IDEXX Labs (NASDAQ:IDXX) sees Q3 charge of $28 mln
Reuters, Monday, September 29, 1997 at 00:15
WESTBROOK, Maine, Sept 28 (Reuter) - IDEXX Laboratories Inc
(NASDAQ:IDXX) on Sunday said it would take a non-recurring charge in
the third quarter of about $28 million related to restructuring
costs.
The charge was also related to other factors, including the
settlement of a patent infringement suit brought by
Barnes-Jewish Hospital regarding heartworm kits, IDEXX said.
The company also said it expected third quarter earnings
before the effect of the charges to fall in the range of current
analyst estimates.
Analysts estimate IDEXX's third quarter earnings at $0.03
per share, according to First Call. The company reported third
quarter earnings of $0.22 per share one year ago.
The costs included in the charge primarily relate to the
write-off of about $10.4 million in development costs in
connection with the integration of newly acquired unit
Professionals' Software Inc with IDEXX's Advanced Veterinary
Systems software business.
Other restructuring costs are associated with the
consolidation of other businesses, including European operations
and certain U.S. veterinary operations.
Under the terms of the settlement, IDEXX will make a cash
payment to the hospital of $5.5 million for rights under certain
patents which relate to the diagnosis of canine heartworm
disease.
A portion of the payment will be creditable against future
earned royalties on certain IDEXX products, IDEXX said. |
