Summary
Adobe Systems Incorporated (ADBE) filed an 8-K on September 17, 2007, to report its financial results for the third fiscal quarter ended August 31, 2007. The company announced record results, as indicated by the press release titled 'Adobe Reports Record Results.' A key aspect of this filing is the extensive discussion of non-GAAP financial measures. Adobe details its rationale for excluding items such as stock-based compensation, amortization of acquired intangibles, restructuring charges, and investment gains/losses. These adjustments are made to provide a clearer view of the company's core operational performance and to facilitate comparisons with historical results and competitors.
Key Highlights
- 1Adobe Systems reported record financial results for its third fiscal quarter ended August 31, 2007.
- 2The 8-K filing includes a press release announcing these record results, dated September 17, 2007.
- 3The company provides a detailed explanation of its use of non-GAAP financial measures, emphasizing their role in assessing operational performance.
- 4Excluded items from GAAP to arrive at non-GAAP measures include stock-based compensation (SFAS 123(R)), amortization of Macromedia stock-based compensation, restructuring charges, and amortization of purchased intangibles from the Macromedia acquisition.
- 5Adobe also excludes investment gains/losses and adjusts for the tax impact of these non-GAAP pre-tax adjustments to present an 'Effective Tax Rate' for ongoing operations.
- 6The company uses these non-GAAP measures for internal budgeting, resource allocation, and to facilitate comparisons with historical and competitor results.
- 7The press release indicates that these non-GAAP measures are intended to supplement, not replace, GAAP financial information.