Symbol Technologies (NYSE:SBL) hired a top executive to run the company several years ago. Unfortunately, yesterday he announced his departure to become the CEO of NCR (NYSE:NCR). He was Symbol's fourth CEO since 2000, and his departure was yet another unsettling sign for shareholders. Symbol's second-quarter earnings report didn't help much, either.

The company posted a net loss of $30.5 million, or $0.12 cents a share, which compares to net income of $28.8 million, or $0.12 cents a share, in the year-ago period. When you subtract certain one-time charges, Symbol actually earned $0.02 cents a share. Unfortunately, revenues fell from $432.8 million to $427.8 million.

The company expects more weakness to come, with projected third-quarter revenue between $425 million and $430 million. That's down from the previous range of $460 million to $470 million.

Despite the results, Symbol does have solid technologies and an extensive customer base. The company develops RFID and other mobile solutions to help other companies manage inventory.

They've chosen an industry that seems poised for growth, especially since Wal-Mart (NYSE:WMT) is requiring its suppliers to use RFID. RFID can also be used to track shipments within the U.S., a handy ability in an age of terrorism fears. However, Symbol isn't the only company pursuing the RFID niche; competition has grown as quickly as demand. In the long term, this may compress margins and inevitably erode pricing power.

Meanwhile, shareholders are losing patience with Symbol. The company's stock price plunged 15.38% to $9.85 on the earnings news. The departure of yet another CEO probably hasn't helped to restore confidence.

However, now that much of the bad news is out, brave investors who believe in the company's strengths might consider buying Symbol's stock. Given the P/E and earnings slowdown, this is certainly not for the faint of heart. I believe any future increase in the stock will likely stem from some "special situation," rather than internal business growth. Of course, special situations aren't something you can rely on.

Given the company's technology assets and customer base, Symbol would be an attractive target for a strategic buyer such as IBM (NYSE:IBM). Alternately, an activist shareholder may see this as an opportunity to buy a stake in the company and agitate for change.

Further RFID Foolishness:

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Fool contributor Tom Taulli does not own shares mentioned in this article.