After additional conversations with management and increased clarity subsequent to managements change in guidance criteria we are tempering our FY2012 outlook whilst introducing our FY2013 figures. Our 2012 revenue drops $112.5M from $128M while EPS declines to $0.56 from $0.68 previously. For FY2013 we are introducing an EPS figure of $0.74 on revenue of $133.9M. Our target price remains $10.00 per share driven off our DCF methodology.

The company is entering the next stage of its life cycle, having put all its "ducks in a row". As such we expect future settlements to be larger and near term win announcements to be less frequent when compared to 2009 and 2010. With the majority of litigation matters taking place toward the tail end of the year and in FY2013 we believe that related settlements will come in around that time period as defendants maybe compelled to settle. Overall management remains focused on increasing shareholder value. We believe the change in guidance criteria to revenue booked per quarter is a good strategic move. With an increase in revenues going forward we envision a continuous increase in dividend payment, in addition to balance sheet strength and continued support of its NCIB.

We reiterate our Strong Buy recommendation. Notably the company is trading at 9.9x and 7.5x our conservative 2012 and 2013 earnings estimates, respectively.