CHICAGO, April 28, 2015 (GLOBE NEWSWIRE) -- Merge Healthcare Incorporated (Nasdaq:MRGE), a leading provider of health information systems for medical imaging, interoperability, and communication, today announced its financial and business results for the first quarter of 2015.
“Merge achieved strong sales momentum in the first quarter of the year in spite of a traditionally slow time of the year and the acquisition of D.R. Systems, Inc. in the quarter. Exclusive of the limited contribution from D.R. Systems, our healthcare segment bookings increased 60% over the first quarter of 2014,” said Justin Dearborn, chief executive officer of Merge Healthcare. “Our sales results were heavily influenced by increased traction in our large hospital system installed base and a few large net new hospital wins. Increased contract volume within our hospital market and cross sell opportunities into our newly acquired D.R. Systems installed base of more than 200 clients give us confidence that we can exceed revenue of $248 million, which aligns with our current covering analysts’ 2015 average revenue estimates.”
Financial Summary:
- GAAP net sales increased 7% to $54.4 million in the first quarter of 2015 compared to $50.9 million in the first quarter of 2014;
- GAAP net income in the first quarter of 2015 was $17.7 million compared to $0.3 million in the first quarter of 2014, primarily due to $16.8 million of net benefits and costs associated with the acquisition of D.R. Systems, the vast majority of which relates to the release of $18.4 million of tax asset valuation reserves in 2015 which reflect additional value unlocked in the corporate tax structure as a result of the acquisition;
- Adjusted net income increased 14% to $4.9 million (or $0.05 per share) in the first quarter of 2015 compared to $4.3 million (or $0.04 per share) in the first quarter of 2014;
- Adjusted EBITDA was $10.5 million in the first quarter of 2015 compared to $10.2 million in the first quarter of 2014; and
- Cash balance increased to $24.8 million as of March 31, 2015, compared to $19.8 million, as of March 31, 2014, an increase of 25%, inclusive of the $13 million spent in February 2015 to acquire D.R. Systems, Inc.
Business Highlights:
- Launched new business, iConnect® Network Services, to support hospitals’ and health systems’ need to connect clinical decision-making, economic outcomes, and patient populations through online ordering, automated prior-authorization, and real-time electronic distribution of exam results to referring healthcare providers;
- Signed 14 enterprise-level imaging deals at a combination of large hospitals and multi-site health systems in the first quarter of 2015;
- Displaced competitive imaging products with Merge solutions at a combination of more than 40 hospitals and health systems in the first quarter of 2015; and
- Increased the number of active trials on eClinicalOS™ to 505 at the end of the first quarter of 2015, or by 62%, compared to 311 active trials at the end of the first quarter of 2014. Increased active customers on the platform to 125 as of the end of the first quarter 2015, or 43%, compared to 87 customers at the end of the first quarter 2014.
Quarter Results:
Results compared to the same quarter in the prior year on a GAAP basis are as follows (in millions, except per share data):
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