The company's revenue increased from $1,216 million to $1,378 million, but margins dropped from 57% in Q2 2006 to only 33% this year.
However, AMD's stock did increase after the financial numbers rolled in because sales were better than analysts expected.
AMD's CFO Robert Rivet said they've made solid progress across a number of fronts in the second quarter, but that they need to improve their financial results.