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A 38 per cent increase in microprocessor sales enabled Advanced Micro Devices to beat second quarter revenue and earnings expectations.

The semiconductor company, which last month filed an antitrust complaint against arch-rival Intel, said it expected microprocessor revenues to “exceed normal seasonal patterns” during the current quarter.

In the three months to June, AMD achieved earnings per share of 3 cents, down from 9 cents, on revenues unchanged at $1.26bn. Wall Street analysts had forecast a loss per share of about 5 cents.

Microprocessor sales were driven by strong demand for personal computers worldwide. AMD commands about 20 per cent of the market for PC processors. Intel's share is about 80 per cent.

Sales of server processors used in computers sold to corporate customers increased by 89 per cent from the first quarter. AMD's Operton line of server processors has been gaining market share over alternatives from Intel, Sun Microsystems and International Business Machines.

In a complaint filed in June in a federal court in Delaware, AMD claimed that Intel has unlawfully maintained its dominant PC market position by forcing PC makers to enter into exclusive supply agreements in return for cash payments or lower chip prices.

European Union officials this week raided Intel offices in several countries as part of a separate EU investigation into Intel's market tactics. Intel has said its policies were fair and lawful.

Spansion, AMD's flash memory business remained in the red, losing $90m in the quarter, compared with an operating profit of $45m, on revenue down 31 per cent to $462m.

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