The Mach7 Technologies Ltd (ASX: M7T) share price is off to the races on this first day of trading in 2023.
Shares in the ASX listed medical imaging systems provider leapt more than 20% on open and are currently up 18.4% in morning trade.
Here's what's piquing ASX investor interest today.
What did the company report?
The Mach7 share price is rocketing after the company announced it has inked a multi-year deal with a Total Contract Value (TCV) of approximately $16.7 million.
The signed sales order comes from a new customer, Akumin Inc, a NASDAQ listed outpatient radiology service provider with a large footprint amongst United States' hospitals, health systems and physician groups.
The contract involves Mach7's entire Enterprise Imaging Platform including its Vendor Neutral Archive (VNA), eUnity Diagnostic Viewer and Workflow Applications. Mach7 said this will enable it to provide true cloud-based, enterprise-wide imaging and informatics solutions.
Payments for the $16.7 million 10-year capital contract will be staged annually across the life of the contract. $7.5 million of revenue is expected to be recognised in the 2023 financial year. Annual support fees are weighted to the second half of the contract term.
Commenting on the largest customer contract in the company's history, which is helping send the Mach7 share price sharply higher, CEO Mike Lampron said:
Our vendor agnostic easily integrated product suite and migration services were key requirements for the massive data ingestion and consolidation associated with Akumin's cloud-focused radiology ecosystem.
This deal together with the recent sales order received from our new partner, Nuvodia increases our exposure to the fast-growing outpatient radiology market and demonstrates that our technology appeals to customers across the size spectrum.
Mach7 share price snapshot
The Mach7 share price went backwards in 2022, as you can see in the chart below. But longer-term investors are unlikely to be complaining, with shares up 211% over the past five years. For some context, the All Ordinaries Index (ASX: XAO) has gained 15% over that same period.
