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Intuit beats estimates
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November 21, 2000: 5:43 p.m. ET
Personal finance software maker cites increase in interest income
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NEW YORK (CNNfn) - The personal finance and tax software maker Intuit Inc. reported a fiscal first-quarter net loss that was narrower than analysts had expected, aided by a significant increase in interest income from its cash balance.
Mountain View, Calif.-based Intuit (INTU: Research, Estimates), which is best known for its Quicken and TurboTax software, reported a pro forma net loss of $21.4 million, or 10 cents per share, for the quarter ended Oct. 31, compared with a pro forma net loss of $25.3 million, or 13 cents per share, for the same period last year.
The mean of analysts' forecasts for the quarter was a loss of 16 cents per share, according to First Call.
Intuit's operating loss deepened to $48.5 million from $46.9 million in the same period last year. At the same time, interest income increased to $16.1 million from $8.5 million.
The pro forma financial results exclude acquisition-related charges, reorganization costs, the cumulative effect of accounting for derivatives, and net pretax gains and losses related to marketable securities and other investments.
First-quarter revenue rose 6 percent to $187.5 million from $176.9 million, aided by a 53 percent increase in Intuit-funded online mortgage revenue and a 49 percent increase in payroll revenue. Revenue from Internet-based products and services grew 42 percent from the first quarter 2000, and now represents 27 percent of total revenue, Intuit said.
"Intuit had another solid quarter," said Steve Bennett, president and chief executive officer, in a statement. "We beat consensus estimates for pro forma profitability. Our Quicken Loans mortgage business was profitable for the quarter and grew revenue on a year-over-year basis for the first time in four quarters."
Intuit's financial results reflect the highly seasonal nature of its businesses, particularly its tax preparation products. Typically, Intuit reports a loss in its July and October quarters because sales of its tax products occur mostly in its January and April quarters, while operating expenses to develop new products and services continue at relatively consistent levels during the fiscal year.
Stock declines after results released
The company's stock closed Tuesday down $5.19 at $48.19. It lost another $3.19 to $45 in after-hours trading.
Intuit said after the close Tuesday that it is making no changes to the targets for fiscal 2001 revenue and pro forma operating income that it announced on Aug. 22, 2000.
- For the fiscal year, Intuit expects revenue growth of 22 percent, which translates into a range of $1.32 billion to $1.34 billion, and pro forma operating income growth in the low 30s, which translates into a range of $202 million to $208 million. Intuit also expects a pro forma operating margin of more than 15 percent for the year.
- The company believes that some revenue will shift from its direct channel to its Web and retail channels, primarily in its tax business. As a result, Intuit expects revenue to be higher in its third fiscal quarter, but lower in its second quarter.
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