Merge Healthcare sales continue to decline in Q2

Merge Healthcare has released its financial results for the second quarter of 2008, which ended June 30.

The company said its net loss for the 2008 second quarter was $18.2 million, compared to a net loss of $10.7 million in the second quarter of 2007, and a net loss of $7.8 million in the 2008 first quarter.

For the 2008 second quarter, the company said its net sales totaled $13.3 million, compared to $14 million in the second quarter last year, and $13.7 million in the 2008 first quarter, which ended March 31.

Operating loss for the quarter was $18.3 million, compared to an operating loss of $10.7 million in the second quarter ended June 30, 2007 and $8.4 million in the first quarter March 31, according to the Milwaukee-based Merge.

The company said that the following charges contributed to the operating loss for the 2008 second quarter:

• $7.5 million related to its restructuring initiative announced in June, consisting of $4.6 million in severance and related employee termination costs, $2 million of share-based compensation expense associated with the accelerated vesting of stock options and restricted stock for certain former officers and $800,000 of contract exit costs;
• $1.1 million trade name impairment associated with renaming its Cedara Software business unit;
• $1.7 million related to the disposal of its French subsidiary; and
• $3 million related to the settlement of the shareholder lawsuit against the company.