Mach7 Technologies Limited (ASX:M7T) Signs New Contracts Worth A$4.6M
New Contracts Signed
Mach7 Technologies Limited (ASX:M7T) has secured four new contracts valued at A$4.6 million. The agreements involve five-year capital licence contracts for its full PACS solution with four hospitals under Adventist Health. These contracts, with a combined Total Contract Value (TCV) of A$2.5 million, enable Mach7 to provide its eUnity Viewer and Vendor Neutral Archive (VNA) to nearly 30 facilities within the Adventist Health network.
In addition, Mach7 has received an order for a three-year subscription licence for the Blackford AI platform, collaborating with the Veterans Health Administration (VHA) on their National Teleradiology Program (NTP). This contract has a potential TCV of A$2.1 million, determined by a fee-per-study model. The new contracts are expected to contribute A$0.8 million to Mach7’s Contracted Annual Recurring Revenue (CARR) by 31 December 2024.
Comments from the CEO
Mike Lampron, Chief Executive Officer of Mach7, stated, “These agreements demonstrate Mach7’s strengths in complex reading environments whether this involves remote workforces or healthcare systems with multiple sites. Many of these hospital networks continue to grow through acquisition creating opportunities for Mach7 as aging disparate solutions are replaced.” He also highlighted the importance of their diverse product offering and integration capabilities with third-party solutions like Blackford AI.
Future Outlook
Mach7 has reaffirmed its guidance for FY25, projecting a CARR and revenue growth of 15-25%, while aiming to maintain operational expenditure growth below revenue growth.
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Mach7 Technologies. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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