Inverness Medical Innovations Announces Fourth Quarter 20...(Non-GAAP Cash ...)

GAAP Adjustments Basis(a)

Net revenue $569,454 $- $569,454

Cost of sales 340,231 (21,036)(b)(c)(d) 319,195

Gross profit 229,223 21,036 250,259

Gross margin 40% 44%

Operating expenses:

Research and

development 53,666 (7,544)(b)(c)(d)(g) 46,122

Purchase of in-process

research and

development (4,960)(g) (4,960)

Selling, general and

administrative 165,688 (11,648)(b)(c)(d) 154,040

Loss on dispositions,

net 3,498 (3,498)(e) -

Operating (loss)

income 6,371 48,686 55,057

Interest and other income

(expense), net (17,486) (2,776)(b)(c)(h) (20,262)

Income tax (benefit)

provision 5,727 1,962(j) 7,689

Net (loss) income $(16,842) $43,948 $27,106

Net (loss) income per

common share:

Basic $(0.49) $0.79

Diluted $(0.49)(k) $0.76(m)

Weighted average common

shares - basic 34,109 34,109

Weighted average common

shares - diluted 34,109(k) 35,578(m)

(a) In calculating net income or loss on an adjusted cash basis, the

Company excludes from net income or loss (i) certain non-cash

charges including amortization expense and stock-based compensation'/>"/>