The Mach7 Technologies Ltd (ASX: M7T) share price has shot up as much as 22% today after the company released a strong quarterly cash flow report.
Mach7 Technologies is a global provider of enterprise image management systems that allow healthcare enterprises to identify, connect, and share diagnostic image and patient care intelligence where and when needed.
Strong Cash Flow
Mach7 received $4.7 million in cash receipts from customers during the quarter and reported $1.7 million in positive operating cash flows. As at September 30, the company had cash at bank of $4.3 million.
The $4.7 million in cash receipts was made up of $1.6 million in support fees and $3.1 million in software and services receipts. The receipts included a large payment from Advocate Aurora Health following its purchase of the Mach7 platform in July.
Importantly, cash receipts did not include any receipts from Hospital Authority Hong Kong, which will provide further upside in subsequent periods.
The announcement also noted that Mach7 is in the process of completing active software installation and/or data migration projects across 20 of its customers. These projects are expected to generate $2.2 million in services revenue, with the majority expected to be recognised this financial year.
Building Positive Momentum
Today’s strong quarterly result will add further fuel to the company’s positive momentum, with the share price now up more than 250% in just the last 6 months.
Whilst the company may look expensive based on conventional metrics, it is continuing to grow quickly and looks set to reach profitability in the not too distant future. If management can continue to execute on its growth strategy, the Mach7 share price is likely to continue on its upward trajectory.
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At the time of publishing, Luke has no financial interest in any companies mentioned.
