What are non-GAAP financial measures, and why does Adobe use them?

Non-GAAP financial measures are financial metrics that are not calculated in accordance with Generally Accepted Accounting Principles (GAAP). Adobe uses them to provide what it believes is a more meaningful view of its operational performance, excluding items like stock-based compensation, restructuring charges, and amortization of intangibles. The company believes these measures help in understanding core profitability and comparing performance over time and against competitors.

What specific items does Adobe exclude from its non-GAAP calculations?

Adobe typically excludes stock-based and deferred compensation expenses, restructuring charges, amortization of purchased intangibles and technology license arrangements, investment gains and losses, and certain tax impacts from its non-GAAP measures. The specific exclusions are detailed in the filing and the accompanying press release.

Are these non-GAAP results the only financial information provided?

No, the filing references a press release that includes both GAAP and non-GAAP financial results. Adobe states that its non-GAAP measures should be used in conjunction with the corresponding GAAP measures for a complete understanding of its financial condition and performance.

ADBE 8-K: Earnings & Results

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

The main purpose of this 8-K filing is to announce and provide access to Adobe's financial results for its fourth fiscal quarter and full fiscal year ended November 27, 2009. It incorporates by reference the press release containing these results.

Summary

This Form 8-K filing from Adobe Systems Incorporated, dated December 15, 2009, primarily serves to announce the company's financial results for its fourth fiscal quarter and full fiscal year ended November 27, 2009. The filing incorporates by reference a press release detailing these results. A key aspect of this report is Adobe's use and explanation of non-GAAP financial measures, which exclude items such as stock-based compensation, restructuring charges, amortization of purchased intangibles, investment gains/losses, and certain tax impacts. The company believes these non-GAAP measures offer a more meaningful view of operational performance and facilitate comparisons with historical results and competitors. Investors should note that this filing coincides with the announcement of Adobe's fiscal year-end results. The detailed breakdown of these results, including GAAP and non-GAAP figures, is provided in the referenced press release. The company's emphasis on non-GAAP reporting suggests a strategic approach to highlight core operational profitability, excluding significant non-cash expenses and one-time events that can distort short-term financial performance. This practice is common for technology companies and aims to provide investors with a clearer understanding of underlying business trends.

Key Highlights

1Adobe Systems Incorporated announced its fourth fiscal quarter and full fiscal year 2009 financial results on December 15, 2009.
2The company is furnishing its earnings press release as part of this 8-K filing.
3Adobe utilizes and explains its non-GAAP financial measures, which exclude various items to present what it considers core operational performance.
4Key exclusions from non-GAAP measures include stock-based compensation, restructuring charges, and amortization of purchased intangibles.
5The filing also details the rationale behind excluding investment gains/losses and certain tax impacts from non-GAAP reporting.
6The company believes non-GAAP measures offer supplemental insights for investors to evaluate operational performance and compare against peers.
7The press release referenced in the filing contains the detailed financial results and forecasts using both GAAP and non-GAAP figures.

ADOBE INC. 8-K Report, Financial Results (Dec 15, 2009)

Summary

Key Highlights

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