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AMD System Builders Question Meyer's Resignation As CEO

By Zewde Yeraswork
January 11, 2011    4:24 PM ET

Page 2 of 2

"AMD has a lot of untapped potential with system builders," Bach said. "While Intel and Nvidia are asking 'How can we help you sell our product?' AMD waits for us to approach them, and then says 'We won’t help you until you sell a bigger share of our product.' It is an incredible turn-off, and it is an experience I hear echoed by many other system builders, and even distributors.'

Bach indicated that system builders who had dealt with the problem had hoped that replacing an individual, as AMD's board has done with Meyer, would solve the problem, but found that the issue lies deeper within AMD.

"For a time, we thought it was simply a poor sales representative assigned to us," Bach said, "but as we dig deeper we find it is more of a company culture issue within AMD. I have to admit, as unlikely as it is, my first thought is: maybe their new CEO will want to address that."

Others who offered a more approving opinion of Meyer's performance as AMD's CEO were unsettled by Monday's news.

Wedbush analyst Patrick Wang told Marketwatch on Monday that Meyer’s resignation from AMD was “shocking”, touting Meyer's role in turning the company around.

“It’s an interesting time to see Dirk exit the company, particularly as he helped dig shares out of the $2 neighborhood just two years ago,” Wang told Marketwatch.

According to Wang, Meyer's success continued beyond his initial handling of a difficult period for the company, and lasted until his inexplicable dismissal on Monday.

“Just over the last few quarters, we’ve seen AMD’s execution really begin to coalesce,” Wang told Marketwatch. “Perhaps we’ll never know exactly why the Board didn’t see the potential in Dirk.”



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