Core Halts Acquisitions

Core Inc. said it has terminated its agreement to acquire eight California health clinics operated by AmHealth Inc. for up to $16 million. Core, a provider of benefits management services, gave no reason for the decision.

Core said its preliminary estimates indicate the termination will result in a onetime charge to earnings of from $1.5 million to $2 million during the third quarter. Core posted net income of $397,000, or 6 cents a share, for the third quarter last year on revenue of $5.1 million.

Core had agreed in principle in January to pay $500,000 in cash and the balance in Core stock for eight of AmHealth’s 10 clinics in California. The Irvine company announced plans in May to sell 2.5 million shares of common stock to finance the acquisition and raise funds for other purposes.

The company also reported Thursday that net income for the second quarter nearly doubled to $499,000, or 9 cents a share, from $254,000, or 5 cents a share, a year ago. Revenue rose 34% to $6.6 million from $4.9 million.