Merge Healthcare Stays a Sell - Analyst Blog
Merge Healthcare Incorporated (
MRGE), based in Milwaukee, Wisconsin is a healthcare software and services company focused on integrating radiology workflow to improve productivity, profitability and patient care by fusing business and clinical workflow, and intelligently managing and distributing diagnostic images and information throughout the healthcare enterprise.
The continued slowdown in the medical imaging sector is negatively impacting the company's sales. The company received a much needed cash injection of $20 million through a private placement in Q208. However, with only two quarters of cash remaining, MRGE will have a very difficult time locating investors in the current economic climate.
In its 2007 annual report, the company received a "going concern" qualification, with which we concur. Since then, the company has replaced its independent auditors. We continue to rate this company a Sell.
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