Mach7 Technologies Signs A$4.6M in New Contracts

Mach7 Technologies Limited (ASX: M7T) has announced the signing of four new contracts for its PACS (Picture Archiving and Communication System) solution, along with a new sales order for the Veterans Health Administration’s (VHA) National Teleradiology Program (NTP). These agreements have a combined value of A$4.6 million.

Key Contracts and Agreements:

  1. Adventist Health (US-based health system):
    • Capital Licence Agreements: Four hospitals within the Adventist Health network have signed 5-year agreements, with a Total Contract Value (TCV) of A$2.5 million.
    • PACS Solution: Mach7 will provide its full PACS solution, which includes:
      • eUnity Viewer
      • Vendor Neutral Archive (VNA)
    • Background: Mach7 initially contracted with Adventist Health in April 2020 to supply its eUnity Diagnostic Viewer and Universal Worklist to a single hospital. With these new agreements, Mach7 will now serve almost 30 sites across Adventist Health’s portfolio.
  2. VHA National Teleradiology Program (NTP):
    • Blackford AI Platform: Mach7 has received a new sales order for a 3-year subscription licence for the Blackford AI platform. This is part of the VHA NTP Phase I NextGen PACS program.
    • Potential TCV: The subscription licence has a potential TCV of A$2.1 million, based on a fee per study over the 3-year term.

Impact on Revenue:

  • These new agreements are expected to add A$0.8 million to Contracted Annual Recurring Revenue (CARR) by 31 December 2024.

CEO Comments:

Mach7’s CEO, Mike Lampron, commented on the significance of these agreements:

  • Strength in Complex Environments: Mach7’s ability to serve complex reading environments, whether involving remote workforces or large, multi-site healthcare systems, is highlighted as a key differentiator.
  • Acquisition Growth: Hospital networks are increasingly expanding through acquisition, creating opportunities for Mach7 to replace aging and disparate systems with its integrated solutions.
  • Diverse Product Offering: Clients find value in Mach7’s diverse offerings, whether using individual components or the full tech stack. The integration with third-party solutions, such as Blackford AI, adds further value and sets Mach7 apart as an enterprise solution.

FY25 Guidance:

Mach7 has reaffirmed its FY25 guidance, expecting:

  • CARR and Revenue Growth: A growth range of 15-25%.
  • Operating Expenditure (OPEX): Growth to be less than revenue growth.