The Mach7 Technologies Ltd (ASX:M7T) share price is zooming higher on Friday after announcing a major new contract win…
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The Mach7 Technologies Ltd (ASX: M7T) share price has stormed higher this morning following the release of an announcement.
In early trade the enterprise imaging platform provider’s shares are up 9% to $1.11.
What did Mach7 announce?
This morning Mach7 announced that it has signed a seven-year contract with Trinity Health for the license and associated support services for its eUnity enterprise viewer. The total value of this contract is A$5.26 million.
Trinity Health is the fifth largest healthcare Integrated Delivery Network (IDN) in the United States and this contract will see Mach7’s eUnity enterprise viewer being installed across multiple facilities within its 92 hospitals located across 22 US states.
It serves approximately 30 million people across these states, employs about 123,000 colleagues, including 6,800 employed physicians and clinicians, and has annual operating revenues of US$18.8 billion and assets of US$30.5 billion.
According to the release, the software deployment will occur in stages as software licenses are ordered by Trinity Health.
Mach7 expects to receive the first software license orders during the current quarter, and the majority of the orders within FY 2021.
Management advised that the associated software license revenue is likely to be recognised very shortly after the order is received, upon the license delivery and software deployment. Whereas support and maintenance fees will commence one year after deployment and will continue for a period of six years.
Mach7’s CEO, Mike Lampron, commented: “Mach7 is delighted to be partnering with Trinity Health, a respected and leading health care provider in the U.S.”
“This is Mach7’s first material contract award since our acquisition of Client Outlook and highlights our investment thesis around the importance of a world-class Enterprise Viewer to an Enterprise Imaging Strategy. This announcement represents a launching point for a larger and more integrated relationship with Trinity involving our vendor neutral archive and diagnostic viewing solutions,” he added.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends MACH7 FPO. The Motley Fool Australia has recommended MACH7 FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.