February 15, 2011 / 10:38 PM / 7 years ago

UPDATE 1-LogMeIn Q1 view hurt by litigation costs; shares fall

* Q4 adj EPS $0.28 vs est $0.24

* Sees Q1 adj EPS $0.13-$0.14 vs est $0.15

* Sees litigation costs increasing

Feb 15 (Reuters) - LogMeIn Inc’s quarterly results beat analysts’ estimates, but the software maker forecast a weak first quarter and warned about increasing litigation expenses relating to a patent infringement case, sending its shares down 5 percent in extended trade.

The litigation costs relate to LogMeIn’s defense against certain patent infringement claims made by Canadian software maker 01 Communique Laboratory Inc in September.

“The litigation costs associated with defending the claims are increasing as the company progresses further in the discovery process and enters the trial phase,” LogMeIn said in a statement.

LogMeIn, which helps users access their desktops from other devices, sees litigation related costs of about $3 million in each of the first and second quarters of 2011 and about $8 million for the full year.

The company forecast first-quarter adjusted earnings of 13-14 cents a share, on sales of $26.3 million.

Analysts on average were looking for first-quarter earnings of 15 cents a share, on sales of $26.9 million, according to Thomson Reuters I/B/E/S.

For October-December, the company earned 28 cents a share, excluding special items, while analysts had expected 24 cents.

The Woburn, Massachusetts-based company’s shares, which have gained 55 percent in value over the last six months, were down $1.89 at $38.20 in extended trade. They closed at $40.09 on Tuesday on Nasdaq. (Reporting by Saqib Iqbal Ahmed in Bangalore;Editing by Vyas Mohan)

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