It's baaad! Can't they get their act together???? Form 8-K for GOOGLE INC.
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7-Mar-2006
Other Events
Item 8.01. Other Events
On March 2, 2006, Google Inc. posted its Analyst Day presentations on its Investor Relations website, investor.google.com. The initial posting inadvertently contained certain annotated comments not intended to be presented at Analyst Day, including the following statements:
"Our ads business for the moment is healthy and growing and we're on a strong trajectory
• projected to grow from $6bn this year to $9.5bn next year based purely on trends in traffic and monetization growth.
But strong competitors are attempting to aggregate traffic
• AdSense margins will be squeezed in 2006 and beyond";
"To really get down to brass tacks, we're going to: Execute well on our core ads projects to help us exceed the $9.5bn target (and backfill any AdSense partner loss) and drive advertiser satisfaction"; and
"In terms of estimating [stock-based compensation] charges for 2006, there are two things to consider:
• The amount of the charge related to awards issued prior to 2006 AND the new awards that are issued throughout 2006
• The first part, the amount related to grants prior to 2006, is $342 mm"
The statements regarding $9.5 billion in 2006 ad revenue and AdSense margins were not speaker notes prepared for the Analyst Day presentation, and were inadvertently included in the Analyst Day slides. These statements were instead speaker notes prepared early in the fourth quarter of 2005 for an internal product strategy presentation. These notes were not created for financial planning purposes, and should not be regarded as financial guidance. Consistent with past practice, Google is not providing revenue guidance. In addition, the statement with respect to AdSense margins does not reflect Google's current expectations.
The statements regarding stock-based compensation were also inadvertently included in the Analyst Day slides. However, the statement regarding the stock-based compensation charge of $342 million, which relates to stock awards granted to employees and directors prior to 2006, is a materially accurate reflection of Google's current expectations.
Safe Harbor Statement
This Form 8-K contains forward-looking statements that involve risks and uncertainties, including statements regarding our revenue, AdSense margins and stock-based compensation charge. Actual results may differ materially from our expected results. Factors that could cause actual results to differ from our expectations include competition, our ability to continue to attract users to our web sites, our ability to attract web sites to our AdSense program, general economic conditions and those economic conditions specific to the Internet and Internet advertising, our ability to innovate and improve monetization, the growth of the market for internet advertising, our ability to penetrate foreign markets, geopolitical events such as war, threat of war or terrorist, and the forfeiture rate on our stock awards. More information about potential risk factors is included in our report on Form 10-Q for the quarter ended September 30, 2005, and from time to time in other reports that we file with the SEC.
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