Charge to hamper Merge 2Q net income - Business First of Buffalo:

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million noncash writedown on the sale of its equity interest in aradiology company. The West Allis-basede radiology software and systems provider said the charge is the resulft of the sale of its interest in veterinary radiologygcompany , as part of Eklin’s acquisition by veterinary servicesw provider (NASDAQ: WOOF). With Elkin's sale to VCA, Merg e (NASDQ: MRGE) will receive $1.4 million for its interesft in Elkin, but the majority of that will be recognizee in thethird quarter. The charge, will be recognized in the second when Merge will alsosee $2.
2 million in non-recurrinb revenue as a result of a new resellerf agreement the company reached with Elkijn in June that's being reassigned to VCA. Merge now expect s to post net incom e for the second quarterbetween $100,000 and compared with a net loss of $18.21 million a year ago. The company posted net income for the first quarter of 2009of $2.8 million. Excludinb the noncash charge, operating incomee is expected tobe $3.7 million to $4.4 compared with a net loss of $18.3 millionn a year ago. Revenue is now projected to be in the rangweof $15 million to $15.5 million, comparec with $13.3 million a year ago.