Merge Healthcare announced it will be late again in filing financial statements with the U.S. Securities and Exchange Commission.
The Milwaukee-based company said in a statement it expects to file its 2007 annual report, which was due March 17, by April 1, which is within the permitted 15-day extension period.
Merge, a developer of medical imaging and clinical software applications, had to restate several financial forms over the past few months, which affected final 2007 earnings and is the reason for the most recent delay, the company said.
When it does file the annual report, Merge expects to announce a net loss of $171.3 million on revenue of $59.6 million, compared with a net loss of $258.9 million on revenue of $74.3 million for 2006. The company said it will likely have cash and cash equivalents of $14 million for 2007, compared with $45.9 million by the end of 2006. Intangible asset impairment charges for the year ended Dec. 31, 2007, previously recorded in its third quarter 10-Q, will be $132 million, compared with $224 million in 2006.
This is the latest hurdle for a company that has been slowly spiraling down as it battled a shareholders lawsuit and an investigation by the SEC. The Nasdaq exchange had threatened to delist Merge for not complying with filing deadlines, but a review council is studying that determination.
A January report by Best Independent Research, a Chicago-based consortium of five equity research organizations, recommended Merge as a sell stock and said the company had an unfavorable expected shareholder return. The companys performance reflects the fact that it is a small-cap value stock in the software services industry, with an 84% decline in stock value over the past year, the research organization said in its report.
Merge was trading down almost 10% early this afternoon at approximately 67 cents.
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