AMD has released its financial results for the second quarter of this year, which not surprisingly, marked their eleventh consecutive loss and third year-on-year revenue decline. Even though it posted a narrower loss of $330 million, compared with a loss of $1.19 billion in the year-earlier period, falling microprocessor sales and lower gross margins overshadowed the news.

Revenue fell 13 percent to $1.18 billion from $1.36 billion in the second quarter of 2008, while gross margin dropped sequentially from 43% last quarter to 37%. Sale of excess inventory, combined with lower average selling prices, were the two biggest contributors to AMD’s lower margins. One bright spot in the report was slightly better sales of graphics chips, with AMD continuing to take away some of Nvidia’s market share.

Looking at the ongoing quarter, AMD expects revenue to be “up slightly.” The company hopes its upcoming Tigris and Congo platforms will improve their fortunes in the notebook space while Istanbul should give it continued headway in the server market. For what it's worth, analyst had projected a 7% increase in revenues for AMD this quarter and iSuppli forecasts that PC shipments will rise sequentially by 11%.