The Mach7 Technologies Ltd (ASX: M7T) share price has come under pressure on Thursday.
In afternoon trade, the enterprise imaging platform provider’s shares are down 6.5% to $1.42.
Despite this decline, the Mach7 share price is still up a massive 71% since this time last year.
Why is the Mach7 share price under pressure?
Investors have been selling Mach7 shares today following the release of its half year results.
For the six months ended 31 December, the company reported a 24% increase in sales to $10.9 million. Management notes that this was achieved despite some disruption caused by COVID-19.
Management advised that it has been pleased with the early success of the eUnity (Client Outlook) acquisition and its integration. It notes that it is seeing high demand for the enterprise viewing solution to enable teleradiology in a COVID environment.
Annualised recurring revenue (ARR) stood at $10.2 million at the end of the half. This is up 88% on the prior corresponding period and provides 64% coverage of operating expenses
In respect to earnings, Mach7 reported an operating loss of $1.2 million for the half. This was down from profit of $2.5 million a year earlier. However, this was due to the timing of revenue.
At the end of the period, the company was in a strong financial position with $14.4 million in cash and no debt.
The second half has started strongly, with sales momentum accelerating. In fact, the company advised that it has already received $12 million of orders.
As a result, the company anticipates stronger revenue, positive operating earnings, and free cash flow in the second half of the year.
Mach7’s CEO, Mike Lampron, commented: “Following a challenging 2020 for new business opportunities I am pleased Mach7 remained focused on our customers and their enterprise imaging needs. 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.”