The Mach7 Technologies Ltd (ASX: M7T) share price jumped 11.5% higher on Monday after the company announced record quarterly results.
What's driving the Mach7 share price higher?
The Mach7 share price is surging today after the medical imaging solutions software company announced its highest ever cash receipts.
The company delivered $8.4 million in cash receipts in the third quarter, a significant 98% increase over Q2. The large inflow of cash translated to a positive $3.33 million cash flow from operations.
This represents a significant milestone for the loss-making company, which is on track to deliver a positive free cash flow for the full year.
New sales orders and contracts drive growth
Mach7 revealed that it had signed a number of new contracts and sales orders in the third quarter. This included contracts with large hospital networks including Adventist Health West System, Metro Health, Ambra Health, Hospital Authority of Hong Kong and St Teresa's Hospital (Hong Kong).
The quarterly update also praised its partner resellers that continued to make valuable contributions to sales orders.
Mach7 share price shaking off February half-year results
The Mach7 share price was heavily sold off after its February half-year results. The results could have missed expectations after reporting a 24% increase in sales to $10.9 million. Its management also noted that COVID-19 had caused some disruption to sales and new contracts.
Factors such as the half-year results selloff combined with broader weakness in tech shares saw the Mach 7 share price slump 25% between 18 February and 16 March.
Today's announcement has put the Mach 7 share price back on track and within 10% of its all-time record highs. Its shares have experienced a significant spike in volume on Monday, with 1 million shares traded at the time of writing, compared to its 10-day average of 370,000 shares.
