Here’s why the Mach7 (ASX:M7T) share price is down 6% today

The Mach7 Technologies Ltd (ASX:M7T) share price is trading lower on Thursday following the release of its half year results…

| More on:
asx share price falling represented by graph of paper plane trending down

Image Source: Getty Images

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.

Outlook

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.”

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends MACH7 FPO. The Motley Fool Australia has recommended MACH7 FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Fallers