Following today's announcement by Masimo (Nasdaq: MASI) that the company has amended its January 2006 settlement agreement with Covidien, Masimo provides the following additional information.
In conjunction with finalizing its 2010 financial results, Masimo is currently assessing the full financial impact of this amendment on its 2011 financial outlook. As part of this assessment, Masimo is considering the possibility of re-investing up to 50% of this incremental royalty revenue into its business in 2011. Masimo intends to provide 2011 guidance and discuss the impact of the amendment when the company announces its 2010 financial results.