This is a rough summary of my conference call notes. I will clean it up and update it asap
what caused asps to not increase greatly?
plan above 1.8 million of k7, asp from high 80s to low 90s for q2, on target
rough idea duron/athlon?
will not do that for competive reasons.
mix of old athlon to new athlon, will all q3 and on new athlon?
hundreds of thousands have been shipped, q3 vast majority will be new athlon,
small number of classic athlon
have not broken up mix
classic athlon wafer starts stopped
are copper products in market?
mustang, corvette, sledgehammer, schedule, ramp?
mustang corvette camaro (?) power now discussed, 3rd track strategy ia
device, sledge 8th gen 64/32 bit scheduled for late 2001, still on track for
how far out can you look at flash sales? how visible in that business?
very good visibility, long term agreements with flash one to two to three
years, know what are being asked for, can not meet all of their requirments,
requirements are going up, mid 2000 asking for product in the year 2001 beyond
what can be delivered, no evidence on demand loosening, already working through
most of q4 for flash, sold out, struggling to meet demand, sold out of k6-x,
essiantially sold out of durons, flash demand only evidence of robust output
what the total increase on unit capacity for processors between now and end
of the year?
goal of q4 is 20%, 8 1/2 to 9 million units in q4, approach 7 million in q3,
supply tight through end of year
asp increase fairly modest, k6-x pricing environment?
speed grades up to 550, asps under pressure, they are stable because sold
out, but are very low, high 80s to low 90s, 1.8 million 7th gen, most cpus will
be 7th gen this quarter
comment regarding chipset strategy, ddr vs rambus?
customer oriented, market driven company, next gen memory technology centered
around ddr tech, market and customers are demanding, do have rambus liscense,
customers are driving toward ddr solutions
any thoughts on low end competitors? transmeta? via?
now interested in low single watt part of the market, just watching the
market carefully, feel they are very competitive, can thwart any entry in that
market, powernow can scale down to 2 or 3 watts, athlon mobile will open up
reitterate what the k6/k7 mix?
k7 surpassing this quarter, k6 fading out
how much is the total flash revenue already sold out via contracts percentage
higher percentage than 60% of flash sold out by contracts, don't ever want
all flash going as contract business, want to support reseller partners
what is the sweet spot of the density of flash that you are selling? oem
distribution of flash? transition to .13?
.18 micron coming before .13, presently at .22, qualify .18 micron end of
this year, converting to .18 by mid 2001, average density sweet spot for phone
is 16megabits moving to 32 and some 64 next year, high percentage is committed
to contract customers, balance to distribution to their customers
approximate total units shipped for k6-x for q2? speculation on ramping to
capacity, how will effect pricing capacity?
intel will not be motivated to cut price, amd will not have to cut price to
get business, asps will improve, demonstrated that we are reasonably uncrushable,
volume 1.1ghz introduced this quarter, model in 100 dollar range, faster speeds
for q4, will do well with 100 dollar model, shipped over 1.8 million 7th gen,
6.3 million k6-x models shipped
asp flash memory increase?
prices were up, unit shipment up 4%.
infrastructures limited duron/tbird, or anticipate limitations?
limitations where motherboards and chipsets in q2, could have done better if
there had been better support, end of quarter had much better support, late
socketed support, q3 the ramp up for chipsets and mobos is much better, 50%
dresden capacity wafer start capacity by the end of this year, low millions of
die in q4, 100% capacity of wafer starts by the end of next year, dresden will
have benefitial impact on gross margin
flash memory capacity limited?
q1 100 percent, q2 70% for flash, up to 100% for 2001 and beyond, depends on
how many wafers can be processed, capacity limited in the 2nd quarter
plans with debt, eliminating it? any negatives in the next 12 to 24 months
that are technical or marketing changes?
1.5 billion debt, took off 400,000,000, 1.5 more of different debt, that is
convertable debt, conversion price of $37, the only remaining debt guarrenteed
by the german government on good terms, low %5 interest, with exception of
dresden debt will be out of debt a year from now, tough industry, worry about
earthquakes, bullish optimistic, healthy and growing, best product portfolio we
have ever had, acts of god only worry, the global market, european getting
stronger, japan coming to life, asia looking good, us about productivity, amd is
a productivity machine, will be supplier of choice in a less robust economy.
some customers say they are dropping amd?
jerry has no idea what he is talking about, rob says they are not losing any
customers, customer success is our success, as well positioned going into this
quarter as they have ever been, attitude towards customers will pay off
long term flash contracts, more than 70% under contracts, curious about the
terms? how long, how is the pricing, are they firm?
set pricing and set volume support, some room to move up or down based on
current market conditions, do not want to get into more than that, currently
they want more support than can be given, our flash is not fungible, there is
momentum involved, it is not like the dram business where any dram will do
annual guidance for ngna?
620 for ngna and 620 million for r&d
what is production rate for k7?
production rate- planning to ship 7.2 million in the 4th quarter, 6.3 million
in q3, most of q2 hand to mouth, came into this quarter with very low
inventories, shipped more than the sell through, sold more than 1.8 million q2,
but shipped more than that
where do you see your exposure over the next 12 months?
going into the quarter look very good for infrastructure support
dresden doing outstanding, millions of die for the 4th quarter, dresden was
hindering earnings, yeilding better than fab 25
end of q&a
thanks to people for listening in
available for questions in an hour
conference call concludes