AMD reported its third-quarter financial results today. The company posted an operating loss of $158 million on revenues of $1.06 billion. Revenues fell 26% year-over-year, while sequential revenue grew 13%. Those results include a $65 million write-down of "older-generation" APU inventory.

Q3 2015 Q3 2014 Change Revenue $1.06 billion $1.43 billion down 26% Operating income -$158 million $63 million — Net income -$197 million $17 million — Gross margin 23% 35% down 12% Earnings per share -$0.25 $0.02 —

AMD says a seasonal increase in semi-custom sales, along with strong desktop processor and GPU sales, accounted for the 13% sequential increase. However, decreased sales in the Computing and Graphics segment of the company's business caused the 26% year-over-year decline.

The Computing and Graphics segment took in 46% less revenue compared ot this time a year ago, which AMD blames on lower client processor sales. The Enterprise, Embedded, and Semi-Custom business reported a 2% year-on-year revenue decline, due to lower embedded chip and server processor volumes.

Gross margin fell to 23%, down 12% from a year ago, due in part to the $65 million APU inventory write-down. AMD made this write-down due to lower anticipated demand for the affected products.

AMD also announced a joint venture with Nantong Fujitsu Microelectronics that will bring in $371 million. For Q4 2015, the company expects revenue to decrease 10% sequentially, plus or minus 3%.