Exela Technologies, Inc. (XELA), a company providing transaction processing solutions, enterprise information management, document management, and digital business process services, has soared 6.17% in aftermarket trading sessions. Consequently, XELA was trading at $2.41 at the time of writing. On Monday, XELA closed the day at $2.27 after surging 51.33% in regular trading hours. The continuous surge is due to the company’s new DMR relationship with one of the largest franchisors in the world.
XELA new DMR relationship
On 25th October, XELA announced that the company’s Digital Mailroom (DMR) solution would fully enable the remote employees working at home and in field offices to access the data securely and quickly at one of the largest franchisors in the world. First, Exela would deploy the DMR for the remote workers who are stationed near the headquarters. This phase one part is then hoped to expand to the other personnel working in their home offices. In the end, all the field offices would be able to gain access to digital mail. Commenting on the development, Suresh Yannamani, President of Exela Technologies, said that the ever-evolving hybrid work environment has been a catalyst to the company’s DMR solution. Its demand continues to rise across both enterprise and SMB customers.
Q2 2021 financials highlights
On 10th August, XELA reported the financial results for the second quarter of the fiscal year 2021, which ended on 30th June. The company had cash and cash equivalents of $45.86 million on 30th June. The total assets in possession of the company at the time were $1.09 billion, while total liabilities were $2.03 billion. The company generated total revenue of $293 million during the period against $307.72 million for the same period of 2020. The operating profit for the period was $25.37 million against the operating loss of $5.07 million for the same period of 2020. The cost of revenue for the three months was $209 million against $241.78 million for the same period of 2020. The net loss bore by the company for the quarter was $19.37 million against $48.69 million for the same period of 2020. The net loss per basic and diluted share for the three months was $0.33 against $1.01 for the same period of 2020.
Future for XELA stock
XELA has declined more than 10% during the last three months. The estimates, however, reveal a glimmer of hope for the stock in coming times. Potential investors should keep a close eye on fluctuations of XELA stock in the near future.