AMD's second quarter results are mixed

As Intel continues to rake in records amount of cash, AMD is having a harder time growing. The underdog has revealed its second-quarter financials, and its GAAP net income has taken a nosedive compared to the previous quarter. Revenue is down both sequentially and year-over-year.

  Q2 2010 Q1 2011 Q2 2011
Revenue $1.65 billion $1.61 billion $1.57 billion
Net income -$43 million $510 million $61 million
Gross margin 45% 43% 46%

To be fair, $61 million in net income certainly beats that $43 million net loss from a year ago. AMD's gross margin has inched up slightly, too, even if it's a far cry from Intel's 61%.

The earnings release sheds some light into the performance of AMD's different businesses. The Computing Solutions wing saw flat revenue growth, with higher mobile revenue last quarter offset by lower server sales. AMD's Graphics division, meanwhile, saw sales shrink by 11% compared to the previous quarter and by 17% from the same quarter a year ago—drops the chipmaker blames on both lower shipments and seasonal shifts in demand.

Looking ahead, AMD expects revenue for the ongoing quarter to be up 8-12% over Q2. There's no word on how profits will be affected, though.

Update: AMD points out that its first-quarter GAAP net income included a $492-million non-cash benefit related to GlobalFoundries. GAAP numbers from the same quarter a year back accounted for GlobalFoundries-related losses. On a non-GAAP basis, which the company says is a "more accurate quarterly comparison," AMD saw $70 million net income last quarter—an increase from $56 million in the first quarter, but also a decline from the $83 million posted in Q2 2010.

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