8-KEarnings & ResultsExhibits & Filings

Salesforce, Inc. 8-K Report, Financial Results (Feb 22, 2006)

Filed February 22, 2006For Securities:CRM

Summary

Salesforce.com, Inc. (CRM) filed an 8-K on February 22, 2006, to report its financial results for the quarter ended January 31, 2006. The filing primarily serves to attach a press release detailing these results, which include both Generally Accepted Accounting Principles (GAAP) and non-GAAP financial measures. Investors should note that the company is providing these non-GAAP figures to offer a clearer view of its operational performance, excluding certain one-time or non-recurring items. The most significant non-GAAP adjustment pertains to a one-time, non-cash income of $285,000 recognized in the first quarter of fiscal 2006 stemming from a lease abandonment liability reduction. Additionally, a $6,769,000 income reversal from a deferred tax valuation allowance in the third quarter of fiscal 2006 is also excluded in the non-GAAP presentation. Management's intent in presenting these adjusted figures is to allow for a better understanding of the underlying business trends.

Key Highlights

  • 1Salesforce.com reported its financial results for the quarter ended January 31, 2006, via an 8-K filing.
  • 2The company is providing both GAAP and non-GAAP financial metrics to investors.
  • 3Non-GAAP measures exclude a $285,000 one-time, non-cash income related to a lease abandonment liability reduction.
  • 4Non-GAAP measures also exclude $6,769,000 in income from a deferred tax valuation allowance reversal from a prior quarter (Q3 FY06).
  • 5Management aims to provide a clearer view of underlying operational results and performance trends through non-GAAP reporting.
  • 6The filing incorporates by reference a press release dated February 22, 2006, containing the detailed financial results.
  • 7Information provided in this report is not considered 'filed' for Section 18 of the Exchange Act liabilities.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report Salesforce.com's financial results for the quarter ended January 31, 2006, by attaching a press release that details these results.

Salesforce.com is providing non-GAAP financial information to offer investors a more complete understanding of the company's underlying operational results and performance trends, by excluding certain one-time or non-recurring items.

The non-GAAP measures exclude a $285,000 one-time, non-cash income resulting from a reduction in a lease abandonment accrued liability, and a $6,769,000 income related to the reversal of a deferred tax valuation allowance from a prior quarter (Q3 FY06).

No, the information in this report and its exhibits are not considered 'filed' for the purposes of Section 18 of the Securities Exchange Act of 1934, nor are they subject to the liabilities of that section.