Merge Healthcare, the Chicago-based provider of clinical systems, has announced that its CEO, Jeffery Surges, has resigned following a disappointing financial performance in its second quarter.
Merge reported that its sales decreased to $57.2 million ($57.6 million on a pro forma basis) in the second quarter of 2013, from $62.9 million ($63.4 million on a pro forma basis) in the second quarter of 2012.
"Speaking on behalf of all of Merge's directors, I want to apologize for the company's very disappointing second quarter results," Michael Ferro, Jr., Merge's chairman of the board and largest shareholder, said in a statement. "We all strongly believe in the company, its products and its employees."
Merge has appointed Justin Dearborn, who joined the company in 2008, as its new CEO. It also promoted Nancy Koenig to chief operating officer. Dearborn has served as CEO, CFO, and most recently as president and CEO of Merge's DNA reporting segment.
"Merge's value proposition continues to be very strong in three distinct market areas: imaging and interoperability, cardiology, and clinical trials," Dearborn said in a statement. "Our spending, on bringing innovative solutions to market, has outpaced our end user markets' readiness for a variety of macro-economic reasons currently clouding hospital spend decision making. We saw a continued reluctance amongst large health systems to move forward with enterprise purchases. Unfortunately, this pause has overshadowed the fourth quarter in a row of very strong bookings and revenue growth from our clinical trials group."