Processor maker Advanced Micro Devices (AMD) has reported $1.57bn in revenues for the second quarter of 2011, slightly below the $1.65bn in the same quarter last year.

The company generated a net income of $61m, up from $43m in the year-ago quarter, though operating income was rose to $105m, from $100m in Q1 2011.

The company said the slight decrease was primarily driven by lower server revenue, and its computing offerings segment revenue was flat, while higher mobile microprocessor revenues were offset by lower desktop and server revenue.

Accelerating Fusion accelerated processor unit (APU) shipments have led to an increase in microprocessor unit shipments and mobile microprocessor unit shipments, AMD said.

Graphics segment revenues, however, have decreased by 11%, due to lower discrete mobile unit shipments and seasonality in the desktop discrete graphics add-in board market.

AMD expects a 10% increase in revenue for the third quarter of this year based on stronger expectations for Fusion APUs sales.