CEO Change, Apology Follow Bad Quarter for Merge Healthcare
Former Merge Healthcare CEO Justin Dearborn is back at the helm as Jeffery Surges resigned as CEO and a director following poor financial results from the second quarter of 2013.
Former Merge Healthcare CEO Justin Dearborn is back at the helm as Jeffery Surges resigned as CEO and a director following poor financial results from the second quarter of 2013.
“Speaking on behalf of all of Merge’s directors, I want to apologize for the company’s very disappointing second quarter results,” Board of Directors Chair Michael Ferro, Jr., said in a statement. “Our new leaders, Justin Dearborn and Nancy Koenig, resurrected Merge five years ago and they are the right team to get the company back on track. I personally plan to continue to invest in Merge, whether in response to opportunities in the market or otherwise.” Ferro is the vendor’s largest shareholder.
Along with bringing back Dearborn, the board promoted Nancy Koenig from executive vice president of operations to COO. The company’s stock price fell 32 percent on August 9 in extremely heavy trading, but rose 3.3 percent, to $2.51 per share, in late morning trading on August 12.
Dearborn, who most recently served as leader of Merge’s DNA reporting unit, said the company’s spending on innovative products has outpaced end user market readiness, with large provider organizations reluctant to do enterprise purchases. Revenue for Merge in the second quarter totaled $57.2 million, down from $62.9 million during the same period in 2012 and missing analyst expectations of $65.5 million. A net loss of $28.1 million, compared with a $5.9 million loss in the second quarter of 2012, translated to a 30-cent net loss per diluted share, compared with losing 6 cents a year ago.
“Speaking on behalf of all of Merge’s directors, I want to apologize for the company’s very disappointing second quarter results,” Board of Directors Chair Michael Ferro, Jr., said in a statement. “Our new leaders, Justin Dearborn and Nancy Koenig, resurrected Merge five years ago and they are the right team to get the company back on track. I personally plan to continue to invest in Merge, whether in response to opportunities in the market or otherwise.” Ferro is the vendor’s largest shareholder.
Along with bringing back Dearborn, the board promoted Nancy Koenig from executive vice president of operations to COO. The company’s stock price fell 32 percent on August 9 in extremely heavy trading, but rose 3.3 percent, to $2.51 per share, in late morning trading on August 12.
Dearborn, who most recently served as leader of Merge’s DNA reporting unit, said the company’s spending on innovative products has outpaced end user market readiness, with large provider organizations reluctant to do enterprise purchases. Revenue for Merge in the second quarter totaled $57.2 million, down from $62.9 million during the same period in 2012 and missing analyst expectations of $65.5 million. A net loss of $28.1 million, compared with a $5.9 million loss in the second quarter of 2012, translated to a 30-cent net loss per diluted share, compared with losing 6 cents a year ago.
More for you
Loading data for hdm_tax_topic #better-outcomes...