Earlier this week, Intel reported its third-quarter revenues were up 15 percent from Q3 2006, to a record $10.1 billion. Today, it was AMD’s turn to report its earnings results for the quarter ended September. Things are not looking as rosy for the world's second-largest maker of computer processors, however.

Even though it sold a record number of microprocessors and posted revenues of $1.632 billion during the quarter – an 18 percent year-over-year increase – the Sunnyvale-based company reported an operating loss of $226 million and a net loss of $396 million in the three months ending in September. By comparison, the company reported a net income of $136 million for the year-earlier quarter.

AMD noted that its graphics segment revenues grew 29% from the second quarter of 2007 to $252 million, as customers increasingly adopted AMD's new ATI Radeon HD 2000 series of graphics processors. The struggling chip maker, which is locked in a quad-core chip battle with Intel, said to be encouraged by the strong revenue increase and that surging sales of microprocessors and improving cost controls are helping turn the company around.