Merge eFilm announces stock repurchase plan
By WTN News • 08/25/04 MILWAUKEE Merge eFilm announced Tuesday it has authorized a stock repurchase plan providing for the purchase of up to $10 million of common stock. Purchases may be made over a period of two years and the timing, price and volume of repurchases will be based on market conditions, applicable securities laws and other factors.
"We continue to explore strategic initiatives designed to enhance shareholder value, while simultaneously generating positive cash flow from operations. This has resulted in a strong balance sheet without debt," said Richard Linden, president and chief executive officer. "Given our $21 million cash reserve and the current valuation of our stock, we believe that a stock repurchase plan contributes to building shareholder value, while ensuring sufficient resources to enable us to continue investing in our growth strategies."
Milwaukee-based Merge eFilm announced July 28 that its net income for second-quarter 2004 showed a small gain over the same quarter last year. Though its net sales, at $8,907,000, were up 38 percent, the health care software company's bottom line suffered because it paid more than twice as much income tax. Its profits for the quarter ending June 30 were $1,497,000, up from $1,400,000 a year ago. The company also released expectations that revenue will grow at 30 percent to 35 percent per year to somewhere around $38 million.
Merge eFilm, founded in 1987, produces software for medical imaging centers and small- to medium-sized hospitals.
