AMD said Seifert's departure "is not based on any disagreement over the company's accounting principles or practices, or financial statement disclosures."
Seifert will remain with the company until September 28.
Unexpected CFO departures are never well received on the Street, and investors appear to be taking this one especially hard.
This was "a loss for AMD," Jefferies analyst Mark Lipacis wrote in a research note. "We think Seifert played a significant role in improving AMD's balance sheet. During Seifert's tenure as CFO and interim CEO, AMD's net debt position declined from >$2 billion to $440 million. He also provided continuity at AMD as one of the few senior executives whose time at AMD started with the previous CEO. We believe him to be highly regarded by the Street, and view his departure as a loss for the company."
UBS analyst Steven Eliscu adds that in a note of his own that the company continues to face large issues, including "a changing PC processor industry structure and increasing competitiveness," especially as Intel brings on a new generation of 22 nm processors." A CFO shift in the middle of all that only raises the uncertainty at the company, he adds. "While we expect Thomas Seifert’s legacy to be viewed positively, we remain concerned that tight cost control is also limiting AMD’s options for growth and ability to gain competitive advantage, including the development of products using advanced mobile processes – a skill that has taken even Intel years to achieve."
Evercore's Patrick Wang repeats his Underweight rating on the stock, cutting his target price to $3, from $4. He writes that "recent field work" suggests greater headwinds for AMD in the near-term given Intel's aggressive approach and delays to AMD's own new processors. He sees increased risk of another earnings warning. Wang says AMD also continues to face "bloated" microprocessor inventories and terrible PC demand, as well as rising competition from both Intel and ARM-based processors.
AMD this morning is down 29 cents, or 7.2%, to $3.72.
