Emageon Reports Fourth Quarter and 2007 Financi...(607 67664 Gross profit ...),Health

Gross profit 14,672 18,725 47,602 55,841

Operating expenses:

Research and development 4,754 4,605 20,030 17,368

Sales and marketing 5,210 5,433 18,202 18,459

General and administrative 3,792 4,344 13,134 17,028

Amortization of intangible assets

related to Camtronics acquisition 345 885 1,381 3,540

Integration costs related to

Camtronics acquisition - 1,026 - 5,369

Employee severance and related

charges 1,125 - 2,120 -

Loss on disposal of property and

equipment 79 453 407 437

Total operating expenses 15,305 16,746 55,274 62,201

Operating (loss) income (633) 1,979 (7,672) (6,360)

Interest income 197 182 908 655

Interest expense (24) (70) (99) (327)

Net (loss) income $(460) $2,091 $(6,863) $(6,032)

Net (loss) income per share, basic $(0.02) $0.10 $(0.32) $(0.29)

Net (loss) income per share, diluted $(0.02) $0.10 $(0.32) $(0.29)

Weighted average shares outstanding,

basic 21,414 21,197 21,360 20,919

Weighted average shares outstanding,

diluted 21,414 21,689 21,360 20,919

(1) Certain reclassifications have been made to prior year operating

expenses to conform with the current year presentation.

Summary Consolidated Balance Sheets

In Thousands

(Unaudited)

December 31, Decem
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