Mach7 (ASX:M7T) signs $2.8m contract renewal agreement with Cabell Huntington

• Mach7 Technologies (M7T) signs a contract renewal with Cabell Huntington Hospital in Huntington, West Virginia for a total value of $2.8 million
• The agreement is for a five-year renewal of Cabell’s Enterprise Imaging Platform along with a five-year renewal on support for the eUnity Diagnostic Enterprise Viewer
• This renewal converts the existing capital term licence agreement with Cabell to a five-year subscription-based agreement based on image volume
• According to Mach7, subscription renewals on average have 20 per cent greater overall value than capital licence over the full term
• Shares in Mach7 are up 3.09 per cent, trading at 50 cents at market close

Mach7 Technologies (M7T) has signed a contract renewal with Cabell Huntington Hospital in Huntington, West Virginia for a total value of $2.8 million.

The agreement is for a five-year renewal of Cabell’s Enterprise Imaging Platform along with a five-year renewal on support for the eUnity Diagnostic Enterprise Viewer.

This renewal converts the existing capital term licence agreement with Cabell to a five-year subscription-based agreement based on image volume.

Mach7 CEO Mike Lampron said the continued support from the company’s existing clients is pleasing.

“This long-term commitment shows the value that Mach7 brings to our clients across the
enterprise,” he said.

“The conversion from a capital model to a subscription model further shows a developing
trend that we are seeing in our business model.

“While this has an impact on the current reporting period, the revenue is contracted and will be recognised annually; overtime, showing greater value and revenue consistency on an annual basis.”

The company said the annual recurring revenue value will begin to recognised on a quarterly basis in the first quarter of the next fiscal year.

According to Mach7, subscription renewals on average have 20 per cent greater overall value than capital licence over the full term.

Shares in Mach7 were up 3.09 per cent, trading at 50 cents at market close.