Question
Google disseminated a press release to announce its financial results for the fourth quarter and the full fiscal year 2013, parts of which are reproduced
Google disseminated a press release to announce its financial results for the fourth quarter and the full fiscal year 2013, parts of which are reproduced in this case document (see pages 9-12 of this case document). Examine the press release and evaluate Googles operating performance as reported in the income statement disseminated along with the press release. How would you evaluate the companys financial performance, in particular revenues and income from operations, for the fourth quarter of fiscal 2013? What about for the full fiscal year 2013? Consider revenue growth, income growth, and growth in profit margins (income relative to revenue) in your answer. The companys press release contains information about non-GAAP measures of financial performance for the fourth quarter of 2013. Examine the non-GAAP to GAAP reconciliation table. What accounts for the difference between GAAP net income and the non-GAAP measure of net income? Are you in accord with each of the companys adjustments in computing non-GAAP earnings? Why or why not?
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