The Mach7 Technologies Ltd (ASX: M7T) share price is dropping lower with the market today despite the release of a positive update.
At the time of writing the medical imaging data management solutions provider's shares are down over 3% to 59.5 cents.
What did Mach7 announce?
This morning Mach7 announced the completion of a Picture Archiving and Communication System (PACS) modernisation project for Sentara Healthcare.
The PACS is powered by Mach7's Enterprise Imaging Platform (VNA) and Diagnostic Studio in conjunction with Client Outlook's eUnity diagnostic viewer.
Management notes that this project marks the first cloud-based deployment of the complete Mach7 solution at a customer site.
What is the solution?
The solution is a public cloud deployment which utilises the Microsoft Azure framework, covering more than two million images per year across the Sentara Healthcare network.
As well as storing data for Sentara Healthcare's radiology departments, the Mach7 VNA also stores images and image data for their cardiology departments. This provides a greater degree of infrastructure consolidation and integration.
By going live with the solution, it has triggered a new Mach7 software subscription license that will generate $850,000 of recurring subscription revenue per annum. Approximately 50% of this is additional revenue and 50% is the conversion of a previous annual support and maintenance agreement with Sentara Healthcare.
The company's CEO, Mike Lampron, appeared to be very pleased to achieve this milestone.
He said, "Mach7 is excited to announce the successful go-live of Sentara's PACS Modernization project. Our vendor-neutral solution will give Sentara unparalleled flexibility and cost savings, with a foundation they will be able to build on for years to come. We are confident the joint Mach7-Client Outlook solution will meet the needs of their organisation and we look forward to our continued partnership."
