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athenahealth initiates strategic review to reboot business; shares up 1% premarket

Published 08/01/2017, 08:51 AM
© Reuters.  athenahealth initiates strategic review to reboot business; shares up 1% premarket
ATHN
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  • athenahealth (NASDAQ:ATHN) perks up 1% premarket, albeit on only 5K shares, in response to its announcement that management has started a comprehensive review of its business aimed at cutting costs and driving growth. The company will formalize a plan with input from shareholders and the assistance from a leading consulting firm.
  • The review will encompass all of the company's operations, including sales & marketing, R&D, administration and service as well as its product portfolio and organizational structure.
  • It believes it can achieve $100M in annual cost savings. Additional details will be provided during its Q3 earnings call in October.
  • The board has authorized the creation of the role of President, who will be responsible for the execution of the company's business operations. It is currently searching for a CFO as well who has a track record of operating discipline and value-creating capital allocation.
  • The roles of Chairman and CEO will be separated. A search for an independent chairman is underway as is a search for an additional independent director.
  • Now read: CoStar Group: A Cheaper Zillow?


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