AMD Looks For New Head As Chief Resigns
Shares fell on the news that Senior Vice President and CFO Thomas Seifert, has taken over the position in the interim as the company formed a CEO Search Committee to begin looking for a replacement.
The Search Committee is led by Bruce Claflin, Chairman of AMD’s Board of Directors, who has been named Executive Chairman of the Board as he assumes additional oversight responsibilities during the transition period.
Claflin said: “Dirk became CEO during difficult times. He successfully stabilised AMD while simultaneously concluding strategic initiatives including the launch of Global Foundries, the successful settlement of our litigation with Intel and delivering Fusion APUs to the market.”
AMD had been involved in a lawsuit against Intel since 2005, claiming Intel had abused its power as a leading chip maker by offering rebates to Japanese PC makers to stop buying its microprocessors.
In a statement, AMD described the resignation as a “mutual” decision. The company also stated that Seifert will continue to maintain his current responsibilities as CFO and has asked not to be considered for the permanent CEO position.
Claflin said the Board now has ” the opportunity to create increased shareholder value over time” and that the change in leadership would “accelerate the company’s ability to have significant growth, establish market leadership and generate superior financial returns”.
AMD also announced preliminary fourth quarter results for 2010. Fourth quarter revenue increased 2 percent sequentially to approximately $1.65 billion and gross margin was approximately 45 percent.The company is scheduled to deliver full fourth quarter results on January 20.
Shares of AMD, which were down 2.5 percent over the past year, fell 37 cents, or 4 percent, to $8.82 in late trading after the announcement.