Merge Technologies had sharply lower revenues and a higher net loss for the third quarter (end-September 30), the Milwaukee company reported today.
For the period, the healthcare technology firm posted sales of $2.3 million, down 25% from revenues of $3.1 million reported in the third quarter of 1999. The company's net loss grew to $2.6 million, compared to a net loss of $1.9 million in the corresponding quarter of 1999. The most recent numbers included a one-time charge of $1.1 million for technology that will be replaced with the company's new Merge WorkFlow platform.
Merge president and CEO Rich Linden said the company had problems executing its new business strategy during the quarter. The company has taken steps to enhance revenue and move the company to profitability in 2001, such as looking for a strategic partner to help it develop the rest of its WorkFlow product line.
Merge has also started discussions with its bank to secure access to additional working capital. Due to lower sales and accounts receivable levels, the company's ability to borrow was limited to $1.2 million of its $3 million line of credit. Merge had $500,000 in cash on hand at the end of the third quarter.
In other Merge news, the company has expanded its product and sales relationship with Philips Medical Systems of the Netherlands to include Merge's ExamWorks+ product. ExamWorks+ allows Philips' Intera MRI scanner to integrate their workflow operations with RIS and PACS networks via the DICOM standard.
By AuntMinnie.com staff writersNovember 9, 2000
Related Reading
Merge names new CEO, September 8, 2000
Merge revenues climb, but net loss widens in Q2, August 3, 2000
Merge inks contract with Philips, July 21, 2000
Merge extends relationship with Hitachi, June 2, 2000
Merge slips into the red in Q1, May 4, 2000
Merge arranges $3 million credit line, May 3, 2000
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