- Mach7 Technologies (M7T) has seen a rise in its share price today after releasing its half-year results for the period ending December 31, 2019
- Mach7 has developed award-winning medical imaging solutions for health care providers
- Its EBITDA grew a significant 176 per cent to $2.3 million, while NPAT grew by 115 per cent to $700,000
- Mach7 achieved over $9 million of revenue which is a 158 per cent growth
- A contributing factor was signing $9.4 million worth of customer contracts
- The company is well capitalised with $23.3 million in cash and is proudly debt free
- Moving forward, Mach7 will focus on growing its sales pipeline and other opportunities
- Mach7 is up a healthy 12.6 per cent with shares trading for 89.5 cents each
Mach7 Technologies (M7T) has seen a rise in its share price today after releasing its half-year results for the period ended December 31, 2019.
Mach7 specialises in medical imaging data management solutions for health care providers to accurately and efficiently improve patient outcomes.
The company reported delivering its first positive earnings before interest, taxes, depreciation and amortisation (EBITDA) and net profit after tax (NPAT). EBITDA grew a significant 176 per cent (or $5.2 million) to $2.3 million, while NPAT grew 115 per cent to $700,000 million.
These profits are considered to be a turning point for the size and scale of the business, with revenue growth of 158 per cent and growth in expenses of just 10 per cent.
For the half year period, Mach7 achieved $9.1 million of revenue which is a 158 per cent growth, or $5.6 million. A contributing factor was the signing of $9.4 million worth of customer contracts.
The first half revenue doesn’t, however, include any sizeable revenues from its contract with the Hospital Authority of Hong Kong. This multi-million dollar deal was struck in 2018 and includes the provision of its award-winning imaging solution for an initial five-year period.
New sales orders signed this financial year have increased Mach7’s order book of contracted annual recurring revenue (CARR) by 21 per cent to $8.8 million.
Its sales pipeline is growing steadily. A total of 46 new opportunities, valued at over $40 million was added during the H1 FY20 period.
Mach7 submitted nine request for proposals (RFPs), valued at $32.5 million. These RFPs include the company’s imaging platform and its PACS replacement product held in a partnership with Client Outlook.
These are expected to be awarded this year.
From March to December 31 2019, the company reported $2.4 million of positive free cash flows and is still cash flow positive.
Currently, Mach7 has $23.3 million in cash, is debt free and therefore, well positioned to grow and and pursue opportunities.
Considering this, and its $20 million raise completed in December, Mach7 will accelerate its commercial growth strategy within the enterprise imaging market.
This market is valued at roughly US$1 billion (approx. A$1.5 billion) and, as an award-winning company for its technology, hopes to be at the forefront of this market.
“Our strategic focus on efficiently scaling the business and serving core customer markets in the US and Asia is working well for our customers, employees and shareholders,” Managing Director Mike Lampron said.
In addition, Mach7 and Client Outlook will enter the PACS (picture archiving and communication system) department. This is valued at US$3 billion (approx. A$4.5 billion).
“We’ll continue to maintain a focus on revenue and profit growth, and generating positive cashflows, building on our success to date,” Mike added.
Mach7 is up a healthy 12.6 per cent with shares trading for 89.5 cents each at 1:32 pm AEDT.