Free Declaration - District Court of Delaware - Delaware

i Q Case 1 :04-cv-01371-JJF Document 311-2 Filed 08/11/2006 Page 1 of 3
IN THE UNITED STATES DISTRICT COURT
p FOR THE DISTRICT OF DELAWARE
POWER INTEGRATIONS, INC., a Delaware I
corporation,
_ Plaintiff, _ _
C.A. No. 04-1371
FAIRCHILD SEMICONDUCT OR ‘
NTERNATIONAL, INC., a Delaware
corporation, and FAIRCHILD
_ SEMICONDUCTOR CORPORATION, s V p r
a Delaware corporation, A g , _ _ _ .
Defendants. ` (V ·
DECLARATION OF MICHAEL KEELEYIN SUPPORT OF
DEFENDANTS’ MOTION F ORPROTECTIVE ORDER RE DEPOSITION
OF MICHAEL C. KEELEY, REBUTIAL EXPERT REPORT ON
DAMAGES, AND CONTINUATION OF DAMAGES TRIAL
I I, Michael Keeley, the undersigned, declare as follows:
1) I am a Senior Vice President of Cornerstone Research, an economic and financial I
consulting frm with offices in Menlo Park, San Francisco, and Los Angeles, Califomia; Boston,
Massachusetts; New York, New York; and Washington, D.C. I specialize in economic,
» financial, and statistical analysis. I have been asked by counsel representing Fairchild
Semiconductor Intemational, Inc. and Fairchild Semiconductor Corporation (hereafter
"Fairchild" without distinction unless noted), to analyze the economic issues in this dispute and
to assess the validity of damage claims by Power Integrations, Inc. ("Power Integrations") from "
the alleged infringement of the patents—in—suit. In particular, I have been asked to assess the
validity of Mr. Troxel’s damage report.
2) I have received a copy of a "Summary Report on Damages" by Richard B. Troxel,
dated August 8, 2006. This report and the accompanying exhibits total 93 pages. Ido not
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` Case 1:04-cv-01371-JJF Document 311-2 Filed 08/11/2006 Page 2 of 3
l believe I will be able to analyze Mr. Troxel’s new report, review the underlying data upon which
Mr. Troxel relies, and prepare a rebuttal report by August 25, 2006.
3) In our initial reports, both Mr. Troxel and I relied, in part, on information _
A contained in Power Integrations’ publicly available financial statements, including its annual
reports. I understand that on May 9, 2006 Power Integrations filed a 8-K statement with the
Securities and Exchange Commission in which Power Integrations stated that "the campaay
expects to record additional non-cash charges for stock—based compensation expenses in prior
n periods. Based on the Special Committee’s preliminary conclusion, the Company expects that
such non-cash charges will be material and that the Company may need to restate its historical
financial statements for each of the fiscal years 1999 through 2004, and for the first three
quarters of the fiscal year ended December 31, 2005. Such charges may also affect future
periods. On May 4, 2006, the Audit Committee of the Company’s Board concluded that such ·
p financial statements and any related reports of its independent registered public accounting firm
I should no longer be relied upon." I have yet to receive Power Integrations’ restated financial t
statements. Until I receive them, I cannot determine whether this restatement will impact my
damages calculations.
I declare the foregoing is true and correct under penalty of perjury under the laws of the
United States of America.
Executed on August j, 2006 in Menlo Park, Califomia.
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CERTIFICATE OF SERVICE
I hereby certify that on the llth day of August, 2006, the attached DECLARATION OF
MICHAEL KEELEY IN SUPPORT OF DEFENDANTS’ MOTION FOR PROTECTIVE
ORDER REGARDING DEPOSITION OF MICHAEL C. KEELEY, REBUTTAL -
EXPERT REPORT ON DAMAGES, AND CONTINUATION OF DAMAGES TRIAL was
I served upon the below-named counsel of record at the address and in the manner indicated:
William J. Marsden, Jr., Esquire HAND DELIVERY
Fish & Richardson, P.C.
919 N. Market Street
Suite 1 100
Wilmington, DE 19801
Frank E. Scherkenbach, Esquire VIA FEDERAL EXPRESS
Fish & Richardson P.C.
225 Franklin Street -
Boston, MA 02110-2804
Michael Kane, Esquire VIA FEDERAL EXPRESS
Fish & Richardson P.C.
60 South Sixth Street
3300 Dain Rauscher Plaza
Minneapolis, MN 55402
Howard G. Pollack, Esquire VIA FEDERAL EXPRESS
Fish & Richardson P.C.
500 Arguello Street, Suite 500
Redwood City, CA 94063
/s/ T Wany Geyer Lydon
Tiffany Geyer Lydon