However,Cyan Asset Management’s Dean Fergie,who decided not to invest in Nuix due to concerns about the company’s opaque business model,said some heads had to roll.
“You’ve got a lot of people upset and someone has got to go,” he said. “I would think the CEO and CFO’s days are numbered.”
Nuix,which has apologised for its poor performance,announced a board revamp andsevered ties with former chairman Tony Castagna,has lowered its revenue forecasts again and said it is relying on cost cutting to maintain its earnings guidance.
Nuix shares dropped as much as 20 per cent on Monday and closed 18 per cent lower at $2.77,valuing the group at $880 million. The stock has now declined more than 76 per cent from a record high of $11.86 in January.
The company was recently the subject of a joint investigation byThe Sydney Morning Herald,The Age andThe Australian Financial Review thatrevealed questions about the company’s governance and financial accounts in the years before it floated.