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

The main purpose of this 8-K filing is to furnish Adobe's press release announcing its financial results for the second fiscal quarter ended May 30, 2014. It is not a filing of GAAP financial statements but rather an announcement of results accompanied by the company's commentary.

Why does Adobe present non-GAAP financial measures?

Adobe presents non-GAAP financial measures because they believe these metrics provide meaningful supplemental information regarding their operational performance, excluding certain expenses like stock-based compensation, amortization of intangibles, and restructuring charges. They use these measures for internal decision-making and believe they offer greater transparency and comparability for investors to evaluate their business.

What are some of the key expenses excluded from Adobe's non-GAAP results?

Key expenses excluded from Adobe's non-GAAP results include stock-based and deferred compensation expenses, restructuring and other charges, amortization of purchased intangibles, investment gains and losses, accrued loss contingencies related to one-time litigation, and certain income tax adjustments. The company provides detailed explanations for why each of these items is excluded.

What is the new non-GAAP tax rate Adobe is using and why?

Beginning in fiscal year 2014, Adobe adopted a long-term non-GAAP tax rate of 21% for evaluating operating performance and planning. This rate is intended to eliminate the effects of non-recurring and period-specific income tax adjustments, providing a more stable and predictable measure of their ongoing operational profitability.

ADBE 8-K: Earnings & Results

Summary

This 8-K filing from Adobe Inc. (ADBE) on June 17, 2014, primarily serves to furnish a press release detailing their second fiscal quarter 2014 financial results. The key takeaway for investors is that Adobe reported strong financial performance driven by its cloud solutions. The company emphasizes its use of non-GAAP financial measures to provide a clearer view of operational performance, excluding items such as stock-based compensation, amortization of intangibles, and restructuring charges. Investors should note that while these non-GAAP figures are presented to offer supplemental insights into operational performance and aid comparability, they are not replacements for GAAP measures. Adobe's commentary highlights the strategic shift and success of its cloud offerings as a significant driver for these results, indicating a positive trajectory for the company's business model transformation.

Key Highlights

1Adobe announced strong financial results for its second fiscal quarter ended May 30, 2014, driven by its cloud solutions.
2The company is furnishing a press release (Exhibit 99.1) containing these financial results.
3Adobe utilizes non-GAAP financial measures (non-GAAP operating income, net income, tax rate, and diluted EPS) to provide supplemental insights into operational performance.
4Key exclusions from non-GAAP measures include stock-based compensation, amortization of purchased intangibles, and restructuring charges.
5A new long-term non-GAAP tax rate of 21% has been applied starting fiscal year 2014 for evaluating operating performance and planning.
6Adobe believes these non-GAAP measures offer greater transparency and allow for better comparison with historical results and peer companies.
7The press release title, 'Adobe's Cloud Solutions Fuel Strong Financial Results,' underscores the strategic importance and success of their cloud transition.

ADOBE INC. 8-K Report, Financial Results (Jun 17, 2014)

Summary

Key Highlights

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