AMD has posted a loss for the third consecutive quarter, reporting a $600m deficit for the second quarter of 2007. 

The company has yet to climb out of the red since its $5.4bn purchase of ATI in October 2006. AMD credited $130m of its quarterly losses to charges related to the acquisition. 

AMD's figures were announced just days after rival Intel announced a 44 per cent boost in income. 

However, both companies saw profit margins tumble as the pricing war continued. AMD reported a margin of just 33 per cent, compared to 56 per cent a year ago, while Intel logged a 46 per cent margin this quarter.

AMD also currently trails its rival in getting new chips to market. Intel has been enjoying an exclusive market for its quad-core chips since January. AMD hopes to deliver its Opteron and Phenom quad-core designs later this year. 

AMD claims that its quad-core design is superior to Intel's. Some analysts agree, but warn that the design advantage will be wiped out as soon as Intel releases its 45nm processors, which are slated to hit the market before the end of 2007.