AMD @ MarketWatch

Jan. 10, 2011, 6:04 p.m. EST

AMD Chief Executive Meyer resigns

Analyst calls exit ‘shocking’; CFO Seifert is named interim CEO

By Benjamin Pimentel, MarketWatch

SAN FRANCISCO (MarketWatch) — Dirk Meyer, chief executive of Advanced Micro Devices, has resigned, the chip giant said Monday.

Shares of AMD dropped more than 4% after hours, erasing the company’s gains in regular trading, as one analyst called Meyer’s exit “shocking.”

Thomas Seifert, current chief financial officer, has been named interim CEO. A search committee, led by Chairman Bruce Claflin, has been created to find a new chief, AMD(AMD 9.19, +0.36, +4.08%) said.

Reuters

AMD’s CEO Dirk Meyer has resigned.

“Dirk became CEO during difficult times,”Claflin said in a statement. “He successfully stabilized AMD while simultaneously concluding strategic initiatives.”

He cited Meyer’s role in launching GlobalFoundries, the new company spun off from AMD's manufacturing operations, the settlement of its legal dispute with rival Intel Corp. (INTC 20.69, +0.03, +0.15%) and the rollout of its new Fusion family of chips.

“However, the Board believes we have the opportunity to create increased shareholder value over time,” Claflin added.

Asked if Meyer’s departure resulted from a disagreement or clash with the company’s board, spokesman Drew Prairie said in a phone interview, “The action wasn’t taken over specific financial, technology or execution issues. The board felt that it was the right decision at the right time.”

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But Wedbush analyst Patrick Wang said Meyer’s departure was “shocking,” given the role he has played in turning the company around.

“It’s an interesting time to see Dirk exit the company, particularly as he helped dig shares out of the $2 neighborhood just two years ago,” he said in an e-mail interview.

“Just over the last few quarters, we’ve seen AMD’s execution really begin to coalesce,” Wang added. “Perhaps we’ll never know exactly why the Board didn’t see the potential in Dirk.”

Meanwhile, AMD also released preliminary results for the fourth quarter, saying revenue rose 2% sequentially to roughly $1.65 billion. Analysts had expected AMD to post sales of $1.62 billion, according to a consensus survey by FactSet Research.

AMD is scheduled to report results on Jan. 20.