Mach7 (ASX:M7T) share price edges higher after positive update

The Mach7 Technologies Ltd (ASX: M7T) share price is rising today despite announcing a contract win. Here’s what the company announced.

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The Mach7 Technologies Ltd (ASX: M7T) share price is starting to rise today after announcing a contract win.

During the early afternoon trade, the enterprise imaging platform provider’s shares are up 0.43% to $1.16 apiece.

Another win for Mach7

Investors seem to be warming on Mach7 shares after the company’s latest positive update to the ASX.

According to its release, Mach7 advised it has signed a statement of work with the University of Vermont Medical Centre (UVM).

Based in the northern New York region, UVM is a not-for-profit academic teaching hospital providing tertiary-level inpatient and outpatient services. The medical centre caters to over 1 million people over 144 patient care sites across Vermont and New York locations.

The Software-as-a-Service (SaaS) deal will see Mach7 licence its eUnity diagnostic viewing technology to UVM for a 5-year subscription period.

Previously, UVM purchased the licence to the Mach7 Enterprise Imaging Platform (EIP) in 2017. Since that time, the EIP has become a central part of UVM’s imaging ecosystem.

The EIP allows images to be securely shared across private and public healthcare providers. This relates to the receiving, transfer, storage, and viewing from authorised users.

Mach7 highlighted that it was selected because of its existing relationship with UVM, as well as meeting its requirements.

The subscription purchase to eUnity over the life of the contract is valued at $730,000. A potential upside is on the table should minimum annual imaging procedure volumes be exceeded.

Notably, this brings Mach7’s total year-to-date sales up to $25 million, which is 92% above FY20’s performance. Only 12% of its 130 customers are using both its data management platform and eUnity viewing solution. This gives the company an opportunity to hone in on multi-solution customers with crossing-sales incentives.

Management commentary

Mach7 CEO and managing director, Mike Lampron hailed the expanded relationship, saying:

The potent combination of Mach7’s enterprise data management solution and eUnity will suit UVM’s data management, workflow and enterprise diagnostic viewing needs now and adapt as their needs evolve.

This is another great example of how the Mach7 enterprise data management solution and the eUnity enterprise diagnostic viewer (recently acquired from Client Outlook) can provide large healthcare providers with a fully integrated, end-to-end, enterprise image management solution.

Mach7 share price review

In the past year, investors have ridden Mach7 shares on an upward trajectory to post a gain of around 110%. During February 2021, the March 7 share price reached a multi-year high of $1.59, before profit-taking swooped in.

Based on today’s price, Mach7 has a market capitalisation of roughly $268 million, with approximately 235 million shares on issue.

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Aaron Teboneras 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.

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