The Mach7 Technologies Ltd (ASX: M7T) share price is on course to finish the week on a high.
In morning trade the medical imaging data management solutions provider's shares have rocketed 15% higher to 91.5 cents.
Why is the Mach7 share price rocketing higher?
Investors have been buying the company's shares following the release of its half year results which revealed stellar profit growth.
For the six months ended December 31, Mach7 reported a 158% increase in revenue over the prior corresponding period to $9.1 million. This was driven by new customer contracts and continued growth in contracted annual recurring revenue (CARR). At the end of the period Mach7's CARR has increased by 21% to $8.8 million.
Also growing quickly was the company's earnings. EBITDA came in at $2.3 million and net profit after tax came in at $0.7 million. This was a 176% and 115% increase, respectively, over the prior corresponding period.
This marks the first profit the company has made, which management believes highlights an inflection point for the company. It also notes that it has generated $2.4 million of positive free cash flows from between March 1 and December 31.
At the end of the period the company had $23.3 million in cash and was debt free. As a result, management believes it is well positioned to take advantage of organic and acquisitive growth opportunities.
Outlook.
No guidance was given for the full year, but management appears confident its growth can continue.
Mach7 Managing Director, Mike Lampron, said: "We are pleased with the business and financial outcomes delivered in the first half. Our strategic focus on efficiently scaling the business and serving core customer markets in the US and Asia is working well for our customers, employees and shareholders. We'll continue to maintain a focus on revenue and profit growth, and generating positive cashflows, building on our success to date."
