Write-offs add up to $50 million Alliance Q3 loss

Some $73 million in write-offs contributed to a steep loss for imaging services provider Alliance Imaging in the third quarter of fiscal 2003 (end-September 30), according to the Anaheim, CA-based firm.

For the quarter, Alliance posted revenues of $105.7 million, a $200,000 decrease compared with sales of $105.9 million in the third quarter a year ago. But the company posted a massive net loss for the period, reporting a $50.7 million loss compared with a net profit of $10 million in the same period a year ago.

Contributing to the loss was $73.2 million in impairment charges for the period, of which $22.8 million was allocated for older MRI systems, $800,000 for customer contracts, and $7.7 million to reflect the decline in value of a joint-venture investment. The remaining $41.9 million in impairment charges were related to goodwill and other intangible assets, the company said.

In other news, Alliance chairman of the board, Richard Zehner, resigned his position on the board of directors. Paul Viviano, Alliance’s CEO and president, has been appointed to the position, the firm said. Zehner remains an Alliance employee.

By AuntMinnie.com staff writers
November 5, 2003

flexScan, Alliance Imaging team up, September 3, 2003

Alliance earnings fall despite higher revenue, August 15, 2003