Thanks in part to contributions from its relationship with veterinary imaging firm Eklin Medical Systems, healthcare IT and advanced visualization developer Merge Healthcare expects to report revenue gains in the second quarter of 2008.
In a preliminary earnings announcement Monday, the Milwaukee-based company said it expects revenue ranging from $15 million to $15.5 million, up from $13.3 million in the second quarter of 2008. Merge said it also expects to have net income ranging from $100,000 to $800,000, compared with a net loss of $18.2 million a year ago. The estimated results include Merge's estimate of the financial effect of the sale of its equity interest in Eklin, which was recently bought by VCA Antech.
Merge is slated to receive $1.4 million for its stake in Eklin, the majority of which will be collected in the third quarter of 2009. The transaction will result in a second-quarter $3.6 million noncash write-down of the equity interest, according to the firm.
Merge executed a new value-added reseller agreement with Eklin in June, an agreement that was assigned to VCA as part of the acquisition. As a result, the new value-added reseller agreement is expected to generate $2.2 million of nonrecurring revenue in the company's second quarter, and it may generate additional revenue in subsequent periods, Merge said.
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