This quarter, AMD isn't alone in feeling a financial burn, but it does have profit to report: In the company's Q2 earnings report, the chipmaker reported a net income of just $37 million, down from $92 million last quarter and $61 million a year ago. Revenues came to $1.41 billion, compared to $1.57 billion this time last year, and $1.59 billion last quarter, down 11 percent sequentially. If that 11 percent sounds familiar, that's because AMD already announced the decline in a preliminary earnings report just nine days ago, likely in an attempt to soften the blow. Even a little profit is better than none, though: last quarter, the company lost $590 million, mostly due to write-offs. We're listening to the investor call right now, and will let you know if Rory Read and company announce anything more interesting.

Update: Why are AMD's revenues declining? On the investor call, CEO Rory Read had a lengthy, candid explanation. The company blames weak sales of the current-gen Llano processors. Apparently, there's a huge surplus of those chips, and it's doubtful that sales will increase when Trinity hits gains wide availability in Q3. Senior VP Lisa Su says AMD will "run with both products for some time in the channel" which doesn't bode well for Llano sales. Regarding the Llano overstock, CEO Rory Read says "we'll work through that in the next two quarters" and that the company will "execute inventory burn-off," which could mean processor discounts into the holiday season.

Su also hinted that next-gen console sales could help AMD's bottom in Q3 and Q4, saying "We'll have royalties in the third quarter, from a gaming perspective." While we'll have to wait and see if Llano discounts and console sales will make an impact, Read was up-front about the financial challenges of this quarter and the next, saying that "This execution in the second quarter is disappointing," "But we will correct it."