Alliance Imaging Chairman Zehner resigns in wake of 3Q net loss

A series of charges produced a net loss for medical imaging services provider Alliance Imaging Inc. and the resignation of its chairman, Richard N. Zehner.

 Revenues dipped slightly to $105.7 million, compared with $105.9 million in the third quarter of 2002. Alliance posted a net loss of $50.7 million, compared with net income of $10 million in the year ago-quarter. For the first nine months of 2003, revenues increased to $313.7 million, a gain of 2 percent from $308.5 million in the same period of 2002. The company reported a net loss of $38.1 million, compared with net income of $27.5 million in the year-ago period.

 Non-cash asset impairment charges of $22.8 million for certain older MRI systems, $800,000 of impairment charges for certain customer contracts, and $41.9 million of impairment charges related to certain goodwill and other intangible assets were chiefly responsible for the company's net loss.

 Zehner will remain an employee of Alliance. Paul Viviano, who has served as Alliance's president and CEO since Jan. 1, has taken on the additional responsibilities as chairman.

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