8-KEarnings & ResultsExhibits & Filings

GILEAD SCIENCES, INC. 8-K Report, Financial Results (Jul 17, 2008)

Filed July 17, 2008For Securities:GILD

Summary

Gilead Sciences, Inc. (GILD) filed a Form 8-K on July 17, 2008, to report its financial results for the second quarter ended June 30, 2008. The filing primarily consists of a press release detailing these results. Notably, Gilead provided both GAAP and non-GAAP financial metrics. The non-GAAP measures exclude certain expenses, such as the impact of stock-based compensation and, for the 2008 period, purchased in-process research and development related to the acquisition of Navitas Assets, LLC's cicletanine business. Management stated that these non-GAAP figures are useful for investors as they are used internally for operational and financial planning. Investors should consider these non-GAAP metrics alongside the company's official GAAP financial statements. The primary focus of this report is the dissemination of quarterly financial performance and strategic financial reporting choices.

Key Highlights

  • 1Gilead Sciences announced its financial results for the second quarter ended June 30, 2008.
  • 2The company provided both Generally Accepted Accounting Principles (GAAP) and non-GAAP financial information.
  • 3Non-GAAP results exclude stock-based compensation expense for both 2007 and 2008 periods.
  • 4Non-GAAP results for 2008 also exclude the after-tax impact of purchased in-process R&D from the Navitas Assets, LLC acquisition.
  • 5Management believes non-GAAP financial measures offer useful insights for investors and are used internally for financial planning.
  • 6The press release detailing these results is attached as Exhibit 99.1 to the 8-K filing.
  • 7The information filed is not deemed 'filed' for Section 18 of the Exchange Act, nor incorporated by reference into other filings.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report Gilead Sciences, Inc.'s financial results for the second quarter ended June 30, 2008, via an attached press release.

For the quarter ended June 30, 2008, Gilead's non-GAAP financial reporting excludes the after-tax impact of stock-based compensation expense and the after-tax impact of purchased in-process research and development from the acquisition of Navitas Assets, LLC's cicletanine business.

Gilead presents non-GAAP financial information because management believes it is useful for investors, as these metrics are also used internally for operating, budgeting, and financial planning purposes. However, investors are advised to consider this non-GAAP information in conjunction with the company's official GAAP financial statements.

The acquisition of Navitas Assets, LLC's assets related to its cicletanine business resulted in a purchased in-process research and development expense that Gilead has excluded from its 2008 non-GAAP financial results. This indicates a strategic investment or acquisition activity by Gilead.