What is the main purpose of this 8-K filing?

The main purpose of this 8-K filing is to report Adobe Systems' financial results for its third fiscal quarter ended August 29, 2008, through an incorporated press release. It also provides detailed explanations of the non-GAAP financial measures the company uses.

Why does Adobe provide non-GAAP financial results?

Adobe provides non-GAAP financial results to offer supplemental information that they believe provides meaningful insights into operational performance and helps with internal decision-making, budgeting, and comparisons to historical results and competitors. They exclude certain non-cash expenses and one-time items to present a view of core profitability.

What specific items does Adobe exclude from its non-GAAP measures and why?

Adobe excludes several items: 1) Stock-based compensation (non-cash expense); 2) Restructuring and other charges (not reflective of ongoing results, largely due to Macromedia integration); 3) Amortization of purchased intangibles (non-cash, related to acquisitions like Macromedia); 4) Certain tax benefits/charges (like from an audit resolution or the tax effect of non-GAAP adjustments). They believe excluding these provides a better view of operational performance and liquidity.

How should investors interpret the differences between GAAP and non-GAAP results?

Investors should view non-GAAP results as a supplement to, not a replacement for, GAAP results. The non-GAAP figures offer a different perspective by removing certain expenses and one-time events that Adobe deems less representative of ongoing operational performance. It's crucial to review the specific adjustments made by Adobe to understand the divergence and assess the company's financial health holistically.

ADBE 8-K: Earnings & Results

Summary

Adobe Systems Incorporated filed an 8-K on September 16, 2008, reporting its financial results for the third fiscal quarter ended August 29, 2008. The filing primarily incorporates a press release announcing these results, which highlights both GAAP and non-GAAP financial performance. Investors should note that Adobe provided significant detail on its use of non-GAAP financial measures, explaining the adjustments made, which include excluding stock-based compensation, restructuring charges, amortization of purchased intangibles, and certain tax-related items. The company emphasized that these non-GAAP measures are used internally for operational decision-making and budgeting, offering a perspective on core profitability and facilitating comparisons with historical performance and competitors. While these measures are not a substitute for GAAP reporting, Adobe believes they provide valuable supplemental information for investors seeking to understand the underlying operational trends and financial health of the business, particularly in light of the integration of the Macromedia acquisition and evolving accounting standards like SFAS 123R.

Key Highlights

1Adobe Systems announced its Q3 2008 financial results via an 8-K filing on September 16, 2008.
2The company detailed its use of non-GAAP financial measures, excluding items such as stock-based compensation, restructuring charges, and amortization of intangibles.
3Adobe explained that non-GAAP measures are used for internal budgeting, resource allocation, and operational assessment.
4The filing specifies that stock-based compensation is excluded as it is a non-cash expense and not used to assess core profitability.
5Restructuring and other charges related to the Macromedia acquisition are excluded as they are not reflective of ongoing operating results.
6Amortization of purchased intangibles, primarily from the Macromedia acquisition, is excluded because it is non-cash and to facilitate operational performance comparisons.
7A one-time tax benefit from an income tax audit resolution was excluded from non-GAAP results as it was unrelated to ongoing business operations.

ADOBE INC. 8-K Report, Financial Results (Sep 16, 2008)

Summary

Key Highlights

Frequently Asked Questions