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December 31,December 31,2010200920102009(unaudited)Revenue:Net product sales
$ 121,623$ 87,835$ 439,012$ 310,449Costs and Expenses:Cost of sales (excluding amortization of product rights)
17,93411,94861,28840,214Research and development
10,4608,92539,61352,083Selling, general and administrative
24,33421,17495,66489,316Intangible amortization
7,0846,75129,35728,183Goodwill impairment
---65,099Impairment loss
-3,424-3,424Other operating expenses
858-1,390-Total costs and expenses
60,67052,222227,312278,319Operating income
60,95335,613211,70032,130Interest income
14037372352Interest expense
(2,960)(2,805)(11,616)(11,609)Other (loss) income, net
(905)-430-Gain on long-term debt repurchase
---9,079Income before income tax expense
57,22832,845200,88629,952Income tax expense
19,76220,83175,27841,029Net income (loss)
$ 37,466$ 12,014$ 125,608$ (11,077)Basic net income (loss) per share
$
.48$
.16$
.61$
(0.14)Diluted net income (loss) per share
$
.43$
.15$
.47$
(0.14)Shares used in computing net income (loss) per shareBasic
78,04977,44277,82077,423Diluted
90,93478,39490,08177,423VIROPHARMA INCORPORATEDSelected Financial InformationReconciliation of GAAP Net Income (loss) to Adjusted Net IncomeAn itemized reconciliation between net income (loss) and adjusted net income on a non-GAAP basis is as follows:(in thousands)
Three months endedTwelve months endedDecember 31,December 31,2010200920102009(unaudited)(unaudited)GAAP net income (loss)
$ 37,466$ 12,014$ 125,608$ (11,077)Adjustments:Non-cash interest expense
1,9441,8047,5177,291Intangible amortization
7,0846,75129,35728,183Step-up of inventory
112-8966,913Stock compensation
2,8172,43811,1
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