Krishna Shankar: Will we see a more rationale environment in the channel going into the third quarter and the fourth quarter?

Henri P. Richard: The competition decided to throw away one of their brands and completely reposition Pentium. That had a very negative contribution to the environment, particularly in the channel.

Our checks indicate that there is still a lot of inventory out there, and that is why we were fairly optimistic about the mobile space and the server space and cautious about the desktop space, because that is where the bulk of the channel business exists.

Krishna Shankar: Do you have any comment on what you have seen in terms of the trade reviews and what your upcoming AMD two socket will do in terms of the advancement in performance and power?

Henri P. Richard: The main feature that the AM2 socket is bringing to the market is the support of DDR2 memory. We have never presented it as a performance improvement. We are going to continue to provide faster products to our partners. We are looking at what the competition is doing and they seem to be innovating at the core. We are going to continue to innovate, both at the core and at the platform level.

Hector Ruiz: When we launched Turion, the first launch of Turion was very successful. We actually stated that was the most successful product launch we had and fastest ramp. We are now, when we are introducing the X2, actually it is doing even better than that. The reaction from our customer base is very, very strong towards our product.

David Wong: On the 65-nanometer roll-out, can you give us an update on when you expect that to be?

Bob Rivet: We will start ramping the factory in the second-half of this year, and ship into the market our first parts by the end of the year.

David Wong: Can you give us some feel for the growth margin and profitability, a profile of stuff that you ship from charter?
Bob Rivet: We are shipping and planning to continue to ship a mixed client products from charter semiconductor.

Hector Ruiz: We are very happy with charter and their management team. They have done an outstanding job and the yields and quality of the product is very good.