AMD's COO, SVP leaving firm
2/9/2011 11:58 AM EST
SAN JOSE, Calif.--A little less than a month after its top executive abruptly stepped down under pressure from the company's board of directors, two more senior executives at Advanced Micro Devices Inc. have tendered their resignations.
Robert Rivet, AMD's chief operating officer, and Marty Seyer, senior vice president of corporate strategy, are leaving the company, AMD said. Both are expected to stay through a brief interim period.
According to AMD, both executives are leaving the company to pursue new opportunities.
Rivet had been AMD's COO since 2008. From 2000 to 2008, Rivet served as AMD's chief financial officer.
Doug Freedman, an analyst with Gleacher & Co., downplayed the impact of the departures, which he said did not surprise him. Rivet's role in the company had been diminished since the time he served as CFO, Freedman said, and AMD's lost market share in server chips under Seyer's watch left him vulnerable. "It's hard not to think that the heat in the kitchen got to him," Freedman said.
Dean McCarron, principal analyst at Mercury Research, said he believes the departures of Rivet and Seyer are connected with the resignation last month of former President and CEO Dirk Meyer--part of a series of moves by the board of directors to realign AMD. "I really think it's just reflecting that the board of directors is serious about getting AMD's position in the market strengthened," McCarron said.
In a filing with the U.S. Securities and Exchange Commission made Wednesday (Feb. 9), AMD said simply that Rivet will no longer serve as an executive with the company effective Tuesday.
"Having made significant contributions to the company
over the years, Bob is leaving to pursue new opportunities," said a
spokesperson for AMD. "He will remain through a brief interim period to
help ensure a seamless transition."
Seyer joined AMD in 2002 and previously served as general manager of AMD's microprocessor business unit.
"Like Mr. Rivet, Mr. Seyer is also leaving AMD to pursue new opportunities and will stay on for a brief period to ensure a seamless transition," said the AMD spokesperson.
Last month, Meyer abruptly resigned as AMD's president and CEO under pressure from the company's board of directors. Thomas Seifert, AMD's chief financial officer and senior vice president, was appointed interim CEO of AMD.
AMD said John Docherty, senior vice president of manufacturing operations, has assumed responsibility for all aspects of the company's product manufacturing process and will now report directly to Seifert. The company said Docherty is playing a key role overseeing the transition to 32-nm.
AMD said the company's corporate strategy team would now report to Harry Wolin, senior vice president, general counsel and secretary.
AMD recently reported fiscal fourth quarter sales in line with analysts' expectations.
AMD (Sunnyvale, Calif.) reported sales of $1.65 billion, up 2 percent sequentially and flat compared with the year-ago quarter. The company posted a net income of $375 million, or 50 cents per share, compared with a net loss of $118 million in the previous quarter and a net income of $1.18 billion in the year-ago quarter. AMD's fourth quarter 2009 net income was boosted by a $1.25 billion settlement payment from Intel Corp.
On a pro forma basis, excluding charges, AMD reported a net income of $106 million, or 14 cents per share. The pro forma net income excluded a net of tax gain of $236 million, and a pre-tax gain of $283 million, respectively, that the company recognized related to a patent license and legal settlement, AMD said.
AMD's fourth quarter sales were in line with consensus analysts' expectations, according to Yahoo Finance. The company's pro forma net income of 14 cents per share beat analysts' expectations, which called for a pro forma net income of 11 cents per share.
For the full fiscal year, also concluded on Dec. 25, 2010, AMD reported revenue of $6.49 billion, up 22 percent from fiscal 2009. The company posted a net income of $471 million, or 64 cents per share, for the year, up 55 percent from fiscal 2009.