Summary
This 8-K filing by Adobe Systems Incorporated on September 21, 2010, announces its financial results for the third fiscal quarter ended September 3, 2010. The primary focus of the report is the press release detailing these results, which highlighted record revenue. Adobe also provided a detailed explanation of its use of non-GAAP financial measures, which exclude items such as stock-based compensation, restructuring charges, amortization of purchased intangibles, and investment gains/losses. The company believes these non-GAAP measures offer a clearer view of operational performance and facilitate comparisons with historical results and competitors. Investors should note that while the press release reports strong performance with record revenue, the explanation of non-GAAP adjustments is extensive. This indicates Adobe's strategy to present a "core" profitability picture, excluding significant non-cash expenses and one-time charges. Understanding these adjustments is crucial for a complete financial analysis and for comparing Adobe's performance against GAAP-based reporting from other companies.
Key Highlights
- 1Adobe Systems announced its third fiscal quarter 2010 financial results on September 21, 2010.
- 2The press release accompanying this 8-K reported "Record Revenue" for the third fiscal quarter.
- 3Adobe provided a comprehensive explanation of its use of non-GAAP financial measures.
- 4Non-GAAP measures presented exclude stock-based compensation, restructuring charges, amortization of purchased intangibles, and investment gains/losses.
- 5The company utilizes these non-GAAP measures for internal budgeting, resource allocation, and operational decision-making.
- 6Adobe believes these non-GAAP metrics provide meaningful supplemental information about operational performance and facilitate comparisons.
- 7The filing includes a press release (Exhibit 99.1) detailing the financial results and non-GAAP information.