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

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

(i) This statement of operations information for the three and nine month periods ended April 30, 2000 and 1999 is for illustrative purposes only and is not prepared in accordance with generally accepted accounting principles. It shows the operating results of the Company, excluding acquisition related charges of $40.5 million and $130.0 million for the three and nine month periods ended April 30, 2000, respectively, and $22.8 million and $68.4 million for the three and nine month periods ended April 30, 1999, respectively.

The nine month period ended April 30, 2000 excludes reorganization costs of $3.5 million. The nine month period ended April 30, 1999 excludes reorganization costs of $2.0 million. The three and nine month periods ended April 30, 2000 exclude gains from marketable securities of $422.2 million and $402.1 million respectively, and the three and nine month periods ended April 30, 1999 exclude gains from marketable securities of $58.6 million and $68.7 million respectively.

                                Table C
                           INTUIT INC.
       STATEMENT OF DIFFERENCES BETWEEN GAAP AND PRO FORMA
        CONDENSED CONSOLIDATED RESULTS OF OPERATIONS (ii)
              (In thousands, except per share data)
                           (Unaudited)

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

                    1999        2000         1999        2000

Income before
 income taxes,
 and minority
 interest as
 reported           $ 113,979   $ 497,235    $ 179,873  $ 483,930
Reorganization costs          --          --        2,000      3,500
Gains from
 marketable securities(58,596)   (422,206)     (68,684)  (402,096)
Acquisition
 related charges:
  Amortization of
  purchased software
  and other in cost
  of goods sold         1,885       2,115        5,586      7,036
 Other acquisition
  costs, including
  amortization of
  goodwill and
  purchased intangibles20,890      38,404       62,822    123,022

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 C
                        INTUIT INC.
    STATEMENT OF DIFFERENCES BETWEEN GAAP AND PRO FORMA
     CONDENSED CONSOLIDATED RESULTS OF OPERATIONS (ii)
           (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