The CEO of healthcare IT and advanced visualization developer Merge Healthcare has resigned after the company reported disappointing second-quarter financial results.
Merge said that it had accepted the resignation of Jeffrey Surges as CEO. Replacing Surges is Justin Dearborn, who joined Merge in 2008 and has served in various executive positions in the company, including CEO, chief financial officer, and president and CEO of Merge's DNA business unit.
The transition came after the company reported financial results for the second quarter (end-June 30) that included revenues of $57.2 million, down 9% from $62.9 million in revenues for the same period of 2012. The company posted a net loss of $28.1 million, compared with a net loss of $5.9 million in the corresponding quarter last year.
Merge chairman Michael Ferro characterized the results as "very disappointing" and said that the company's spending has outpaced "market readiness" for a variety of macroeconomic reasons that are clouding hospital decisions on spending. He said the interruption has overshadowed Merge's fourth quarter in a row of very strong bookings and revenue growth in its clinical trials group.
In other executive changes, Nancy Koenig has been promoted to chief operating officer from her previous position as executive vice president of operations. Koenig and Dearborn were members of the team who "resurrected" Merge from a period of turmoil five years ago, Ferro noted.
