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

The main purpose of this 8-K filing is to officially report Adobe's financial results for its first fiscal quarter ended March 5, 2010, through the accompanying press release. It also serves to explain the company's use of non-GAAP financial measures.

Why does Adobe provide non-GAAP financial results?

Adobe provides non-GAAP financial results because it believes these measures offer a more meaningful view of its operational performance, free from certain non-cash expenses (like stock-based compensation and amortization of intangibles) and irregular charges (like restructuring costs). The company uses these metrics internally for decision-making and budgeting and offers them to investors as supplemental information.

What items are excluded from Adobe's non-GAAP calculations?

Adobe's non-GAAP calculations typically exclude: (A) stock-based and deferred compensation expenses, (B) restructuring charges, (C) amortization of purchased intangibles and incomplete technology, (D) investment gains and losses, and (E) the income tax effect of these non-GAAP pre-tax adjustments.

Are Adobe's non-GAAP results compliant with Generally Accepted Accounting Principles (GAAP)?

No, Adobe explicitly states that its non-GAAP measures are not in accordance with, or an alternative for, GAAP. They are presented as supplemental information and should be used in conjunction with the corresponding GAAP measures.

ADBE 8-K: Earnings & Results

Summary

This 8-K filing by Adobe Systems Incorporated, dated March 23, 2010, primarily serves to furnish a press release announcing its first fiscal quarter 2010 financial results. The release details strong financial performance for the quarter ended March 5, 2010. A significant portion of the filing is dedicated to explaining Adobe's use of non-GAAP financial measures, which exclude items such as stock-based compensation, restructuring charges, amortization of purchased intangibles, and investment gains/losses. Adobe emphasizes that these non-GAAP figures are used internally for operational decision-making and budgeting, and are provided to investors as supplemental information to offer a better understanding of core operational performance, independent of these non-cash or irregular charges. The company's decision to report non-GAAP results stems from a belief that these adjusted figures provide more meaningful insights into the company's operational efficiency and ability to invest in growth initiatives, such as research and development. Investors are advised that these non-GAAP measures are not a substitute for GAAP financial reporting and should be considered alongside the official GAAP figures. The filing also references the acquisition of Omniture in October 2009 as a factor influencing some of the excluded items, particularly amortization of purchased intangibles.

Key Highlights

1Adobe Systems Incorporated announced strong financial results for its first fiscal quarter ended March 5, 2010, via a press release filed with the SEC.
2The filing details Adobe's use of non-GAAP financial measures, which exclude stock-based compensation, restructuring charges, amortization of purchased intangibles, and investment gains/losses.
3Non-GAAP measures are presented to provide supplemental insights into operational performance and facilitate comparisons with historical results and competitors.
4Adobe's internal budgeting and resource allocation rely on non-GAAP financial measures.
5The company explicitly states that non-GAAP measures are not replacements for GAAP and should be evaluated in conjunction with GAAP financials.
6The press release referenced in the 8-K is titled 'Adobe Delivers Strong Q1 Financial Results'.
7The filing acknowledges the impact of prior acquisitions, such as Omniture (Oct 2009) and Macromedia (Dec 2005), on certain financial items, particularly amortization of purchased intangibles.

ADOBE INC. 8-K Report, Financial Results (Mar 23, 2010)

Summary

Key Highlights

Frequently Asked Questions