AMD
#I think the obvious options, I think everything you just said in terms of managing the working capital, managing the cash, managing the inventory and making sure that it is in line with the revenue profile from an outlook standpoint, allows us to do that.
From a standpoint of cash, we've done a good job managing the cash over the last several quarters and several years.
I have confidence of doing that on a go-forward standpoint.
We'll monitor and see what is needed and as I said earlier, if the need arises, we will access the capital market.
I still have the ABL availability, as you just observed, and we will do what's needed to continue to fund the business.
Not going to get into the details on this call, <UNK>, but I'm sure we can access capital markets if the need arises.
The factors, I think if you look at it from a cash standpoint for the rest of the year, in Q3, with a cash guidance of $700 million, the way our debt maturity profile is, the cash interest payments have only two quarters, in Q1 and Q3, to the tune of about $70 million.
So there is a disproportionate impact to cash in Q1 and Q3 of our fiscal year, just the way the cash payments go out, even though the accounting is done on a pro rata even basis for the year.
Then, you are right.
We are managing the inventory and re-profiling some of the commitments that we have should help from a cash standpoint and we are very focused to go ahead and do that.
Like I said, after we get through the Q3 timeframe, in Q4, we don't have the cash interest payments.
With the revenue being up in the second half, as what we're expecting starting with Q3, we think that it will benefit the cash situation as we get to the end of the year.
Two parts to it.
For the Q3 growth, new products, as well as semi-custom business being higher in the second half compared to the first half.
That is specifically what is taking the inventory from about $800 million to the $850 million levels that we're guiding to.
<UNK>, certainly, we would like to drive both gross margins as well as operating margins.
The ASP declines are fairly well understood.
Those are pre-negotiated.
Relative to what we're doing to drive overall cost or COGS down, it's the usual things.
Is yields, it's test times, it's procurement savings and those kinds of things.
I would say it's been largely as expected.
These products are now several years into their life cycle.
To your follow-up question about die frames, I think if you look at the history of game consoles, you will normally see a die shrink, but that will happen out in time and we'll discuss that at that point.
The idea of marrying a processor with some type of accelerator, whether it's a GPU or and an FPGA, I think is definitely important in the data center.
We do have the ability to do both integrated with our APUs, as well as in different packages, the offering both CPU and GPU together.
I think the idea of using accelerators is definitely important data centers.
We agree with that.
Different people will do it different ways.
Certainly, our approach will be to get very high-performance CPUs and GPUs that can inter-operate.
Operator, we will take two more questions, please.
I think Seattle is a good offering for 64-bit ARM servers.
If you look at what we've said up until now, we have a number of companies, both in the ecosystem, as well as users developing software on Seattle and looking at how it operates in the environment.
I would say that the overall revenue of Seattle will be modest, as ARM ramps will take a bit of time.
But the importance of building the ecosystem is there, so that is our focus with Seattle in working with key customers.
I think we've said before, and my view on this is that the overall ARM server market, or let's call it ARM in data center markets, will take some time to develop.
Let's call it the three- to five-year timeframe.
In terms of today's market, we actually believe that the x86 will be the majority of the market.
When you say crossover, <UNK>, you mean volume crossover, or ---+
Yes.
We will be bringing different parts of the product line into FinFET, at different points in time, so I don't think I have an exact answer for that.
I think what we've said is, graphics will certainly utilize FinFETs, as well as our news and processors.
They will rollout over the quarters in 2016.
I can comment.
If you are looking specifically at Q1 to Q2, the operating margin declined as $33 million charge, that was the charge associated with the technology node transition from 20-nanometer FinFET.
That's in the segment operating margin results.
If you neutralize for that, I think you'll see a different operating margin profile from a quarter-to-quarter standpoint.
Operator, thank you, and that concludes our conference call this afternoon.
