Mach7 signs A$3.1M, 3-year renewal with Penn State Health
Mach7 Technologies Limited (ASX:M7T) announces a 3-year renewal agreement with Penn State Health worth A$3.1M.
Revenue from the Capital Software Licence Fee will be recognized in Q3 FY24, and Maintenance and Support Fees will be recognized over the contract term.
The agreement allows for minimum annual studies with potential for increased volume.
CEO Mike Lampron highlights the renewal as evidence of strong customer retention and the success of the "land and expand" strategy.
The renewal indicates some customers prefer a capital model over subscription licenses, especially in North America.
Mach7 Technologies offers both payment models, providing a competitive advantage.
Mach7 Technologies, founded in 2007, provides medical imaging systems and has developed the Mach7 Enterprise Imaging Solution.
The company acquired Client Outlook and the eUnity Enterprise Diagnostic Viewing technology in July 2020.
Mach7 serves over 165 customers in 15 countries, ranging from Integrated Delivery Networks to private radiology practices.
The announcement contains forward-looking statements based on current management beliefs and assumptions.
This announcement is a summary of the company approved ASX announcement on 05/3/2024.