Company expects revenue of $13M and EBITDA of $6.7M excluding special items
The provider of health IT solutions Merge Healthcare (Nasdaq: MRGE) recently announced its unaudited results for the second quarter ended June 30, 2009.
The Milwaukee, Wis.-based company said in a news release the preliminary results for the quarter were made public for the benefit of its shareholders, other interested investors, and shareholders of etrials Worldwide Inc. (Nasdaq: ETWC) who are considering Merge’s tender offer to acquire all registered shares of etrails Worldwide.
In the announcement, Merge Healthcare included operating results for the quarter, as well as an estimated impact to its financial statement as a result of the sale of Merge’s equity interest in Eklin Medical Systems Inc., which is part of the Elkin’s acquisition by VCA Antech Inc. (Nasdaq: WOOF).
Merge Healthcare will receive approximately $1.4 million for its equity share in Eklin from VCA, the acquirer of Eklin, with the bulk of the proceeds to be received during the third quarter of 2009. The transaction will appear in the company’s second-quarter earnings results as a $3.6 million non-cash write down of its interest in Eklin.
The company will also report $2.2 million of non-recurring revenue for the second quarter as a result of a new value added reseller (VAR) agreement that was assigned to VCA by Eklin as part of VCA’s acquisition in June. The VAR may generate additional income in subsequent quarters, the company said.
Merge Healthcare said preliminary unaudited results is for revenue to reach between $15 million and 15.5 million, compared with $13.3 million posted last year during the same period.
Operating income will total from $3.7 million to $4.4 million, up substantially from an operating loss of $18.3 million for the second quarter of fiscal 2008.
Merge Healthcare expects a net profit range of $0.1 million and $0.8 million, up from last year’s second-quarter loss of $18.2 million. Earnings before interest, taxes, depreciation and amortization (EBITDA, which include the amortization of stock-based compensation) will reach from between $3.1 million to $2.4 million, up from a loss of $14.0 million for the same quarter last year. Excluding the non-cash equity impairment charge of $3.6 million, second-quarter EBITDA is expected to reach between $6.7 million and $6.0 million.
The company stated the results are preliminary and subject to change following review by its independent public accounting firm.
About Merge Healthcare
Merge Healthcare develops software solutions that automate healthcare data and diagnostic workflow to create a more comprehensive electronic record of the patient experience. Every Merge product, ranging from standards-based SDKs to fully integrated clinical applications, is built on decades of technology and expertise in medical software development, delivery and support.
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This newsletter is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Beaconequity.com is a wholly-owned subsidiary of BlueWave Advisors.
While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.
Merge Healthcare says Preliminary Second-quarter Results Show Net Profit
Posted by BeaconEquity.com on Jul 07, 2009 | No comment
Company expects revenue of $13M and EBITDA of $6.7M excluding special items
The Milwaukee, Wis.-based company said in a news release the preliminary results for the quarter were made public for the benefit of its shareholders, other interested investors, and shareholders of etrials Worldwide Inc. (Nasdaq: ETWC) who are considering Merge’s tender offer to acquire all registered shares of etrails Worldwide.
In the announcement, Merge Healthcare included operating results for the quarter, as well as an estimated impact to its financial statement as a result of the sale of Merge’s equity interest in Eklin Medical Systems Inc., which is part of the Elkin’s acquisition by VCA Antech Inc. (Nasdaq: WOOF).
Merge Healthcare will receive approximately $1.4 million for its equity share in Eklin from VCA, the acquirer of Eklin, with the bulk of the proceeds to be received during the third quarter of 2009. The transaction will appear in the company’s second-quarter earnings results as a $3.6 million non-cash write down of its interest in Eklin.
The company will also report $2.2 million of non-recurring revenue for the second quarter as a result of a new value added reseller (VAR) agreement that was assigned to VCA by Eklin as part of VCA’s acquisition in June. The VAR may generate additional income in subsequent quarters, the company said.
Merge Healthcare said preliminary unaudited results is for revenue to reach between $15 million and 15.5 million, compared with $13.3 million posted last year during the same period.
Operating income will total from $3.7 million to $4.4 million, up substantially from an operating loss of $18.3 million for the second quarter of fiscal 2008.
Merge Healthcare expects a net profit range of $0.1 million and $0.8 million, up from last year’s second-quarter loss of $18.2 million. Earnings before interest, taxes, depreciation and amortization (EBITDA, which include the amortization of stock-based compensation) will reach from between $3.1 million to $2.4 million, up from a loss of $14.0 million for the same quarter last year. Excluding the non-cash equity impairment charge of $3.6 million, second-quarter EBITDA is expected to reach between $6.7 million and $6.0 million.
The company stated the results are preliminary and subject to change following review by its independent public accounting firm.
About Merge Healthcare
Merge Healthcare develops software solutions that automate healthcare data and diagnostic workflow to create a more comprehensive electronic record of the patient experience. Every Merge product, ranging from standards-based SDKs to fully integrated clinical applications, is built on decades of technology and expertise in medical software development, delivery and support.
BeaconEquity.com Research Disclosure
DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. BeaconEquity Research nor its affiliates have a beneficial interest in the mentioned company; nor have they received compensation of any kind for any of the companies listed in this communication. The information contained in our report is not an offer to buy or sell securities. We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.
About BeaconEquity.com
BeaconEquity.com is committed to producing the highest-quality insight and analysis of small-cap stocks, emerging technology stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily OTC stocks in the stock market today, which have traditionally been shunned by Wall Street. We have particular expertise with renewable energy stocks, biotech stocks, oil stocks, green energy stocks and internet stocks. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.
Beacon Equity Group Disclaimer
This newsletter is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Beaconequity.com is a wholly-owned subsidiary of BlueWave Advisors.
While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.