Exhibit 12.1
Computation of Ratio of Earnings to Fixed Charges
The following table sets forth the calculation of the ratio of earnings to fixed charges of Merge Healthcare Incorporated for the periods indicated:
(in thousands, except for ratios) | Six Months Ended June 30, | Year ended December 31, | ||||||||||||||||||||||||||
2010 | 2009 | 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||||||
Rental expense | $ | 1,630 | $ | 982 | $ | 1,420 | $ | 1,877 | $ | 2,052 | $ | 1,389 | $ | 1,473 | ||||||||||||||
Imputed interest on rental expense (1) | $ | 375 | $ | 226 | $ | 327 | $ | 432 | $ | 472 | $ | 319 | $ | 339 | ||||||||||||||
Interest expense | 4,321 | 1,529 | 2,716 | 1,750 | 89 | 67 | 38 | |||||||||||||||||||||
Total fixed charges | $ | 4,696 | $ | 1,755 | $ | 3,043 | $ | 2,182 | $ | 561 | $ | 386 | $ | 377 | ||||||||||||||
Earnings | ||||||||||||||||||||||||||||
Pre-tax income (loss) from continuing operations | (18,007 | ) | 3,331 | 150 | (23,743 | ) | (171,808 | ) | (249,473 | ) | 5,113 | |||||||||||||||||
Add: Fixed charges (interest expense) | 4,696 | 1,755 | 3,043 | 2,182 | 561 | 386 | 377 | |||||||||||||||||||||
$ | (13,311 | ) | $ | 5,086 | $ | 3,193 | $ | (21,561 | ) | $ | (171,247 | ) | $ | (249,087 | ) | $ | 5,490 | |||||||||||
Ratio of Earnings to Fixed Charges | NA | 2.9 | 1.0 | NA | NA | NA | 14.6 | |||||||||||||||||||||
Dollar amount of deficiency | $ | (18,007 | ) | NA | NA | $ | (23,743 | ) | $ | (171,808 | ) | $ | (249,473 | ) | NA |
(1) | Assumes that the interest component of rental expense is 23% of total rental expense based on net present value analysis. |