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Friday, Aug 9
Merge Healthcare collapsing on Q2 miss, CEO resignation
- Merge Healthcare (MRGE -41.8%) is in free-fall, after releasing disappointing Q2 results.
- The company attributes its results to "continued reluctance amongst large health systems to move forward with enterprise purchases."
- Merge also announces the resignation of CEO Jeffery Surges; he will be replaced by Justin Dearborn, who has previously served as Merge's CEO and CFO, and most recently as President and CEO of Merge's DNA unit. (8K)
- Merge is also appointing operations EVP Nancy Koenig to the newly-created position of COO, and giving her Surges' vacated board seat.
- A silver lining: backlog in the clinical trials unit, for which revenue is 100% subscription-based, grew 28.7% Y/Y to $45.7M.