Mach7 Technologies (ASX:M7T) has signed a 3-year renewal agreement with Penn State Health for its Enterprise Imaging Platform.
Penn State Health is a locally based academic medical centre in central Pennsylvania. The 3-year agreement consists of a Capital Software Licence Fee of A$1.1m which will be recognised as revenue in Q3 FY24 and Maintenance and Support Fees of A$2.0m which will be recognised over the term of the contract (A$0.67M per annum). The agreement provides for minimum annual studies and offers further upside should volume continue to exceed current contract minimums.
“Penn State Health has been a valued customer since 2015 and our longstanding partnership illustrates the success of our ‘land and expand’ strategy with the 3-year renewal agreement representing an almost doubling in annual studies since contract inception,” Mach7 CEO Mike Lampron said.
“The capital licence agreement forms part of a large renewal program in FY24 which has demonstrated our strong customer retention. It also highlights that some customers will continue to choose a capital model despite the broader industry trend towards subscription licences, especially in North America.
“Mach7’s willingness to offer both payment models is a competitive advantage as we continue to expand our footprint across our core markets.”