I dont claim to be an accountant but I always thought the non-GAAP was a more 'true' view of how that company sees its business:
Use of Non-GAAP Financial Measures Our "non-GAAP EPS" financial measure is defined as reported, or GAAP, EPS excluding, for the reasons discussed below, (1) purchase accounting and merger-related adjustments, (2) stock option expense and (3) other items.
We believe it is important to share these non-GAAP financial measures with shareholders as they: better represent the ongoing economics of the business, reflect how we manage the business internally and set operational goals, and form the basis of our management incentive programs. Accordingly, we believe investors' understanding of the Company's financial performance is enhanced as a result of our disclosing these non-GAAP financial measures. Non-GAAP EPS should not be viewed in isolation or as a substitute for reported, or GAAP, EPS.
I could be wrong but thats what I always thought so Id be happy to hear more expert accounting information.
