"The notebook segment of our GPU business was down approximately 5% quarter over quarter. We lost some share in Q2 as the commercial Montevino refresh platform ramped. We expect to regain share as we ramp into the fall platform with our new 40-nanometer GPUs that are in full volume shipments.

Our MCP business, which represented 31% of our total revenue during the quarter, was up approximately 27% quarter over quarter. Consistent with our first quarter, demand was primarily driven by our chipset products designed for the mainstream AMD integrated desktop segment, which was up 55%. It was also driven by chipset products designed for the Intel-based notebook segment, including Ion, which was up 33%. "

"... several quarters ago we had nearly 150 days worth of inventory and a lot of that inventory was in 65-nanometer and the company has been really focused on making sure that we work through that 65-nanometer inventory and now we by and large worked through it and as we are now ramping aggressively 55- and 40-nanometer products and they are all fresh products, the gross margins are going to be much, much better with that."

"I think the general buzz around the industry is that we are by far the largest producers of 40-nanometer today and I think that that’s probably consistent. We have shipped more and earlier than just about anybody, and we haven’t spoken a lot about our 40-nanometer products because we have fabulous products that we are currently shipping and so we tend not to pre-announce products until the customers are really shipping themselves, and so we are ramping our 40-nanometer product now. By Q4, it will represent a very large portion of our revenue."