Exela Technologies Reports Mixed Financial Results and Explores Spin-off of SubsidiaryFinancial Performance:Exela Technologies, Inc. reported a mixed financial performance for the six months ended June 30, 2024. Total revenue decreased by 7.7% to $504.5 million from $546.6 million in the same period last year. The Information & Transaction Processing Solutions (ITPS) segment saw a 12.1% decline in revenue, while the Healthcare Solutions (HS) and Legal & Loss Prevention Services (LLPS) segments experienced growth of 0.9% and 6.0%, respectively. The net loss before income taxes improved, with a decrease from $71.1 million in the previous year to $47.3 million. The company also reported a net loss reduction of 31.2%, from $76.3 million to $52.5 million year-over-year.Business Development:Exela Technologies continued to evolve its business model, focusing on cloud-enabled platforms...Show More

Exela Technologies Reports Mixed Financial Results and Explores Spin-off of SubsidiaryFinancial Performance:Exela Technologies, Inc. reported a mixed financial performance for the six months ended June 30, 2024. Total revenue decreased by 7.7% to $504.5 million from $546.6 million in the same period last year. The Information & Transaction Processing Solutions (ITPS) segment saw a 12.1% decline in revenue, while the Healthcare Solutions (HS) and Legal & Loss Prevention Services (LLPS) segments experienced growth of 0.9% and 6.0%, respectively. The net loss before income taxes improved, with a decrease from $71.1 million in the previous year to $47.3 million. The company also reported a net loss reduction of 31.2%, from $76.3 million to $52.5 million year-over-year.Business Development:Exela Technologies continued to evolve its business model, focusing on cloud-enabled platforms and reducing capital expenditures while increasing operating expenses. The company completed the sale of its high-speed scanner business for $30.1 million, resulting in a pre-tax gain of $7.2 million. Additionally, Exela's European business merged with CF Acquisition Corp. VIII, with XBP Europe Holdings, Inc. beginning to trade on Nasdaq.Future Plans:Exela announced the potential spin-off of its wholly-owned subsidiary Exela Technologies BPA, LLC, which includes the HS and LLPS segments. The spin-off aims to distribute shares of a holding company owning the BPA Business to Exela's stockholders and warrantholders. However, there is no certainty that the spin-off will be completed, and the company is still evaluating whether it would constitute a 'Fundamental Change' under the Series A Certificate of Designations.