Advanced Micro Devices Inc. today announced third-quarter financial results that beat analysts' estimates. It reported net income of $134 million, or 27 cents per share, on revenue of $1.33 billion, as it continues to pressure No. 1 chip maker Intel Corp.

AMD's results for the quarter that ended Sept. 30 topped analysts' consensus estimates of earnings per share of 24 cents on revenue of $1.31 billion. The company's latest results are an improvement over net income of $44 million, or 18 cents per share, on $1.52 billion in revenue in the same quarter a year earlier, and 2006 second-quarter net income of $89 million, or 18 cents per share, on revenue of $1.22 billion.

When sales of memory products are excluded, AMD's sales grew 9% from the previous quarter and 32% from last year's third quarter, said Robert Rivet, AMD's chief financial officer. However, AMD's operating margins slipped in the third quarter to 51.4%, down from 55.4% in the year ago quarter. AMD attributes the decline to lower average selling prices for processors used in desktop computers. AMD has been taking semiconductor market share away from rival Intel in the past year with new dual-core processors, forcing Intel into a defensive posture.