Merge sees sliding revenues, widening net losses for Q1

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Merge Healthcare reported a decrease in revenues and an increase in net losses for its 2008 first quarter financial results, which ended March 31.

For the quarter, Merge posted a revenue totaled $13.7 million, compared to $15.9 million in the first quarter, which ended March 31, 2007.

Operating loss for the first quarter was $8.4 million, compared to an operating loss of $10.2 million in the first quarter of 2007, according to the Milwaukee-based Merge.

The company said that contributing to the operating loss for the first quarter of 2008 was a charge of $1.4 million for costs, primarily severance costs, incurred in connection with the reduction in force, which was implemented on Feb. 14, and $300,000 in additional severance costs for the former president of its EMEA business unit, partially offset by $1.1 million in reimbursement from its primary insurance carrier for legal fees incurred in connection with its class action litigation.

The company also said that a restructuring charge of $800,000 in connection with the rightsizing initiative, announced in November 2006, contributed to the operating loss for the first quarter of 2007.

The net loss for the first quarter of 2008 totaled $7.8 million, compared to a net loss of $9.7 million in the first quarter of 2007, Merge said.