Here's why the Mach7 (ASX:M7T) share price is down 6% today

The Mach7 Technologies Ltd (ASX:M7T) share price is trading lower on Thursday following the release of its half year results…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Mach7 Technologies Ltd (ASX: M7T) share price has come under pressure on Thursday.

In afternoon trade, the enterprise imaging platform provider's shares are down 6.5% to $1.42.

Despite this decline, the Mach7 share price is still up a massive 71% since this time last year.

Why is the Mach7 share price under pressure?

Investors have been selling Mach7 shares today following the release of its half year results.

For the six months ended 31 December, the company reported a 24% increase in sales to $10.9 million. Management notes that this was achieved despite some disruption caused by COVID-19.

Management advised that it has been pleased with the early success of the eUnity (Client Outlook) acquisition and its integration. It notes that it is seeing high demand for the enterprise viewing solution to enable teleradiology in a COVID environment.

Annualised recurring revenue (ARR) stood at $10.2 million at the end of the half. This is up 88% on the prior corresponding period and provides 64% coverage of operating expenses

In respect to earnings, Mach7 reported an operating loss of $1.2 million for the half. This was down from profit of $2.5 million a year earlier. However, this was due to the timing of revenue.

At the end of the period, the company was in a strong financial position with $14.4 million in cash and no debt.

Outlook

The second half has started strongly, with sales momentum accelerating. In fact, the company advised that it has already received $12 million of orders.

As a result, the company anticipates stronger revenue, positive operating earnings, and free cash flow in the second half of the year.

Mach7's CEO, Mike Lampron, commented: "Following a challenging 2020 for new business opportunities I am pleased Mach7 remained focused on our customers and their enterprise imaging needs. The successful integration of eUnity viewing software into our platform is helping us to compete on larger opportunities. We're excited about the momentum in our business and our differentiated enterprise imaging capabilities."

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. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Fallers

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Healius, Light & Wonder, REA Group, and Regis Resources shares are falling today

These shares are ending the week in the red. Let's find out why.

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why ANZ, Brainchip, Light & Wonder, and Pilbara Minerals shares are falling today

These shares are tumbling on Thursday. But why?

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Aurizon, JB Hi-FI, Nuix, and Platinum shares are tumbling today

These shares are falling on hump day. But why?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why HMC Capital, Platinum, Sigma, and Skycity shares are dropping today

These shares are having a tough session on Tuesday. But why?

Read more »

Oil worker using a smartphone in front of an oil rig.
Energy Shares

ASX 200 energy shares plunge on shock OPEC move

ASX 200 energy shares like Woodside and Santos are tumbling on Monday. Let’s find out why.

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Brainchip, Helia Group, Reliance Worldwide, and Westpac shares are dropping today

These shares are starting the week in the red. But why?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Block, Corporate Travel Management, Judo, and Zip shares are sinking today

These shares are missing out on the good times on Friday. But why?

Read more »

Man with a hand on his head looks at a red stock market chart showing a falling share price.
Share Fallers

These were the worst-performing ASX 200 shares in April

These shares were out of form last month. But why?

Read more »