29 Oct Merge Healthcare to restate annual financials
Milwaukee, Wis. – Merge Healthcare announced that it expects, in connection with the previously announced restatement of its financial statements, to file restated, audited financial statements for 2004, 2005, and 2006.
Merge, a medical imaging software and services provider, also said it intends to complete restated financial information previously included in the company’s annual report for the year ended Dec. 31, 2006, its unaudited financial statements included in its quarterly report for the first quarter of 2007, and its unaudited quarterly reports for the periods ending June 30, 2007 and Sept. 30, 2007.
The company expects to report restated revenues for Q1 2007 of $15 to $16 million, and revenues for Q2 2007 of $13 to $14 million.
In addition, the company expects to restate revenue associated with approximately 15 software contracts valued at approximately $2 million and, following the completion of software installation at each respective customer site, to recognize the associated revenue with the majority of these contracts over a 20-quarter period.
As a result of the restatement, Merge expects to report a decrease in previously reported revenues for 2004, 2005, and 2006 by approximately $1 million, and an increase in revenue of less than $100,000 per quarter thereafter.
The company plans to hold its next earnings conference call before Dec. 31.
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