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Life Tech Updates Q4, FY 2011 Earnings to Reflect Judgment Against Company

NEW YORK (GenomeWeb News) – Life Technologies revised its fourth-quarter and full-year 2011 earnings results after the close of the market on Wednesday to reflect a jury's decision against the company after the financial results were originally released.

Life Tech said earlier this month that its fourth quarter revenues rose 8 percent year over year to $1.01 billion, and full-year 2011 revenue increased 5 percent to $3.78 billion. But the firm has now revised its net profit downward to $93.1 million from $127.4 million reported earlier, and $70.7 million posted in Q4 2010.

Its GAAP EPS was also revised to $.51 from $.69 reported earlier this month, and compares to $.37 a year ago, while non-GAAP EPS was lowered to $1.05 from $1.06. A year ago non-GAAP EPS was $.90 a year ago.

For full-year 2011, its profits were changed to $378.5 million on a GAAP basis, down from $412.1 million reported earlier. In 2010, the company had a profit of $378.3 million.

On a non-GAAP basis, profits were changed to $689.3 million from $691.3 million reported earlier. Life Tech had a profit of $676.6 million in 2010.

The firm's GAAP EPS was changed to $2.05 from $2.23 reported earlier this month, and compares to $1.99 a year ago. On a non-GAAP basis, its EPS was updated to $3.71 from $3.73, and compares to $3.55 a year ago.

In a statement today, Life Tech said the changes reflect a judgment entered against the company. The case, it said, "could require the company to pay additional damages of up to three times the judgment plus plaintiff's attorney's fees."

The case is not expected to have a material impact on Life Tech's business going forward, and although it is considering all its options in relation to the case, including various post-trial motions and an appeal, the company is recording a charge of about $56 million related to the lawsuit and unpaid royalties in the fourth quarter of 2011.

Life Tech did not name the other party in the lawsuit, but about one week after it released its fourth-quarter and full-year 2011 earnings results, a jury in the US District Court for the Western District of Wisconsin awarded Promega $52 million in damages after it found Life Tech had willfully infringed Promega's patents covering its STR products.

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