NEW YORK ( TheStreet) -- Shares of Advanced Micro Devices ( AMD) slumped in extended trades after the Santa Clara, Calif.-based chip maker announced the surprise resignation of Dirk Meyer from its president and CEO posts. Meyer joined AMD in 1995 and was named CEO in 2008. The company said Meyer had resigned by "mutual agreement" with the board but Chairman Bruce Claflin made it clear in his comments that the board wanted new blood at the top.
T he Board believes we have the opportunity to create increased shareholder value over time," said Claflin. "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." Thomas Seifert, currently the company's chief financial officer, was named interim CEO, and the board has formed a search committee to find Meyer's replacement. Seifert has already taken himself out of the running for the position. The stock was last quoted at $8.82, down 4%, on volume of around 535,000, according to Nasdaq.com. Based on a regular session close at $9.19, the shares were down more than 5% over the past 52 weeks. Wall Street is mostly in wait-and-see mode on Advanced Micro, the No. 2 semiconductor manufacturer behind Intel ( INTC), with 22 of the 34 analysts covering the stock at hold.
Advanced Micro also provided a financial outlook for the fourth quarter, saying its revenue rose 2% on a sequential basis to $1.65 billion for the three months ended in December with its gross margin coming in at 45%. The current average estimate of analysts polled by Thomson Reuters is for revenue of $1.62 billion for the December period and a gross margin of 45.4%. In addition, the company reaffirmed a previously disclosed view for fiscal 2011. Wall Street's consensus projection is for Advanced Micro to earn 46 cents a share on revenue of $6.53 billion in the current fiscal year. The company is expected to report its full fourth-quarter results after the closing bell on Jan. 20. -- Written by Michael Baron in New York. >To contact the writer of this article, click here: Michael Baron. >To submit a news tip, send an email to: email@example.com