Healthcare Triangle to cut annual expenses by up to $1.8 million

PLEASANTON - Healthcare Triangle, Inc. (NASDAQ:HCTI), a micro-cap healthcare technology company currently valued at $12.66 million, announced Tuesday a cost optimization initiative aimed at reducing pre-acquisition run-rate expenses by up to $1.8 million annually. The announcement comes as the stock shows strong momentum, posting a 40% gain over the past week according to InvestingPro data.

The digital healthcare company’s plan focuses on realigning operational expenditures with post-acquisition priorities to improve financial performance and support long-term growth across its portfolio. The initiative comes at a crucial time, as the company faces challenges with a negative EBITDA of $4.07 million and a significant revenue decline of 58.9% in the last twelve months.

Key components of the initiative include workforce alignment with revenue-generating priorities, elimination of operational redundancies across acquired entities, implementation of automation and AI to improve productivity, concentration on high-growth segments, and optimization of vendor relationships.

"This plan reflects a disciplined approach to capital allocation as we enter a new phase of growth," said Sujatha Ramesh, Chief Operating Officer, and David Ayanoglou, Chief Financial Officer of HCTI in a joint statement.

The Pleasanton, California-based company provides technology and expertise services to healthcare organizations including hospitals, health systems, payers, and pharmaceutical companies. Healthcare Triangle has achieved HITRUST Risk-based, 2-year certified status for its Cloud and Data Platform.

The cost optimization measures are intended to improve the company’s scalability and EBITDA margins while positioning it to pursue strategic opportunities in digital health services, according to the press release statement. While the company maintains a healthy current ratio of 3.07, indicating strong short-term liquidity, investors seeking deeper insights into HCTI’s financial health metrics and growth potential can access additional analysis through InvestingPro, which offers 13 more exclusive tips about the company’s performance and outlook.

In other recent news, Healthcare Triangle Inc. has launched a new subsidiary, QuantumNexis, focusing on AI-powered healthcare solutions. The subsidiary, introduced in Kuala Lumpur, Malaysia, aims to offer cloud-based software solutions to modernize healthcare applications. This move is expected to create additional revenue streams for the company, as stated by CFO David Ayanoglou. Additionally, Healthcare Triangle has completed the acquisition of Niyama Healthcare and Ezovion Solutions for $5.7 million. This acquisition, facilitated through QuantumNexis, will expand the company’s product offerings in mental health and specialty care.

Healthcare Triangle is also facing potential delisting from the Nasdaq Stock Market due to low stock prices, as per a recent SEC filing. The company is addressing these issues with the Nasdaq Hearings Panel and exploring options to regain compliance. In another development, Healthcare Triangle has switched its accounting firm to SRCO Professional Corporation, ensuring compliance with corporate governance standards. Finally, the company announced the appointment of David Ayanoglou as the new CFO and Sujatha Ramesh as a Director on the Board, both bringing extensive experience to aid in the company’s strategic growth.

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