- Mach7 Technologies (M7T) has reported a 24 per cent growth to $10.9 million in sales orders for the second half of 2020
- Mach7 develops data management solutions to improve patient outcomes
- While overall revenue decreased by 22 per cent to $7.1 million, the Client Outlook acquisition in June last year contributed $2.7 million in revenue
- Positively, recurring revenue grew by 88 per cent to $5.1 million, and revenue is expected to grow in the current period due to the recent contracts with Trinity Health and Adventis
- Additionally, since rebranding and relaunching its website in November, Mach7’s user traffic and page views have increased by 53 and 79 per cent, respectively
- At the end of the period, Mach7 had $14.4 million in cash and no debt
- Company shares are down 3.29 per cent and are trading at $1.47
Mach7 Technologies (M7T) has reported a 24 per cent growth in sales orders to $10.9 million for the second half of 2020.
Mach7 develops and provides data management solutions that create a clear view of a patient to inform diagnosis, reduce care delivery delays and costs, and improve overall patients outcomes.
In June, the company acquired Canadian company, Client Outlook for just under $41 million. Client Outlook owns the eUnity medical imaging software platform.
“The successful integration of eUnity viewing software into our platform is helping us to compete on larger opportunities. We’re excited about the momentum in our business and our differentiated enterprise imaging capabilities,” CEO Mike Lampron said.
It seems the acquisition delivered early success with a revenue contribution of $2.7 million for the period.
However, overall revenue decreased by 22 per cent to $7.1 million and was impacted by the timing of sales orders. However, recurring revenue grew by 88 per cent to $5.1 million and the annualised run rate of recurring revenue covers 64 per cent of operating expenses.
The recent Trinity Health and Adventist contracts will be a positive contribution to revenue for the half-year ending June 30 2021.
Mach7 signed a seven-year $5.26 million contract with Trinity in November last year. Through the contract, Mach7 will supply the licence for the eUnity diagnostic enterprise viewer and associated support services.
The $7.9 million contract with Adventist was signed last month and will see Mach7 roll-out its suite of picture archive communication systems in 22 hospitals across the U.S.
The medical imaging software company reported an earnings before interest, taxes, depreciation and amortisation loss of $1.2 million however this result was expected.
In terms of its market presence, Mach7 rebranded and relaunched its website in November last year. Since then, user traffic has increased by 53 per cent and page views have increased by 79 per cent when compared to the first half of 2020.
The company also saw a 36 per cent increase in social media followers which it credits to its marketing team producing new content.
At the end of the period, Mach7 has $14.4 million in cash and no debt.
Company shares are down 3.29 per cent and are trading at $1.47 at 12:04 pm AEDT.