News Release For Immediate Release

 

Investor Contact:
Julie Pekarek
Chief Marketing Officer
414.977.4000
ir@merge.com

 

MERGE HEALTHCARE ANNOUNCES THIRD STRAIGHT QUARTER OF PROFITABILITY

Milwaukee, WI, April 30, 2009 – Merge Healthcare Incorporated (NASDAQ: MRGE), a leading medical imaging solutions provider, today announced financial results for the first quarter of 2009.

First Quarter Results:
First quarter net sales of 2009 totaled $15.3 million, compared to $13.7 million in the first quarter of 2008 and $15.1 million in the fourth quarter of 2008.

Operating income in the first quarter of 2009 was $3.5 million, compared to an operating loss of $8.4 million in the first quarter of 2008 and operating income of $3.7 million in the fourth quarter of 2008.

Net income in the first quarter of 2009 was $2.8 million, or $0.05 earnings per basic and diluted share, compared to a net loss of $7.8 million, or $0.23 loss per basic and diluted share, in the first quarter of 2008; and a net income of $1.9 million, or a $0.03 earnings per basic and diluted share, in the fourth quarter of 2008.

In the first quarter of 2009, the cash balance increased by $1.8 million to $19.7 million at March 31, 2009. In addition, net accounts receivable increased by $0.6 million to $13.4 million, while deferred revenue decreased by $2.0 million to $14.8 million at March 31, 2009.

"Merge Healthcare has started 2009 with a solid quarter in a difficult economic environment,” states Justin Dearborn, CEO. We are pleased to deliver a third consecutive quarter of EPS growth, and look forward to discussing the results in more detail on the call later today.”

Click here for financial tables (PDF) >>

Conference Call Information:
Merge will hold a public web cast today at 4:15 p.m. EDT to review financial results for the first quarter of 2009 and to provide an update on business operations and strategy. Immediately following, there will be a question and answer session.

Investors will have the opportunity to listen to the conference call via telephone or over the Internet at Merge Healthcare Web Cast. To access the call, dial 1.800.221.2015 or 706.634.2159. The Conference ID Number to reference is 96808446. A replay via the Internet or telephone will be available shortly after the call at http://www.merge.com/investor/conferencecall.asp.

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Merge Healthcare’s solutions solve mission-critical issues for radiology practices, outpatient imaging centers, hospitals, pharmaceutical companies and device manufacturers worldwide. For additional information, visit www.merge.com.

This news release contains "forward-looking statements," including statements with respect to the financial results the Company currently expects it will report for the first quarter, which are statements related to future, not past, events, and, with respect to such anticipated report of its financial results, are based on the Company’s preliminary review of its operations for such period, and which are unaudited and remain subject to quarter-end and year-end adjustment, as well as potential revision upon completion of our 2009 financial statements and review thereof by our independent registered accounting firm. Forward-looking statements usually describe our expected future business and financial outlook or performance, and often contain words such as “will,” “believes,” “intends,” “anticipates,” “expects,” "plans," "seeks," and similar expressions. Forward-looking statements, by their nature, address matters that are, to varying degrees, uncertain and subject to various known and unknown risks. For us, particular uncertainties and risks that could cause actual results to differ materially from our forward-looking statements include: possible accounting adjustments and revisions to our current preliminary expectations as to the results the Company will report for 2009 financial results; market acceptance and performance of our products and services; the impact of competitive products and pricing; possible delays in the implementation of our managed services offering; the risks and effects of our recent changes in our executive and Board leadership; the risks and effects of our recent securities issues, including the issuance of certain senior secured notes; the past restatement of our financial statements and other actions that may be taken or required as a result of such restatement; our ability to generate sufficient cash from operations to meet future operating, financing and capital requirements, including repayment obligations with respect to our outstanding indebtedness; risks associated with our prior delays in filings with the SEC or our ability to continue to meet the listing requirements of The NASDAQ Stock Market; the costs, risks and effects of various pending legal proceedings and investigations, including the formal investigation being conducted by the Securities and Exchange Commission; and other risk factors detailed in our filings with the Securities and Exchange Commission. These uncertainties and risks may cause our actual future results to be materially different than those expressed in our forward looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made. We undertake no obligation to update such forward-looking statements or any of such risks, uncertainties and other factors.

 

 

Press Contact:
Julie Pekarek, CMO
Merge Healthcare
6737 W. Washington St.
Suite 2250
Milwaukee, WI 53214
414.977.4254
marketing@merge.com