Healthcare Triangle Announces Cost Reduction Initiatives To Achieve Profitability; Strategic Initiatives Are Expected To Generate An Estimated Annualized Savings Of $3M–$4M In FY24

Author: Benzinga Newsdesk | February 15, 2024 10:18am

Healthcare Triangle, Inc (NASDAQ:HCTI) ("HCTI" or the "Company"), a leader in digital transformation solutions including managed services, cloud enablement, cybersecurity, data analytics, and AI data processing for the healthcare and life sciences industries, today announced that the Company is undertaking a series of strategic initiatives to reduce costs and drive efficiency in order to accelerate its path to profitability.

Thyagarajan Ramachandran, CFO of Healthcare Triangle, said, "We are announcing a comprehensive set of initiatives that are both necessary and decisive. This program will aim to right-size the Company's cost structure, invest in high-potential growth opportunities, realign leadership, and position the business for long-term growth. Implementing these strategic initiatives will allow us to establish a clear path to consistent profitability and sustainable free cash flows."

Company initiatives include:

• Implementation of planned enhancements to the platform portfolio;
• Aligning selling, general and administrative costs ("SG&A") by reducing third-party professional fees and infrastructure costs;
• Streamline the leadership structure to create clearer lines of accountability;
• Adjust go-to-market focus based on current market realities and how our customers want to leverage our platforms;
• Further streamlining the organization to drive process-related efficiencies.
  
   

As a result of the initiatives announced today, the Company expects to:

• Enhance gross margins by blending platform and managed services offerings
  • Cost optimization across business operations

Posted In: HCTI