8-KEarnings & ResultsExhibits & Filings

GILEAD SCIENCES, INC. 8-K Report, Financial Results (Oct 18, 2006)

Filed October 18, 2006For Securities:GILD

Summary

Gilead Sciences, Inc. (GILD) filed an 8-K on October 18, 2006, to announce its financial results for the third quarter ended September 30, 2006. The report primarily directs investors to an accompanying press release (Exhibit 99.1) for detailed financial information. A key aspect of the filing is Gilead's continued use of non-GAAP earnings and earnings per diluted share to provide a clearer view of operational performance, excluding the impact of a significant purchased in-process research and development charge related to the acquisition of Corus Pharma, Inc. The company also noted its adoption of FASB Statement No. 123 (revised) on share-based payment, explaining that non-GAAP reporting no longer excludes stock-based compensation expense, as management believes investors are now familiar with this cost. This filing serves as an update on the company's financial condition and operational results for the period.

Key Highlights

  • 1Gilead Sciences announced its financial results for the third quarter ended September 30, 2006, via an 8-K filing on October 18, 2006.
  • 2The primary information source for detailed financial results is the press release filed as Exhibit 99.1.
  • 3The company is using non-GAAP earnings and EPS to present results, excluding a significant purchased in-process R&D charge from the Corus Pharma acquisition.
  • 4Gilead's management believes non-GAAP reporting aids in comparing current and prior period results by removing one-time expenses.
  • 5The company adopted FASB Statement No. 123 (revised) on share-based payment as of January 1, 2006.
  • 6Following the adoption of the new accounting standard, non-GAAP reporting no longer excludes stock-based compensation expense.
  • 7The filing does not constitute a formal SEC filing for Section 18 liability or incorporation by reference into other filings.

Frequently Asked Questions

The main purpose of this 8-K filing is to announce Gilead Sciences, Inc.'s financial results for the third quarter ended September 30, 2006, and to provide investors with access to the detailed press release that contains this information.

Gilead is reporting non-GAAP results to provide investors with a clearer view of its operational performance by excluding the impact of certain material expenses, such as the purchased in-process research and development charge related to the Corus Pharma acquisition, which are not comparable to prior periods.

Yes, following the adoption of FASB Statement No. 123 (revised) on January 1, 2006, Gilead's non-GAAP financial results no longer exclude stock-based compensation expense. The company believes investors now have a better understanding of this expense and are incorporating it into their evaluations.

The detailed financial results for the third quarter ended September 30, 2006, are provided in the press release issued by Gilead Sciences, Inc. on October 18, 2006, which is attached as Exhibit 99.1 to this 8-K filing.