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Patient Safety Technologies Reports Third Quarter 2011 Results
Date:11/15/2011

the company on November 14th, 2011 and available at the SEC's website at www.sec.gov.   Reconciliation of GAAP to Non-GAAP Results (Unaudited)Non-GAAP Measures:($ in 000's)Three Months EndedNine Months EndedSeptember 30,September 30,2011201020112010Reported Operating (Loss) Income$

(529.2)

924.9

$

(1,771.7)

(1,934.2)Less:Forward Order effect-

(1,315.5)(619.7)

(3,136.2)Plus:Non-cash compensation176.6

160.5513.0

965.1Depreciation and amortization225.5

191.5639.1

631.7Lease Write Down (gain) loss -

(220.0)-

152.0Adjusted Operating Loss$

(127.1)

(258.6)

$

(1,239.3)

(3,321.6)To supplement the Company's presentation of operating income and (loss) measured in accordance with GAAP, we also use a non-GAAP measure of operating income, herein defined as Adjusted Operating Income (in the event this amount is negative it is herein defined as Adjusted Operating Loss).  Reconciliation of GAAP operating income to Adjusted Operating Income or Loss for the third quarters and nine months ended September 30th of 2011 and 2010 are shown above.  How we define Adjusted Operating Income or Loss herein may not be consistent with how we have defined this non-GAAP measure historically, including but not limited to including the impact from Forward Order revenue, or stocking order revenue (see the Company's Quarterly Report on Form 10-Q for a discussion on the Forward Order).

Non-GAAP measures are provided to enhance investors' overall understanding of the Company's current financial performance, prospects for the future and as a means to evaluate period-to-period comparisons. The Company believes that the use of non-GAAP operating income provides meaningful supplemental information regarding financial performance by excluding certain expenses and benefits that may not be indicative of recurring core bu
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SOURCE Patient Safety Technologies, Inc.
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