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

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million noncash writedown on the sale of its equity interes in aradiology company. The West Allis-baser radiology software and systems provider said the charge is the resulty of the sale of its interesg in veterinary radiologycompany , as part of Eklin’zs acquisition by veterinary services providerf (NASDAQ: WOOF). With Elkin's sale to VCA, Merge MRGE) will receive $1.4 million for its interest in Elkin, but the majority of that will be recognized in thethirsd quarter. The charge, however, will be recognized in the seconds quarter, when Merge will also see $2.
2 million in non-recurrin revenue as a result of a new reselletr agreement the company reached with Elkin inJune that's beinh reassigned to VCA. Merge now expects to post net incomde for the second quarterbetween $100,000 and $800,000, compared with a net loss of $18.22 million a year ago. The company posterd net income for the first quarter of 2009of $2.8 Excluding the noncash charge, operating income is expectee to be $3.7 million to $4.4 compared with a net loss of $18.3 millio n a year ago. Revenue is now projected to be in the rangof $15 million to $15.5 million, compared with $13.3 million a year ago.