美光科技 (MU) 2002 Q1 法說會逐字稿

Good afternoon, ladies and gentlemen and welcome to Micron Technology first quarter earnings release. At this time, all parties are placed on a listen-only mode and the floor will be open for your questions and comments following the presentation. If at any point, during the teleconference, you would like to register for a question, please dial the numbers 1 followed by 4 on your touchtone telephone. I would like to turn the floor over to one of your host, Mr. Kipp A. Bedard. The floor is yours, sir.

女士們，先生們，下午好，歡迎來到美光科技第一季度財報發布。此時，所有各方都處於只聽模式，演講結束後將開放供您提問和評論。如果在電話會議期間的任何時候，您想註冊一個問題，請在您的按鍵式電話上撥數字 1，然後撥 4。我想請您的一位主持人 Kipp A. Bedard 先生髮言。先生，地板是你的。

Thank you very much. Now welcome to Micron Technologies first quarter fiscal year 2002 conference call. On the call today are Steven R. Appleton, Chairman, CEO and President, [Bill] Stover, Jr., Vice President, Finance and Chief Financial Officer and Michael W. Sadler Vice President of sales. This conference call, including audio and slide is also available on Micron's home page on the Internet at www.micron.com. If you have not had an opportunity to review the earnings press release, it is available on Micron's website, again at www.micron.com. Our call will be approximately 60 minutes in duration. There will be a taped replay of this call available at 5:30 pm, Eastern Time. You can reach that by dialing 973-341 3080 with a conformation code of \u009c3020959. This replay will run until Wednesday, December 19, 2001 at 8 pm Eastern Time. Webcast replay is available through December 26, 2001. We encourage you to monitor our website at www.micron.com throughout the quarter for the most current information on the company including information on the various financial conferences that we will be attending. During the course of this call, we may make projections or other forward-looking statements regarding future events or the future financial performance of the company and the industry. We wish to caution you that such statements are predictions and that actual events or results may differ materially. We refer you to the documents that the company filed on a consolidated basis from time-to-time with the Securities and Exchange Commission, specifically the company's recent form-10K and form-10Q. These documents contain and identify important factors that could cause the actual results for the company on a consolidated basis to differ materially from those contained in our projections or forward-looking statements. These certain factors can be found on the company's website. Although, we believe that the expectations refected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. We are under no duty to update any of the forward-looking statements after the date of the presentation, to confirm these statements to actual results. With that, I would like to turn the call over to Mr. Bill Stover.

非常感謝。現在歡迎參加 Micron Technologies 2002 財年第一季度電話會議。今天的電話會議有董事長、首席執行官兼總裁 Steven R. Appleton、財務副總裁兼首席財務官 [Bill] Stover, Jr. 和銷售副總裁 Michael W. Sadler。此次電話會議（包括音頻和幻燈片）也可在美光的 Internet 主頁 www.micron.com 上找到。如果您沒有機會查看收益新聞稿，請訪問美光公司網站 www.micron.com。我們的通話時間約為 60 分鐘。東部時間下午 5:30 將重播本次電話會議。您可以撥打 973-341 3080 並使用構造代碼 \u009c3020959 來達到此目的。該重播將持續到東部時間 2001 年 12 月 19 日星期三晚上 8 點。網絡廣播重播可在 2001 年 12 月 26 日之前收聽。我們鼓勵您在整個季度監視我們的網站 www.micron.com，以獲取有關公司的最新信息，包括我們將參加的各種財務會議的信息。在本次電話會議期間，我們可能會就未來事件或公司和行業的未來財務業績做出預測或其他前瞻性陳述。我們希望提醒您，此類陳述是預測，實際事件或結果可能存在重大差異。我們建議您參考公司不時向證券交易委員會提交的綜合文件，特別是公司最近的 10K 表格和 10Q 表格。這些文件包含並確定了可能導致公司在綜合基礎上的實際結果與我們的預測或前瞻性陳述中包含的結果存在重大差異的重要因素。這些特定因素可以在公司的網站上找到。儘管我們認為前瞻性陳述中反映的預期是合理的，但我們不能保證未來的結果、活動水平、業績或成就。我們沒有義務在演示日期之後更新任何前瞻性陳述，以確認這些陳述與實際結果相符。有了這個，我想把電話轉給比爾斯托弗先生。

Thanks Keith. I will briefly touch on numbers for the quarter, which ended in November 29, 2001. Net sales totalled $424 million and the company had a loss of $266 million or $0.44 per share. With the immediately preceding quarter, sales totalled $480 million and the company reported a loss of $576 million or $0.96 per share. The first quarter includes the charge in cost of goods sold for the expected loss to be realized on future sales of finished goods and work in process inventories amounting to $173 million. The net realizable value inventory adjustment required by Generally Accepted Accounting Principles for the first quarter equates to approximately $0.18 per share. Selling prices were down on an average of 24% from the prior quarter. For the 128 make synchronous DRAM, our first quarter average was approximately $1.40. You will note that Selling, General And Administrative Expenses of $80 million for this quarter was down noticeably from prior quarter. In part, the reduction is due to no longer consolidating Micron Electronics, which had been running $10-15 million per quarter. It is also due to a lower level of legal expenses. Note that the fourth quarter of last year also included $94 million pre-tax for the donation of Micron Electronics, the Inter-land stock through the Micron Foundation. Our investment in the future, represented by research and development expenses, continued at a high level. Period-to-period, our expense fluctuates with a volume of wafers processed and resources devoted to development products. In the first quarter, the higher level of activity related to 256-meg make products and to DDR devices. Micron is very well positioned with cash and liquid investment balances exceeding $1.7 billion and with that summary, I will hand it off to Mike.

謝謝基思。我將簡要談談截至 2001 年 11 月 29 日的季度的數字。淨銷售額總計 4.24 億美元，公司虧損 2.66 億美元或每股 0.44 美元。在上一季度，銷售額總計 4.8 億美元，公司報告虧損 5.76 億美元或每股 0.96 美元。第一季度包括銷售商品成本費用，以實現未來成品銷售和在製品庫存的預期損失，金額為 1.73 億美元。第一季度公認會計原則要求的可變現淨值庫存調整約為每股 0.18 美元。銷售價格比上一季度平均下降 24%。對於 128 個製造商的同步 DRAM，我們第一季度的平均價格約為 1.40 美元。您會注意到本季度 8000 萬美元的銷售、一般和行政費用比上一季度顯著下降。減少的部分原因是不再合併美光電子，美光電子每季度運行 10-1500 萬美元。這也是由於較低的法律費用。請注意，去年第四季度還包括通過美光基金會捐贈美光電子的稅前 9400 萬美元，即 Inter-land 股票。以研發費用為代表的未來投資繼續保持高位。不同時期，我們的費用會隨著處理的晶圓數量和用於開發產品的資源而波動。在第一季度，與 256-meg 製造產品和 DDR 設備相關的更高水平的活動。美光處於非常有利的位置，現金和流動投資餘額超過 17 億美元，有了這個總結，我將把它交給邁克。

Thanks [Bill]. Our fiscal Q1 can best be split into two fairly distinct periods with respect to assessment of memory demand. First half of the three-month period was characterized by sluggish demand and as expected, this resulted in continued pricing pressure that we have become accustomed to over the previous three or four quarters. In the latter half of October, we observed a significant uptake in demand and by the first quarter of November, this demand strength resulted in rather sharp stock market price increases. The robust demand environment has continued beyond the reporting period and today, market prices are trending up in both the stock market and with our OEM customers. The strengthening of the business in this particular timeframe was not unexpected as we are in the midst of the typical high point with respect to demand seasonality. What is beyond the strong seasonal period, we would not be surprised to see demand taper off somewhat from today's levels. In the quarter, we rode the seasonal demand strength by increasing megabit shipments by about 20% sequentially and by some 120% on a year-over-year basis. We also sold substantially more megabits in fiscal Q1 than we produced bringing finished goods inventory on-hand down to a level that is resulting in us quoting delivery lead times on a variety of mainstream devices. In the face of a best case, flat PC units sales environment, it is clear that memory content for a computer system is greatly accelerating and memory demand in platforms outside of traditional PC are gaining momentum with respect to becoming significant drivers of memory demand. For several quarters, I have been speaking about the main memory technology transition that will be occurring in the computing environment. We are now in the cusp of this major shift from SDRAM to DDRSDRAM and Micron is generally recognized among industry leaders as both a key technology enabler and high-volume provider of DDR to support the steep ramp of this transition.

謝謝[比爾]。在評估內存需求方面，我們的第一財季最好分為兩個相當不同的時期。三個月期間的前半部分以需求低迷為特徵，正如預期的那樣，這導致了我們在過去三四個季度已經習慣的持續定價壓力。在 10 月下半月，我們觀察到需求顯著增加，到 11 月第一季度，這種需求強勁導致股市價格大幅上漲。強勁的需求環境在報告期之後一直持續，今天，股票市場和我們的 OEM 客戶的市場價格都呈上漲趨勢。在這個特定的時間範圍內，業務的加強並不出人意料，因為我們正處於需求季節性的典型高點之中。在強勁的季節性時期之後，看到需求從今天的水平有所下降，我們不會感到驚訝。在本季度，我們利用季節性需求強勁，兆比特出貨量環比增長約 20%，同比增長約 120%。我們在第一財季的銷售量也比我們生產的多得多，將現有成品庫存降低到導致我們引用各種主流設備的交貨提前期的水平。面對最好的情況，平板 PC 單元的銷售環境，很明顯，計算機系統的內存內容正在大大加快，傳統 PC 以外平台的內存需求正在獲得動力，成為內存需求的重要驅動力。幾個季度以來，我一直在談論將在計算環境中發生的主存儲器技術轉型。我們現在正處於從 SDRAM 到 DDRSDRAM 的重大轉變的風口浪尖，而美光被行業領導者普遍認為是關鍵技術推動者和 DDR 的大批量供應商，以支持這一轉變的急劇上升。

We are following through with about 25-30% of our outlook in the current quarter being DDR and projections calling for DDR to represent over a half of our total output within a year's time. Outside the computing environment, we have started to see demand re-accelerate in the wireless handset market. Accordingly, we have again commenced shipments of our flash memory products into this market. After a couple of quarters of virtually no activity, it is certainly refreshing to re-activate customer shipments in this area. In our networking and wired communications infrastructure business, we have not seen a return to 2000 shipment rates, but business has stabilized across the entire customer base. Collaborative design activity with customers continues at a fever pace and we are securing multiple design wins for our advanced networking communications memory products such as QDR SRAM, RLDRAM, and that recently introduced line of low cost even-structured flash devices. In addition, you may have noticed that Micron recently announced that Atmel as a second source for our innovative line of SyncFlash products, assuring a comfort level for our customers as they design SyncFlash into an embedded applications such as set top boxes and a variety of communications equipment. Earlier today, we announced the signing of a MoU with Toshiba that will result in Micron taking ownership of the Dominion fabrication facility in Menace, Virginia in coordination with Toshiba's exit from the commodity DRAM business. This transaction will enhance Micron's value proposition for our customers by providing both an avenue for capacity expansion and effective broadening of our product offering in both the short and intermediate term. We believe that the industry is headed for even further consolidation and Micron is in excellent position to be a beneficiary of this consolidation trend. With that I will turn it over to Steve.

我們正在跟進本季度約 25-30% 的展望是 DDR，預計 DDR 將在一年內占我們總產出的一半以上。在計算環境之外，我們已經開始看到無線手機市場的需求重新加速。因此，我們再次開始向該市場出貨我們的閃存產品。在幾個季度幾乎沒有任何活動之後，重新激活該地區的客戶發貨無疑令人耳目一新。在我們的網絡和有線通信基礎設施業務中，我們還沒有看到出貨率恢復到 2000 年，但整個客戶群的業務已經穩定下來。與客戶的協作設計活動繼續以狂熱的速度進行，我們正在為我們的高級網絡通信存儲器產品（例如 QDR SRAM、RLDRAM 以及最近推出的低成本均勻結構閃存設備系列）確保多項設計勝利。此外，您可能已經註意到，美光最近宣布 Atmel 作為我們創新的 SyncFlash 產品系列的第二來源，確保我們的客戶在將 SyncFlash 設計到嵌入式應用程序（例如機頂盒和各種通信設備）中時感到舒適設備。今天早些時候，我們宣布與東芝簽署諒解備忘錄，這將導緻美光在東芝退出商品 DRAM 業務的同時，獲得位於弗吉尼亞州 Menace 的 Dominion 製造工廠的所有權。此次交易將通過在短期和中期為產能擴張和有效拓寬我們的產品供應提供途徑，從而增強美光對我們客戶的價值主張。我們認為，該行業正走向進一步整合，而美光處於有利地位，可以成為這種整合趨勢的受益者。有了這個，我會把它交給史蒂夫。

Great. Thanks Mike. Just [everyone] understands that in case the connection is not as good as you would all like it, I am actually joining the conference call from Japan for obvious reasons. We just finished the MoU with Toshiba on their facilities. So, I think, may be I will just comment on that before I turn back over to Kipp. Although, the terms are confidential, there are a few comments that I do want to make about the MoU. First, we do expect it to close by the end of our quarter, although the exact timing, as you can imagine, is difficult to predict. Initially, I think, it will result in contraction in any bit output increases and later [all of this] would depend on what we do at the facility. The NAND operation that is currently there, or I should say the NAND equipment will be moved, as Toshiba has stated. The cost to Micron of this acquisition is a fraction of what it would be to build and equip this type of facility and which, I would add, that the facility is [300 mm] capable should we choose to convert it. There is a supply agreement associated with the transaction and finally, it does include significant resources in Japan to assist Micron with further penetration in that market. So, with that, I will turn it back over to Kipp.

偉大的。謝謝邁克。只是 [每個人] 都明白，如果連接不如你們想的那麼好，我實際上是出於顯而易見的原因從日本加入電話會議。我們剛剛與東芝就他們的設施簽訂了諒解備忘錄。所以，我想，在我回到 Kipp 之前，我可能會對此發表評論。雖然這些條款是保密的，但我確實想對諒解備忘錄發表一些評論。首先，我們確實預計它會在本季度末結束，儘管確切的時間，正如你可以想像的那樣，很難預測。最初，我認為，這將導致任何比特輸出增加的收縮，後來 [所有這一切] 將取決於我們在設施中所做的事情。正如東芝所說，目前存在的 NAND 操作，或者我應該說 NAND 設備將被移動。美光此次收購的成本只是建造和裝備此類設施的一小部分，我要補充的是，如果我們選擇對其進行改造，該設施 [300 毫米] 的能力。有一項與交易相關的供應協議，最後，它確實包括在日本的大量資源，以幫助美光進一步滲透該市場。所以，有了這個，我會把它交給基普。

Thanks Steve. What we would like to do now is, take questions from callers. In the interest of time, please limit yourselves to one question and just a reminder, if you are using a speakerphone; please pick up the handset when asking any questions so that we can hear you clearly.

謝謝史蒂夫。我們現在想做的是，接受來電者的提問。如果您使用的是免提電話，為了時間，請限制自己一個問題和一個提醒；提問時請拿起聽筒，以便我們清楚地聽到您的聲音。

Ladies and gentlemen, the floor is now open for questions. If you do have a question or comment, please dial the numbers 1 followed by 4 on your touchtone telephone at this time. If at any point your question has been answered, you may remove yourself from the queue by pressing the pound key. Questions will be taken in the order they are received. Thank you. Our first question is coming from Dan Niles of Lehman Brothers. Your line is live, sir.

女士們，先生們，現在可以提問了。如果您確實有任何問題或意見，請此時在您的按鍵式電話上撥打數字 1，然後撥打 4。如果在任何時候您的問題已得到解答，您可以按井號鍵將自己從隊列中刪除。問題將按照收到的順序進行。謝謝你。我們的第一個問題來自雷曼兄弟的 Dan Niles。先生，您的電話已上線。

Okay. Steve, first of all, congratulations on another great acquisition. If you can comment a little bit on Toshiba's facilities, about the TI facilities, you are able to triple output from there. Obviously, Toshiba is much further along. Can you maybe, give some idea of, you know, the efficiencies you think you will gain as you move their manufacturing processes over to yours and in terms of the yield improvements etc...and anything around that you can talk about?

好的。史蒂夫，首先，祝賀另一個偉大的收購。如果您能對東芝的設施、TI 的設施稍加評論，您就可以從那裡獲得三倍的輸出。顯然，東芝走得更遠。您能否給出一些想法，您知道，當您將他們的製造流程轉移到您的製造流程時，您認為您將獲得的效率以及在產量提高等方面......以及您可以談論的任何事情？

Yeah, okay, well, essentially, let me first start with the facility itself for those who are not familiar. The facility is there in Dominion includes a wafer fabrication plant. It is about a 150,000 square feet of [cleaning room] and that, keep in mind that the actual building itself is essentially three layers of 200,000 square feet. So, it is a very high quality 150,000 square feet cleaning room. When I say that, we get to use [south] floor and of course, the floor above to do things that may be in some older fabs you would have to burn a cleaner space to do this, so it is really a pretty well built facility. In addition to that, and in addition to what you would normally expect to see with the fab, which is recouped in all of the support infrastructure, there is also a 600,000 square foot building that was IBM's before they did the joint venture on that site that is also sitting there. So, you are talking about a fully developed site. The entire fab is facility, both what they call Mode I and Mode II and we will not know the exact capability that fab until we obviously we start implementing our technology. But to give you a comparison, for the size of that cleaning room, that cleaning room was actually larger than the cleaning room that we have in Lehi. So it is a pretty sizable fab and we would expect obviously to be able to achieve the same efficiency as we would in any of our other facilities.

是的，好吧，好吧，基本上，讓我先從設施本身開始，供那些不熟悉的人使用。 Dominion 的設施包括一個晶圓製造廠。它大約是 150,000 平方英尺的 [潔淨室]，請記住，實際建築物本身基本上是 200,000 平方英尺的三層。所以，這是一個非常高質量的 150,000 平方英尺的潔淨室。當我這麼說時，我們可以使用[南]樓，當然，上面的樓可以做一些舊晶圓廠的事情，你必須燒一個更清潔的空間才能做到這一點，所以它真的是一個很好的建築設施。除此之外，除了您通常期望看到的晶圓廠（在所有支持基礎設施中得到補償）之外，還有一座 600,000 平方英尺的建築物，是 IBM 在該站點上建立合資企業之前的建築物那也坐在那裡。所以，你說的是一個完全開發的網站。整個晶圓廠都是設施，他們稱之為模式 I 和模式 II，在我們顯然開始實施我們的技術之前，我們不會知道晶圓廠的確切能力。但是給你一個比較，那個清潔室的大小，那個清潔室實際上比我們在李海的清潔室要大。所以這是一個相當大的晶圓廠，我們顯然希望能夠達到與我們在任何其他設施中相同的效率。

Okay. Go ahead. Thank you.

好的。前進。謝謝你。

Thank you. Our next question comes from [David Wu] of [David Wu & Associates]. Your line is live, sir.

謝謝你。我們的下一個問題來自 [David Wu & Associates] 的 [David Wu]。先生，您的電話已上線。

Steve, while you are in Japan, I was wondering whether this particular deal would preclude you from any other deals, discussion or transactions with Hynex to the extent that you can comment on the discussion that Hynex where is it and we hear something about it real soon?

史蒂夫，當你在日本的時候，我想知道這個特定的交易是否會阻止你與 Hynex 的任何其他交易、討論或交易，你可以評論 Hynex 它在哪裡的討論，我們聽到一些關於它的真實信息很快？

Yeah, I cannot really comment too much with respect to the Hynex rather than saying that the discussions are continuing as we said before. That, you know, transaction is a significant higher quantity of resources and we are talking about Toshiba, so it is very difficult for us to predict the timing as we move forward on when things might get accomplished.

是的，我不能對 Hynex 發表太多評論，而是說討論仍在繼續，正如我們之前所說的那樣。你知道，交易是一個顯著更高數量的資源，我們正在談論東芝，所以我們很難預測何時可以完成事情。

But at this point, we should not take the fact that there is a Toshiba deal would mean that the Hynex deal is gone?

但在這一點上，我們不應該認為有東芝交易就意味著與海力士的交易沒有了？

That is correct.

那是對的。

Thank you.

謝謝你。

Thank you. Our next question is coming from [Joe Auscher] of Merrill Lynch.

謝謝你。我們的下一個問題來自美林證券的 [Joe Auscher]。

Yeah. Hello gentlemen. Can you hear me? Yeah. Listen, looking at the inventory commentary that [Bill] made, I am trying to reconcile that with what is on the balance sheet; you are showing $451 million in inventory which is down just a little bit and presumably that number just does not include the 173 write-offs. So if you add that back, it looks like you were still actually putting some inventory on the balance sheet. Am I misunderstanding something?

是的。先生們好。你能聽到我嗎？是的。聽著，看看 [Bill] 所做的庫存評論，我試圖將其與資產負債表上的內容相協調；您顯示的庫存為 4.51 億美元，僅下降了一點點，大概這個數字不包括 173 次沖銷。所以如果你把它加回來，看起來你實際上仍然在資產負債表上放了一些庫存。我是不是誤會了什麼？

Our characterization in the press release is, I think, the most direct for you look to, in that there was approximately 20% reduction in megabit inventories when you aggregate work in process and finished goods. The dollar values that are reported, as you understand are influenced by the reporting of the [NRB] so the megabit is the best reference for you to look at.

我認為，我們在新聞稿中的描述對您來說是最直接的，因為當您匯總在製品和成品時，兆位庫存減少了大約 20%。如您所知，報告的美元價值受 [NRB] 報告的影響，因此兆位是您查看的最佳參考。

Okay, and then just as a follow-on to that up to the current point. Are you continuing to ship more in megabit terms than your building falling on from Mike's comment?

好的，然後作為對當前點的後續處理。您是否繼續以兆比特計算比您的建築物因邁克的評論而下降？

Yeah, this is Mike speaking, Joe. In the first couple of weeks of the new quarter, we have finished more than we produced. So yeah, our inventory levels have come down in the last three weeks.

是的，這是邁克在說話，喬。在新季度的前幾週，我們完成的比我們生產的要多。所以，是的，我們的庫存水平在過去三週內下降了。

Okay. Thank you.

好的。謝謝你。

Thank you. Our next question is coming from [Lima Valeperm] of [_____]. Your line is live.

謝謝你。我們的下一個問題來自 [_____] 的 [Lima Valeperm]。你的線路是活的。

A question for Steve. Steve, historically you have done an excellent job as a company, you know, buying other manufacturing assets and upgrading them and gaining market share that way. This is the second time you seem to have done that with your execution of this or the MoU with Toshiba Fab. Is it safe to assume that is that what you are planning to do going forward without bringing the Hyanex negotiation into the picture, or can we not assume that in the [sense] that you might use some other acquisition strategy to gain market share as well?

史蒂夫的問題。史蒂夫，從歷史上看，你作為一家公司做得很好，你知道，購買其他製造資產併升級它們並以這種方式獲得市場份額。這是您似乎第二次在執行本協議或與東芝工廠的諒解備忘錄時這樣做。是否可以安全地假設您計劃在不考慮 Hyanex 談判的情況下繼續前進，或者我們不能假設在 [sense] 上您可能會使用其他一些收購策略來獲得市場份額以及?

First of all, the Toshiba transaction, as I said, is separate from Hynex transaction and I would not say that obviously one precludes the other because we do not think it does. Really what you are seeing continued to occur consolidation in the market place and I think, similar, with respect to, when we did the transaction with Texas Instruments, for those of you that do not remember, we did have actual contraction from those operations for some time until we made the change in technology and until we thought that the market was right to bring that capacity back online in much greater amount. So, I think, you will see something similar with Toshiba in that, as I have already said, we expect some contraction initially, and then over time it will depend how much we doll it up. But regardless, all of this is directed and providing us a more efficient cost, so to speak, in producing our DRAM bits on a comparable basis if we were to build it from scratch.

首先，正如我所說，東芝交易與 Hynex 交易是分開的，我不會說顯然其中一項排除了另一項，因為我們認為它不會。確實，您所看到的市場繼續發生整合，我認為，類似地，當我們與德州儀器進行交易時，對於那些不記得的人，我們確實從這些業務中實際收縮了一段時間後，我們對技術進行了改變，直到我們認為市場可以讓更多的容量重新上線。所以，我認為，你會看到與東芝類似的東西，正如我已經說過的，我們預計最初會出現一些收縮，然後隨著時間的推移，這將取決於我們對它的修飾程度。但無論如何，所有這些都是有針對性的，可以說，如果我們從頭開始構建我們的 DRAM 位，那麼我們可以在可比的基礎上生產我們的 DRAM 位。

Thanks Steve.

謝謝史蒂夫。

Thank you. Our next question is coming from Scot Randall of [Sundew Technologies]. Your line is live.

謝謝你。我們的下一個問題來自 [Sundew Technologies] 的 Scot Randall。你的線路是活的。

Okay. Thank you. One more question, Steve, on Toshiba. What kind of costs are involved in bringing the facility up to what Micron needs to produce its you know current DRAMs, and also any help on sizing the percentage of business that Toshiba is doing in Dominion versus Japan currently for DRAMs?

好的。謝謝你。還有一個問題，史蒂夫，關於東芝。將設施提升到美光生產其現有 DRAM 所需的成本需要什麼樣的成本，以及東芝在 Dominion 與日本目前在 DRAM 方面的業務百分比是否有任何幫助？

Well, I do not want to speak for Toshiba, but they were producing more DRAM in this facility than they were anywhere else, I think, on a relative comparable basis. Now, of course, they are going to change their product mix as they go through time, so and if they try to consolidate a lot of their both flash and whatever is remaining in your case, so I cannot speak for them, but the facility itself, you have to keep in mind, it is already running. They are in the process of finishing the ramp on the Flash and then also running about 20,000 wafers a month on DRAM. So, the whole facility has been facilitized and being utilized to produce products in the neighborhood of 35,000-40,000 wafers per month. The technology they have there they have been on constant transition just like we have. So we do not expect to incur very large cost in order to be able to utilize that facility to produce DRAM. So, obviously, we have to go through time as just like we would with any other facility, and how we transition there the money we would spend on transition over the next few years. But essentially, I think the way to look at it is currently a lot of wafers today and that we are expect to utilize, if not all, a majority of that equipment.

好吧，我不想代表東芝發言，但我認為，在相對可比的基礎上，他們在這個工廠生產的 DRAM 比其他任何地方都多。現在，當然，隨著時間的推移，他們會改變他們的產品組合，所以如果他們試圖整合他們的很多閃存和你的情況下剩下的任何東西，所以我不能代表他們，但設施本身，你必須記住，它已經在運行。他們正在完成閃存的升級，然後每月在 DRAM 上運行大約 20,000 個晶圓。因此，整個設施已得到便利化，並被用於每月生產約 35,000-40,000 片晶圓的產品。他們在那裡擁有的技術就像我們一樣一直在不斷過渡。因此，我們預計不會為了能夠利用該設施生產 DRAM 而產生非常大的成本。因此，顯然，我們必須像對待任何其他設施一樣經歷時間，以及我們如何在未來幾年內用於過渡的資金。但從本質上講，我認為目前看待它的方式是今天有很多晶圓，我們希望利用大部分設備，如果不是全部的話。

Okay. Thank you.

好的。謝謝你。

Thank you. Our next question is coming from [Tim Mahon] of CSFB. Your line is live.

謝謝你。我們的下一個問題來自CSFB 的[Tim Mahon]。你的線路是活的。

Yeah, thanks. Guys, in our previous quarters, you gave us an idea of the percentage of bit breakdown by density. I am wondering if you can give us a clue on how the quarter shaped up.

是的，謝謝。伙計們，在我們之前的幾個季度中，您向我們介紹了按密度劃分的位細分百分比。我想知道你能否給我們一個關於這個季度是如何形成的線索。

Yeah, we sure can. In terms of wafer operations, we ran about 75% on 128 megabit DRAM, we ran about mid-teens or 15% on 256 megabit DRAM. The question will probably will come up where we are in DDR and that was also around 15% for the quarter.

是的，我們當然可以。在晶圓操作方面，我們在 128 兆位 DRAM 上運行了大約 75%，在 256 兆位 DRAM 上運行了大約 15% 或 15%。問題可能會出現在我們在 DDR 的哪個位置，該季度也約為 15%。

That is great. Kipp, he answered my last question for I asked. Thank you.

這太棒了。 Kipp，他回答了我的最後一個問題。謝謝你。

Thank you. Our next question is coming from [Manish Goyal] of New Burger Barman. Your line is live.

謝謝你。我們的下一個問題來自 New Burger Barman 的 [Manish Goyal]。你的線路是活的。

Yeah, hi. I have a couple of short questions. What was the reason for such a big spike in R&D?

是的，你好。我有幾個簡短的問題。研發如此大幅度飆升的原因是什麼？

The research and development spending was up noticeably in the period. It does fluctuate just depending upon how many wafers in our manufacturing lines are running on product that has not yet met our internal qualifications. This particular quarter, we had significant wafer processing on 256 megabit and DDR product and that really constitutes all of the increase that you are looking at there. On a go forward basis, we would expect R&D for the quarter to run may be, $120 million?

研發支出在此期間顯著增加。它的波動僅取決於我們生產線上有多少晶圓在尚未達到我們內部認證的產品上運行。在這個特定的季度，我們對 256 兆位和 DDR 產品進行了大量的晶圓加工，這確實構成了您所看到的所有增長。展望未來，我們預計本季度的研發費用可能為 1.2 億美元？

After this transaction with Toshiba is over, how will that change your capital spending requirements for the year and is Toshiba going to provide you funding to upgrade the facilities as TI did in the previous transaction?

與東芝的交易結束後，這將如何改變您當年的資本支出要求，東芝是否會像 TI 在之前的交易中那樣為您提供資金來升級設施？

Well, first of all, we do not have any funding coming back from Toshiba for us to move these facilities on to our technology. But as I mentioned, we [did] supply agreement for some time. So, you know, probably it counters that to some degree with what you are thinking about. In terms of ongoing capital expenditures, they want to approved facility bases. If you look at what we have done historically, it is never actually that much money on approved facility basis and we do not expect this to be more than any of our other facilities would be, but we also have to look at it is just the normal ongoing capital expenditure that you would spend on a fab to continue to move its technology forward. So we do not expect anything here to be unusual in comparison to our other facilities.

嗯，首先，我們沒有從東芝那裡獲得任何資金來讓我們將這些設施轉移到我們的技術上。但正如我提到的，我們 [確實] 供應了一段時間的協議。所以，你知道，它可能在某種程度上與你的想法相反。就持續的資本支出而言，他們希望獲得批准的設施基地。如果你看看我們在歷史上所做的事情，在批准的設施基礎上實際上從來沒有那麼多錢，我們預計這不會比我們的任何其他設施更多，但我們還必須看看它只是您將花費在晶圓廠上以繼續推動其技術進步的正常持續資本支出。因此，與我們的其他設施相比，我們不認為這裡有什麼不尋常的地方。

Just one word, Steve. If as in the previous transaction with TI where you needed capital to upgrade the facility, which was provided by TI, in this transaction Micron will end up the spending money to upgrade these fabs is that we have to think about?

就一個字，史蒂夫。如果像之前與 TI 的交易一樣，您需要資金來升級由 TI 提供的設施，那麼在這次交易中，美光最終會花錢升級這些晶圓廠，這是我們必須考慮的嗎？

I think overtime, but just to help you out on a comparison basis, remember that TI...if you think of the actual wafer fabs that we utilized, there were two in Singapore, two in Japan, two in Arizona and then, we ultimately sold the one that we did not upgrade, in Richardson, and one that was a part of TI Acer of course was carved out of the deal. Though, the technology that were in those fabs was...because they had various stages of investment prior to that and because of the partnerships they had as well. I think of those are being further behind than what we are talking about here in Dominion. So Toshiba has continued to make investment in the Dominion facility to bring this technology forward. So, do not confuse the differential that we had with some of the TI facilities that we have with this facility.

我認為加班，但只是為了在比較的基礎上幫助您，請記住 TI ......如果您考慮我們使用的實際晶圓廠，新加坡有兩個，日本有兩個，亞利桑那州有兩個，然後，我們最終在理查森出售了我們沒有升級的那台，而作為 TI Acer 一部分的那台當然被排除在交易之外。不過，這些晶圓廠的技術是……因為在此之前他們有不同的投資階段，而且他們也有合作夥伴關係。我認為這些比我們在 Dominion 中談論的更落後。因此，東芝繼續對 Dominion 設施進行投資，以推動這項技術的發展。因此，不要將我們擁有的差異與我們擁有的一些 TI 設施與此設施相混淆。

Final question is for Bill. Is the reported inventory number valued at the market value of DRAM today?

最後一個問題是給比爾的。報告的庫存數量是否以今天 DRAM 的市場價值計算？

We look at the time period in which we expect to move the product. As Mike as indicated, inventory levels are coming down and sales levels have recently been quite strong. So current reference points on ASP is that substantially where our reference point was for the [NRB] calculations.

我們著眼於我們期望移動產品的時間段。正如邁克所說，庫存水平正在下降，而銷售水平最近相當強勁。因此，當前 ASP 上的參考點基本上就是我們用於 [NRB] 計算的參考點。

So could you be just a little bit more specific. Is it calculated based on the ASPs at the end of the quarter or is it based on some projected number out in the future?

所以你能不能再具體一點。它是基於季度末的 ASP 計算的，還是基於未來的一些預計數字？

The Generally Accepted Accounting Principles require us to look at the pricing in the period in which the product is expected to move. So it is a forward-looking estimate of pricing.

公認會計原則要求我們查看產品預期移動期間的定價。因此，這是對定價的前瞻性估計。

Thank you.

謝謝你。

Thank you. Our next question is coming from [John Cross] of Morgan Stanley DeanWitter. Your line is live, sir.

謝謝你。我們的下一個問題來自摩根士丹利 DeanWitter 的 [John Cross]。先生，您的電話已上線。

Thank you. To follow-on to the Toshiba side ... I wonder if you could give some idea on the transition there in terms of ... is there equipment reuse and do you require any head counts from the Dominion facility and when would you expect that supply would come off line to kind of understand the supply agreement side to the extent we can? Thanks.

謝謝你。繼東芝方面……我想知道您是否可以就那裡的過渡提供一些想法……是否有設備重複使用，您是否需要 Dominion 設施的任何人數以及您何時期望供應會下線嗎？我們能在多大程度上了解供應協議方？謝謝。

First of all, the facility currently employs approximately 1500 people, which is consistent with what you would expect of a facility of that size. A lot of those people are associated with the Flash operation. So Toshiba will obviously address that in whatever form that they need to. I think there are some details to be worked out which is why we are continuing to keep the terms confidential as to how that would transition. The DRAM operation itself, though, would be completely assumed by Micron and that includes all of the facilities by the way. So the only thing that really is somewhat formulated at the moment is how the transition the equipment itself being used for Flash. All the other equipment's Micron will assume as we close the transaction. That equipment is currently being utilized to produce DRAM and it will continue to be utilized to produce DRAM. We do not anticipate the inability to use any of that equipment. In other words, we will use it all to continue forward. I think the real question for Micron in terms of the transition of that facility would be how much additional capacity and what type of that additional capacity do we want to bring online as we make use of the rest of the facility whether they be Flash - being transferred out over probably the following...again, I do not know whether it is 3 months or 6 months or 1 month. We have to go through that still, but nonetheless, that will depend upon that schedule. So we think we will use all of the equipment in its current form and it is really a question of how much additional equipment do we install to make utilization of the rest of the facility freed up by the Flash transition.

首先，該設施目前僱傭了大約 1500 名員工，這與您對這種規模的設施的期望是一致的。其中很多人都與Flash操作有關。所以東芝顯然會以他們需要的任何形式解決這個問題。我認為有一些細節需要解決，這就是為什麼我們會繼續對這些條款保密，以了解如何過渡。不過，DRAM 操作本身將完全由美光承擔，順便說一下，這包括所有設施。因此，目前唯一真正有點制定的是過渡設備本身用於 Flash 的方式。在我們完成交易時，所有其他設備的 Micron 都將採用。該設備目前用於生產 DRAM，並將繼續用於生產 DRAM。我們預計不會無法使用任何該設備。換句話說，我們將用它來繼續前進。我認為，就該設施的過渡而言，美光面臨的真正問題是，當我們利用設施的其餘部分（無論它們是閃存）時，我們希望增加多少額外容量以及這種額外容量的類型轉出來大概是下面...再次，我不知道是3個月還是6個月還是1個月。我們仍然必須經歷這些，但無論如何，這將取決於那個時間表。因此，我們認為我們將使用當前形式的所有設備，這實際上是一個問題，即我們安裝多少額外設備以利用 Flash 過渡釋放的其餘設施。

Would that suggest that from a cost perspective, that we believe that it would be cost effective, and, I guess, the assumption was, kind of before that you kind of took out the equipment because it was not cost-effective and would apply to Micron process technology but in this case, could you give us some idea on the cost delta out there and if that would be dilutive?

這是否表明從成本的角度來看，我們認為它具有成本效益，而且，我猜，假設是，在此之前，您會拿出設備，因為它不具有成本效益並且適用於美光工藝技術，但在這種情況下，您能給我們一些關於成本增量的想法嗎？這是否會稀釋？

Well. I cannot because we have not completed a transition program. We will do that some time over the next few weeks.

出色地。我不能，因為我們還沒有完成過渡計劃。我們將在接下來的幾週內這樣做。

Okay. Thanks.

好的。謝謝。

Thank you. Our next question is coming from [Scott Merbis] of [_____] Capital. Your line is live.

謝謝你。我們的下一個問題來自 [_____] Capital 的 [Scott Merbis]。你的線路是活的。

Two questions; could you just discuss a little bit about what the advantage would be for you guys to only buy a minority stake in Hynex?

兩個問題；你能談談你們只購買Hynex少數股權的好處嗎？

Again, I cannot comment on any discussions that we are having with Hynex other than to say, I do not think that a minority position of Micron and Hynex would really be of any advantage.

同樣，我無法評論我們與 Hynex 進行的任何討論，只能說，我不認為 Micron 和 Hynex 的少數立場真的有任何優勢。

Okay. On that topic, can you just kind of, on that topic and talking more theoretical, it has been your previous strategy to be the low-cost guy, have the best balance sheet and put the high-cost players out of business. Doing a deal with Hynex seems little counter to that.

好的。關於那個話題，你能不能就那個話題，多談談理論，你以前的策略是成為低成本的人，擁有最好的資產負債表，讓高成本的玩家破產。與 Hynex 達成交易似乎與此相反。

What assumptions are you making when you say that?

當你這麼說的時候，你在做什麼假設？

Excuse me?

打擾一下？

And what assumptions are you making when you say that?

當你這麼說時，你做了什麼假設？

I am making the assumption that if you buy the business you do not close everything.

我假設如果您購買該業務，您不會關閉所有內容。

We don't close...well, it is a little difficult, I suppose to discuss the basis on the phone, but there are all kinds of assumptions that you have to make in order to assume that it will not be cost-effective for us to acquire Hynex.

我們不關閉...嗯，有點困難，我想在電話中討論基礎，但是您必須做出各種假設才能假設它不划算為我們收購海力士。

I am surprised somewhat...

我有些驚訝……

Well, sure. There are all sorts of assumptions that somebody has to make on the equity, on the debt, on the price, total consideration and so forth and I just do not think that any of those assumptions can be made right now.

嗯，當然。有人必須對股權、債務、價格、總對價等做出各種各樣的假設，我只是認為現在無法做出任何這些假設。

And the last question ... the inventory write-down that is being talked? W.G. STOVER, Jr.: Correct. The inventory adjustment. The reporting of the [NRB] to lower cost of market does relate to cost of goods sold.

最後一個問題……正在討論的庫存減記？ W.G. STOVER, Jr.：正確。庫存調整。 [NRB] 對降低市場成本的報告確實與所售商品的成本有關。

So, ongoing operations number...you said that was $0.18, would that be more like a $0.26 cents loss without the write down? W. G. STOVER, Jr.: It is $173 million pre-tax we gave you and estimated after-tax to the effect of $0.18 cents per share on the quarter. Does that answer your question?

所以，正在進行的運營數字......你說那是 0.18 美元，如果沒有減記，這更像是 0.26 美分的損失嗎？ W. G. STOVER, Jr.：我們給您的稅前為 1.73 億美元，稅後估計為本季度每股 0.18 美分。這是否回答你的問題？

Yes. Fine.

是的。美好的。

Okay. Thanks. Next question, please.

好的。謝謝。下一個問題，請。

Our next question is coming from [Charles Brusher] of Bear Stearns. Your line is live.

我們的下一個問題來自貝爾斯登的 [Charles Brusher]。你的線路是活的。

A couple of questions. First, the average price 128 in the quarter, I think, you quoted it as about $1.40 ... what is that analysis rebound where you see the average being sort of this at this point in time and the following question is if you back up the inventory charge your gross margin would be around negative 9 or 10% if prices are in fact recovering a little bit and yet this ongoing cross reduction that imply that if prices all you could actually see a positive gross margin score?

幾個問題。首先，我認為本季度的平均價格為 128 美元，您將其報價為 1.40 美元左右……您看到此時平均價格是這樣的分析反彈是什麼，接下來的問題是您是否支持如果價格實際上略有回升，那麼您的毛利率將在負 9% 或 10% 左右，而這種持續的交叉減少意味著如果價格全部上漲，您實際上可以看到一個正的毛利率得分？

I will tackle the current market price issue. I think 140 was the average price throughout the quarter it is fair to say that we ended the quarter at something lower than that and it is also fair to say that the current prices substantially higher than that. We have implemented two price increases to our OEM customers since the middle part in November and in general the stock market prices has been moving up if not on a daily basis at least a couple of times for week since the first part of November. So, we are on the high one-dollar range pushing close to two dollars on 128 negative equivalent basis currently.

我將解決當前的市場價格問題。我認為 140 是整個季度的平均價格，可以公平地說，我們在本季度結束時的價格低於該價格，並且可以說當前價格大大高於該價格。自 11 月中旬以來，我們已經對我們的 OEM 客戶實施了兩次提價，總體而言，自 11 月上旬以來，股票市場價格即使不是每天都在上漲，但每周至少上漲幾次。因此，我們目前處於 1 美元的高位區間，在 128 負等值基礎上推近 2 美元。

Charles this is Kipp. I am going to take the cost with full question. We are going to let you guys look that one out. Clearly, the tough part of our guy in cost control is of course is trying to make predictions on pricing, we are just not going to do that. We continue to make great strives it the manufacturing side in terms of technology advancement bringing cost down, but the prediction on the pricing we are just going to say.

查爾斯這是基普。我將帶著完整的問題承擔費用。我們會讓你們看看那個。顯然，我們在成本控制方面的艱難部分當然是試圖對定價做出預測，我們只是不打算這樣做。我們繼續在技術進步方面努力降低成本，但我們只會說對價格的預測。

Okay fair enough. Thank you.

好吧，很公平。謝謝你。

Our next question comes from [Joe Moore] of Goldman Sachs.

我們的下一個問題來自高盛的 [Joe Moore]。

Thank you. I wonder, question on the inventory write down as well. Of the 466 million you wrote down in August, can you tell us how much of that was basically sold in the November quarters, how much of the product was written down was sold in November quarter? And a followup.

謝謝你。我想知道，關於庫存記錄的問題也是如此。 8月份你減記的4.66億，你能告訴我們11月季度基本賣出了多少，11月季度減記了多少產品？以及後續行動。

Our best estimate on that is approximately 2/3rd of the inventory and which there was an nrb at the fourth quarter has move in the first quarter.

我們對此的最佳估計約為庫存的 2/3，而第四季度的庫存量在第一季度有所變動。

And the charge this quarter was smaller than I would have thought given that inventory falling down 20% and prices are up you know less than I guess you had a slightly a bigger charge, is there are thing unless understanding in terms of why the charges are so much smaller?

鑑於庫存下降 20% 且價格上漲，本季度的收費比我想像的要小這麼小？

I think you understand all the variables that are necessary to make that calculation estimates of future pricing estimates of when product is going to move so I don't think there is anything that you are misunderstanding as to what needs to be taken into account.

我認為您了解對產品何時移動的未來定價估計進行計算估計所需的所有變量，因此我認為您對需要考慮的內容沒有任何誤解。

Great thank you.

太好了謝謝。

Thank you. Our next question is coming from [Eric Ross] of Thomas Wiesel Partners. Your line is live.

謝謝你。我們的下一個問題來自 Thomas Wiesel Partners 的 [Eric Ross]。你的線路是活的。

Thanks guys. Can you give me a sense of what kind of market share is in DDR right now and may be what percent of the STR market is now occupy when it goes to provision?

多謝你們。您能否告訴我目前 DDR 的市場份額是多少？在供應方面，STR 市場現在所佔的百分比可能是多少？

Sure. I think currently the market share that is represented by DDR is very low probably the first calendar quarter of 2002 will be the first point of which is meaningful and our best estimate would be may be 15% of the total market in first calendar quarter of 2002 and based on what our customers are telling us in the second half of 2002 probably reach 50% or higher. So it will be the DDR market will be greater than the SDR market if you will by the end of calendar 2002. Our production by the way is paid to lead the market by about a quarter so where I said in the first calendar quarter the market might be 15% in the current timeframe or 15% in the first calendar quarter will be 25-30% and the market will move there by the second calendar quarter. So we are going to be ahead of the market by roughly one quarter with respect to taking our outlet to the market.

當然。我認為目前 DDR 所代表的市場份額非常低，可能 2002 年第一季度將是第一個有意義的點，我們最好的估計可能是 2002 年第一季度總市場的 15%根據我們的客戶在 2002 年下半年告訴我們的情況，可能會達到 50% 或更高。因此，如果到 2002 年年底，DDR 市場將大於 SDR 市場。順便說一下，我們的生產支付了領先市場約四分之一的費用，所以我在第一個日曆季度所說的市場在當前時間範圍內可能為 15%，或在第一日曆季度為 15%，將是 25-30%，市場將在第二日曆季度移動到那裡。因此，在將我們的出口推向市場方面，我們將領先市場大約四分之一。

Do you have a sense that where your market share may be and roughly in that market?

您是否知道您的市場份額可能在該市場的哪個位置以及在該市場中的大致位置？

Like I said, the market today for DDR is not that meaningful it is just still in the ramp up phase, but I think it is safe to say because what I said earlier about us leading the market by a quarter it is probably significantly higher in the DDR's phase than it is in the overall phase, but its really hard for us to estimate it right now.

就像我說的，今天的 DDR 市場意義不大，它仍處於上升階段，但我認為可以肯定地說，因為我之前所說的我們領先市場四分之一，它可能在DDR的階段比整體階段要好，但我們現在真的很難估計。

Sure. And as far as the inventory levels could you actually give that to us in a weeks likely you normally do is that possible?

當然。就庫存水平而言，您實際上可以在幾週內將其提供給我們，您通常會這樣做嗎？

We don't normally give it you in weeks, but I think we provide a range and if I am not mistaken when we had this call last quarter we estimated that the industry was probably in the 8-12 week range and we were towards the lower end of the that range. My best estimate at this point would be the industry as probably in a 4-6 range and more also at the lower end of that range. [ERIC ROSS] Great. Thank you very much.

我們通常不會在幾週內給你，但我認為我們提供了一個範圍，如果我在上個季度接到這個電話時沒記錯的話，我們估計該行業可能在 8-12 週範圍內，我們正朝著該範圍的下限。在這一點上，我最好的估計是該行業可能在 4-6 範圍內，甚至更多在該範圍的低端。 [埃里克·羅斯] 太好了。非常感謝。

Thank you. Our next question is coming from [John Joseph] of Solomon Smith Barney. Your line is live.

謝謝你。我們的下一個問題來自 Solomon Smith Barney 的 [John Joseph]。你的線路是活的。

Yeah. I apologize I am on a cell phone may be a little bit noisy, but Mike I want to ask you with regard to your outlook for a possible seasonal slowdown. Can you give us a real color on that, it seems that the overall demand has been strong pretty late into the season even until you know very recently as you said and one we would expected that the Christmas still has pretty well done so I want to just get you to comment on sort of the timing and the continuing strength past perhaps the peak. What say a calendar Q1 or a fiscal Q2 would on an normal seasonal basis look to you like and then third what the mix of demand on your PC customers looks like in other words is it Europe or is it Asia, is it US consumer, or USA corporate? So those are three questions. Sorry for the long question to you.

是的。很抱歉，我在打電話可能有點吵，但邁克我想問你關於你對可能的季節性放緩的看法。你能給我們一個真實的顏色嗎？似乎整個季節的整體需求一直很強勁，直到你最近才知道，正如你所說的那樣，我們預計聖誕節仍然做得很好，所以我想只是讓你評論一下時機和可能超過頂峰的持續力量。在正常的季節性基礎上，日曆 Q1 或財政 Q2 對您的看法是什麼，然後是第三季度您的 PC 客戶的需求組合是什麼樣的，換句話說，是歐洲還是亞洲，是美國消費者，還是美國公司？所以這是三個問題。很抱歉給你這麼長的問題。

I think this seasonal strength is lasting a bit longer than we would have anticipated. John it also started a little bit later. We really did not see the seasonal strength until the first part of November we have typically released earlier and I think primarily can be attributed to the fact that PC makers are no need really taken the inventory position and as soon as they saw their demand starts to pick up which would have been in the early part of November they started increasing their orders. So that is probably explains why it started a little bit later and also why it probably has a little more late than otherwise would have been indicated. Because it is still late you at least strive up through last week to the weekend generally pretty strong. Having said that this week we have some pretty good barometers on real time measurement of demand and our upgrade business is a unique a crucial technology as a good barometer for that we have seen daily order rates tick down slightly this week. So there is some indication that seasonally things may start to taper off here a little bit. We manifest to what would have happen in the first quarter our customers are telling us to speak that you expect a typical first quarter which would be from a memory consumption standpoint may be flat slightly down from calendar Q4 level.

我認為這種季節性力量持續的時間比我們預期的要長一些。約翰，它也開始得晚一點。直到 11 月上旬我們才真正看到季節性強勁，我認為這主要是因為 PC 製造商不需要真正採取庫存頭寸，一旦他們看到他們的需求開始下降提貨本來應該是在 11 月初，他們開始增加訂單。因此，這可能解釋了為什麼它開始晚一點，以及為什麼它可能比其他情況顯示的晚一點。因為現在還很晚，所以你至少要努力熬過上周到週末，總體來說還不錯。話雖如此，本週我們在實時需求測量方面有一些相當不錯的晴雨表，而我們的升級業務是一項獨特的關鍵技術，作為一個很好的晴雨表，我們看到本週每日訂單率略有下降。因此，有一些跡象表明，季節性情況可能會開始逐漸減弱。我們證明了第一季度會發生什麼，我們的客戶告訴我們說，您預計從內存消耗的角度來看，典型的第一季度可能會比日曆第四季度的水平略有下降。

Slightly would be what 5% or more than that?

稍微會是什麼5％或更多？

Obviously, slightly.

顯然，略。

And then with regard to the demand [probes] are worldwide in segments?

然後關於需求 [探針] 是世界範圍內的細分市場？

I don't really see a demand that is strong relative to geography or relative to any other particular geography I guess with respect to granularity in the consumer area, both consumer notebook and desktop area we are seeing strong demand relative to the commercial side and that can probably be attributed to the you know the XP penetration in the consumer side as well as the pretty rapid memory content acceleration on the consumer PC side. Associated with XP as well as the typical price elasticity.

我真的沒有看到相對於地理或相對於任何其他特定地理的強勁需求，我猜就消費領域的粒度而言，無論是消費筆記本電腦還是台式機領域，我們都看到了相對於商業方面的強勁需求，而且可能要歸功於你知道 XP 在消費端的滲透以及消費端 PC 端相當快的內存內容加速。與 XP 以及典型的價格彈性相關。

A quick follow on you had said non-PC applications were generating significant demand. What are those applications and what percent did they ...

快速跟進您曾說過非 PC 應用程序正在產生大量需求。這些應用程序是什麼，它們的百分比是多少......

The big one today is Mobil phone and in terms of percentage for us its still you know less than 5% of our business is really going towards those applications and that is really our flash memory product offering, but that would be the most significant active application today that was really relatively inactive I would say a quarter ago for us.

今天最大的一個是美孚手機，就我們而言，就百分比而言，您仍然知道我們的業務中只有不到 5% 真正用於這些應用程序，這確實是我們提供的閃存產品，但這將是最重要的活躍應用程序今天這真的是相對不活躍的，我會在四分之一之前對我們說。

Okay. Thank you.

好的。謝謝你。

Ladies and gentleman, if you do have a question or comment, please dial the numbers 1 followed by 4 at this time. Our next question is coming from [Bill Disolan] of Davidson Investment Advisors. Your line is live.

女士們，先生們，如果您有任何問題或意見，請此時先撥 1 後撥 4。我們的下一個問題來自戴維森投資顧問公司的 [Bill Disolan]。你的線路是活的。

Thank you. I wanted to follow up on last comments on relative to content. The box makers I am curious whether you are sensing any reticence on their part to increase content due to the concern that since prices are down roughly 90% versus prior year levels that there is an inevitable rebound to common in their to some degree taking that in to account when they look at the cost of memory will be as a percentage of the box?

謝謝你。我想跟進有關內容的最新評論。盒子製造商我很好奇你是否感覺到他們對增加內容的任何沉默，因為他們擔心由於價格與去年水平相比下降了大約 90%，因此他們在某種程度上不可避免地會出現反彈。佔的時候再看一下內存的成本會以百分比的形式計算嗎？

Well, I think you would probably have to you would be better of getting that from our customers I can kind of translate what they are telling us. Certainly they watching it, but with respect to event at 256 megabytes as a percentage of the overall material cost of a system is relatively low even with some price increases assumptions built-in its still relatively low compared to what it has been historically. So I don't think there is certainly not an obsession among our customers with respect to where memory pricing might go and the impact that may have on content going forward.

好吧，我認為您可能不得不從我們的客戶那裡獲得更好的信息，我可以翻譯他們告訴我們的內容。他們當然在看它，但就 256 兆字節的事件而言，佔系統總材料成本的百分比相對較低，即使內置了一些價格上漲假設，與歷史上相比仍然相對較低。因此，我認為我們的客戶肯定不會對內存定價可能走向何方以及可能對未來內容產生的影響感到痴迷。

And Mike to follow up do you see any indication that you are customers are far more willing to reduce content for box if and when prices arise?

邁克跟進，您是否看到任何跡象表明您是客戶在價格上漲時更願意減少盒子的內容？

Well I can only look to history for that we have never seen significant actually I think we haven't seen any absolute reductions in memory content at all regardless of the movement of pricing or actually the relative demand balance.

好吧，我只能回顧歷史，因為我們實際上從未見過顯著的情況，我認為無論定價變動或實際上是相對需求平衡如何，我們根本沒有看到內存內容的任何絕對減少。

Thank you.

謝謝你。

Thank you. Our next question is coming from [Henry Wosboniock] of First Union. Your line is live.

謝謝你。我們的下一個問題來自 First Union 的 [Henry Wosboniock]。你的線路是活的。

I have a couple of questions. What percentage of sales when this [_____] market last quarter?

我有一些問題。上個季度 [____] 市場的銷售額百分比是多少？

Sorry, I can't quite understand the question.

對不起，我不太明白這個問題。

What percentages of your shipments went into this [_____] market last quarter?

上個季度，你們有多少百分比的貨物進入了這個 [____] 市場？

I don't know the number of precisely so I am not going to provide a range I am think it's probably in the 20-30% range.

我不知道確切的數量，所以我不會提供一個範圍，我認為它可能在 20-30% 的範圍內。

Okay. Do you guys have a number as to what percentage of your DDR revenue went into the x box product?

好的。你們有沒有關於你的 DDR 收入中有多少百分比進入了 x box 產品的數字？

We are not in a position to be able to provide that data specifically.

我們無法具體提供這些數據。

Now that you are guys are buying some Toshiba. Why do you think this Infineon in terms of the overall competitive landscape will they [though it tends] to be a major player?

現在你們正在購買一些東芝。為什麼你認為這家英飛凌在整體競爭格局方面會[儘管傾向於]成為主要參與者？

This is Steve. Clearly, Infineon is large producer today and the fact that we were ended up doing the Toshiba transaction as opposed to them. I don't think changes in the potential landscape for Infineon. They clearly have there is a lot of other players that need to exit this business. So, I don't think that there is a lack of opportunity for further consolidation for Infineon leader.

這是史蒂夫。顯然，英飛凌是今天的大型生產商，事實上我們最終與東芝進行了交易，而不是他們。我認為英飛凌的潛在格局不會發生變化。他們顯然有很多其他參與者需要退出這項業務。所以，我不認為英飛凌領導者缺乏進一步整合的機會。

Do you think that [this] Infineon in a position to be and acquire as supposed to be inquired themselves?

您是否認為 [this] Infineon 能夠成為並獲得應該被詢問的位置？

I do not know. You're after that depends on Infineon and [_____] and what they think is would be a strategic event for particular acquisition.

我不知道。你之後取決於英飛凌和[_____]，他們認為這將是特定收購的戰略事件。

Thank you.

謝謝你。

Thank you. Our next question is coming from [Dan Scobel] of Needham & Company. Your line is live.

謝謝你。我們的下一個問題來自 Needham & Company 的 [Dan Scobel]。你的線路是活的。

Thank you. Can you comment on the mix of flash and Static RAM business?

謝謝你。您能否評論一下閃存和靜態 RAM 業務的組合？

Between Flash and Static RAM?

在閃存和靜態 RAM 之間？

No flash and Static RAM is a percentage of whole?

沒有閃存和靜態 RAM 是整體的百分比嗎？

Yeah, I think we have stated it was less around 5% or slightly less than 5% of our total.

是的，我想我們已經說過它低於我們總數的 5% 或略低於 5%。

So that's of revenues?

那是收入嗎？

Yeah that's correct.

是的，這是正確的。

Okay. Can you comment on price premium and the DDR and 256-meg DDRRAM space?

好的。您能否評論價格溢價以及 DDR 和 256-meg DDRRAM 空間？

Yeah that is a good question. Currently; with our OEM customer base there is a price premium for DDR and its in the neighborhood of 20-30% in the [_____] market I think primarily in anticipation of a pretty significant ramp of DDR systems in the market place from first quarter, the price premium for DDR relative to SDR at any given density is lets say higher than 50%.

是的，這是個好問題。目前;在我們的 OEM 客戶群中，DDR 的價格溢價在 [____] 市場中約為 20-30%，我認為主要是因為預計從第一季度開始，市場上 DDR 系統將出現相當大的增長，在任何給定密度下，DDR 相對於 SDR 的價格溢價可以說高於 50%。

And how about 256-meg versus 128?

256-meg 對 128-meg 怎麼樣？

They are priced roughly at bit parity.

它們的價格大致相當。

Okay. Can you comment on what bid gross you are expecting for production this quarter?

好的。您能否評論一下您對本季度生產的預期總投標總額？

Yeah, we think that will be flat.

是的，我們認為這將是平坦的。

Okay and finally, on the Toshiba deal. Can you give us any more indication in terms of cost, I mean is it stock, is it cost, is it significant, or is it insignificant? What should we be looking to happen to your finances?

好的，最後，關於東芝的交易。您能否在成本方面給我們更多的指示，我的意思是它是庫存，是成本，是重要的還是微不足道的？我們應該期待您的財務發生什麼變化？

Well, again I cannot comment because that almost all the terms are confidential, but we do not I repeat we do not expect it to be a significant cash impact.

好吧，我不能再次發表評論，因為幾乎所有條款都是保密的，但我們不重複，我們不希望它對現金產生重大影響。

Okay. You mentioned as supply agreement who is providing parts to who for what range and what time?

好的。您在供應協議中提到誰在什麼範圍和什麼時間向誰提供零件？

Well, again we have supply agreement Micron will be providing parts to Toshiba, but we cannot comment on this?

好吧，我們再次簽訂了供應協議，美光將向東芝提供零件，但我們不能對此發表評論嗎？

Okay. And finally, what is the approximate line with that Toshiba is running on the Dominion?

好的。最後，東芝在 Dominion 上運行的大致路線是什麼？

Well, again I cannot comment on that.

好吧，我不能對此發表評論。

Okay. Thank you.

好的。謝謝你。

Thank you. Our next question is coming from [Merry Brodmann] of [_____]. Your line is live.

謝謝你。我們的下一個問題來自 [_____] 的 [Merry Brodmann]。你的線路是活的。

Yes, I wonder to what's limiting the demand and output for DDR right now, is chipset delivering limiting demand at all and how about supply? Is the market pretty well supplied at this point?

是的，我想知道現在是什麼限制了 DDR 的需求和輸出，芯片組是否提供了限制需求，供應又如何？目前市場供應充足嗎？

I think the demand limiter is essentially you had it right on ahead it is chipset in any moment from Intel and that should be a non-issue as we move through the first part of calendar 2002. On the supply side, I think, it is just a matter of the various players getting there respective designs into production and once that happen and we believe it is going to happen fairly seamlessly here that should be no virtual limiter on DDR supply. I would ask by the way there are expectation, I mentioned price premiums associated with the early ramp up DDR in the market place are present today. Our expectations are that DDR and SDR will be priced at parity once this really contractions [adapts] for DDR in the market place because essentially they can be manufactured at virtual cost bearings.

我認為需求限制器本質上是你提前知道它是英特爾的芯片組，當我們進入 2002 年日曆的第一部分時，這應該不是問題。在供應方面，我認為是只是各個參與者將各自的設計投入生產的問題，一旦發生，我們相信它將在這里相當無縫地發生，這不應該成為 DDR 供應的虛擬限制。我想順便問一下，我提到了與市場上早期增加 DDR 相關的價格溢價今天存在。我們的預期是，一旦市場上的 DDR 真正收縮 [adapts]，DDR 和 SDR 的定價將持平，因為基本上它們可以以虛擬成本軸承製造。

Alright. Thank you

好吧。謝謝

Thank you. Our next question is coming from [Jack Garret] of [_____]. Your line is live.

謝謝你。我們的下一個問題來自 [____] 的 [Jack Garret]。你的線路是活的。

Thank you. I am bit of dropped off because the cell phone battered that you comment on what your bid growth might be in the second quarter?

謝謝你。我有點掉線了，因為手機受到重創，您評論第二季度您的出價增長可能是多少？

We did Jack. We think it will just be flat.

我們做了傑克。我們認為它只是平坦的。

Flat. Okay. Thank you very much.

平坦的。好的。非常感謝。

Thank you. Our next question is coming from [Eric Rocovich] of [_____]. Your line is live sir.

謝謝你。我們的下一個問題來自 [____] 的 [Eric Rocovich]。先生，您的線路是實時的。

Thank you. Could you give an idea, which your product mix is by geometry, and also could you comment on whether or not you are operating your fabs at the full capacity at the moment or if you have skill back way for start?

謝謝你。您能否給出一個想法，您的產品組合是幾何形狀的，您能否評論一下您目前是否正在滿負荷運營您的晶圓廠，或者您是否有技能開始？

I can take the first part of that in terms of a percent line geometry and then may be Steve would like to discuss the relationship full capacity versus where we are today. We are currently running up about 30% and we did it, you know, in our fiscal Q1 and we are about 30% 0/18 about 65% 0.15 and then around 5% currently is being around at 0.13.

我可以根據百分比線幾何來處理第一部分，然後可能是史蒂夫想討論滿負荷與我們今天所處位置的關係。我們目前上漲了大約 30%，我們做到了，你知道，在我們的第一財季，我們大約 30% 0/18 大約 65% 0.15，然後大約 5% 目前大約是 0.13。

Yeah with respect to the full capacity, we have [_____]optimizing for product mix as I mentioned before and cycle time so that we could react quicker to the market that has some impact and obviously we have been transition in to higher density products. So, our position today is that we have given the parameters that we put in place for product mix and cycle time while we are running full the capacity. Now, we have the ability to dial that in up on what we want for density and mix in cycle time, but I would tell you that you know we do have to deal with the holidays season here coming out so, you know, I have some impact although we don't think it is going to be that negative impact.

是的，就全部產能而言，我們已經 [____] 優化了我之前提到的產品組合和周期時間，以便我們能夠更快地對具有一定影響的市場做出反應，顯然我們已經過渡到更高密度的產品。因此，我們今天的立場是，我們已經給出了我們在滿負荷運行時為產品組合和周期時間設置的參數。現在，我們有能力根據我們想要的密度和循環時間來調整它，但我會告訴你，你知道我們確實必須處理這裡的假期，所以，你知道，我有一些影響，儘管我們認為這不會是負面影響。

Okay and just [keep] a question on the 0.13 Micron represent that's the 5% on 0.13 Micron is all in believe is there any international component to that?

好的，只是 [繼續] 關於 0.13 微米的問題代表 0.13 微米的 5% 完全相信這有任何國際成分嗎？

Actually happy to report that we are starting to run 0.13 in almost every facility we have now.

實際上很高興地報告我們現在幾乎所有設施都開始運行 0.13。

Great. Thank you.

偉大的。謝謝你。

Once again, ladies and gentlemen, if you do have a question or a comment, please dial the numbers 1 followed by 4 at this time. Thank you. We do have a followup question coming from [Joe Asha]. Your line is live.

再次，女士們，先生們，如果您有任何問題或意見，請在此時撥打數字 1，然後撥打 4。謝謝你。我們確實有來自 [Joe Asha] 的後續問題。你的線路是活的。

Hi, it's just a little further on the production mix. Is that 30% 0.18 largely in your JV fabs or are you still any running any 0.18 in Boise and UK. Can you give us some inside as to how quickly the remaining 0.18 is going to drawdown?

嗨，這只是生產組合的一點點。 30% 0.18 主要在您的合資工廠中，還是您仍然在博伊西和英國運行任何 0.18。你能告訴我們剩餘的 0.18 將多快回撤嗎？

Primarily the 0.18 is in the international fabs. Most of Boise's transition 0.15, we still have some legacy Boise. Just in terms of the continual transition will respond to the market that transition will occur as feel comfortable with making those changes.

主要是 0.18 在國際晶圓廠。 Boise 的大部分過渡 0.15，我們仍然有一些遺留的 Boise。就持續過渡而言，將響應市場，即過渡將發生，因為對做出這些改變感到滿意。

Okay. Thank you.

好的。謝謝你。

I would like to be now thank everyone for participating on the call. If you please bear with me, I need to repeat the safe harbor projection line. During the course of this call, we may have made forward-looking statements regarding the company and the industry. These particular forward looking statements and all other statements that may have been made on this call that are not historical facts are subject to a number of risks and uncertainties and actual results may differ materially. For information on the important factors that may cause actual results to differ materially, please refer to our filings with the SEC including the company's most recent 10Q and 10K. Thank you.

我現在要感謝大家參加電話會議。如果你能容忍我，我需要重複安全港投影線。在本次電話會議期間，我們可能對公司和行業做出了前瞻性陳述。這些特定的前瞻性陳述以及可能在本次電話會議上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，實際結果可能存在重大差異。有關可能導致實際結果出現重大差異的重要因素的信息，請參閱我們向 SEC 提交的文件，包括公司最近的 10Q 和 10K。謝謝你。

Ladies and gentlemen. This does concludes today's teleconference. You may disconnect your lines at this time. Thanks for participating. Have a good day.

女士們先生們。今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。祝你有美好的一天。