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Ebay takes charge from patent suit, reduces profit
California, Aug 12: Ebay Inc. on Monday said it took a $30 million charge in the second quarter due to a court judgment arising from a patent lawsuit against the online auction house, reducing its second-quarter earnings by about 16 per cent.
California, Aug 12: Ebay Inc. on Monday said it took a $30 million charge in the second quarter due to a court judgment arising from a patent lawsuit against the online auction house, reducing its second-quarter earnings by about 16 per cent.
A Federal judge last week ordered Ebay to pay MercExchange $29.5 million for infringing an e-commerce patent MercExchange charged was key to Ebay's "Buy it Now" feature.
The charge reduced Ebay's quarterly net income to $91.9 million from its previously announced $109.7 million, the company said in a filing with the U.S. Securities and Exchange Commission.
"Ebay believes that the trial court verdict in the MercExchange case was incorrect and intends to appeal the court's judgment," the company said in the filing.
The San Jose, California-based company, a venue for sellers and buyers of everything from collectible spoons to California towns, said the charge reduced its diluted earnings on a split-adjusted basis by 3 cents per share, to 14 cents per share. Its earnings before a planned stock split were 28 cents per share, compared with the 33 cents it reported in July.
Ebay announced the 2-for-1 stock split last month, when it first reported results from its second quarter ended June. The company will distribute new shares on Aug. 28.
Bureau Report
The charge reduced Ebay's quarterly net income to $91.9 million from its previously announced $109.7 million, the company said in a filing with the U.S. Securities and Exchange Commission.
"Ebay believes that the trial court verdict in the MercExchange case was incorrect and intends to appeal the court's judgment," the company said in the filing.
The San Jose, California-based company, a venue for sellers and buyers of everything from collectible spoons to California towns, said the charge reduced its diluted earnings on a split-adjusted basis by 3 cents per share, to 14 cents per share. Its earnings before a planned stock split were 28 cents per share, compared with the 33 cents it reported in July.
Ebay announced the 2-for-1 stock split last month, when it first reported results from its second quarter ended June. The company will distribute new shares on Aug. 28.
Bureau Report