Intuit Reports Third Quarter Results; Profits Increase on Strong Revenue - Company Financial Information

Edge: Work-Group Computing Report, May 29, 2000

                  (Financial statements follow)

                             Table A
                           INTUIT INC.
       GAAP CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
              (In thousands, except per share data)
                           (Unaudited)

                      Three Mos. Ended           Nine Mos. Ended
                           April 30,                 April 30,
                       1999        2000         1999       2000

Net revenue         $ 261,492   $ 329,139    $ 772,106  $ 931,566
Costs and
expenses:
 Cost of goods sold:
  Product              53,802      75,532      163,033    225,038
  Amortization
   of purchased
software and other      1,885       2,115        5,586      7,036
 Customer service &
  technical support    29,580      31,596      101,584    113,554
 Selling & marketing   50,787      60,173      175,070    216,188
 Research & development34,325      40,779      104,346    126,529
 General &
  administrative       20,184      20,027       59,118     64,846
 Charge for purchased
  research and
  development              --          --           --      1,312
 Acquisition related
  costs, including
  amortization of
  goodwill and
purchased intangibles  20,890      37,266       62,822    118,828
 Acquisition
  related costs
  amortization of
  deferred compensation    --       1,138           --      2,882
Reorganization costs       --          --        2,000      3,500

Total costs &
 expenses             211,453     268,626      673,559    879,713

Income from
 operations            50,039      60,513       98,547     51,853

Interest and
 other income and
 expense, net           5,344      14,516       12,642     29,981
Gain from
 marketable securities 58,596     422,206       68,684    402,096

Income before
 income taxes         113,979     497,235      179,873    483,930
Income tax
 provision             38,627     200,204       56,293    195,617
Minority interest          --         (54)          --       (203)

Net income          $  75,352   $ 297,085    $ 123,580  $ 288,516

                             Table A
                           INTUIT INC.
       GAAP CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
              (In thousands, except per share data)
                           (Unaudited)

                      Three Mos. Ended           Nine Mos. Ended
                           April 30,                 April 30,
                       1999        2000         1999       2000

Basic net
 income per share    $   0.39    $   1.47      $  0.65    $  1.44

Shares used
 in per share
 amounts              192,786     202,342      189,328    199,787

Diluted net
income per share      $  0.37    $   1.39      $  0.62    $  1.37

Shares used in
 per share amounts    203,161     214,362      198,261    211,049

                             Table B
                           INTUIT INC.
  PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (i)
              (In thousands, except per share data)
                           (Unaudited)

                      Three Mos. Ended           Nine Mos. Ended
                           April 30,                 April 30,
                       1999        2000         1999       2000

Net revenue         $ 261,492   $ 329,139    $ 772,106  $ 931,566
Costs and expenses:
 Cost of goods sold:
  Product              53,802      75,532      163,033    225,038
 Customer service &
  technical support    29,580      31,596      101,584    113,554
 Selling & marketing   50,787      60,173      175,070    216,188
 Research &
  development          34,325      40,779      104,346    126,529
 General &
  administrative       20,184      20,027       59,118     64,846

Total costs & expenses,
 excluding acquisition
 related charges,
 reorganization costs
 and gains from
 marketable securities 188,678     228,107      603,151   746,155

Income from operations  72,814     101,032      168,955   185,411

Interest and
 other income and
 expense, net            5,344      14,516       12,642    29,981

Income excluding
 acquisition
 related charges,
 reorganization costs
 and gains from
 marketable securities  78,158     115,548      181,597   215,392
Income tax
 provision              28,137      39,286       65,375    73,233
Minority interest           --         (54)          --      (203)

Net income
 excluding acquisition
 related charges,
 reorganization costs
 and gains from
 marketable securities $50,021   $  76,316    $ 116,222  $ 142,362

                             Table B
                           INTUIT INC.
  PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (i)
              (In thousands, except per share data)
                           (Unaudited)

                      Three Mos. Ended           Nine Mos. Ended
                           April 30,                 April 30,
                       1999        2000         1999        2000

Basic net income per
 share, excluding
 acquisition
 related charges,
 reorganization costs
 and gains from
 marketable securities  $0.26    $   0.38     $   0.61   $   0.71

 Shares used
  in per share
  amounts             192,786     202,342      189,328    199,787

Diluted net income
 per share, excluding
 acquisition
 related charges,
 reorganization costs
 and gains from
 marketable securities$  0.25     $  0.36     $   0.59    $  0.67

 Shares used
  in per share
  amounts             203,161     214,362      198,261    211,049