Think Research Corporation (TSX-V:THNK) said it expects to realize $9 million in cost synergies this year as part of its cost optimization program.
The company, which is focused on transforming healthcare through digital health software solutions, said it has formed an internal cost optimization team to review every aspect of its operations to ensure gross margins and operating margins are optimized while revenue growth targets remain unaffected.
"The company made two acquisitions in the last 12 months which significantly increased our growth opportunities, but also our cost base,” Sachin Aggarwal, Think Research CEO said in a statement.
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The company extracted $5.8 million of aggregate annualized cost synergies associated with these acquisitions in the third and fourth quarters of full-year 2021.
Think Research achieved an additional $1.1 million of annualized cost synergies in the first quarter of this year, with the total figure expected to reach $9 million by the end of FY2022.
The company said its operational review includes combining operations to achieve efficiencies and digitalizing manual operations to save time and improve services.
“Shareholders can expect to see Think's future profitability profile enhanced by these measures,” it said.
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