Exela Technologies Inc (NASDAQ:XELA) is down 11.5% in a week after announcing its Q2 2021 financial result in which revenue dropped 2.3% QoQ and 4.8% YoY to $293 million. Information and Transaction Processing Solutions revenue declined 10.6% Yoy to $217.3 million due to low volumes because of transition revenue roll off and COVID-19.
The company is optimistic that volumes will return in the segment once the impacts of the pandemic subside. On the other hand, the Healthcare Solutions segment revenue was $56.2 million, a 14.3% YoY increase driven by increased volumes resulting from new customers, existing customers backlog, and new statements of work. The Legal and loss Prevention Services segment increased revenue by 25.9% YoY to 19.5 million.
CEO Ronald Cogburn said the company generated solid margin expansion in Q2 2021, reflecting its commitment to focus on core businesses and bolster operational improvement. He said they are delighted with the accelerated digital solutions growth for the SMB segment, with a massive opportunity for expansion. With a liquidity of $158 million, XELA is worth watching in the coming months.
Market Reaction:
On Monday, XELA stock went down 2.26% at $2.60 with more than 14.08 million shares, compared to its average volume of 69.31 million shares. The stock has moved within a range of $2.5750 – 2.7600 after opening the trade at $2.69.
