On January 25, Exela Technologies Inc. (XELA) announced a service contract renewal with a leading consulting firm. Consequently, the stock added a good value in the following sessions.
During the regular trading session, XELA stock increased by a huge 32.95% at its close of $0.5500. The stock continued the bullish momentum into the after-hours with a further gain of 7.07%. Therefore, the stock was trading at $0.5889 per share in the after-hours at a heavy volume of 4.74 million shares.
The transactions processing solutions and enterprise information management provider, Exela Technologies Inc. was founded in 2014. Currently, its 184.83 million outstanding shares trade at a market capitalization of $76.46 million.
XELA’s Service Contract Renewal
As per the announcement, the company has renewed its long-standing relationship with a leading consulting firm through contract renewal. Hence, reaffirming a twenty-year-long relationship for a total contract value of more than $35 million.
Moreover, the suite of solutions provided to the customer includes Digital Mailroom (DMR) and XELA’s Intelligent lockers. For the smooth and uninterrupted mail flow, the company deployed its DMR solution during the early days of the pandemic. With this, the company was able to reroute all customer mail to a processing center. Thus, resulting in the smooth electronic mail flow to the customer’s staff. Resultantly, enabling the smooth transition of the customer’s worldwide employee base to remote working. Currently, the customer’s employee base accounts for over 90,000 users.
In addition, the company is also providing the reception and exchange of packages like IT laptop exchanges, flexibly.
Other Developments
On January 21, the company had announced a new relationship with a post-acute healthcare national leader which focuses on home healthcare. Hospice and personal care. Delivery of data aggregation along with reports for driving patients and families’ agile access to personalized high-quality care is part of the initial PCH Global rollout scope.
XELA’s Preliminary Q3 Results
On November 05, the company declared its third-quarter financial results for 2021, which ended on September 30.
According to the results, the company had a revenue of $279.2 million in the third quarter of 2021. Comparatively, the revenue in Q3 of 2020 was $305.3 million, showing a decrease of 8.5% year over year.
Furthermore, EXLA incurred a net loss of $13.2 million in the third quarter of 2021, against $28.3 million in Q3 of 2020.
