The Mach7 Technologies Ltd (ASX: M7T) share price is currently up after its contract win, with a business called Advocate Aurora.
Mach7 is an ASX company that specialises in medical imaging solutions for healthcare providers.
Mach7’s contract win with Advocate Aurora
The company revealed that it has licensed its eUnity universal viewing solution to Advocate Aurora Health (AAH).
This license contract is valued at $4.3 million, which includes a software license fee, professional services and an initial five-year support term. Of this value, Mach7 expects to recognise between $1.5 million to $1.7 million in FY22. The rest is expected to be recognised evenly from FY23 to FY27.
The contract provides for volume expansion pricing and the ability for AAH to extend the initial term at agreed pricing.
AAH currently uses the Mach7 ‘Vendor Neutral Archive’ (VNA) for storage and image data management. This agreement extends Mach7’s product presence at AAH with the Mach7 eUnity Viewer which will serve as a universal viewer for multiple departments across the AAH network.
The eUnity viewer will also be deployed as a full diagnostic viewer, and in conjunction with Mach7’s universal worklist, will serve as a back-up PACS (picture archiving and communication system) solution for downtime occurrences, including planned maintenance and unplanned events.
Management comments
Mach7 CEO Mike Lampron
said: “I am delighted that AAH continues to expand its partnership with Mach7 to execute their enterprise imaging strategy. With the Mach7 VNA already installed, the eUnity viewing solution will give AAH the ability to access and view any image, anywhere, and serves as another great example of the additional value Mach7 can bring to our customers through the acquisition of Client Outlook. This contract is a great start to the new financial year and is a strong continuation of the strong sales momentum we saw in FY21.”
Summary thoughts on the Mach7 share price
The Mach7 share price has dropped around 33% over the last five months. So if you’ve been looking to pick up shares, then this low price could be opportunistic whilst it continues to win contracts.
I don’t know enough about the business to say if today’s price is great value, but if it keeps growing its market share then it could be one of the ASX growth shares to keep an eye on.
