Pan-European networking reseller Damovo has parted company with Pearse Flynn, its chief executive.
Flynn has left "amicably" with immediate effect and will be replaced in the interim by chief financial officer John Samuel. A source said the company has a replacement who will start in September.
Sources have claimed Flynn had been trying to secure additional investment.
Last year Damovo outlined plans to grow by acquisition but put them on hold because of tough market conditions.
Keith Humphreys, analyst at EuroLAN Research, said Flynn is a "mergers and acquisitions type of director", and Damovo's decision to delay acquisition plans may have contributed to the change.
"Damovo probably needs someone to run day-to-day operations while business is slow," he said.
Damovo has had a rough ride since it was spun off from Ericsson Enterprise in September 2001.
It announced over 100 redundancies at the end of last year after the resignation of UK managing director Dave McKeige.
Damovo declined to comment, and Flynn could not be contacted.
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