amended its second-quarter earnings report to reflect the after-tax impact of lost patent litigation, but said it remains on track to hit its third- and fourth-quarter earnings estimates.
The charge lowered second-quarter earnings to $91.9 million, or 28 cents a share on a pre-split basis, from the $109.7 million, or 33 cents a share, it previously reported. After a recently declared 2-for-1 stock split, earnings were lowered to 14 cents a share by the ruling.
In last Wednesday's ruling, a federal judge refused to throw out a jury verdict in patent litigation brought against eBay by MercExchange over technology used in online auctions, fixed-price trading and marketplace search agents. He declined MercExchange's request for a permanent injunction against eBay and delayed ruling on whether eBay should have to pay continuing damages pending appeal.
eBay repeated that it intends to appeal the case and said, "Because the financial impact of this event is included in the company's operating results for the quarter ended June 30, the company's previously announced quarterly guidance for Q3 and Q4 remains unchanged."
Analysts surveyed by Thomson First Call predicted the company will earn 35 cents a share in the third quarter and 41 cents a share in the fourth.