Healthcare IT and advanced visualization developer Merge Healthcare of Milwaukee fell into the red in the company's first quarter (end-March 31), mostly due to expenses related to its purchase of software developer Amicas of Boston.
For the period, Merge posted sales of $20 million, up 30% compared to sales of $15.3 million in the corresponding quarter of 2009. The company said it is seeing early signs of the market improving after several years of decline, and its improved revenues are an indication of "customer confidence in the company."
Despite the sales growth, Merge posted a net loss in the period of $3.2 million, compared with net income of $2.8 million in the same period of 2009. The company incurred acquisition-related costs of $5.9 million in the most recent quarter, with no such costs in the corresponding period a year ago.
The firm's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the first quarter were $5.6 million, compared with EBITDA of $5.2 million in the first quarter of 2009.
Separately, Merge reported financial results for the first quarter for Amicas, which Merge purchased on April 28. Amicas recorded sales of $29.4 million, a net loss of $1.8 million, and adjusted EBITDA of $7.1 million. The net loss includes acquisition charges of $6.3 million, Merge said.
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