Advanced Micro Devices Inc. appointed Ms. Lisa Su as Chief Executive Officer to succeed Rory Read in a push to make AMDs technology more competitive. Shares of the company fell by more than 7% in extended trading.
Mr. Read said in a conference call, which was cited by the Wall Street Journal: “Now is the right time for her to take the reins and continue driving AMD forward.”
According to the companys statement, ex Chief Executive Officer Read, who has been with the company since 2011, will also leave AMDs board of directors, but will remain in the company until the end of 2014 with advisory responsibilities. The transition is to take immediate effect and comes only three years after Mr. Read took over the helm.
The company, which has been long considered a small competitor to Intel on the microprocessor chips market, did not directly reveal why it has made the decision to change its leader right in the eve of its third-quarter earnings report.
Betsy Van Hees, an analyst working in Wedbush, commented on the new Chief Executive Officer appointment for Reuters: “The timing gives pause for concern. Earnings are next week and it would have been a much more succinct package to put it all together for us.”
Chief Executive Officer Read has been putting his efforts into turning the company around during his tenure. AMD has been engaged into rearranging its debt and reducing its expenses through lay-offs, which were headed by Mr. Read. Still, the US-based company continued losing market share in personal-computer processors to the leader in the segment Intel Corp.
As reported by Reuters, Cody Acree, an analyst at Ascendiant Capital said: “Its hard to point to a near-term catalyst. Thats the biggest issue. Every day they get better but its been a glacial change. Su engenders a lot of confidence and that will resonate nicely with investors and with customers.”
Advanced Micro Devices Inc. closed unchanged at $3.28 per share in New York on Wednesday, marking a one-year change of -11.83%. Shares of the company slid as much as 7.3% in extended trading. AMD is valued at $2.52 billion. According to CNN Money, the 22 analysts offering 12-month price forecasts for Advanced Micro Devices Inc. have a median target of $4.00, with a high estimate of $6.00 and a low estimate of $2.50. The median estimate represents a +21.95% increase from the last price of $3.28.
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