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:

Related Content

Brain Imaging Predicts Language Learning in Deaf Children
News | Magnetic Resonance Imaging (MRI) | January 23, 2018
January 23, 2018 – In a new international collaborative...
Imricor Announces Enrollment Completion for Clinical Study on Vision-MR Ablation Catheter
News | Interventional Radiology | January 23, 2018
January 23, 2018 – Imricor Medical Systems announced completion of enrollment for the...
Philips Introduces Technology Maximizer Program for Imaging Equipment Upgrades
Technology | Imaging | January 17, 2018
January 17, 2018 — Philips recently announced the launch of Technology Maximizer, a cross-modality program designed t
Russian Team Developing New Technology to Significantly Reduce MRI Research Costs
News | Magnetic Resonance Imaging (MRI) | January 16, 2018
January 16, 2018 — Researchers from the NUST MISIS Engineering Center for Industrial Technologies in Russia have deve
Smartphone Addiction Creates Imbalance in Brain
News | Mobile Devices | January 11, 2018
Researchers have found an imbalance in the brain chemistry of young people addicted to smartphones and the internet,...
Emergency Radiologists See Inner Toll of Opioid Use Disorders

Rates of Imaging Positivity for IV-SUDs Complications. Image courtesy of Efren J. Flores, M.D.

News | Clinical Study | January 11, 2018
January 11, 2018 – Emergency radiologists are seeing a high prevalence of patients with complications related to opio
Study Finds No Evidence that Gadolinium Causes Neurologic Harm

MR images through, A, C, E, basal ganglia and, B, D, F, posterior fossa at level of dentate nucleus. Images are shown for, A, B, control group patient 4, and the, C, D, first and, E, F, last examinations performed in contrast group patient 13. Regions of interest used in quantification of signal intensity are shown as dashed lines for globus pallidus (green), thalamus (blue), dentate nucleus (yellow), and pons (red).

News | Contrast Media | January 11, 2018
January 11, 2018 — There is no evidence that accumulation in the brain of the element gadolinium speeds cognitive dec
Weight Loss Through Exercise Alone Does Not Protect Knees
News | Orthopedic Imaging | January 11, 2018
January 11, 2018 – Obese people who lose a substantial amount of weight can significantly slow down the degeneration
Neurofeedback Shows Promise in Treating Tinnitus

The standard approach to fMRI neurofeedback. Image courtesy of Matthew Sherwood, Ph.D.

News | Magnetic Resonance Imaging (MRI) | January 11, 2018
January 11, 2018 — Researchers using...
Male Triathletes May Be Putting Their Heart Health at Risk
News | Cardiac Imaging | January 09, 2018
Competitive male triathletes face a higher risk of a potentially harmful heart condition called myocardial fibrosis,...
Overlay Init