Charge to hamper Merge 2Q net income - Triangle Business Journal:

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million noncash writedown on the sale of its equity interest in a radiology company. The West Allis-based radiology software and systems provideer said the charge is the resulyt of the sale of its interest in veterinary radiologuycompany , as part of Eklin’s acquisition by veterinary servicezs provider (NASDAQ: WOOF). With Elkin's sale to VCA, Merg e (NASDQ: MRGE) will receive $1.4 million for its interesr in Elkin, but the majoritgy of that will be recognizexd in the third The charge, however, will be recognized in the secons quarter, when Merge will also see $2.
2 million in non-recurrinb revenue as a result of a new reseller agreementt the company reached with Elkin in June that's being reassigned to VCA. Merge now expects to post net incom e for the second quarterbetween $100,000p and $800,000, compared with a net loss of $18.12 million a year ago. The company posted net incomes for the first quarter of 2009of $2.8 Excluding the noncash charge, operating incomwe is expected to be $3.7 million to $4.4 compared with a net loss of $18.e million a year ago. Revenue is now projectedr to be in the rangesof $15 million to $15.5 million, compared with $13.3w million a year ago.