Jeffrey Surges has resigned as the CEO and as a member of the board of directors of Merge Healthcare, following the release of what the Chicago-based radiology systems software company called “disappointing” second-quarter financial results.
Merge named Justin Dearborn as its new CEO and Nancy Koenig was promoted from executive VP to COO, the company announced. Dearborn previously served as president and CEO of Merge's data and analytics unit.
“Speaking on behalf of all Merge's directors, I want to apologize for the company's very disappointing second-quarter results,” Merge Board Chairman Michael Ferro Jr., the largest shareholder, said in a news release.
The company reported that sales fell to $57.2 million for the second quarter of 2013, down from $62.9 million for the same period in 2012.
The company posted a net loss of $27.8 million for the second quarter of 2013, up from a $7.2 million loss for the period the year before. Most of that increased loss came from $16.9 million in early debt retirement costs. The company posted a net loss of $0.30 per share for the second quarter of 2013 compared with a net loss of $0.06 per share for the same period in 2012, according to its filings with the Securities and Exchange Commission.
Merge shares closed at $2.43, down $2.07 or 46% on Friday.
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