The Adacel Technologies Limited (ASX: ADA) share price is down 17% to 69 cents today after the air traffic management software business announced that both its CEO, Gary Pearson, and chairman, Peter Landos, will leave the company on March 31 2019.
A double departure is an unusual development for a listed company and given no explanation was provided over the news it's not surprising investors have taken a sell first, ask questions later approach.
Adacel has endured a tough 18 months or so on the back of rising competition and some reportedly lost contracts with it now forecasting fiscal 2019 profit to be 35% to 45% below fiscal 2018, when using accounting methods prior to the adoption of AASB15.
The company is still profitable, pays a dividend, and has a net cash position of $3.14 million as at December 31 2019, therefore it still looks in a reasonable position for investors prepared to do further research into its beaten-down valuation.
