Despite posting higher revenue and margins, however, AMD said it must still work on improving its financial situation and said it will continue to take steps to reduce costs and reorganize its business structure.

AMD reported a net loss of $600 million, or $1.09 a share, for the quarter ended June 30, 2007, compared with a net loss of $611 million, or $1.11 per share, for the first quarter of the year. The company reported net income of $89 million in the second quarter of 2006 but the latest results included contributions from ATI Technologies, which AMD acquired last year.

Revenue in the second quarter rose 13 percent from the year-ago quarter and 12 percent from the immediately preceding quarter to $1.38 billion, boosted by higher demand for AMD's microprocessors in the notebook segment especially from Asian manufacturers although average selling prices continued to be under pressure, the company said.