Caliper Life Sciences Reports First Quarter 20...(1353 Purchase accounting adjustme...),Health

Purchase accounting adjustment for revenue

not recognized, net of costs (2) - 572

Acquisition related intangible amortization (3) 2,490 2,537

Restructuring and severance costs (4) 608 -

Total Adjustments $4,108 $4,462

Per share effect of adjustments 0.09 0.09

Adjusted Earnings per Share $(0.12) $(0.11)

We use the term "adjusted earnings per share" or "adjusted EPS" to refer to GAAP earnings per share excluding share-based compensation, purchase accounting revenue and cost of sales fair value adjustments due to business combination accounting rules, amortization of intangible assets, and restructuring and severance costs. Adjusted earnings per share is calculated by subtracting the total per share effect of these adjustments from GAAP EPS.

The adjustments are as follows:

1) We exclude share-based compensation from this measure because

share-based compensation plans involve sensitive measures and

assumptions in calculating the expense that could vary dramatically

between us and our peers, which we believe makes comparisons of

long-range trends difficult for management or investors, and could

result in overstating or understating the costs of developing,

producing, supporting and selling our products and the costs to support

our internal operating structure.

2) We exclude purchase accounting revenue fair value adjustments (net of

associated costs) from this measure due to business combination

accounting rules that would otherwise result in such revenues (and

associated costs) to be recognized on a continuing GAAP basis because

management expects the contractual arrangements underlying these

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