Mach7 Technologies Secures New Contracts, Adding AU$2.5Mn to Revenue Stream

December 23, 2024 12:28 PM AEDT | By Team Kalkine Media

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Mach7 Technologies Secures New Contracts, Adding AU$2.5Mn to Revenue Stream — Image source: shutterstock

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Highlights

New Agreements: Mach7 signs four new contracts with Adventist Health, valued at AU$2.5 million over five years.

Sales Order: Additional AU$2.1 million sales order for the VHA NextGen PACS program.

Revenue Impact: Contracts are expected to add AU$0.8 million to Contracted Annual Recurring Revenue (CARR) by December 2024.

Mach7 Technologies Limited (ASX:M7T) has announced a significant expansion of its footprint in the healthcare industry, securing four new contracts for its PACS (Picture Archiving and Communication System) solution. The agreements, signed with hospitals associated with Adventist Health, represent a combined Total Contract Value (TCV) of AU$2.5 million over a five-year term. This milestone comes as Mach7 continues to grow its presence across the healthcare sector, providing comprehensive diagnostic imaging solutions.

Adventist Health Partnership Expands

The new contracts with Adventist Health, a non-profit integrated health system, significantly expand the reach of Mach7’s eUnity Viewer and Vendor Neutral Archive (VNA), which form part of its full PACS solution. Adventist Health, which serves over 80 communities across the West Coast of the United States and Hawaii, initially contracted with Mach7 in 2020 to implement its eUnity Diagnostic Viewer and Universal Worklist in a single hospital. With these latest agreements, Mach7 will now provide its full PACS solution to nearly 30 sites within the Adventist Health network, enhancing the diagnostic capabilities of the healthcare system.

VHA Sales Order Boosts Future Growth

In addition to the Adventist Health contracts, Mach7 also announced the receipt of a new sales order for the Blackford AI platform, which is part of the VHA NTP Phase I NextGen PACS program. The order has a potential TCV of AU$2.1 million over three years, based on a fee-per-study model. This order will help Mach7 further strengthen its position in the rapidly growing field of AI-powered healthcare solutions.

Revenue Outlook and Growth Projections

These new contracts are expected to contribute an additional AU$0.8 million to Contracted Annual Recurring Revenue (CARR) by December 2024, further bolstering Mach7’s financial outlook. The company has reaffirmed its guidance for FY25, projecting CARR and revenue growth of 15-25%, with operating expenses expected to grow at a slower rate than revenue. These strong growth projections reflect Mach7’s continued success in securing high-value contracts and expanding its product offerings in the healthcare sector.

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