Merge gets knocked into red due to Amicas purchase in Q2
Merge Healthcare has reported a drop to net losses for its financial results in the second quarter of 2010, mainly due to $5.9 million in costs from its acquisition of Amicas. Despite the losses, the company posted high double-digit sales increase in the 2010 second quarter, which ended June 30.
Revenue grew to $29 million in the quarter—an 88 percent increase compared with $15.4 million in the second quarter of 2009, according to the Milwaukee-based company.
Yet, Merge posted a net loss of $30.9 million, compared with net income of $446,000 in the second quarter of 2009. Due to the Amicas acquisition, its operating and net income in the second quarter of 2010 include acquisition-related and restructuring costs of $5.9 million, compared with $300,000 in the second quarter of 2009.
The second quarter results include certain ongoing costs from employees who are transitioning as part of its reorganization that occurred concurrent with the acquisition of Amicas. However, Merge said these costs, as well as any related restructuring activities, are anticipated to be fully incurred by the end of the third fiscal quarter of 2010.
Revenue grew to $29 million in the quarter—an 88 percent increase compared with $15.4 million in the second quarter of 2009, according to the Milwaukee-based company.
Yet, Merge posted a net loss of $30.9 million, compared with net income of $446,000 in the second quarter of 2009. Due to the Amicas acquisition, its operating and net income in the second quarter of 2010 include acquisition-related and restructuring costs of $5.9 million, compared with $300,000 in the second quarter of 2009.
The second quarter results include certain ongoing costs from employees who are transitioning as part of its reorganization that occurred concurrent with the acquisition of Amicas. However, Merge said these costs, as well as any related restructuring activities, are anticipated to be fully incurred by the end of the third fiscal quarter of 2010.