(Adds analyst comments, paragraphs 4-5)
By Duncan Martell
SAN FRANCISCO Dec 11 Advanced Micro Devices
Inc AMD.N Chief Executive Hector Ruiz says he has no plans to
step down as head of the microprocessor maker next year.
AMD has in the past two years struggled with market share
losses to its far larger rival, Intel Corp (INTC.O), in the
market for microprocessors. It is banking much of its
turnaround on its Barcelona processor, which was launched in
September, but has so far been hampered by an inability to ship
as many of the processors as it would like.
Ruiz said in an interview with CNBC Europe to be broadcast
later this week that President and Chief Operating Officer Dirk
Meyer is being groomed to succeed him as CEO.
"Ruiz has to turn the ship around before he can turn over
the helm," said Ashok Kumar, an analyst at CRT Capital Group
LLC. "He and his team need to focus on executing and delivering
what customers and the markets expect."
Caris & Co. analyst Daniel Barenbaum wrote in a Monday note
to clients that disappointing reviews of AMD'S desktop
quad-core microprocessor and a lack of availability of its
higher-speed Barcelona chip confirm that "AMD continues to
struggle with new product cycles."
The interview is scheduled to be broadcast on Thursday at
2300 Central European Time (2200 GMT), the same day that AMD
holds its financial analyst conference in New York, the network
An e-mail including excerpts of the interview was sent to
Reuters on Tuesday and was confirmed as authentic by CNBC.
"We started doing this (the succession planning) four years
ago and I'm delighted that Dirk is a strong player," Ruiz told
CNBC. "When the time comes for me to hand the reins over to
him, it's going to be fantastic."
Asked how soon that would be, Ruiz said, "I can't tell you
that, but it's not any time soon."
Asked whether he would step down in 2008, Ruiz said: "Not
Shares of AMD fell 11 cents to close at $9.07 and shares of
Intel fell 85 cents to $26.93.
Both stocks gave up earlier gains after the Federal Reserve
Bank cut short-term interest rates less than hoped for earlier
on Tuesday to help the U.S. economy withstand tightened credit
and a prolonged housing market slump.
Many on Wall Street had thought the Fed might cut the
federal funds rate by 0.5 percentage point, rather than the
0.25 percentage point cut it made, to 4.25 percent.
(Reporting by Duncan Martell; Editing by Jeffrey Benkoe and