The Mach7 Technologies Ltd (ASX: M7T) share price is pushing higher on Monday despite the broad market weakness.
At the time of writing, the enterprise imaging platform provider's shares are up 1.5% to 99 cents.
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Why is the Mach7 share price rising?
The catalyst for the rise in the Mach7 share price on Monday has been the announcement of a major new contract win.
According to the release, the company has licensed its eUnity universal viewing solution to Advocate Aurora Health (AAH). It is an integrated healthcare network headquartered in Milwaukee, Wisconsin. AAH is one of the 10 largest not-for-profit integrated health systems in the United States, comprising 28 hospitals, 500 outpatient locations, and 68 Walgreen's clinics across the states of Wisconsin and Illinois.
Contract win
The two parties have signed an initial five-year deal valued at $4.3 million. This includes a software license fee, professional services, and a five-year support term. From this, Mach7 expects to recognise $1.5 million to $1.7 million in FY 2022, with the remainder being recognised evenly from FY 2023 through to FY 2027.
In addition, the contract provides for volume expansion pricing and the ability for AAH to extend the initial term at agreed pricing.
The company notes that AAH currently uses the Mach7 Vendor Neutral Archive (VNA) for storage and image data management. This agreement will extend its product presence at AAH with the Mach7 eUnity Viewer, which will serve as a universal viewer for multiple departments across the AAH network.
Furthermore, the eUnity viewer will be deployed as a full diagnostic viewer and serve a back-up PACS solution for downtime occurrences. This includes planned maintenance and unplanned events.
Mach7's CEO, Mike Lampron, commented: "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 continuation of the strong sales momentum we saw in FY21."
Shareholders will no doubt be pleased with the news, as the Mach7 share price was in dire need of a boost.
Despite today's gain, the Mach7 share price is still down 18.5% since the start of the year.
