Medical Resources restructures board

June 24, 1998

Gordon Strickland has been named chairman of imaging services provider Medical Resources, the Hackensack, NJ, company reported this month. Strickland replaces Gary Siegler, who was at the center of a controversy over acquisition advisory fees that

Gordon Strickland has been named chairman of imaging services provider Medical Resources, the Hackensack, NJ, company reported this month. Strickland replaces Gary Siegler, who was at the center of a controversy over acquisition advisory fees that derailed the company's consolidation effort last year.

Strickland has been a member of the company's board since December. Although Siegler is stepping down from his position as chairman, he remains on the company's board and still owns about 18% of the firm. In conjunction with Strickland's appointment, Medical Resources added two new members to its board, Sally Crawford and Peter Davis.

In other Medical Resources news, the company reported financial results for the first quarter (end-March) that included a sharp increase in revenue but also a higher net loss due to one-time charges and litigation costs. For the quarter, Medical Resources posted revenue of $67.1 million, up 68% compared with $40 million in revenues in the first quarter of 1997.

Medical Resources recorded a net loss for the quarter of $4.9 million, compared with net income of $3.6 million in the same period the year before. Of the loss, $3.8 million was due to unusual charges. Medical Resources president and CEO Duane Montopoli said that, despite the increased loss, the company believes that its business is beginning to show improvement.