Merge reshuffles management, CEO departs and CFO's time is 'limited'

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Merge Technologies announced a series of leadership changes today starting with founder and former CEO Bill Mortimore, who has been serving as its chief strategist and chairman of the board, as the company’s interim CEO. Simultaneously, Mike Dunham, the company's lead independent director, is now assuming the role of chairman of the Board of Directors. These changes follow the resignation of Richard Linden as president, CEO and director. Also, Scott T. Veech will remain in his role as CFO for a "limited period of time," the company said. Meanwhile, Merge is searching for a permanent CEO.  
       
Regarding the company’s unresolved accounting woes — relating to not timely filing its Annual Report on Form 10-K for 2005, and the subsequent threat by NASDAQ that the company could face delisting from the national market — the company has made an appeal for an extension to the end of June to regain compliance. However, the NASDAQ panel that received the appeal has not yet responded as to whether Merge will be granted an extension.   
       
Also, late last month Merge received an informal, nonpublic inquiry from the SEC requesting voluntary production of documents and other information also relating to the revised results of operations for the fiscal quarters ended June 30, 2005 and September 30, 2005, as well as the NASDAQ investigation. Merge announced its intention to cooperate with the SEC.