Advanced Micro Devices (AMD: 8.37, 0.00, 0.00%) announced late Monday the immediate resignation of chief executive Dirk Meyer, prompting the chipmaker to promote finance head Thomas Seifert and launch a search for a permanent replacement.
The news sent AMD's shares tumbling more than 4% after hours.
Seifert, 47, will serve as interim CEO in addition to his responsibilities as CFO until the company’s newly formed search committee finds Meyer's predecessor. The finance executive has asked not to be considered for the permanent position.
The search committee is being led by Bruce Claflin, AMD’s chairman, who will now serve as executive chairman, assuming additional responsibilities left by Meyer, 49, through the transition.
The board asked Meyer to resign, Claflin said, believing the company has an opportunity to generate significant growth and increase shareholder value over time with new leadership.
“We believe a change in leadership at this time will accelerate the company's ability to accomplish these objectives,” Claflin said.
Meyer, who joined the company in difficult times, according to Claflin, helped to successfully stabilize AMD while simultaneously rolling out strategic initiatives, including the settlement of litigation with Intel (INTC: 21.07, 0.00, 0.00%) and delivery of Fusion APUs to the market.
Seifert joined AMD in 2009, and has more than 20 years of general management, global operations and financial management experience. Prior to joining AMD, the interim CEO served as chief operating officer and chief financial officer of Qimonda AG (QI), where he led the company’s initial public offering.
Claflin said Seifert's experience in operations and finance made him an “excellent choice to guide the company as interim CEO.”
Despite the management swap, AMD said it is entering 2011 with “considerable product and financial momentum.”
Seifert said he believes the company has significant opportunities to cement its leadership positions in several key markets based on the strength of its upcoming products.
AMD expects fourth-quarter revenue to increase 2% from last quarter to $1.65 billion. The Sunnyvale, Calif-based company, which reaffirmed its 2011 annual financial guidance, will release full quarterly results on Jan. 20.
