Smith Suffers Loss for Year; Patent Suit Cited
Smith International reported that it sustained a loss of $265.1 million in 1985, largely the result of charges related to its loss of a patent infringement lawsuit.
The massive loss includes an unusual charge of $216.9 million to cover the $204.8-million award to Hughes Tool and other expenses related to the lengthy court battle. Smith sought protection from creditors in a Chapter 11 bankruptcy proceeding last month, after its defeat in court over use of a drilling bit patented by Hughes.
In 1984, Smith suffered a net loss of $68.5 million.
Revenue for last year was $697.3 million, down 6.6% from $746.6 million the previous year.
In the fourth quarter, Smith lost $206.8 million, compared to a loss of $75.9 million a year earlier. The fourth-quarter results included an unusual charge of $189.1 million that related to the Hughes patent award. Fourth-quarter revenue was $172.4 million, down from $201.5 million in the final quarter of 1984.
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