Merge posts losses for Q4, FY10, despite strong sales

Merge Healthcare, a health IT interoperability developer, has announced a net loss among for its financial results for the 2010 fiscal year, despite strong net sales for the year and the 2010 fourth quarter.

The Milwaukee-based company reported, based on generally accepted accounting principles (GAAP), that its 2010 net loss was $30.6 million compared with a net income of $300,000 in 2009. However, its net sales for the year were $140.2 million, a major increase over net sales of $66.8 million in 2009.

Revenue grew to $46.17 million in the 2010 fourth quarter, compared with $19.27 million in the fourth quarter of 2009.

The total cost of sales increased substantially for both yearly and quarterly returns. For the 2010 fourth quarter, the total cost of sales was $21.4 million, compared with $6.57 million in the previous year’s fourth quarter. Likewise, the 2010 total cost of sales was $64.56 million compared with $19.38 million in 2009.

Similarly, its annual sales and marketing, product research and development and general and administrative expenses nearly all doubled year-over-year.

Also, Merge partly attributed increase in revenues to the acquisition of Amicas, which occurred in April 2010.

“In 2010, Merge extended our market leadership position and has also made significant investments that position the company to execute effectively in 2011 and beyond,” said Jeff Surges, Merge's CEO.

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