Q3 CC Notes:
Attendees - Jerry, Fran Barton, Rob Herb and Ben Anixter
GM is 28%, up 5 points from Q2
18 millions is from Vantis fab arrangement, will use this amount going foward.
377 millions cash available after paying 87 m BofA credit facility
Expect Q4 GM increase in Q4
R&D grow slightly over Q3
MG&A to increase about 20 m due to Athlon merchandising and other cost
Restructuring could be from 0 to 10 m
Interest expense to be flat
Income from FASL to be breakeven
Shares to increase to 149 m
Capital spending 650 m for the year, down slightly than previous anticipated.
Q4 breakeven point to approach 850 m.
Booking for Flash remain strong
Book to ratio greater than 1
Blended ASP of 65
Blended ASP of Athlon is close to 300
Speed distribution contine migrate to higher
Demoed 800 0.18 yesterday,
0.18 athlon will contritute revenue this Q
0.18 athlon in production
By month end will cease 0.25 athlon wafer start, going forward will be all 0.18
continue to expect 750 intro in Q1
400 mhz will be minimum for Q4
highly confident of producing 1 m athlon in Q4
on site personel in taiwan to ensure shipable output (mobo)
good chance to achievie 1 m or more cumutively shipment of athlon by year end.
Assuming 5 m cpu shipment in Q4
NON cpg grow 10% in Q4
Revenue in Q4 COULD exceed 800 m
unable to give profit definate guidance at this time due to supply chain issue in taiwan
Q&A
Blended ASP in Q4 will be higher
Athlon price to come down somewhat
Will have enough MOBO to achieve AMD goal (cumulative 1 m athlon shipment)
a month from now at analyst meeting will have more info on Taiwan issue.
absolutely not selling flash division
Embeded processor business will remain at AMD, not included in COMM sale
Flawless execution of 0.25 on athlon
0.18 ramp we can do well, twice as many good die on 0.18 vs. 0.25
COMM group value to be decided by market
AMD not manufacturing any chipset of our own, by UMC
Revenue on chipset is about 13 m for Q3, maybe 15 to 20 m in Q4, produced by UMC
produced over 350K Athlon in Q3
shipped 200K athlon in Q3
to ship 800K athlon in Q4.
chipset is produced on 0.35 at UMC
athlon wafer start to pass that of K6 this Q
may allocat fab 25 to do flash.
have a number of top oems for athlon in next 90 to 120 days
on track for 1 ghz by end of 00
on track for revenue of Dresden athlon for Q2, 00
100 rebate is not AMD program
Dresdon will be production facility until 2nd Q of next year, initial produciton in Q2
FAb 25 at 80% capacity
850 m breakeven is for Q4 only
highly confident to have arrangement of absorb cost concerning Fab 30
right partner will not hurt FAB 30 to produce maxime athlon
speed distribution of athlon is terrific
Q3 athlon asp is slighterly under 300 bucks
flash is sold out for q4.
fab guys are performing magnificantly
Dresdon depreciation at 25 m per quarter starting next year
from historically point of view, 1 m and 1.5 m athlin in Q4 and Q1 00 reasonable
sledgehammer - simple tool delivering great power
dresdon partnership form - can not coment at this time. |
