Why does Adobe present non-GAAP financial measures?

Adobe presents non-GAAP financial measures because management believes they provide meaningful supplemental information regarding operational performance and give a better understanding of how the company makes budgeting and investment decisions. They are used internally to assess core profitability and facilitate comparisons to historical results and competitors, excluding certain non-cash or non-recurring items.

What are some key items excluded from Adobe's non-GAAP financial measures?

Key items excluded from Adobe's non-GAAP financial measures include stock-based and deferred compensation expenses, restructuring and other charges, amortization of purchased intangibles, investment gains and losses, and certain income tax adjustments.

What should investors consider when looking at Adobe's non-GAAP results?

Investors should understand that non-GAAP measures are not prepared in accordance with GAAP and may differ from measures used by other companies. They have limitations and do not reflect all amounts associated with Adobe's financial results. These measures should only be used to evaluate results in conjunction with the corresponding GAAP measures.

ADBE 8-K: Earnings & Results

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

The main purpose of this 8-K filing is to announce and provide Adobe Inc.'s financial results for its fourth quarter and fiscal year ended November 30, 2012, through the furnishing of a press release (Exhibit 99.1).

Summary

This 8-K filing from Adobe Inc. (ADBE) on December 13, 2012, announces the company's financial results for its fourth quarter and fiscal year ended November 30, 2012, as detailed in an attached press release. The filing highlights Adobe's record revenue for both the quarter and the full fiscal year. A significant aspect of the report is the company's detailed explanation and presentation of non-GAAP financial measures. These non-GAAP figures, which exclude items such as stock-based compensation, restructuring charges, and amortization of purchased intangibles, are presented as supplemental information to provide a clearer view of operational performance and facilitate comparisons. Investors should note that Adobe's management uses these non-GAAP measures for internal budgeting and decision-making, believing they offer meaningful insights into core profitability and investment strategies. While the company emphasizes that these measures are not a substitute for GAAP financials and have limitations, their consistent use by management suggests they are a key indicator of how Adobe views its underlying business performance. The attached press release, "Adobe Reports Record Quarterly and Annual Revenue," is furnished as Exhibit 99.1 and serves as the primary source of the detailed financial results.

Key Highlights

1Adobe Systems Incorporated reported record revenue for its fourth quarter and full fiscal year ended November 30, 2012.
2The 8-K filing includes a press release (Exhibit 99.1) detailing the financial results for the period.
3The company presented both GAAP and non-GAAP financial results, with a significant portion of the report dedicated to explaining the latter.
4Non-GAAP measures are used internally for budgeting and operational decision-making to assess core profitability.
5Key exclusions from non-GAAP measures include stock-based compensation, restructuring charges, and amortization of purchased intangibles.
6Adobe believes these non-GAAP measures provide meaningful supplemental information and facilitate comparisons with historical results and competitors.
7The filing clarifies that non-GAAP measures should be used in conjunction with GAAP measures and have limitations.

ADOBE INC. 8-K Report, Financial Results (Dec 13, 2012)

Summary

Key Highlights

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