Advanced Micro Devices, Inc. (NYSE:AMD), the second largest manufacturer of processors for personal computers said that its senior vice president and chief financial officer Thomas Seifert decided to leave the company to look for other opportunities.
The company immediately appointed Devinder Kumar, senior vice president and corporate controller to serve as interim CFO. Seifert will remain with AMD until September 28 to help in the transition process of all his responsibilities to Kumar.
Prior to joining AMD in 2009, Seifert served as COO and CFO of Qimonda AG, a company engaged in marketing and licensing semiconductor intellectual property (IP) worldwide.
Last year, Seifert served as AMD’s interim CEO when the company’s board of directors ousted former CEO Dirk Meyer due to his failure to pursue effective strategies to move the company forward in the smartphone and tablet business. He served as interim CEO for several months until the company hired Rory Read to head the company.
In a statement, the company said Seifert’s resignation was “not based on any disagreement over the company’s accounting principles, or practices or financial stamen disclosures.”
Rory Read, president and CEO of AMD said, “Thomas’ personal commitment to the highest standards of accountability and financial integrity has helped define how AMD does business today.”
Joanne Feeney, analyst from Longbow Research lowered her rating for Advanced Micro Devices, Inc. (NYSE:AMD) from “buy” to “neutral on a research note to investors on Monday due to concerns over declining sales of personal computers. Feeney downgraded AMD’s rating before the announcement of Seifert’s departure on Monday. During the latter part of the day, Feeney commented, “Thomas has been the one that many have trusted to keep operating expenses under control during a difficult time in the economy. I suspect some of the concerns you’re seeing in aftermarket trading reflect concerns about whether that kind of spending discipline will be maintained without his leadership.”
Analysts from Citigroup Inc. (NYSE:C) and UBS AG (NYSE:UBS) previously downgraded their Advanced Micro Devices, Inc. (NYSE:AMD) rating to neutral while analysts from Goldman Sachs upgraded their rating from sell to neutral.
In July, AMD reported a weak financial performance during the second quarter of the current fiscal year. The company suffered 11 percent revenue decline to $1.41 billion due to weak consumer demand on PCs, global economic slowdown, and strong competition with Intel Corporation (Nasdaq:INTC). The company reduced its third quarter sales outlook by 1 percent and projected to achieve $1.36 billion revenue, lower than the $1.41 billion consensus estimate from analysts.
AMD’s stock value went down as much as 11.72 percent then it climbed back to $4.01 per share after hours trading on Monday.