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Water Company compensated 3.5 million pounds for pump technology infringement

Waters recently revealed that it has reached a settlement with Agilent Technologies (Germany) Inc. over the HP LC litigation. The dispute centered around allegations of patent infringement by certain UK courts, specifically regarding pump technology used in Waters' Alliance HPLC instruments. Waters had already discontinued the use of the patented technology back in 2002, which means the settlement did not impact the company's ability to sell its Alliance HPLC systems in the UK. As part of the agreement, Waters and its UK subsidiaries will be released from liability for past patent violations, but the company will pay Agilent a one-time fee of £3.5 million. This settlement was factored into Waters’ earnings announcement on January 24, 2006, for the fourth quarter and full year of 2005. The adjusted earnings included a pre-tax charge of $3.1 million related to the settlement, as well as estimated residual costs. As a result, diluted earnings per share for the fourth quarter of 2005 dropped from $0.71 to $0.69 under GAAP, while the full-year diluted EPS fell from $1.76 to $1.74. In addition, similar legal actions have been initiated in France and Germany. However, Waters stated that these cases are not expected to have a material impact on the company’s overall financial position. Waters Corporation is a global leader in three key areas: Liquid Chromatography, Mass Spectrometry, and Thermal Analysis. Together, these markets represent a total global revenue of between $4.5 billion and $50 billion, with the broader analytical instrumentation market exceeding $20 billion worldwide.

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