The Mach7 (ASX:M7T) share price slips despite strong IT healthcare outlook

A strong oulook in IT healthcare is failing to lift this imaging platform provider today

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The Mach7 Technologies Ltd (ASX: M7T) share price has struggled this year, but its management points to a solid outlook in its investor presentation announcement on Thursday.

At the time of writing, the Mach7 share price is trading at $1.03, down 0.5% today and 13.7% year-to-date.

Mach7 develops image management and viewing solutions for healthcare providers. Its solutions consolidate imaging data into a single platform, providing clinicians with fast access to diagnostic images with rich features on any browser or device.

falling healthcare asx share price represented by doctor grimacing at x-ray

Image source: Getty Images

Mach7 share price lower despite solid outlook

The investor presentation included outlook commentary for the imaging market and Mach7 business.

Mach7 observed that the "uncertainty and volatility brought on by the pandemic, hugely disruptive for the imaging IT market, is receding". Instead, the new era of remote working has put pressure on imaging IT to remove barriers to streamline remote diagnosis for radiologists.

The company believes the "heightened focus on IT healthcare spend" could drive more opportunities for the enterprise imaging solutions market. Mach7 points out that the return of in-person trade shows will be a tailwind to accelerate purchasing decisions and contract wins.

Mach7 revealed that it had received purchase orders from Trinity Healthcare and Adventist Health as both healthcare providers implement their Mach7 solutions across FY22.

Looking ahead, the company believes its pipeline conversion could accelerate as customers begin to "normalise their staffing levels and assign budgets".

The Mach7 share price so far in 2021

The Mach7 share price started the year strong, climbing ~30% to highs of $1.59. However, its sharp February selloff broadly coincided with the weakness across tech and growth-related sectors.

Its shares were heavily sold off after its February half-year results, with management advising that COVID-19 had caused some disruption to sales and new contracts.

However, its record third-quarter results on 12 April demonstrated a strong bounce back in financial performance. The Mach7 share price jumped 9.2% from $1.26 to $1.375 on the day.

Unfortunately, the bullishness from the quarterly report was short lived, with its shares sliding below $1.26 just a few weeks later.

Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended 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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