Nighthawk Radiology earnings lower

COEUR D’ALENE — Rapid expansion resulted in lower second quarter earnings for Nighthawk Radiology Holdings Inc., company officials said Wednesday.

The company reported $3.5 million in net income, or earnings of 11 cents per share, compared to earnings of $5 million, or 17 cents per share, during the second quarter of 2006.

Company officials attributed the lower income to costs associated with the purchases of three companies, including the $62.5 million cash purchase of Midwest Physician Services LLC and a related firm.

The acquisitions position the company for strong future growth, said Dr. Paul Berger, Nighthawk’s chairman and chief executive officer. Midwest Physician Services provides business services for radiology offices, such as transcription and human resource management. Company officials anticipate revenues of $155 million to $162 million this year for the firm, which went public last year.

Nighthawk was founded to provide after-hours readings of X-rays, CT scans and MRIs for emergency room doctors. The images are transmitted to U.S. board certified radiologists in Australia and Switzerland, who work in different time zones. The firm also provides daytime services for its clients.