M7T sells enterprise image archiving software to hospitals and...

M7T sells enterprise image archiving software to hospitals and medical specialists in US and Asia. The M7T image archiving software integrates with image reading software and broadly falls under what they call Picture Archiving Communication Systems (PACS).

The traditional PACS vender sells a system which includes image archiving, image readers and often some work flow tools with the key distinction being these PACS were closed loop and didn't integrate with other PACS systems. Data was consequently kept in separate silos resulting in data and cost inefficiencies.

The PACS market in the US is changing as newer technologies with open software architecture are taking market share from older more closed loop PACS technologies.

M7T is additionally vender neutral meaning it's image archiving technology will integrate with any image reader and electronic medical records systems.

The technology has developed with radiology departments in mind but has broader hospital and medical practice capability ie cardiology. This changing market leaves M7T will positioned as hospital systems look to consolidate their PACS systems to generate efficiencies and better quality data.

M7T has some 50 clients which generate circa $10 million revenue, of which maybe $7.5 million is recurring support revenue. At less than $30 million market capitalization it trades at circa 3 times revenue and 4 times recurring revenue.

In 2018 M7T announced its biggest ever client win out of Hong Kong ($15 million contract value) which greatly improves the companies viability.

The changing market in PACS leave M7T well positioned to growing their recurring revenue and sell into larger hospital systems in future years. Investors are not paying much for this opportunity in my opinion.