AMD on Lookout for New CEO While Seifert Steps In

Renowned semiconductor company AMD recently announced that the company’s Board of Directors appointed senior vice president and CFO Thomas Seifert, 47, as interim CEO.

The appointment was made after the company’s president, CFO and director, Dirk Meyer, resigned from his post. Though the company maintained in a press release that the resignation is a mutual decision, the industry buzz is that the AMD (News - Alert) chief was forced out of the company.

Seifert, who has asked not to be considered for the permanent CEO position, is expected to maintain his current responsibilities as CFO. Seifert, who is an expert in the fields of general management, global operations and financial management, joined AMD in 2009. He served as COO and CFO of Qimonda (News - Alert) AG, where he led the formation and subsequent IPO of the company. At Infineon AG, Seifert served as senior vice president and general manager in its Wireless Business Group.

In the release, AMD management further announced that the company already launched a CEO-hunt through the formation of a CEO Search Committee. The committee is led by Bruce Claflin, chairman of AMD's board of directors. Claflin, as the executive chairman of the board, is trusted with additional oversight responsibilities during the transition period.

“Dirk became CEO during difficult times. He successfully stabilized AMD while simultaneously concluding strategic initiatives including the launch of GLOBALFOUNDRIES, the successful settlement of our litigation with Intel (News - Alert) and delivering Fusion APUs to the market,” Claflin noted in a statement.

According to the company’s board of directors, the company is braced for substantial growth in the upcoming months and looking for the opportunities to create increased shareholder value over time. The company seemingly believes that a new leadership will be helpful in meeting with these business goals.

“AMD enters 2011 with considerable product and financial momentum. Our roadmap for the year, including our 'Llano' APU and 32nm 'Bulldozer' based processors remain on track. I believe we have significant opportunities to cement our leadership positions in several key market segments based on the strength of our upcoming products,” Seifert said in a statement.

In the release, AMD also announced certain preliminary results for the fourth quarter 2010. Fourth quarter revenue increased 2 percent sequentially to approximately $1.65 billion and gross margin was approximately 45 percent. In addition, the company reaffirmed its 2011 annual financial guidance as disclosed at its Financial Analyst Day last November.

AMD plans to release its final results for the fourth quarter after market close on Thursday, Jan. 20, with a conference call at 2 p.m. PT/5 p.m. ET to provide additional details.

In an important announcement last month, AMD said that starting the first fiscal quarter of 2011, the company will begin accounting for its investment in GLOBALFOUNDRIES, Inc., under the cost method and will no longer recognize any share of GLOBALFOUNDRIES' net income (loss) in its statements of operations. Details regarding this change in accounting treatment will be provided during AMD's earnings conference call to report its financial results for the fiscal quarter and fiscal year ended Dec. 25, scheduled for Jan. 20.