Expects to record a one to two cent charge to its Q2 fiscal year 2009 EPS
HP has filed an appeal in its patent dispute with Cornell University and the Cornell Research Foundation.
According to HP, on March 30, 2009, the US District Court issued several post-trial decisions reducing the amount of an earlier jury verdict returned in favor of Cornell from $184m to approximately $53m.
HP will be increasing its reserve to reflect the latest developments in the case and expects to record a one to two cent charge to its second quarter fiscal year 2009 earnings per share (EPS).
After a review of the preliminary financial results of the first two months of this fiscal quarter, HP said that its second quarter financial year 2009 EPS outlook remains unchanged excluding this one-time charge.
The patent dispute between HP and Cornell relates to allegations that HP’s PA-8000 family of microprocessors, and servers and workstations incorporating those processors, infringed a patent that describes a way of executing microprocessor instructions. The patent in the litigation expired on February 21, 2006, and therefore the litigation will not affect future sales of HP products, said HP.