May 12, 2008 – Merge released its first quarter results and has filed its quarterly report on Form 10-Q with the Securities and Exchange Commission, reporting a revenue totaling $13.7 million, compared to $15.9 million in 1Q07 and $15.6 million in 4Q07.
Operating loss for the first quarter ended March 31, 2008 was $8.4 million, compared to an operating loss of $10.2 million in the first quarter ended March 31, 2007 and $8.5 million in the fourth quarter ended Dec. 31, 2007. Contributing to the operating loss for the first quarter of 2008 was a charge of $1.4 million for costs, primarily severance costs, incurred in connection with the reduction in force that was announced and implemented on Feb. 14, 2008 and $0.3 million in additional severance costs for the former president of our EMEA business unit, partially offset by $1.1 million in reimbursement from our primary insurance carrier for legal fees incurred in connection with our class action litigation.
Contributing to the operating loss for the first quarter of 2007 was a restructuring charge of $0.8 million in connection with the rightsizing initiative announced in November of 2006. The adjusted operating loss for the first quarter of 2008 was $4.0 million compared to adjusted operating losses of $4.2 million in the first quarter of 2007 and the fourth quarter of 2007.
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