Company Revises Its Outlook for Tax Expense for the Second Quarter of 2010

HILLSBORO, Ore., Jun 24, 2010 (GlobeNewswire via COMTEX News Network) -- FEI Company (Nasdaq:FEIC) announced that it has received confirmation that the U.S. and Netherlands taxing authorities have entered into a mutual agreement on various transfer pricing issues with respect to FEI. FEI has been providing valuation allowance against U.S. deferred tax assets and reserves for selected tax issues as required under ASC 740 (formerly FIN 48). As a result of this agreement, FEI will release valuation allowance and tax reserves estimated at between $15 million and $32 million in the second quarter of 2010. In addition, FEI will be able to finalize tax returns that should result in net cash refunds estimated at $5 million over the next 6 to 12 months.

As a result of this agreement, FEI is revising its guidance for tax expense for the second quarter of 2010. Previously the company estimated its tax expense for the second quarter at approximately 25% of pre-tax income. It is now revising that estimate to a tax benefit of $15 million to $32 million, equal to a $.36 to $.76 per share benefit to net income.

"This agreement between the U.S. and Dutch tax authorities will enable us to resolve various tax issues," said Ray Link, Executive Vice President and CFO of FEI, "including completion of some older tax returns and receipt of significant tax refunds. In addition, it will result in the release of valuation allowances and tax reserves, resulting in a significant tax benefit to our P&L in the second quarter."

source: www.fei.com