Mach7 Technologies achieves record September quarter cashflow
Mach7 Technologies received $4.7 million in cash from customers during the September quarter.
Data management solutions provider Mach7 Technologies (ASX: M7T) has posted its strongest quarterly result on record which resulted in $1.7 million in positive cashflow for the period.
The record September quarter cashflow boosted the company’s bank balance to $4.3 million.
According to Mach7, the result was underpinned by $4.7 million in cash receipts from customers comprising $1.6 million in recurring support fees and $3.1 million from software and services.
Contributing to the cash receipts was a large payment from Advocate Aurora Health after it purchased Mach7’s platform in July.
Mach7 also noted a recent contract with the Hospital Authority Hong Kong hadn’t been included in the September quarter cash receipts and anticipates this contract will generate further upside in following quarters.
In addition to the cash receipts from customers, Mach7 received $400,000 from the exercise of options, with this cash to be used towards extinguishing a $600,000 debt which matures mid-next month.
At the current rate, Mach7 anticipates it will achieve its 12-month free cashflow break even target which is February next year.
The target was set earlier this year when Mach7 reported it was restructuring the company to reduce overhead and labour costs in order to hit break even cashflow.
Mach7 platform
Mach7’s namesake platform has been developed for the healthcare industry.
The platform enables clinics to use their stored image data to improve patient care, revenue, compliance and physician satisfaction.
Included in the platform is a vendor neutral archive to allow organisations to consolidate storage, simplify access while enhancing data security and control of images.
The platform also comprises a communication workflow engine enabling image data to be routed to locations for interpretation.
Another feature includes a universal zero-footprint clinical image view that patients and physicians can both access and share over the web – regardless of media format.
This feature eliminates the need for CDs.
Other advantages to the software comprise easy image sharing and capturing, quality control, patient and order management, and simple and cost-effective migration to the platform with a Migration Engine feature.
Today’s positive September quarterly results prompted Mach7’s share price to reach $0.785 in early afternoon trade – up 15.44%.