CUO - Excluding the legal expense related to the case and the write-down of the pre-paid royalty, CUO earned $0.92 per share in the quarter. Looks like they will not be taking a charge related to the Valco judgement and will continue to fight with an expected appeal. The $0.92 quarter compares with a similarly adjusted $0.51 last year. Another very strong quarter operationally.
"The Company and its legal counsel believe there are grounds to appeal the Partial Summary Judgment regarding this and the other claims of the suit as the court improperly resolved factual issues that should have been decided by a jury. The Company and its legal counsel believe there is a likelihood that some, or all, of the issues resolved by the Partial Summary Judgment may be reversed on appeal and remanded for trial by jury although there can be no assurance that an appeal will result in reversal."
In terms of the rationale for not taking a charge:
"the Company does not believe that there is a reasonable basis for estimating the financial impact, if any, of the final outcome of these proceedings and accordingly no accrual or reserve has been recorded in compliance with accounting principles generally accepted in the United States of America."
