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Thursday March 2, 4:16 pm Eastern Time
Company Press Release
Merge Technologies Incorporated Announces Record 1999 Revenues and E-Health Initiatives
MILWAUKEE--(BUSINESS WIRE)--March 2, 2000--Technologies Incorporated (NASDAQ: MRGE - news) today announced record fourth quarter revenue of $4.0 million and a record $13.3 million in revenue for the fiscal year ended December 31, 1999.
Revenue of $4.0 million represents a 79% increase over revenue of $2.2 million for the fourth quarter of 1998, while $13.3 million in revenue for 1999 represents a 38% increase over $9.7 million for 1998.
The net loss for the fourth quarter of 1999 improved to $0.6 million or $0.11 per share from a net loss of $1.0 million or $0.18 per share during the fourth quarter of 1998. On a pro forma basis, excluding charges related to the third quarter acquisition of Interpra Medical Imaging Network, Ltd., the net loss for 1999 was $1.3 million or $0.22 per share, compared to a pro forma net loss of $1.9 million or $0.34 per share for 1998. The loss inclusive of acquisition-related charges for in-process R&D and technology write-offs was $2.9 million or $0.51 per share for the 1999 compared with $1.9 million or $0.34 per share for 1998.
``Top line revenue growth and market share will ultimately determine the leaders in the rapidly expanding E-Health connectivity and applications market, so we invested for growth in the second half of 1999,' according to William Mortimore, President and CEO. ``We developed key strategic alliances, acquired significant technologies, invested strongly in sales and marketing, and strengthened our management team to extend our market penetration and leadership in E-Health connectivity. Every quarter in 1999 was a record for revenue, and we have positioned Merge for accelerated growth in 2000.'
David Noshay, VP Strategic Marketing added, ``While others in E-Health connectivity are concentrating on easier problems such as connecting consumers and physicians to general purpose health information or processing insurance claims, Merge has been solving the tough connectivity problems in the hospital and clinic where electronic patient records are created and the majority of healthcare costs originate. With our installed base, we already touch 20 million of the estimated 25 billion healthcare transactions that take place each year, and already have full system solutions in over 7% of the US hospitals.'
``Merge's target markets increased by more than a factor of ten by the investments and strategic alliances we made in 1999. The Java-based clinical data repository technology we acquired from Interpra adds important E-Health application features to our medical connectivity products, including Internet access to clinical information, direct speech to text dictation, online access to medical reference and clinical guideline information, and improved billing administration. In 2000 we will extend Merge's E-Health connectivity and application reach beyond radiology to the enterprise and referring physicians.'
Mr. Mortimore concluded, ``E-Health has arrived. We've made the investments. Merge's time has come.'
Merge Technologies Incorporated is a global leader in the drive toward an integrated healthcare enterprise. The Company's products integrate the data generated by medical devices into standard medical data communications formats such as DICOM and HL-7, provide clinical workflow integration and produce multimedia electronic reports for distribution in a healthcare enterprise information network. The Company's products have been installed at thousands of healthcare facilities throughout the world.
Except for the historical information herein, the matters discussed in this news release include forward-looking statements that may involve a number of risks and uncertainties. Actual results may vary significantly based on a number of factors, including, but not limited to, risks in product and technology development, market acceptance of new products and continuing product demand, the impact of competitive products and pricing, changing economic conditions and other risk factors detailed in filings with the Securities and Exchange Commission.
FINANCIAL TABLES TO FOLLOW--
MERGE TECHNOLOGIES INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------- --------------------
1999 1998 1999 1998
---- ---- ---- ----
Net Sales $4,013 $2,239 $13,300 $9,669
Cost of goods sold:
Purchased components 1,034 638 3,235 2,603
Amortization of purchased
and developed software 332 262 1,275 816
------ ------ ------- ------
Total cost of goods sold 1,366 900 4,510 3,419
------ ------ ------- ------
Gross profit 2,647 1,339 8,790 6,250
------ ------ ------- ------
Operating costs and expenses:
Sales and marketing 1,617 1,257 5,002 3,961
Product research and
development 671 389 2,108 1,831
General and administrative 667 552 2,147 2,157
Depreciation and amortization 170 164 651 421
Acquired in process
technology and related
software write-off - - 1,641(1) -
------ ------ ------- ------
Total operating costs and
expenses 3,125 2,362 11,549 8,370
------ ------ ------- ------
Operating loss (478) (1,023) (2,759) (2,120)
Interest income, net 1 41 96 222
Other (expense) income 48 (3) (63) 22
------ ------ ------- ------
Loss before income taxes (429) (985) (2,726) (1,876)
Income taxes (169)(2) (32) (173)(2) (44)
------ ------ ------- ------
Net loss $ (598) $(1,017) $(2,899) $(1,920)
====== ====== ======= ======
Accretion of put options 35 - 35 -
------ ------ ------- ------
Income available to
stockholders (633) (1,017) (2,934) (1,920)
Basic and diluted net loss
per share $(0.11) $(0.18) $(0.51) $(0.34)
Shares used to compute basic
and diluted net loss
per share 5,778,250 5,778,216 5,778,225 5,608,255
Pro forma net loss
excluding acquired
in-process technology
and related software
write-off $(633) $(1,017) $(1,293) $(1,920)
====== ====== ======= ======
Pro forma net loss per share $(0.11) $(0.18) $(0.22) $(0.34)
Shares used to compute
pro forma basis and
diluted net loss
per share 5,778,250 5,778,216 5,778,225 5,608,255
(1) Includes one-time charges of: $1,200,000 for the in-process
technology of Interpra Medical Imaging Network, Ltd. that had not
reached technological feasibility as of September 3, 1999, the
date Merge acquired 100% of its voting stock; and the write down
of software capitalized by Merge that was replaced by
technologies acquired in the merger.
(2) Relates primarily to tax assessed by foreign jurisdictions on
royalty payments submitted to the US
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Contact:
Merge Technologies Incorporated, Milwaukee
William C. Mortimore/Colleen M. Doan
414/977-4000 |
