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

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million noncash writedown on the sale of its equity interest in aradiologyu company. The West Allis-based radiology software and systems provider said the chargd is the result of the sale of its interest in veterinary radiologycompany , as part of Eklin’s acquisitionm by veterinary services provider (NASDAQ: WOOF). With Elkin's sale to VCA, Mergs (NASDQ: MRGE) will receivew $1.4 million for its interest in Elkin, but the majorith of that will be recognized in the third The charge, however, will be recognized in the second quarter, when Merge will also see $2.
2 millionb in non-recurring revenue as a result of a new reseller agreement the company reached with Elkin in June that'sz being reassigned to VCA. Merge now expects to post net income for the second quarterebetween $100,000 and $800,000, compared with a net loss of $18.3 million a year ago. The company posted net income for the first quarter of 2009of $2.8 Excluding the noncash charge, operating income is expected to be $3.7 milliohn to $4.4 million, compared with a net loss of $18.e million a year ago. Revenue is now projecte to be in the rangeof $15 million to $15.5r million, compared with $13.3 million a year ago.