Updated from July 19Intel ( INTC) beat lackluster profit expectations for the second quarter by a couple cents, but the company's guidance suggests the chipmaker's comeback is still a work in progress. Net income for the quarter ended July 1 plunged 57% from the same time last year, coming in at $885 million, or 19 cents a share, on revenue of $8 billion. Excluding stock option compensation expenses, Intel earned 15 cents a share. Analysts polled by Thomson First Call were looking for Intel to earn 13 cents a share on $8.26 billion in sales. In early Thursday trading, shares of Intel were off 3.6%, or 67 cents, to $17.82. CEO Paul Otellini said Intel made progress on a number of fronts during the second quarter. "In April, I said the second quarter would be a time to work with our customers on inventory levels and prepare to launch a next generation of microprocessors," Otellini told analysts in a conference call following the earnings release. "We achieved those objectives during Q2 and are well positioned for the second half." From the look of the financial statement, though, it was an abysmal quarter for Santa Clara, Calif.-based Intel, which is facing stiff competition from rival AMD ( AMD) and an overall softening in demand for personal computers. Revenue came in at the low end of Intel's guided range of $8 billion to $8.6 billion and represented a 10% sequential decline (last year, the company's second-quarter sales were only 2% below the first quarter total). Sales were down in every region except Japan. Unit sales of microprocessors and PC motherboards declined in the second quarter, while chipset unit sales were flat. Flash memory unit sales were higher. Otellini said he believed Intel may have lost a bit of market share on a "billings" basis during the quarter, but gained share on a "consumption" basis.