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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Washington,
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Report</font></div>
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to Section&#160;13 or 15(d)&#160;of the Securities Exchange Act of
1934</font></div>
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Report (Date of earliest event reported): <font style="DISPLAY: inline; FONT-WEIGHT: bold">&#160; March 11,
2010</font></font></div>
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Products,&#160;Inc.</font></font></div>
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name of registrant as specified in its charter)</font></div>
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File Number)</font></div>
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628-1007</font></div>
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name or former address, if changed since last report)</font></div>
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appropriate box below if the Form&#160;8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (<font style="DISPLAY: inline; FONT-STYLE: italic">see </font>General
Instruction A.2. below):&#160;</font></div>
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      &#160;&#160;&#160;&#160;&#160;Written communications pursuant to
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  240.14a-12)</font></div>
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      &#160;&#160;&#160;&#160;&#160;Pre-commencement communications pursuant to
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;<a name="FIS_SECTION_2_FINANCIAL_INFORMATION" /><a name="FIS_RESULTS_OF_OPERATIONS"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Item 2.02 Results of Operation and
Financial Condition</font></a></font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">&#160;The
information furnished in this Current Report and in Exhibit&#160;99.1 hereto
shall not be deemed to be &#8220;filed&#8221; for the purposes of Section&#160;18 of the
Securities Exchange Act of 1934, as amended, or otherwise subject to the
liabilities of that section. The information in this Current Report and in
Exhibit&#160;99.1 hereto shall not be incorporated by reference into any
registration statement or other document pursuant to the Securities Act of 1933,
as amended, regardless of any general incorporation language contained in such
filing, except as shall be expressly set forth by specific reference in such
filing.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On March
11, 2010, Obagi Medical Products,&#160;Inc. (the &#8220;Company&#8221;) issued a press
release announcing financial results for the three months and year ended
December 31, 2009.&#160; A copy of the press release is attached hereto as
Exhibit&#160;99.1, which is incorporated herein by reference.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The press
release contains non-GAAP financial information. Management believes that the
presentation of non-GAAP net income, non-GAAP taxes and non-GAAP net income per
basic and diluted share provides important supplemental information to
management and investors about financial and business trends relating to the
Company&#8217;s financial condition and results of operations. Management believes
that the use of these non-GAAP financial measures provides a better measure of
comparability with the Company&#8217;s prior financial reports.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
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has used these non-GAAP measures when evaluating operating performance because
it believes that the inclusion or exclusion of the items described below
provides an additional measure of the Company&#8217;s core operating results and
facilitates comparisons of its core operating performance against prior periods
and its business model objectives. The Company has chosen to provide this
information to investors to enable them to perform additional analyses of past,
present and future operating performance and as a supplemental means to evaluate
its ongoing core operations. Externally, the Company believes that these
non-GAAP measures continue to be useful to investors in their assessment of its
operating performance and their valuation of the Company. Internally, these
non-GAAP measures are significant measures used by management for purposes
of:</font></div>
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<tr>
            <td align="right" valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: wingdings">&#167;&#160;&#160;</font></div>
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      the core operating performance of the
Company;</font></div>
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          </tr></table>
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    <div>
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<tr>
            <td align="right" valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: wingdings">&#167;&#160;&#160;</font></div>
            </td>
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      internal budgets;</font></div>
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          </tr></table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
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<tr>
            <td align="right" valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: wingdings">&#167;&#160;&#160;</font></div>
            </td>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Comparing
      performance with internal forecasts and targeted business
      models;</font></div>
            </td>
          </tr></table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
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<tr>
            <td align="right" valign="top" width="6%">
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            </td>
            <td align="left" valign="top" width="72%">
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      planning; and</font></div>
            </td>
          </tr></table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
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<tr>
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competitors.</font></div>
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above and exclude the following items:</font></div>
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<tr>
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      benefit</font>. This item represents the additional amount of tax benefit
      that the Company would accrue if it used non-GAAP results instead of GAAP
      results in the calculation of its tax liability.&#160;&#160;Taken together
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numerator used in the calculation of non-GAAP net income per basic and diluted
share is non-GAAP net income computed as described above. In the denominator,
the Company uses the GAAP basic and diluted shares.&#160;</font></div>
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<tr>
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      pharmacy channel. However, investors may view a decision such as exiting
      the pharmacy channel reflective of risks inherent in the nature of the
      Company&#8217;s business, particularly as it makes future strategic decisions
      regarding its business, and therefore may view it as relevant in analyzing
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non-GAAP financial measures should be considered supplemental to, and not as a
substitute for, or superior to, financial measures calculated in accordance with
generally accepted accounting principles in the United States of America
(&#8220;GAAP&#8221;). As a result, these non-GAAP financial measures should be read in
conjunction with the comparable information presented in accordance with GAAP in
the Company&#8217;s reports filed pursuant to the Securities Exchange Act of 1934, as
amended.</font></div>
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to the requirements of the Securities Exchange Act of 1934, the Registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.</font></div>
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form8k_2009q4.htm
UNITED
STATES
SECURITIES AND
EXCHANGE COMMISSION
Washington,
D.C. 20549
Form 8-K
Current
Report
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of
1934
Date of
Report (Date of earliest event reported):
March 11,
2010
Obagi Medical
Products, Inc.
(Exact
name of registrant as specified in its charter)
001-33204
(Commission
File Number)
Delaware
22-3904668
(State
      or other jurisdiction of incorporation)
(I.R.S.
      Employer Identification No.)
3760
Kilroy Airport Way, Suite 500, Long Beach, CA 90806
(Address
of principal executive offices, with zip code)
(562)
628-1007
(Registrant's
telephone number, including area code)
(Former
name or former address, if changed since last report)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (
see
General
Instruction A.2. below):
o
Written communications pursuant to
      Rule 425 under the Securities Act (17 CFR
  230.425)
o
Soliciting material pursuant to
      Rule 14a-12 under the Exchange Act (17 CFR
  240.14a-12)
o
Pre-commencement communications pursuant to
      Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))
o
Pre-commencement communications pursuant to
      Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))
Item 2.02 Results of Operation and
Financial Condition
The
information furnished in this Current Report and in Exhibit 99.1 hereto
shall not be deemed to be "filed" for the purposes of Section 18 of the
Securities Exchange Act of 1934, as amended, or otherwise subject to the
liabilities of that section. The information in this Current Report and in
Exhibit 99.1 hereto shall not be incorporated by reference into any
registration statement or other document pursuant to the Securities Act of 1933,
as amended, regardless of any general incorporation language contained in such
filing, except as shall be expressly set forth by specific reference in such
filing.
On March
11, 2010, Obagi Medical Products, Inc. (the "Company") issued a press
release announcing financial results for the three months and year ended
December 31, 2009.  A copy of the press release is attached hereto as
Exhibit 99.1, which is incorporated herein by reference.
The press
release contains non-GAAP financial information. Management believes that the
presentation of non-GAAP net income, non-GAAP taxes and non-GAAP net income per
basic and diluted share provides important supplemental information to
management and investors about financial and business trends relating to the
Company's financial condition and results of operations. Management believes
that the use of these non-GAAP financial measures provides a better measure of
comparability with the Company's prior financial reports.
Management
has used these non-GAAP measures when evaluating operating performance because
it believes that the inclusion or exclusion of the items described below
provides an additional measure of the Company's core operating results and
facilitates comparisons of its core operating performance against prior periods
and its business model objectives. The Company has chosen to provide this
information to investors to enable them to perform additional analyses of past,
present and future operating performance and as a supplemental means to evaluate
its ongoing core operations. Externally, the Company believes that these
non-GAAP measures continue to be useful to investors in their assessment of its
operating performance and their valuation of the Company. Internally, these
non-GAAP measures are significant measures used by management for purposes
of:
§
Evaluating
      the core operating performance of the
Company;
§
Establishing
      internal budgets;
§
Comparing
      performance with internal forecasts and targeted business
      models;
§
Strategic
      planning; and
§
Benchmarking
      performance externally against
competitors.
Non-GAAP
financial measures:
Non-GAAP
net income and non-GAAP taxes are important to the Company for the reasons noted
above and exclude the following items:
§
Exit of pharmacy
      channel.
This item represents charges and reserves
      recorded by the Company that relate to its exit of the pharmacy channel,
      as previously announced on April 13, 2009. The charges include the
      write-off of nonrefundable contractual deposits, primarily
      relating to the Company's contract sales force that was dedicated to
      selling SoluCLENZ, obsolete selling materials and the termination of
      certain contractual obligations related to SoluCLENZ. Management
      excludes these charges from internal operating models as the Company (i)
      operated within the pharmacy channel for only eight (8) months and (ii) is
      no longer operating within the pharmacy channel and it is,
      therefore, not considered normal to the Company's core
      operations.  Excluding these costs provides investors with a
      basis to compare the Company's current performance against historical
      results.
1
§
Non-GAAP income tax
      benefit
. This item represents the additional amount of tax benefit
      that the Company would accrue if it used non-GAAP results instead of GAAP
      results in the calculation of its tax liability.  Taken together
      with the item outlined above, it provides investors with a more
      consistent means of comparing the Company's
    performance.
Non-GAAP
net income per basic and diluted share:
The
numerator used in the calculation of non-GAAP net income per basic and diluted
share is non-GAAP net income computed as described above. In the denominator,
the Company uses the GAAP basic and diluted shares.
Some of
the limitations of relying on non-GAAP financial measures include:
§
Exit of pharmacy
      channel.
This item includes charges and reserves
      recorded by the Company that relate to the exit and winding down of the
      pharmacy channel. However, investors may view a decision such as exiting
      the pharmacy channel reflective of risks inherent in the nature of the
      Company's business, particularly as it makes future strategic decisions
      regarding its business, and therefore may view it as relevant in analyzing
      the Company's historical and future
  results.
§
Non-GAAP income tax
      benefit.
This item represents the additional amount of tax benefit
      that the Company would accrue if it used non-GAAP results instead of GAAP
      results in the calculation of its tax liability. The inherent limitation
      in this calculation is that it does not include the effect of all the
      items excluded from the non-GAAP financial
  statements.
All
non-GAAP financial measures should be considered supplemental to, and not as a
substitute for, or superior to, financial measures calculated in accordance with
generally accepted accounting principles in the United States of America
("GAAP"). As a result, these non-GAAP financial measures should be read in
conjunction with the comparable information presented in accordance with GAAP in
the Company's reports filed pursuant to the Securities Exchange Act of 1934, as
amended.
Item 9.01 Financial Statements and
Exhibits
(d)
Exhibits
Exhibit Number
Description
99.1
Press
      Release of Obagi Medical Products, Inc. dated March 11,
      2010
2
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
OBAGI
      MEDICAL PRODUCTS, INC.
Date:
      March 11, 2010
By:
/s/ PRESTON
      S. ROMM
Preston
      S. Romm
Chief
      Financial Officer