Merge Healthcare Incorporated sales surged to $16.9 million in the 3rd quarter of this year, up nearly 16 percent from sales of $14.6 million in the same quarter in 2008, according to an earnings report on Thursday.

Stronger sales helped compensate for losses: the Milwaukee, Wisc.-based company lost $900,000 in income this quarter, down from the $400,000 profits it reaped this time last year. The losses stemmed mostly from recent acquisitions of IT companies Confirma and etrials. Earnings per diluted share fell three cents from 3rd quarter 2008 to negative two cents per share.

"It was a hard quarter in terms of net income and operating income because of cost of acquisitions, but we expect that to be turned around," Julie Pekarek, a spokesperson for Merge, tells DOTmed News. "In year-to-date our numbers are still very positive."

Year-to-date income rose exponentially to $2.4 million from the $25.6 million in losses Merge suffered up to this period in 2008.

Pekarek expects new purchases etrials and Confirma to start turning a profit in the fourth quarter this year or early 2010.

This time last year, Merge was wrapping up company-wide restructuring after two dismal quarters. The CEO, and several officers had just resigned, and Justin Dearborn stepped in as chief executive in June. Pekarek says Merge would go on to see growth in the fourth quarter that year, the first under Dearborn's leadership.

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