Merge Healthcare collapsing on Q2 miss, CEO resignation

|About: Merge Healthcare Incorporated. (MRGE-OLD)|By:, SA News Editor

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.