News | February 14, 2008

Merge Healthcare Announces Rightsizing Initiative

February 15, 2008 - Merge Technologies Inc. announced a rightsizing initiative and the planned timing of the issuance of its third quarter 2007 financial results and business operations and strategy conference call.

The details of the rightsizing include:

- Total worldwide headcount at Sept. 30, 2007 was
approximately 600 persons and the Company anticipates total
headcount at March 31, 2008 to be approximately 440 persons, a
reduction of 160 personnel, including consultants, with a
further estimated reduction from anticipated attrition during
2008 of approximately 20 people, net, for a total reduction
from Sept. 30, 2007 of 180 persons.

- Reduction of approximately 45 jobs in North America and Canada and approximately 115 positions offshore, including
consultants, or 28% of its current workforce. Most of the
reductions are effective immediately, with a small number to
be completed prior to March 31, 2008. The Company will
recognize a charge in its financial statements for the first
quarter ending March 31, 2008 of approximately $2.0 million,
consisting of approximately $1.3 million in severance costs
and approximately $0.7 million in other costs including,
primarily, legal fees and future lease payments on its
Burlington, MA office, which it has completely
vacated. The estimated annual cost savings of these actions is
approximately $7.0 million.

- Additional terminations prior to today's rightsizing
announcement that have occurred since Sept. 30, 2007 aggregate approximately $3.0 million in annual cost savings.

- Based on the company's historical attrition run-rate, it
anticipates additional voluntary terminations during the
remainder of 2008 with annual cost savings of between $1.0 and $2.0 million.

- The aggregate estimated net reduction in the company's annual
recurring operating costs, including compensation, software
development and customer support costs, and office lease costs
is approximately $10.0 million per year plus an additional
$1.0 to $2.0 million of anticipated savings based on
historical attrition.

For more information: www.mergehealthcare.com

Related Content

Youth Football Changes Nerve Fibers in Brain

Statistically significant clusters (red-colored) showing group differences (Control vs. Football) in white matter strain along the primary (F1) and secondary (F2) fibers. While body of corpus callosum (BBC) showed relative shrinkage in Football group, the other clusters showed relative stretching of fibers. PCR: Posterior Corona Radiata, PLIC: Posterior Limb of Internal Capsule, SCR: Superior Corona Radiata, SLF: Superior Longitudinal Fasciculus, SCC: Splenium of Corpus Callosum. Image courtesy of Kim et al.

News | Neuro Imaging | December 07, 2018
Magnetic resonance imaging (MRI) scans show repetitive blows to the head result in brain changes among youth football...
Siemens Healthineers Debuts Magnetom Altea 1.5T MRI Scanner
Technology | Magnetic Resonance Imaging (MRI) | December 06, 2018
During the 104th Scientific Assembly and Annual Meeting of the Radiological Society of North America (RSNA), Nov. 25-30...
GE Healthcare Unveils New Applications and Smart Devices Built on Edison Platform
Technology | Artificial Intelligence | December 05, 2018
GE Healthcare recently announced new applications and smart devices built on Edison – a platform that helps accelerate...
Snoring Poses Greater Cardiac Risk to Women
News | Women's Health | November 29, 2018
Obstructive sleep apnea (OSA) and snoring may lead to earlier impairment of cardiac function in women than in men,...
Vital Showcases Enterprise Imaging Advances at RSNA 2018

Global Illumination from Vital Images

News | Enterprise Imaging | November 28, 2018
Vital, a Canon Group company, will highlight the latest additions to its enterprise imaging portfolio at the 2018...
Artificial Intelligence May Help Reduce Gadolinium Dose in MRI

Example of full-dose, 10 percent low-dose and algorithm-enhanced low-dose. Image courtesy of Enhao Gong, Ph.D.

News | Contrast Media | November 27, 2018
Researchers are using artificial intelligence (AI) to reduce the dose of a contrast agent that may be left behind in...
Arterys Demonstrates AI Cloud-Based Medical Image Analysis Solutions at RSNA 2018
News | Computer-Aided Detection Software | November 26, 2018
Medical imaging software company Arterys will demonstrate its wide-ranging suite of artificial intelligence (AI)-...
HeartVista Announces One Click Autonomous MRI Solution
News | Magnetic Resonance Imaging (MRI) | November 25, 2018
HeartVista announced its artificial intelligence (AI)-driven, One-Click Autonomous MRI acquisition software for cardiac...
Siemens Healthineers Showcases syngo Virtual Cockpit for More Flexible Workforce Management
News | Teleradiology | November 25, 2018
During the 104th Scientific Assembly and Annual Meeting of the Radiological Society of North America (RSNA), Nov. 25-30...
Canon Medical Receives FDA Clearance for Vantage Orian 1.5T MRI
Technology | Magnetic Resonance Imaging (MRI) | November 15, 2018
Canon Medical Systems USA Inc. received 510(k) clearance from the U.S. Food and Drug Administration (FDA) on its new...