Things continue to look dire for AMD as the company reported today its tenth consecutive quarterly plunge into the red. Although still exceeding expectations, AMD lost $416 million during the first three months of the year on revenue of $1.18 billion – processor sales were down 21 percent and graphics chips a full 15 percent. The company blamed the current economic climate for its lackluster performance, and said it expects revenue to drop further in the second quarter, due to a normal sales slump for the time of year.

Chief Executive Dirk Meyer took issue with last week’s declaration by Intel CEO Paul Otellini that the market has “bottomed out,” claiming the current economic conditions make it tough to predict future demand for chips. However, he does seems confident that changes made to AMD’s business will soon start to deliver benefits and believes they have an opportunity to grow in an environment where customers are looking for maximum value. The company also said it has reduced its inventory of unsold chips and revealed plans to introduce a new server processor, dubbed Istanbul, in June rather than much later in the year as originally intended.