- Medical imaging software specialist Mach7 Technologies (M7T) has revealed a healthy balance sheet to kick off the new financial year after a cashflow-positive June quarter
- After raising $22.9 million from investors and going cashflow-positive by around $3.5 million for the June quarter, Mach7 had just under $49 in the bank at the end of June
- Of course, a big chunk of the cash will go towards the $40.9 million Client Outlook purchase, which Mach7 announced in June
- Over the June quarter, Mach7 said it generated $9.2 million in new sales contracts over the June quarter
- The company has hired an advisory firm to help integrate the Mach7 and Client Outlook tech
- Shares in Mach7 closed 13.22 per cent higher today, worth 98 cents each
Medical imaging software company Mach7 Technologies (M7T) has revealed a healthy balance sheet to kick off the new financial year after a cashflow-positive June quarter.
The company had just under $49 million cash in the bank at the end of June after taking in $6.5 million from customer receipts. With just over $3 million in operating expenses, this means Mach7 went cashflow-positive by roughly $3.5 million for the quarter.
The company said for the full 2020 financial year, it was cashflow positive by $4.5 million. Moreover, the company said it generated $9.2 million of new sales contracts over the June quarter, taking total contact value for annual sales to $19.4 million for the 2020 financial year.
Of course, Mach7’s cash balance was supported by a share placement and entitlement offer which pulled in $22.9 million.
The funds were raised to buy out Canadian company Client Outlook for $40.9 million. Mach7 wanted to get its hands on Client Outlook for the Canadian company’s eUnity enterprise image viewing tech platform.
Essentially, eUnity gives clinicians quick and easy access to high-quality medical images from anywhere in the world and on any device. The clinicians can see the same high-quality images as a radiologist through the eUnity interface, which can be installed on computers, tablets, and mobile phones.
On the other hand, Mach7’s tech is made to streamline the medical imaging process by optimising storage, workflow, patient management, and more throughout a hospital’s full IT ecosystem. As such, the eUnity and Mach7 tech are highly complementary.
Of course, the $40.9 million has not yet been paid; Mach7 plans to make the payment on or before September 30, 2020. Thus, the strong balance sheet will be drained before the end of the quarter, but not without its rewards. Mach7 has already hired an advisory firm to help integrate Client Outlook’s tech with its own tech platform.
Investors seemed impressed with today’s quarterly update, with Mach7 shares closing 13.22 per cent higher at 98 cents each. The company has a $230 million market cap.