<p>A diagnostic imaging system (10) comprises a matrix of sensors (22) situated to view an event. Each sensor (22) is connected to an analog-to-digital converters (24) for converting output analog values of associated sensors (22) to digital numbers. A sensor (50) in the matrix which, in response to the event, has a highest output value relative to the other sensors (22) is identified. Outer sensors (52) that are closest neighbors to the high sensor (50) are identified. The outputs of the outer sensors (52) are compressed by a use of various non-linear square-root functions to reduce a number of bits of the respective outputs. The outputs of sensors carrying the most information are compressed the least, while those carrying the least information are compressed the most. An address of each event is generated and stored in a lookup table (44). The lookup table (44) is used to perform real-time positioning iterative algorithms off-line.</p>