Streamline Health Solutions Inc (NASDAQ:STRM) shares are trading higher by 16% to $0.28 Tuesday morning, rebounding following Monday’s weakness. On Monday, the company revealed its plans to undergo a strategic restructuring aimed at reducing expenses.
What Happened?
As part of a restructuring effort, Streamline Health Solutions has cut their workforce by 24%, resulting in a one-time cost of $0.8 to $1.2 million, to be mostly recognized by the end of fiscal 2023. This move is expected to yield annual cost savings of about $5.8 million.
They also received a termination notice from a legacy client with $4.5 million in annualized revenue, which accelerated their restructuring plans. As a result, Streamline Health Solutions has suspended previous guidance and will provide updates with their fiscal third-quarter 2023 financial results.
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According to data from Benzinga Pro, STRM has a 52-week high of $2.35 and a 52-week low of $0.21.
