Merge posts big revenue gain

Connectivity firm Merge Technologies reported 55% revenue growth in its first quarter as a public company. The Milwaukee-based software developer credited new product sales and an expanded sales force for the strong performance.

For the period (end-March), Merge posted revenues of $2.6 million, compared with $1.7 million in 1997. The company had a net loss of $56,000, compared with a net loss of $45,000 in the same period last year.

In quarterly highlights, Merge shipped two beta units of its CD-based MergeARK archiving offering. The firm also has been granted a patent for CaseWorks, the first product in Merge’s line of Networked Image Management offerings, which the company believes will facilitate the development of electronic patient records. CaseWorks is a radiology work-flow management tool that uses a MergeReader hand-held unit to mark films that should be included in a patient’s EPR. Merge expects CaseWorks to begin shipping in mid-1998.

Since Merge’s debut on the NASDAQ SmallCap Market in January, the company’s stock has seen its share price climb to a high of $7, before falling below its initial public offering price of $6. As of May 4, Merge shares closed at $5.03, down 16.2% from the IPO price.