CALGARY, June 19, 2012 /CNW/ - Pason Systems Inc. ("Pason" or "the Company") (TSX: PSI) announced today that a judgment has been issued in the US patent infringement lawsuit regarding the Company's automatic driller, which has been ongoing since 2003. The Company's inequitable conduct claims were dismissed and a prior jury award entered in 2008 was upheld. The plaintiff was awarded post-verdict damages resulting in a total award of US$19.4 million. The plaintiff`s claim for treble damages and injunctive relief was denied. Following the jury verdict in 2008, the Company accrued US$14.3 million and will increase this accrual by US$ 5.1 million to reflect the updated amount. This amount will be recorded in the Company's second quarter results.
Pason contends that the automatic driller does not to infringe the patent at issue and intends to renew its appeal of the judgment shortly.
The Company's automatic driller no longer utilizes the same technology as its predecessor that was under scrutiny in this case. The results of this decision will have no impact on the Company`s operations.
Pason Systems Inc.
Pason Systems Inc. is a leading provider of instrumentation systems to land-based and offshore drilling rigs worldwide. The company's rental solutions, which include data acquisition, wellsite reporting, remote communications, and web-based information management, maximize rig uptime, improve work efficiency, and minimize operating costs. Pason's common shares trade on the Toronto Stock Exchange under the symbol PSI.
Certain information regarding the Company contained herein may constitute forward-looking information under applicable securities law. The words "anticipate", "expect", "believe", "may", "should", "will", "estimate", "project", "outlook", "forecast" or other similar words are used to identify such forward-looking information and statements. Forward-looking statements in this document may include statements, express or implied, regarding the Company`s outlook as to the results of any appeals or post-judgment motions, and the result of this lawsuit on the Company`s operations. These forward-looking statements are based upon various underlying factors and assumptions, including those with regards to the current state of the law surrounding patents, the state of the economy and the oil and gas exploration and production business, in particular; the Company's business prospects and opportunities; and estimates of the financial and operational performance of Pason.
Forward-looking information and statements are subject to known or unknown risks and uncertainties that may cause actual results to differ materially from those anticipated or implied in the forward-looking information and statements. Risk factors that could cause actual results or events to differ materially from current expectations include, among others, changes to the relevant patent case and statutory laws, the ability of Pason to successfully implement its strategic initiatives and whether such strategic initiatives will yield the expected benefits, the operating performance of Pason's assets and businesses, the price of energy commodities, competitive factors in the energy industry, changes in laws and regulations affecting Pason's businesses, technological developments, and general economic conditions.
Readers are cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such forward looking statements, although considered reasonable by management as of the date hereof, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement.
Additional information on risks and uncertainties and other factors that could affect Pason's operations or financial results are included in Pason's reports on file with the Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com or through Pason's website www.pason.com). Furthermore, the forward looking statements contained in this news release are made as of the date of this news release, and Pason does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by securities law.
For more information about Pason Systems Inc., visit the company's website at www.pason.com or contact:
President and CEO
Chief Financial Officer