AMD's Meyer Resigns, Will Be Replaced by CFO on Interim Basis; Shares Drop
Advanced Micro Devices Inc., the second-biggest seller of processors for personal computers, said Chief Executive Officer Dirk Meyer resigned and will be replaced by finance chief Thomas Seifert as interim CEO. Air Max 2011 A search committee has been formed to find a new leader, Sunnyvale, California-based AMD said today in a statement. Seifert, who doesn’t wish to become permanent CEO, will retain his duties as chief financial officer, the company said. “The board believes we have the opportunity to create increased shareholder value over time,” AMD said in the statement. “This will require the company to have significant growth, establish market leadership and generate superior financial returns. We believe a change in leadership at this time will accelerate the company’s ability to accomplish these objectives.” Gucci handbags At a board meeting several months ago, Meyer and his team presented a strategic plan that the directors decided wasn’t going to bring the changes needed fast enough, said people familiar with the deliberations. Board members are frustrated with AMD’s failure to regain server market share from Intel Corp. and the lack of an AMD chip for tablet computers, said the people, who asked to remain anonymous because the board meetings are private. Raises Questions AMD fell 39 cents, or 4.3 percent, to $8.80 in late trading after the announcement. The shares, down 2.5 percent over the past year, closed at $9.19 on the New York Stock Exchange. AMD’s board should have conducted a search for a replacement and put a succession plan in place before removing Meyer, said Doug Freedman, an analyst at Gleacher & Co. in San Francisco. “Discontinuity in the business is not good,” said Freedman, who has a “buy” rating on the stock. “It raises more questions than it answers.” nike air max Under Meyer, who succeeded Hector Ruiz as CEO in 2008, AMD had reduced debt and stemmed losses. The company also resumed delivering chips on schedule after earlier product delays cost AMD orders. Still, it hasn’t made much headway gaining market share or tapping new growth areas. Meyer, 49, cited the acquisition of ATI Technologies Inc. and the debut of the recent Fusion processor among the highlights of his time at AMD. “My blood will always be green,” Meyer said in an e- mailed statement, referring to the color of AMD’s logo. “I wish the company well as AMD focuses successfully on the road ahead.” Early Results AMD also released preliminary results for the fourth quarter today. Revenue rose 2 percent to about $1.65 billion from the previous quarter, and the gross margin was about 45 percent. Analysts had projected sales of $1.62 billion on average, according to data compiled by Bloomberg. The company said it’s maintaining its previous forecasts. Coach Store AMD posted declining sales in three out of the previous four years. Analysts estimate that revenue climbed about 20 percent in 2010. Meyer also will resign from the board, effective immediately. He joined AMD in 1995 after stints at Intel and Digital Equipment Corp. “This action wasn’t taken over specific financial, execution or legal matters,” Drew Prairie, an AMD spokesman, said in a phone call. The board’s decision was made recently, he said. Meyer represented AMD at a press conference at the Consumer Electronics Show in Las Vegas on Jan. 5. Seifert, 47, joined AMD in 2009 after a career at German chipmaker Infineon Technologies AG and its spinoff, Qimonda AG, which went bankrupt. Cheap Jordans