Streamline Health Executes Strategic Restructuring, Provides Corporate Update

• Executing strategic restructuring to reduce operating expenses and drive profitable growth of SaaS business; estimated annualized cost savings of approximately $5.8 million
• Received termination notice from legacy client with a $4.5M annualized revenue run rate
• Benjamin Stilwill appointed Chief Executive Officer
• Tee Green transitioning to Executive Chairman
• Bryant “B.J.” Reeves appointed interim Chief Financial Officer
• Company to host conference call at 9:00AM Eastern Time on October 16, 2023

Atlanta, GA, Oct. 16, 2023 (GLOBE NEWSWIRE) -- Streamline Health Solutions, Inc. (NASDAQ: STRM), a leading provider of solutions that enable healthcare providers to improve financial performance, announced today it is executing a strategic restructuring. The strategic restructuring initiatives are designed to reduce expenses and preserve cash while maintaining the Company’s ability to expand its high-margin SaaS business.

As part of the strategic restructuring initiatives, the Company has implemented a reduction in force of approximately 26 employees (approximately 24% of its workforce). Streamline expects to record a one-time restructuring expense of approximately $0.8 to $1.2 million related to the reduction in force, which includes severance payments and benefits to affected employees. The Company expects the expense associated with the strategic restructuring to be substantially recognized by the end of fiscal 2023. As a result of these strategic restructuring initiatives, the Company expects to realize annualized cost savings of approximately $5.8 million.

The Company also announced the receipt of a termination notice from a legacy client with an effective date of December 31, 2023. At the time of receipt of the termination notice, the Company was recognizing approximately $4.5 million in annualized revenue from the legacy client. As a result of this termination notice, the Company’s management assessed various options and determined to accelerate the implementation of the Company’s planned restructuring initiatives.

The Company is suspending previous guidance related to Booked SaaS ACV and anticipates providing updates on future expectations in conjunction with the release of its fiscal third quarter 2023 financial results.

Management Changes

The Company also announced certain management changes and transitions in connection with the strategic restructuring. Effective October 13, 2023, Benjamin Stilwill has been appointed to the position of Chief Executive Officer of the Company. Mr. Stilwill will succeed Wyche T. “Tee” Green, III as Chief Executive Officer of the Company, with Mr. Green transitioning to the role of Executive Chairman at that time. Following his transition to the role of Executive Chairman, Mr. Green has agreed to forego a salary and will continue to serve as a director and as Chairman of the board of directors of the Company.