當我們認為第三方可以為產業和我們的平台增加價值時，我們會向第三方授予許可。我們已經與我們宣布了至少一項關於 Pentium IV 的第三方許可，並且我們正在與其他公司進行討論。

And would you expect the license getting void before you rolled out Brookdale or is again Brookdale out of priority.

您是否希望在推出 Brookdale 之前許可證會失效，或者 Brookdale 再次失去優先權。

Well, they are independent, the lawyers don't work on the products, although Brookdale is turning out as fast as it can, and we are in discussions with other companies to make sure that we can get a value for value exchange.

好吧，他們是獨立的，律師不負責產品，儘管 Brookdale 正在盡快推出產品，而且我們正在與其他公司進行討論，以確保我們能夠獲得價值交換的價值。

Thomas Moses of Prudential Securities has our next question.

保德信證券公司的托馬斯·摩西提出了我們的下一個問題。

I guess Paul, regarding your T4 and 0.13-micron desktop, what speed do you expect first half with the 0.13 micron? Thanks.

我猜 Paul，關於您的 T4 和 0.13 微米桌上型電腦，您預計 0.13 微米上半年的速度是多少？謝謝。

At or above 2.

等於或高於 2。

Okay. Thanks a lot.

好的。多謝。

Now from CIBC World Markets, Clint Bolton.

現在來自 CIBC 全球市場的克林特·博爾頓 (Clint Bolton)。

Hi, good afternoon, two questions for Paul and then one for Andy. Have you seen the same utilization in the server of the network in terms of the current business in the distribution strength either in March and early April ... that you think was a tough business?

大家好，下午好，有兩個問題要問保羅，還有一個問題想問安迪。您是否在三月和四月初的分銷強度中看到了網絡伺服器的相同利用率…您認為這是一項艱難的業務？

Yes, but I have to say that the server drop was more abrupt than the desktop drop and I think that we are still trying to understand that and where the base level business is.

是的，但我不得不說，伺服器的下降比桌面的下降更突然，我認為我們仍在努力了解這一點以及基本業務在哪裡。

So, you have seen some definite centralization in the current business both in distribution and ...

因此，您已經看到當前業務在分銷和…方面存在一定的集中化。

Yeah, at the high-end of the server business, it is 280 processors ... the servers are not exactly returns item, right? With a bit more lead time of those...if I look across all of our products, we are not in servers yet.

是的，在伺服器業務的高端，它有 280 個處理器……伺服器並不完全是退貨項目，對吧？有了更多的交付時間…如果我查看我們所有的產品，我們還沒有進入伺服器。

Okay, then one quick question for Andy. Andy, could you give us any more detail on the size of the inventory right down ...in the pre-announcement call back in March you said you will give us more guidance in terms of its size?

好的，然後問安迪一個簡單的問題。安迪，您能否向我們提供有關庫存規模的更多詳細信息…在 3 月份的預公告電話會議中，您表示將在庫存規模方面為我們提供更多指導？

It is tough to give a specific number. Those margins dropped lower points in the first quarter as we felt there was an ASP reduction, which falls to a percentage of margins. There were increased startup manufacturing costs, which falls predominantly 100% of all the reserve, but by far, if you take 2 billion dollars of revenue, out of essentially a fixed cost in environment and that is the measure effect.

很難給出具體的數字。這些利潤率在第一季下降了一些點，因為我們認為平均售價下降了，下降到了利潤率的一定百分比。啟動製造成本增加，主要佔所有儲備的 100%，但到目前為止，如果你從基本上固定的環境成本中獲得 20 億美元的收入，這就是措施效應。

Okay, thank you.

好的謝謝。

This is Jonathan Joseph, Salomon Smith Barney.

我是喬納森‧約瑟夫，所羅門美邦。

Andy, just a followup on that question. What will be the impact in margins going forward the most and for the rest of the year, obviously if revenues are going to be sort of flattish or up and down a little bit, you won't have that negative impact. Would it be ASPs and microprocessors, would it be a possibility in the non-processors business?

安迪，只是這個問題的後續。未來和今年剩餘時間對利潤率的影響最大，顯然，如果收入持平或略有上下波動，就不會產生這種負面影響。是 ASP 和微處理器嗎？是否有可能涉足非處理器業務？

The biggest effect on the margin drop and the second quarter is pricing on microprocessors. For the rest of the year, it is really a function of the pricing we have been talking about, a little bit of cost pressure experienced for advancing the production, and certainly, we are carrying on some increase in volume, which will absorb some of that overhead costs.

對第二季利潤率下降的最大影響是微處理器的定價。在今年剩下的時間裡，這實際上是我們一直在談論的定價的函數，為推進生產而經歷了一點成本壓力，當然，我們正在增加產量，這將吸收一些該間接費用。

And Paul, if you could follow up with regards to ASPs and I know you don't forecast ASPs, you don't want to get into that, but can you give us a sense of mix ... could it all stabilize ASPs in the next several quarters of the Pentium RAM ...you plan it to?

保羅，如果你能跟進有關 ASP 的情況，我知道你不會預測 ASP，你不想討論這個問題，但是你能給我們一種混合的感覺嗎……這一切都可以穩定 ASP 嗎？未來幾個季度的奔騰RAM...您計劃這樣做嗎？

It is only partially driven by the Pentium IV RAM. You know a lot of this is going to be, the notebook business has recovered, the server business has recovered, and I think we really have a 4 independent variables there and it is just too soon to call that one.

它僅部分由 Pentium IV RAM 驅動。你知道很多事情都會發生，筆記本業務已經恢復，伺服器業務也已經恢復，我認為我們確實有 4 個自變量，現在就說這個還為時過早。

Okay.

好的。

Jon, let me collaborate a little bit more on the pricing thing. When we look at what we have got now, it is much more than looking at Q2 pricing. Look at the entire package. We have less than 20-$25 billion in capital, which we know is a lot. It is primarily one of the variables you had mentioned ... to try to make sure you get your profit in line with 300 million you get, performance and costs on the 0.13 ...less than $4 million in IT in which we have the right product. Quite frankly, what we are doing in pricing is to lower those variables to make sure that next year when this technology is in the market place, we have the market segments here to fill those spaces. So, it all plays together as an important business strategy and yes, it is the price you pay for that in the second quarter.

喬恩，讓我在定價問題上進行更多合作。當我們看看我們現在所擁有的東西時，它不僅僅是看第二季度的定價。看看整個包。我們的資本不到 20 至 250 億美元，我們知道這已經是很多了。這主要是您提到的變數之一...試圖確保您獲得的利潤與您獲得的 3 億美元、效能和成本一致 0.13 ...少於 400 萬美元的 IT，其中我們擁有正確的產品。坦白說，我們在定價方面所做的就是降低這些變量，以確保明年這項技術推向市場時，我們有細分市場來填補這些空間。因此，這一切都作為一項重要的業務策略共同發揮作用，是的，這就是您在第二季度為此付出的代價。

Okay, thanks.

好的謝謝。

Now we have Dan Miles at Lehman Brothers.

現在我們有雷曼兄弟的丹·邁爾斯。

Hi, thanks. A second followup on that answer, Andy a little bit. You said before that what primarily drives your margin ... just assuming revenues are holding in sort of ASPS and in Q1 I think you talked about your ASPs coming down. Your margins are going down in Q2 as well, relative to Q1. Is that being driven more by the wide range in revenue, which I guess you take a mid point, it is down about 3% sequentially, or is that being driven by further pricing erosion as well, and I don't know how you are thinking about that for in terms of risk for the rest of the year.

你好謝謝。安迪對這個答案進行了第二次跟進。您之前說過，主要推動您的利潤率的是什麼……假設收入以平均售價保持不變，在第一季度，我認為您談到了平均售價的下降。相對於第一季度，第二季度的利潤率也在下降。這更多是由收入的廣泛範圍推動的，我猜你取了一個中點，它比上一季度下降了約 3%，或者也是由進一步的定價侵蝕推動的，我不知道你的情況如何考慮今年剩餘時間的風險。

Well, certainly for the second quarter, we incurred some effect on the cost per unit, as we again ramped the spending for us, but the bigger effect is on general pricing. In the first quarter, it was not general pricing, it was mixed ... it was year serviced year level with desktop pretty much on the top in the second quarter, it is general pricing and a little bit of overhead costs increases as well.

嗯，當然，在第二季度，我們對單位成本產生了一些影響，因為我們再次增加了支出，但更大的影響是對整體定價的影響。在第一季度，這不是一般定價，而是好壞參半……這是按年服務的水平，台式機在第二季度幾乎處於最高水平，這是一般定價，管理費用也有一點增加。

Okay and I guess, just going back to your distinct comment, is the distant channel skewed in one way or another geographically or in terms of corporate versus consumer?

好吧，我想，回到你的獨特評論，遙遠的管道是否在地理上或在企業與消費者方面以某種方式傾斜？

No, it is about the same worldwide. It represents ... depending on what geographies between 25 and 33% of our output in processors and customers tend to not necessarily be Fortune 1000 types, but certainly consumers are for smaller medium business worldwide.

不，全世界都差不多。它代表…取決於地理位置，我們的加工商產出的 25% 到 33% 之間的客戶往往不一定是財富 1000 強類型，但消費者肯定是全球中小型企業。

Okay, thank you.

好的謝謝。

This is Jack Goette with Gerard Klauer Mattison.

我是傑克·戈特和傑拉德·克勞爾·馬蒂森。

Paul, I just wanted to touch on that last question that you just talked with the Dan ...it was little unclear as to what you said ... in the desktop business, were you commenting that you had seen some of the general business market come back, or are you talking more on the small consumers small office, home office segment, which probably is a little bit better.

保羅，我只想談談您剛剛與 Dan 交談的最後一個問題……您所說的內容不太清楚……在桌面業務中，您是否評論說您已經看到了一些一般業務市場回來了，或者您更多地談論小型消費者小型辦公室、家庭辦公室領域，這可能會好一點。

I think the answer I gave Jack was on the distribution channel.

我想我給傑克的答案是關於分銷管道的。

I am sorry. Okay.

對不起。好的。

And it was reflective of ... you know that is typically Q III and Q 4 manufacturers reflecting the customer's base.

它反映了……您知道，通常是 Q III 和 Q 4 製造商反映了客戶群。

So, from your point of view, can we have a, I guess, handle on the major OEMs what they are saying to you relative to that general business market in desktops?

那麼，從您的角度來看，我想我們是否可以了解主要 OEM 廠商相對於桌上型電腦的一般商業市場向您所說的話？

I guess, look at the order pattern ... the Pentium IV clearly has represented consumer purchases which was _____00:48:44. What we are seeing now is the company launching small medium business skews and the fact that $987 price have referred to you is a small business skew for one of the major manufacturers. So, we have seen it move into that. I also see some movement in the corporate purchases from our customers ... from Celeron to Pentium III as we really stabilized around the gigahertz price. So, it is a bit of a selloff from what we have seen before. Those won't help the desktop ASP in the last quarter, and I think that trend is likely to continue in terms of mix ... continue over the course of the year.

我想，看看訂單模式…奔騰 IV 顯然代表了消費者的購買行為，即 _____00:48:44。我們現在看到的是該公司推出中小型業務傾斜，而 987 美元的價格向您推薦的事實是主要製造商之一的小型業務傾斜。所以，我們已經看到它進入了這個階段。我還看到我們客戶的企業採購發生了一些變化……從賽揚到奔騰 III，因為我們確實穩定在千兆赫價格附近。因此，與我們之前看到的情況相比，這有點拋售。這些對上個季度的桌上型 ASP 沒有幫助，而且我認為這種趨勢可能會在混合方面持續下去……在這一年中持續下去。

Thanks very much.

非常感謝。

We will move to Tanaka Capital Management, Graham Tanaka.

我們將轉到田中資本管理公司（Tanaka Capital Management），格雷厄姆·田中（Graham Tanaka）。

Thank you, guys. I just wonder if you could comment a little bit more about the international market, the growing Asia Pacific, and Japan the outlook for the rest of the year?

感謝你們。我只是想知道您是否可以對國際市場、不斷增長的亞太地區以及日本今年剩餘時間的前景發表更多評論？

It is tough to forecast this thing by geography. Japan has been the first into the trough and seems to be doing better over the last two quarters, and they have seemed to stop climbing, certainly the result was up year on year, right? I think that trend is likely to continue the second half of this year. We are encouraged by the IT purchases in Japan. The business purchases are starting to pick up again. In Asia Pacific, it is really is a mixed bag. In China and in India, the year on year sales for PC's are still in the solid double-digit growth and in China, as you know is the world's third largest market for PC's now. So, we got some organic growth that is doing nicely in Asia Pacific. Other parts of Asia Pacific like Korea aren't doing so well in the local markets and some of the export base businesses in Taiwan for example are also tied to the US numbers more than that.

很難透過地理來預測這件事。日本是第一個進入低谷的國家，並且在過去兩個季度似乎表現得更好，而且他們似乎已經停止攀升，當然結果是同比上升，對吧？我認為今年下半年這種趨勢可能會持續下去。我們對日本的 IT 採購感到鼓舞。企業採購開始再次回升。在亞太地區，情況確實是魚龍混雜。在中國和印度，個人電腦的年比銷售仍保持兩位數的穩定成長，眾所周知，中國現在是全球第三大個人電腦市場。因此，我們在亞太地區取得了一些表現良好的有機成長。韓國等亞太地區其他地區在當地市場表現不佳，台灣的一些出口基地企業與美國的連結不只如此。

And in the next year... last year and a couple of years ago you said the mix was fairly good in Asia?

明年…去年和幾年前，您說亞洲的混合效果相當好？

In terms of local consumption, yes, it is very good.

就當地消費而言，是的，非常好。

So, are the ASP's trying to trend higher with their healthy average ASP's in companies?

那麼，公司的 ASP 是否正試圖以健康的平均 ASP 來走高呢？

It is a good mix, but it is such that it is still likely to lead the world.

這是一個很好的組合，但它仍然有可能引領世界。

Okay, thank you.

好的謝謝。

John Stannish has a question from RKDA Investment.

約翰·斯坦尼什 (John Stannish) 有一個來自 RKDA Investment 的問題。

Yes, thank you. My question is about the mobile processors. From what I can gather is that the prices are quite a bit higher for similar speed processors, I was wondering if there is any architectural class that are higher than similar speed desktop processors or are they were just much higher margin products?

是的，謝謝。我的問題是關於移動處理器的。據我所知，類似速度的處理器的價格要高得多，我想知道是否有任何架構類別比類似速度的桌面處理器更高，或者它們只是利潤率更高的產品？

No, there is actually cost associated with it. Our mobile products are not just a desktop product...expect differently. We have other features in there and then in order to run the power requirements for increasingly think and like machine you end up needing to use the equivalent of 1-2 of the entire desktop to ship the equivalent frequency in local, ie to ship a one mobile part is like shipping 1.1 to 1.2 gigahertz desktop part and it gets back to product line, so we actually have a higher cost and try to recoup relatively higher prices as a result.

不，實際上有與之相關的成本。我們的行動產品不僅僅是桌面產品......期待不同。我們還有其他功能，然後為了滿足越來越多的思考和喜歡機器的電源要求，您最終需要使用相當於整個桌面的 1-2 個來在本地提供等效頻率，即發送一個移動部分就像運送1.1 到1.2 GHz 桌面部分一樣，它會回到產品線，所以我們實際上有更高的成本，並試圖因此收回相對較高的價格。

Thank you.

謝謝。

Next up is Eric Ross, Thomas Weisel Partners.

接下來是 Eric Ross、托馬斯韋塞爾合夥人 (Thomas Weisel Partners)。

Thank you. I have a question on the capital expenditure ... will Intel spent expect the capital expenditure as 7.5 million, even if the equipment prices decline or is Intel interested in pretty much just fulfilling specific capacity in technology regardless of the actual capital expenditure number?

謝謝。我有一個關於資本支出的問題……即使設備價格下降，英特爾花費的資本支出是否會達到 750 萬美元，或者英特爾是否只對實現特定的技術能力感興趣，而不管實際的資本支出數字如何？

We are going specifically capital and capacity. I think we have told you that somebody is _____00:53:03 half on everything we had to restart not less than 7.5. We actually have a specific purchase level that matches 7.5.

我們特別關注資本和產能。我想我們已經告訴過你，有人對我們必須重新啟動不少於 7.5 的所有事情都採取了一半的態度。我們實際上有一個與 7.5 匹配的特定購買等級。

And is the majority of this for 0.13 and 300 mm for the P 4 rollout?

其中大部分是針對 P 4 推出的 0.13 和 300 毫米嗎？

The majority is for the 0.13 and 300 mm, yes, that is correct.

大多數是 0.13 和 300 毫米，是的，這是正確的。

Thank you.

謝謝。

We will take two more questions.

我們將再回答兩個問題。

Right, well we have a followup from Charley Glavens.

是的，我們有查理·格拉文斯的後續報道。

Andy, just reviewing quickly, in terms of the $2.6 million that you explained, can you give us a little bit of breakdown on what is the percentage of that with respect to _____00: 53:39 as opposed to the equipment, and is it possible mostly in the microprocessor, flash, or the little bit of clarity as far as the end market that was directed towards.

安迪，只是快速回顧一下，就您所解釋的260 萬美元而言，您能否給我們一些詳細信息，說明相對於設備而言，相對於_____00: 53:39 的百分比是多少，是否有可能主要是微處理器、快閃記憶體，或就所針對的終端市場而言，有一點明確。

In the first quarter, we were spending a fair amount of Brook's order and on ad space ...very little in the office space and we started to shut that down already. On the equipment side, we have a couple of things. We have flash varying to 0.13-micron, which is driving capital. We actually did make the payment for RAM on the plank 18 micron adding some capital. We are certainly beginning to buy and sell the 0.13 microprocessors, and so we have _____00:54:25.

在第一季度，我們在布魯克的訂單和廣告空間上花費了相當多的費用……在辦公空間中花費很少，我們已經開始關閉它。在設備方面，我們有一些東西。我們擁有 0.13 微米的閃存，這正在推動資本的成長。實際上，我們確實支付了 18 微米板上 RAM 的費用，並增加了一些資金。我們當然開始買賣 0.13 微處理器，所以我們有 _____00:54:25。

Andy, can you give us some sort of gauge as far as what percentage of that was Brook's order?

安迪，你能給我們一些關於布魯克訂單的百分比的資訊嗎？

Not really, I actually think I have pretty much of next week and we can talk about it.

不完全是，我實際上認為下週我有很多時間，我們可以討論它。

Okay, thanks.

好的謝謝。

And the last question once again will come from Mark Aldestone.

最後一個問題再次來自馬克·奧爾德斯通。

I want you to cover the distribution comments again, I wasn't quite sure I understood the answers, I just want to hear your comment again on that one, the couple of number you gave related to 25-30% or so of worldwide PCs you said was sales and distribution. Could you just confirm that and then how about my comparing in overseas job versus the ...

我希望您再次討論分發評論，我不太確定我是否理解了答案，我只是想再次聽到您對此的評論，您給出的幾個數字與全球 25-30% 左右的 PC 相關你說的是銷售和分銷。您能確認一下嗎？然後我將海外工作與...進行比較怎麼樣？

Sure Mark, I think I have shown at a number of analysts meetings in the past that the percent of our units ... microprocessor units that go out through our distribution channels and trade them in boxes. I had over 5-year period state within that range, 25-33 and that range is pretty much the same, worldwide. That is it doesn't vary much outside of that either in any geography.

當然，馬克，我想我在過去的一些分析師會議上已經表明，我們的單位……微處理器單位通過我們的分銷渠道出去並在盒子裡進行交易的百分比。我有超過 5 年的時間狀態在這個範圍內，25-33，這個範圍在世界範圍內幾乎相同。也就是說，在任何地理位置上，它都沒有太大變化。

Yeah, thank you very much.

是的，非常感謝。

Okay.

好的。

We would like to thank everyone for listening to today's conference call. A recorded playback of the call will be available at approximately 5 pm tonight. Those interested should call 719 457 0820, code 601126. Thank you.

我們要感謝大家收聽今天的電話會議。今晚下午 5 點左右將提供通話錄音重播。有興趣者請致電 719 457 0820，代碼 601126。謝謝。

Thank you again for joining us. That concludes today 's Intel first quarter conference call. Have a great day.

再次感謝您加入我們。今天的英特爾第一季電話會議到此結束。祝你有美好的一天。