Merge to post results below expectations

February 1, 1999

Merge to post results below expectationsDisappointing direct and OEM/VAR sales for Merge Technologies during its fourth quarter will apparently result in financial results below analyst projections. For the period, the Milwaukee, WI-based

Merge to post results below expectations

Disappointing direct and OEM/VAR sales for Merge Technologies during its fourth quarter will apparently result in financial results below analyst projections. For the period, the Milwaukee, WI-based company expects to have revenue between $2 million and $2.3 million, compared with revenue of $2.9 million for the same period last year. Merge believes its net loss will be between 19¢ and 22¢ per share. First Call had expected a profit of 2¢ per share for the quarter.

For the year, Merge expects revenue to be between $9.4 million and $9.7 million, compared with $9.7 million posted in 1997. The firm expects a net loss of 35¢ to 38¢ cents per share, compared with a net loss of 5¢ recorded last year.

Merge's stock closed at a price of $1.25 on January 15, down nearly 80% from its IPO price of $6 in January 1998. The company is reorganizing its sales staff to address its end-user sales difficulties and is redoubling its efforts to improve its OEM/VAR efforts, said president and CEO William Mortimore.

As part of that strategy, the company has signed an agreement with ADAC Laboratories of Milpitas, CA, in which ADAC will expand its distribution of Merge DICOM products.

In other OEM news, GE Medical Systems of Milwaukee, WI, has signed an annual master's license for Merge's MergeCOM-3 software. GE will use the software to convert proprietary image data within its medical imaging products to DICOM 3.0 format.