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Lackluster Q4 Results

|Includes: Merge Healthcare Incorporated. (MRGE)

Full Disclusre: I am short the stock.

Last night MRGE released its fourth quarter and full year results. In my opinion, the actual reported results fall well short of a what investors would expect for a stock that trades so rich.

Reported Q4 GAAP revenue = $64.1 million.
Estimated Q4 OIS acquisition contribution = $3.5 million
Estimated Q4 organic GAAP revenue = $60.6 million
Q3 reported revenue (all organic according to managenment) = $60.1 million.
Estimated organic dollar growth from Q3 to Q4 = $0.5 million

Consensus organic revenue expections for Q4 = $64.5 million
Estimated organic reported revenue = $60.6 million
Negative surprise/revenue miss = ($3.9) million.

Q4 GAAP EPS = ($0.01)
Q4 Reported CFO/share = ($0.05)
Q4 Reported FCF/share = ($0.06)

Management continues to emphasize new deals and top line growth, but the company continues to lack the ability to convert these to meaningful GAAP EPS profits and cash flow per share.

Disclosure: I am short OTCPK:MRGE.