Information management firm SDL warned ongoing litigation with a former Trados shareholder on the sale of Trados to SDL in 2005 could lead to costs of up to $3m.
"The SDL board believes the case to be completely without merit. We anticipate that the case will progress to a court hearing in 2013," the group explained in a company statement.
"We estimate the potential exposure is between $1 and $3m, which if required, will be funded as part of our operational cash flow in 2013," it added.
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Otherwise SDL said its performance for the third quarter of 2012 was broadly in line with company forecasts after a robust performance from its language services outweighed weakness in technology sales.
The language translation services group said it is starting to see increased cash inflow in the business as Alterian re-structuring and process unification is completed.
"We continued our investments into technology innovation and feel confident this will deliver long-term growth to the business," SDL said.
The group added that the Alterian business has integrated well into SDL and is performing ahead of company expectations.
"We are excited about the future marketing analytics product solutions, particularly how well they fit into SDL's software platform," it added.
CJ
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