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ERT Reports Third Quarter 2010 Results
Date:11/4/2010

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Use of Non-GAAP Financial MeasuresIn addition to GAAP financial measures, ERT uses certain non-GAAP financial measures that exclude charges related to the amortization of the RS acquired intangible and other assets and acquisition and other costs, both of which are related to the recent acquisition of RS, and also their related income tax effects.  ERT believes that these non-GAAP measures are useful to investors, because this supplemental information facilitates comparisons of its operations from period to period and to the performance of other companies within its industry and assists in gaining a better understanding of its operating results and future prospects.  ERT views amortization of acquired intangible and other assets related to the recent acquisition, which includes such items as the amortization of acquired customer backlog and technology, as items determined at the time of the acquisition.  While ERT reviews the underlying value of these intangibles regularly for impairment, the amortization is an expense typically not affected by operations during any particular period and does not contribute to the operational performance in any particular period.  ERT regards acquisition and other costs related to its recent acquisition as a cost that does not recur on a regular basis.  

ERT's non-GAAP effective tax rates differ from its GAAP effective tax rates because of 1) the exclusion of the amortization of acquired intangible and other assets and acquisition and other costs related to its recent acquisition of RS, 2) the income tax effect due to the difference between the GAAP and non-GAAP effective tax rate applied against the GAAP pre-tax income primarily as a result of the acquisition costs not being deductible for income tax purposes and 3) any one-time income tax adjustments.  ERT excludes the impact of these discrete tax items from its non-GAAP income tax provision because it believes they are not indi
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SOURCE eResearchTechnology, Inc.
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