Intuit Posts Strong First-Quarter

Business Wire, Nov 16, 2006

MOUNTAIN VIEW, Calif. -- Intuit Inc. (Nasdaq:INTU) today announced its first-quarter 2007 revenue increased 19 percent over the year-ago quarter to $362.1 million. Growth was primarily driven by strong sales of its QuickBooks software and add-on solutions, payroll and payments. Approximately $20 million of first-quarter revenue was attributed to the September launch of QuickBooks 2007, which was about 30 days earlier than last year. Without this earlier launch, revenue growth would have been approximately 12 percent.

"Intuit just completed another successful quarter," said Steve Bennett, Intuit's president and chief executive officer. "QuickBooks 2007 is off to a great start, and our Payroll and Payments segment also performed very well. With a new lineup of TurboTax products just launched, we're excited about the balance of the fiscal year."

First-Quarter 2007 Financial Highlights

Intuit posted a GAAP (Generally Accepted Accounting Principles) net loss of $58.9 million versus a net loss of $45.8 million in the first quarter of 2006. This represents a net loss of $0.17 per share versus a net loss of $0.13 per share in the year-ago quarter. First-quarter 2006 results included $11.8 million, or $0.03 per share, of net income from discontinued operations. Intuit typically posts a seasonal loss in its first quarter when it has little revenue from its tax businesses.

Intuit posted a non-GAAP net loss of $42.5 million versus a non-GAAP net loss of $45.0 million in the first quarter of 2006. The first-quarter non-GAAP net loss was $0.12 per share versus a non-GAAP net loss of $0.13 per share in the first quarter of fiscal 2006.

First-Quarter 2007 Business Segment Results

* QuickBooks revenue of $133.7 million was up 28 percent compared to the first quarter of 2006. The earlier launch of QuickBooks produced approximately $20 million in revenue, without which growth would have been approximately 9 percent.

* Payroll and Payments revenue of $125.5 million was up 21 percent compared to the first quarter of 2006.

* Consumer Tax revenue was $12.8 million, compared to $7.9 million in the first quarter of 2006.

* Professional Tax revenue was $9.7 million, compared to $8.9 million in the first quarter of 2006.

* Other Businesses revenue of $80.4 million was up 2 percent compared to the first quarter of 2006.

Forward-looking Guidance

Intuit reaffirmed its previously-given revenue and earnings per share guidance for the second quarter of fiscal 2007 and provided operating income guidance for the first time. Intuit expects:

* Revenue of $743 million to $760 million, or year-over-year growth of 0 percent to 2 percent.

* GAAP operating income of $185 million to $204 million, and non-GAAP operating income of $211 million to $230 million.

* GAAP diluted earnings per share, or EPS, of $0.34 to $0.37, and non-GAAP diluted EPS of $0.39 to $0.42.

Intuit also reaffirmed its previously given third quarter, fourth quarter, and full year fiscal 2007 guidance for revenue and earnings per share, details of which are available on Intuit's Web site at www.intuit.com/about_intuit/investors/earnings/2006/.> Webcast and Conference Call Information

A live audio webcast of Intuit's first-quarter 2007 conference call is available at www.intuit.com/about_intuit/investors/webcast_events.html. The call begins today at 1:30 p.m. PST. The replay of the audio webcast will remain on Intuit's Web site for one week after the conference call. Intuit has also posted this press release, including the attached tables and non-GAAP to GAAP reconciliations on its Web site and will post the conference call script shortly after the conference call concludes. These documents may be found at www.intuit.com/about_intuit/investors/earnings/2006/.> The conference call number is 866-837-9789 in the United States or 703-639-1425 from international locations. No reservation or access code is needed. A replay of the call will be available for one week by calling 888-266-2081, or 703-925-2533 from international locations. The access code is 945569.

Intuit, the Intuit logo, Quicken, QuickBooks and TurboTax, among others, are registered trademarks and/or registered service marks of Intuit Inc. in the United States and other countries.

About Non-GAAP Financial Measures

This press release and the accompanying tables include non-GAAP financial measures. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles, please see the section of the accompanying tables titled "About Non-GAAP Financial Measures" as well as the related Table B and Table E which follow it. A copy of the press release filed by Intuit on November 16, 2006 can be found on the investor relations page of Intuit's Web site.

Cautions About Forward-Looking Statements

This press release contains: forward-looking statements, including forecasts of Intuit's expected financial results; its prospects for the business in fiscal 2007 and beyond; all of the statements under the heading "Forward-Looking Guidance."