Healthcare Business News

Merge Healthcare sees losses narrowing despite lower sales

By John N. Frank
Posted: July 30, 2014 - 12:30 pm ET

Merge Healthcare, a developer of imaging and interoperability software systems, reported a net loss of $4 million in the second quarter, a marked improvement from a $28.1 million loss in the same quarter last year.

The Chicago-based software company saw net sales fall to $53.8 million in the second quarter compared with $57.2 million in the same period last year.

“I am proud to announce that for the third quarter in a row, Merge realized consistent, forward momentum in our financial results. Revenue and adjusted EBITDA continued to grow. In addition, our cardiology business achieved its highest sales quarter ever," said Justin Dearborn, Merge CEO.

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Merge's orders grew to $54.6 million, a 12% increase from the second quarter of 2013. Among other business highlights for the quarter, Merge reported an all-time quarterly record for cardiology bookings, including seven net new customers. It also launched iConnect Retinal Screening, cloud-based software for early screening and detection of diabetic retinal disease.

Merge has been in rebuilding mode since a number of setbacks hit the company during the past year. In an upper management shakeup last August, both its board chairman, Michael Ferro Jr., and its CEO and fellow board member, Jeffrey Surges, resigned.

In January, Merge reported it reduced by $15 million its backlog of orders, alleging an employee had falsified business contracts with customers.

Follow John N. Frank on Twitter: @MHJFrank

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