Advanced Micro Devices Inc. (AMD:US), the second-largest maker of processors for personal computers, fell the most in almost two months after the company said Chief Financial Officer Thomas Seifert is leaving to seek other opportunities.
Corporate Controller Devinder Kumar was appointed as interim CFO until a replacement can be found, the Sunnyvale, California-based company said in a statement yesterday.
Seifert’s resignation, effective Sept. 28, is the latest disruption at the semiconductor maker, which is struggling to prevent larger rival Intel Corp. (INTC:US) from taking market share and is facing slowing demand in the PC market. His departure adds to growing concern about management’s ability to turn the company around, saidPatrick Wang, an analyst at Evercore Partners Inc. (EVR:US)
“At this point, having the CFO that’s fairly well respected leaving makes you wonder what else is to come,” said Wang, who is based in New York. “It’s increased the risk profile of the stock.”
Seifert filled in as AMD’s interim chief executive officer from January to August last year, following the ouster of former CEO Dirk Meyer and until the appointment of Rory Read to lead the company.
AMD shares (AMD:US) fell 9.7 percent to $3.62 at the close in New York, the biggest decline since July 20.
The stock has lost a third of its value this year as the company has lost market share to Intel and sales have fallen short (AMD:US) of analysts’ estimates. Under Seifert, who won’t receive any severance because he resigned, AMD focused on reducing debt in order to return to profitability.
“Seifert’s departure is not based on any disagreement over the company’s accounting principles or practices, or financial statement disclosures,” AMD said in the statement.
A message left with Seifert’s office seeking comment wasn’t returned.
In July, AMD said third-quarter sales will be down 1 percent, plus or minus 3 percent, from the prior period. At the low end, that prediction indicated revenue of $1.36 billion in the third quarter, compared with the average analyst estimate of $1.41 billion at the time, according to data (AMD:US) compiled by Bloomberg. The company didn’t update its outlook yesterday.
Seifert joined AMD in 2009 from Qimonda AG, a memory-chip business that went bankrupt.
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