Mach7 Technologies reports 19% growth in Q3 Sales Order; Share Price Zoomed Up by 4.2%!

  • Apr 24, 2019 AEST
  • Team Kalkine
Mach7 Technologies reports 19% growth in Q3 Sales Order; Share Price Zoomed Up by 4.2%!

Mach7 Technologies Limited (ASX: M7T), is a global provider of enterprise image management systems. These enterprise image management systems allow healthcare enterprises to easily recognize, connect, as well as share diagnostic image and patient care intelligence whenever needed.

On April 24, 2019, Mach7 Technologies Limited released its quarterly update for the period ended 31 March 2019. During the period, there was an increase in the sales order by 19% to $3.1 million.

The company gained two new customers Sampson Regional Medical Center and Loyola University Health System during the quarter. Moreover, from the existing customers, the company procured another five sales order. The significant sales order was from Sentara Healthcare for their PACS modernization project. With the implementation of the PACS product of Sentara, the company would be able to generate another $420,000 annually in the form of recurring revenue. The company expects that Sentara will get fully implemented in the later part of this CY2019.

Based on these sales data, the annual recurring revenue of the company under the CARR has reached $7.6 million, up by 13% during the quarter.

After the end of Q3 FY2019, the company has contracted a new customer, Children’s of Alabama. Through this contract, the sales order value will be in excess of $700,000 and will add another $70,000 annually to the recurring revenue once the implementation gets finalized.

Progress on Hospital Authority Hong Kong (HAHK) Project

A purchase order worth $1.7 million received by the company from HAHK which comprised of software as well as services. It will be a source of revenue for the entire FY2019. Implementation is under progress and has made significant progress. The company expects to receive a further purchase order worth from Hospital Authority Hong Kong before 30 June 2019.

Software Deployments:

The customer implementations are well on progress, and Eric Rice is now fully engaged in the largest implementation projects of the company. Also, Mississippi State University had recently finalized the First Productive Use. At the same time, the company is also making good progress on its twelve active deployments.

Q3 Cash Report

The company during the quarter generated cash receipt worth $3.6 million which was highest during this year driven by HAHK purchase order. During the quarter, the operating payment was around $4.2 million, which comprised of payment made to the partners of M7T, Client Outlook, for viewer software currently being deployed at HAHK. There were also planned restructuring costs during the quarter. Overall, the net cash used in the operating activities was $0.535 million. By the end of Q3 FY2019, the net cash and cash balance of the company was $2.660 million. Even post the restructuring cost, the company reported a positive free cash flow of $650,000 for the month of March 2019.

In the previous six months, the shares of M7T generated a return of 30.56%. M7T closed the day’s trade at A$0.245 (as on 24 April 2019), up by 4.255% as compared to the previous closing price. Mach7 Technologies Limited holds a market capitalization of A$34.74 million and approximately 147.85 million outstanding shares.


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