Intuit 8K Results of Operations and Financial Condition | INTU 18 May 05

Exhibit 99.01


Contacts:	Investors	Media
	Jessica Kourakos	Holly Anderson
	Intuit Inc.	Intuit Inc.
	(650) 944-5401	(650) 944-3992
	Jessica_Kourakos@intuit.com	Holly_Anderson@intuit.com

Intuit’s Third-Quarter Revenue Climbs 20 Percent

MOUNTAIN VIEW, Calif. — May 18, 2005— Intuit Inc. (Nasdaq: INTU) today announced its third-quarter 2005 revenue increased 20 percent over the year-ago quarter to $849.5 million from $709.8 million.

“This was an outstanding quarter for Intuit,” said Steve Bennett, Intuit’s president and chief executive officer. “Revenue and profits were significantly higher than last year’s third quarter — largely driven by an outstanding consumer tax season and another great quarter for QuickBooks.”

Third-Quarter 2005 Financial Highlights

•	GAAP (Generally Accepted Accounting Principles) net income was $300.5 million, up 14 percent from $264.0 million in the year-ago quarter. GAAP diluted earnings per share (EPS) was $1.61, up 21 percent from $1.33 in the year-ago quarter.

•	Intuit had non-GAAP net income of $289.9 million, up 21 percent from $238.8 million in the year-earlier period. Non-GAAP diluted EPS was $1.55, up 29 percent from $1.20 in the year-earlier period.

Third-Quarter 2005 Business Portfolio and Segment Results

•	Consumer Tax revenue was $419.0 million, up 22 percent from the year-ago quarter.

•	QuickBooks-Related revenue was $196.6 million, up 16 percent from the year-ago quarter.

•	Professional Tax revenue was $99.8 million, up 21 percent from the year-ago quarter.

•	Intuit-Branded Small Business revenue was $71.0 million, up 9 percent from the year-ago quarter.

•	Other Businesses revenue was $63.1 million, up 32 percent from the year-ago quarter. This segment includes Quicken and Canada.

Company Plans to Sell Information Technology Solutions Business

Intuit said it has decided to sell its Information Technology Solutions (ITS) business, which sells Track-It! software.

“The market for our ITS business has changed,” said Bennett. “As a result, ITS would require much greater focus and additional investments to be accretive to Intuit’s revenue growth rate in the future. We’ve identified better investment opportunities in our core businesses.”

Intuit’s ITS has contributed $42.3 million in revenue in the first three quarters of fiscal 2005 and $0.05 in GAAP fully diluted EPS and $0.06 in non-GAAP fully diluted EPS.

While ITS performance is included in the results Intuit reported today and will be included in its upcoming Form 10-Q, it will be treated as a discontinued business in future financial filings, as required. As a result, Intuit did not include past or future results from ITS when it developed non-GAAP fourth-quarter and fiscal year 2005 guidance, but has included it in GAAP EPS guidance in accordance with accounting rules.

Forward-Looking Guidance for Fiscal 2005

Intuit’s guidance for fiscal 2005 is unchanged except for the exclusion of results from its ITS business:

•	Revenue of $2.005 to $2.020 billion, or year-over-year growth of 11-12 percent.

•	Non-GAAP operating income of $535 million to $545 million, or year-over-year growth of 18 percent to 20 percent. GAAP operating income of $508 million to $518 million.

•	Non-GAAP diluted EPS of $1.96 to $1.99, or year-over-year growth of 23 percent to 25 percent. GAAP diluted EPS of $2.02 to $2.05.

Forward-Looking Guidance for Fourth-Quarter 2005

Except for the exclusion of ITS, fourth-quarter guidance remains the same:

•	Revenue of $270 million to $285 million, or year-over-year growth of 5 percent to 10 percent.

•	Non-GAAP operating loss of $35 million to $45 million. GAAP operating loss of $42 million to $52 million.

•	Non-GAAP EPS of a loss of 9 cents to 12 cents. GAAP EPS loss of 9 cents to 12 cents.

Conference Call Scripts, Webcast and Conference Call Information

A live audio webcast of Intuit’s third-quarter conference call is available athttp://www.intuit.com/about_intuit/investors/webcast_events.html. The call begins today at 1:30 p.m. (PDT). The replay of the audio webcast will remain on Intuit’s Web site for one week after the conference call. Intuit has posted to its Web site this press release, including the attached tables and non-GAAP to GAAP reconciliations. It will post the conference call script to the Web site shortly after the conference call concludes.

The conference call number is (866) 814-1914 in the United States and (703) 639-1358 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 in the United States and (703) 925-2533 from international locations. The access code is 702596.

-30-

Intuit, the Intuit logo, Quicken and QuickBooks, 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
Intuit’s management believes that the non-GAAP financial measures it uses provide meaningful supplemental information regarding Intuit’s core operating results because they exclude amounts that are not necessarily related to Intuit’s core operating results. Intuit’s management refers to these non-GAAP financial measures in assessing the performance of Intuit’s ongoing operations and for planning and forecasting in future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to Intuit’s historical operating results. In addition, Intuit has historically reported similar non-GAAP financial measures and believes that the inclusion of comparative numbers provides consistency in its financial reporting. Intuit computes non-GAAP financial measures using the same consistent method from quarter to quarter and year to year.

Non-GAAP operating income excludes acquisition-related charges, such as amortization of intangibles and impairment charges, as well as amortization of purchased software and charges for purchased research and development. Non-GAAP net income and diluted earnings per share exclude discontinued operations, gains and losses on marketable securities and other investments, as well as the tax effects of these transactions. These non-GAAP financial measures are not

prepared in accordance with generally accepted accounting principles and likely are different from non-GAAP financial measures used by other companies. The accompanying tables and fact sheet have more details on Intuit’s historical performance and financial projections, the GAAP financial measures that are most directly comparable to Intuit’s non-GAAP financial measures, and the reconciliation of non-GAAP financial measures to GAAP.

Cautions About Forward-Looking Statements
This press release contains forward-looking statements, including forecasts of our expected financial results. All of the statements under the headings “Forward-Looking Guidance for Fiscal 2005,” and “Forward-Looking Guidance for Fourth-Quarter 2005” are forward-looking statements. A number of risks and uncertainties may cause our actual results to differ materially from our expressed expectations. Some of the important factors that could cause our results to differ include the following: our revenue, profitability and market position can be negatively impacted in an unpredictable manner due to product introductions and price competition from our competitors, including competition from Microsoft, which recently announced its intention to target small business customers with accounting software and associated services, and governmental encroachment in our tax businesses; our participation in the Free File Alliance may result in lost revenue due to potential customers filing free federal returns and electing not to pay for state filing or other services and cannibalization of our traditional paid franchise; our revenue and earnings are highly seasonal and the timing of our revenue between quarters is difficult to predict which may cause significant quarterly fluctuations in our financial results; predicting tax-related revenues is challenging due to the heavy concentration of activity in a short time period; revenue growth for some of our products is slowing and we must successfully introduce new products and services to meet our growth and profitability objectives; our new product offerings may not succeed or they may negatively impact our profitability if customers elect to purchase lower-priced simplified offerings instead of our higher priced offerings; we have implemented new information systems and any problems with these new systems could interfere with our ability to ship and deliver products and gather information to effectively manage our business; litigation involving intellectual property, antitrust, shareholder and other matters may increase our costs; and our failure to maintain reliable and responsive service levels for our offerings could cause us to lose customers and negatively impact our revenues and profitability. More details about these and other risks that may impact our business are included in our Form 10-K for fiscal 2004 and in subsequent Form 10-Q, and other SEC filings. You can locate these reports through our website at http://www.intuit.com/about_intuit/investors. We do not undertake any duty to update the information in this press release except as otherwise required by law.

Table A1
INTUIT INC.
GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)


	Three Months Ended					Nine Months Ended
	April 30,		April 30,			April 30,			April 30,
	2005		2004			2005			2004
Net revenue:
Product	$	422,199	$	372,081		$	1,087,077		$	1,037,984
Service		408,566		320,068			640,170			495,037
Other		18,740		17,689			50,887			49,510

Total net revenue		849,505		709,838			1,778,134			1,582,531

Costs and expenses:
Cost of revenue:
Cost of product revenue		45,044		46,897			139,193			144,487
Cost of service revenue		50,126		42,057			137,478			118,265
Cost of other revenue		7,951		5,961			20,529			19,507
Amortization of purchased assets [B]		3,354		3,354			10,147			9,833
Selling and marketing		163,064		143,525			474,184			445,209
Research and development		79,422		70,548			232,272			213,826
General and administrative		70,508		43,792			178,722			134,715
Acquisition-related charges [C]		3,970		6,152			12,586			18,444

Total costs and expenses		423,439		362,286			1,205,111			1,104,286

Income from continuing operations		426,066		347,552			573,023			478,245
Interest and other income		5,802		4,767			12,841			19,427
Gains on marketable securities and other investments, net		124		107			342			344

Income from continuing operations before income taxes		431,992		352,426			586,206			498,016
Income tax provision [D]		131,485		88,140			179,326			137,712

Net income from continuing operations		300,507		264,286			406,880			360,304
Net loss from discontinued operations, net of income taxes [E]		—		(253	)		(5,257	)		(1,170	)

Net income	$	300,507	$	264,033		$	401,623		$	359,134


Basic net income per share from continuing operations	$	1.64	$	1.36		$	2.19		$	1.83
Basic net loss per share from discontinued operations		—		—			(0.03	)		(0.01	)

Basic net income per share	$	1.64	$	1.36		$	2.16		$	1.82

Shares used in basic per share amounts		183,422		194,517			186,062			196,976


Diluted net income per share from continuing operations	$	1.61	$	1.33		$	2.14		$	1.78
Diluted net loss per share from discontinued operations		—		—			(0.02	)		—

Diluted net income per share	$	1.61	$	1.33		$	2.12		$	1.78

Shares used in diluted per share amounts		186,887		198,748			189,808			202,113

See accompanying Notes.

Table A2
INTUIT INC.
NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)


	Three Months Ended				Nine Months Ended
	April 30,		April 30,		April 30,		April 30,
	2005		2004		2005		2004
Net revenue:
Product	$	422,199	$	372,081	$	1,087,077	$	1,037,984
Service		408,566		320,068		640,170		495,037
Other		18,740		17,689		50,887		49,510

Total net revenue		849,505		709,838		1,778,134		1,582,531

Costs and expenses:
Cost of revenue:
Cost of product revenue		45,044		46,897		139,193		144,487
Cost of service revenue		50,126		42,057		137,478		118,265
Cost of other revenue		7,951		5,961		20,529		19,507
Selling and marketing		163,064		143,525		474,184		445,209
Research and development		79,422		70,548		232,272		213,826
General and administrative		70,508		43,792		178,722		134,715
Total costs and expenses		416,115		352,780		1,182,378		1,076,009

Income from operations		433,390		357,058		595,756		506,522
Interest and other income		5,802		4,767		12,841		19,427

Income before income taxes		439,192		361,825		608,597		525,949
Income tax provision		149,325		123,021		206,923		178,823

Net income	$	289,867	$	238,804	$	401,674	$	347,126


Basic net income per share	$	1.58	$	1.23	$	2.16	$	1.76

Shares used in basic per share amounts		183,422		194,517		186,062		196,976


Diluted net income per share	$	1.55	$	1.20	$	2.12	$	1.72

Shares used in diluted per share amounts		186,887		198,748		189,808		202,113

The non-GAAP financial measures above should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with generally accepted accounting principles (“GAAP”). These non-GAAP financial measures are not prepared in accordance with GAAP and likely are different from non-GAAP financial measures used by other companies. Intuit’s management believes that these non-GAAP financial measures provide meaningful supplemental information regarding Intuit’s core operating results because they exclude amounts that are not necessarily related to Intuit’s core operating results. Intuit’s management refers to these non-GAAP financial measures in assessing the performance of Intuit’s ongoing operations and for planning and forecasting in future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to Intuit’s historical operating results. In addition, Intuit has historically reported similar non-GAAP financial measures and believes that the inclusion of comparative numbers provides consistency in its financial reporting. Intuit computes non-GAAP financial measures using the same consistent method from quarter to quarter and year to year. See Tables B1 and B2 for reconciliations of these non-GAAP financial measures to GAAP.

Table B1
INTUIT INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
TO GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS [A]-[E]
(In thousands, except per share amounts)
(Unaudited)


	Three Months Ended								Three Months Ended
	April 30, 2005								April 30, 2004
	Non-								Non-
	GAAP		Adjmts			[A]	GAAP		GAAP		Adjmts			[A]	GAAP
Net revenue:
Product	$	422,199	$	—			$	422,199	$	372,081	$	—			$	372,081
Service		408,566		—				408,566		320,068		—				320,068
Other		18,740		—				18,740		17,689		—				17,689

Total net revenue		849,505		—				849,505		709,838		—				709,838

Costs and expenses:
Cost of revenue:
Cost of product revenue		45,044		—				45,044		46,897		—				46,897
Cost of service revenue		50,126		—				50,126		42,057		—				42,057
Cost of other revenue		7,951		—				7,951		5,961		—				5,961
Amortization of purchased assets		—		3,354		[B]		3,354		—		3,354		[B]		3,354
Selling and marketing		163,064		—				163,064		143,525		—				143,525
Research and development		79,422		—				79,422		70,548		—				70,548
General and administrative		70,508		—				70,508		43,792		—				43,792
Acquisition-related charges		—		3,970		[C]		3,970		—		6,152		[C]		6,152

Total costs and expenses		416,115		7,324				423,439		352,780		9,506				362,286

Income from continuing operations		433,390		(7,324	)			426,066		357,058		(9,506	)			347,552
Interest and other income		5,802		—				5,802		4,767		—				4,767
Gains on marketable securities and other investments, net		—		124				124		—		107				107

Income from continuing operations before income taxes		439,192		(7,200	)			431,992		361,825		(9,399	)			352,426
Income tax provision		149,325		(17,840	)	[D]		131,485		123,021		(34,881	)	[D]		88,140

Net income from continuing operations		289,867		10,640				300,507		238,804		25,482				264,286
Net loss from discontinued operations, net of income taxes		—		—				—		—		(253	)	[E]		(253	)

Net income	$	289,867	$	10,640			$	300,507	$	238,804	$	25,229			$	264,033


Basic net income per share from continuing operations	$	1.58					$	1.64	$	1.23					$	1.36
Basic net loss per share from discontinued operations		—						—		—						—

Basic net income per share	$	1.58					$	1.64	$	1.23					$	1.36

Shares used in basic per share amounts		183,422						183,422		194,517						194,517


Diluted net income per share from continuing operations	$	1.55					$	1.61	$	1.20					$	1.33
Diluted net loss per share from discontinued operations		—						—		—						—

Diluted net income per share	$	1.55					$	1.61	$	1.20					$	1.33

Shares used in diluted per share amounts		186,887						186,887		198,748						198,748

Table B2
INTUIT INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
TO GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS [A]-[E]
(In thousands, except per share amounts)
(Unaudited)


	Nine Months Ended									Nine Months Ended
	April 30, 2005									April 30, 2004
	Non-									Non-
	GAAP		Adjmts			[A]	GAAP			GAAP		Adjmts			[A]	GAAP
Net revenue:
Product	$	1,087,077	$	—			$	1,087,077		$	1,037,984	$	—			$	1,037,984
Service		640,170		—				640,170			495,037		—				495,037
Other		50,887		—				50,887			49,510		—				49,510

Total net revenue		1,778,134		—				1,778,134			1,582,531		—				1,582,531

Costs and expenses:
Cost of revenue:
Cost of product revenue		139,193		—				139,193			144,487		—				144,487
Cost of service revenue		137,478		—				137,478			118,265		—				118,265
Cost of other revenue		20,529		—				20,529			19,507		—				19,507
Amortization of purchased assets		—		10,147		[B]		10,147			—		9,833		[B]		9,833
Selling and marketing		474,184		—				474,184			445,209		—				445,209
Research and development		232,272		—				232,272			213,826		—				213,826
General and administrative		178,722		—				178,722			134,715		—				134,715
Acquisition-related charges		—		12,586		[C]		12,586			—		18,444		[C]		18,444

Total costs and expenses		1,182,378		22,733				1,205,111			1,076,009		28,277				1,104,286

Income from continuing operations		595,756		(22,733	)			573,023			506,522		(28,277	)			478,245
Interest and other income		12,841		—				12,841			19,427		—				19,427
Gains on marketable securities and other investments, net		—		342				342			—		344				344

Income from continuing operations before income taxes		608,597		(22,391	)			586,206			525,949		(27,933	)			498,016
Income tax provision		206,923		(27,597	)	[D]		179,326			178,823		(41,111	)	[D]		137,712

Net income from continuing operations		401,674		5,206				406,880			347,126		13,178				360,304
Net loss from discontinued operations, net of income taxes		—		(5,257	)	[E]		(5,257	)		—		(1,170	)	[E]		(1,170	)

Net income	$	401,674	$	(51	)		$	401,623		$	347,126	$	12,008			$	359,134


Basic net income per share from continuing operations	$	2.16					$	2.19		$	1.76					$	1.83
Basic net loss per share from discontinued operations		—						(0.03	)		—						(0.01	)

Basic net income per share	$	2.16					$	2.16		$	1.76					$	1.82

Shares used in basic per share amounts		186,062						186,062			196,976						196,976


Diluted net income per share from continuing operations	$	2.12					$	2.14		$	1.72					$	1.78
Diluted net loss per share from discontinued operations		—						(0.02	)		—						—

Diluted net income per share	$	2.12					$	2.12		$	1.72					$	1.78

Shares used in diluted per share amounts		189,808						189,808			202,113						202,113

INTUIT INC.
NOTES TO TABLES A1, B1 and B2

[A]		Tables B1 and B2 reconcile the differences between the non-GAAP financial measures, which are not prepared in accordance with generally accepted accounting principles (GAAP), and the GAAP condensed consolidated statements of operations for the three and nine months ended April 30, 2005 and 2004.Non-GAAP operating income (loss) excludes certain cost and expense line items that are in the GAAP statement of operations. For example, for the line item “acquisition-related charges,” the number in the GAAP column is subtracted out of the non-GAAP column in calculating non-GAAP operating income or loss. Eliminating cost or expense items improves non-GAAP results compared with GAAP results.Non-GAAP net income (loss) starts with non-GAAP operating income or loss and then excludes certain non-operating gains and losses that are in the GAAP statement of operations. For example, for the line item “gains on marketable securities and other investments, net” the number in the GAAP column is taken out of the non-GAAP column in calculating non-GAAP net income or loss. Eliminating loss line items improves non-GAAP results compared with GAAP results. Eliminating gain line items decreases non-GAAP results compared with GAAP results.

[B]		We amortize the value of software and other technology assets that we receive in connection with acquisitions over their estimated useful lives.

[C]		Acquisition-related charges include amortization of purchased intangible assets and deferred compensation related to acquisitions as well as impairment charges. For the three months ended April 30, 2005 and 2004, amortization of purchased intangible assets and deferred compensation was $4.0 million and $6.2 million. For the nine months ended April 30, 2005 and 2004, amortization of purchased intangible assets and deferred compensation was $12.6 million and $18.4 million. There were no impairment charges in any of those periods.

[D]		Our GAAP expected effective tax rate of 30.5% for the twelve months ending July 31, 2005 differs from the federal statutory tax rate of 35% due primarily to the net effect of the benefit received from federal research and experimental credits, tax exempt interest income, reversals of reserves related to potential income tax exposures that have been resolved, and various state tax credits offset by state taxes. Our non-GAAP expected tax rate of 34% differs from our GAAP expected tax rate because the reserve reversals did not impact our non-GAAP rate.

		Our GAAP effective tax rates of 25% for the three months ended April 30, 2004 and 28% for the nine months ended April 30, 2004 differed from the federal statutory rate of 35% primarily due to the net effect of the benefit received from federal research and experimental credits, tax exempt interest income, reversals of reserves related to potential income tax exposures that have been resolved, and various state tax credits offset by state taxes. Our non-GAAP expected tax rate of 34% differs from our GAAP expected tax rate because the reserve reversals did not impact our non-GAAP rate.

[E]		On December 3, 2004 we sold our Intuit Public Sector Solutions (IPSS) business to Kintera, a California software company, for approximately $11 million. In accordance with SFAS 144,“Accounting for the Impairment or Disposal of Long-lived Assets,”we determined that IPSS became a long-lived asset held for sale and a discontinued operation in the first quarter of fiscal 2005. Consequently, we have segregated the net assets and operating results of IPSS from continuing operations on our balance sheets, statements of operations and statements of cash flows for all periods presented. Also in accordance with SFAS 144, we discontinued the amortization of IPSS purchased intangible assets in the first quarter of fiscal 2005.

		Revenue and loss before income taxes for IPSS was $3.1 million and $0.4 million for the three months ended April 30, 2004. Revenue for IPSS was $3.8 million and $9.2 million for the nine months ended April 30, 2005 and 2004. Loss before income taxes for IPSS was $0.8 million and $1.9 million for the same periods. The net loss from discontinued operations for the nine months ended April 30, 2005 included a $0.5 million loss on disposal of IPSS and an income tax provision of $4.3 million for the estimated tax payable in connection with the tax gain on the sale of IPSS.

Table C
INTUIT INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)


	April 30,		July 31,
	2005		2004
ASSETS
Current assets:
Cash and cash equivalents	$	122,353	$	27,298
Investments		1,138,043		991,971
Accounts receivable, net		141,728		90,795
Deferred income taxes		67,871		31,353
Prepaid expenses and other current assets		59,813		50,478
Current assets of discontinued operations		—		1,605

Current assets before funds held for payroll customers		1,529,808		1,193,500
Funds held for payroll customers		361,232		323,041

Total current assets		1,891,040		1,516,541

Property and equipment, net		217,801		232,654
Goodwill, net		659,589		659,137
Purchased intangible assets, net		80,345		104,966
Long-term deferred income taxes		141,903		135,711
Loans to executive officers and other employees		10,239		15,809
Other assets		27,867		17,669
Long-term assets of discontinued operations		—		13,691

Total assets	$	3,028,784	$	2,696,178


LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	96,174	$	70,124
Accrued compensation and related liabilities		119,781		133,733
Deferred revenue		210,096		219,482
Income taxes payable		227,292		22,159
Other current liabilities		155,339		83,251
Current liabilities of discontinued operations		—		5,575

Current liabilities before payroll customer fund deposits		808,682		534,324
Payroll customer fund deposits		361,232		323,041

Total current liabilities		1,169,914		857,365

Long-term obligations		17,705		16,394
Stockholders’ equity		1,841,165		1,822,419

Total liabilities and stockholders’ equity	$	3,028,784	$	2,696,178

Table D
INTUIT INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)


	Three Months Ended						Nine Months Ended
	April 30,			April 30,			April 30,			April 30,
(In thousands; unaudited)	2005			2004			2005			2004
Cash flows from operating activities:
Net income	$	300,507		$	264,033		$	401,623		$	359,134
Net loss from discontinued operations		—			253			5,257			1,170

Net income from continuing operations		300,507			264,286			406,880			360,304
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities:
Depreciation		32,600			18,718			77,387			57,278
Acquisition-related charges		3,970			6,152			12,586			18,444
Amortization of purchased software		3,354			3,354			10,147			9,833
Amortization of other purchased intangible assets		2,220			1,460			5,986			4,381
Amortization of deferred compensation not related to acquisitions		1,119			1,556			4,370			4,674
(Gain) loss on disposal of property and equipment		(546	)		383			(646	)		2,391
Amortization of premiums and discounts on available-for-sale debt securities		2,569			3,398			8,315			9,158
Net realized (gain) loss on sales of available-for-sale debt securities		99			(60	)		1,619			(385	)
Net gains from marketable securities and other investments		(124	)		(107	)		(342	)		(344	)
Deferred income taxes		(43,333	)		—			(43,063	)		—
Tax benefit from employee stock options		5,154			2,999			14,203			25,963
Gain on foreign exchange transactions		(112	)		539			(665	)		(3,568	)

Subtotal		307,477			302,678			496,777			488,129

Changes in operating assets and liabilities:
Accounts receivable		165,950			144,691			(51,122	)		(49,007	)
Prepaid expenses and other current assets		12,362			9,393			(7,046	)		(15,530	)
Accounts payable		(6,139	)		(26,240	)		25,858			19,319
Accrued compensation and related liabilities		10,275			8,285			(14,171	)		(4,990	)
Deferred revenue		(42,716	)		(50,766	)		(9,501	)		(25,675	)
Income taxes payable		168,682			84,994			200,023			111,700
Other current liabilities		(38,700	)		180			68,821			83,941

Total changes in operating assets and liabilities		269,714			170,537			212,862			119,758

Net cash provided by operating activities of continuing operations		577,191			473,215			709,639			607,887
Net cash used in operating activities of discontinued operations		—			(192	)		(878	)		(973	)

Net cash provided by operating activities		577,191			473,023			708,761			606,914


Cash flows from investing activities:
Purchases of available-for-sale debt securities		(685,709	)		(1,945,047	)		(2,028,769	)		(3,025,049	)
Liquidation and maturity of available-for-sale debt securities		392,351			1,576,839			1,872,883			2,796,947
Net change in funds held for payroll customers’ money market funds and other cash equivalents		(30,346	)		52,626			(38,191	)		77,185
Purchases of property and equipment		(18,765	)		(38,506	)		(56,330	)		(85,708	)
Proceeds from sale of property		3,151			—			3,151			—
Change in other assets		165			2,890			(4,286	)		(109	)
Net change in payroll customer funds deposits		30,346			41,574			38,191			17,015
Acquisitions of businesses and intangible assets, net of cash acquired		—			73			(4,156	)		(120,737	)

Net cash used in investing activities of continuing operations		(308,807	)		(309,551	)		(217,507	)		(340,456	)
Proceeds from the sale of discontinued operations, net of closing costs		—			—			9,619			—

Net cash used in investing activities		(308,807	)		(309,551	)		(207,888	)		(340,456	)


Cash flows from financing activities:
Change in long-term obligations		(2,805	)		(587	)		(3,049	)		(11,144	)
Net proceeds from issuance of common stock under stock plans		37,035			18,334			97,405			104,890
Purchase of treasury stock		(216,456	)		(250,374	)		(500,667	)		(511,501	)

Net cash used in financing activities		(182,226	)		(232,627	)		(406,311	)		(417,755	)


Effect of exchange rates on cash and cash equivalents		(371	)		(198	)		493			57

Net increase (decrease) in cash and cash equivalents		85,787			(69,353	)		95,055			(151,240	)
Cash and cash equivalents at beginning of period		36,566			87,955			27,298			169,842

Cash and cash equivalents at end of period	$	122,353		$	18,602		$	122,353		$	18,602

Table E1
INTUIT INC.
RECONCILIATION OF GUIDANCE FOR NON-GAAP FINANCIAL MEASURES
TO PROJECTED GAAP REVENUE, OPERATING INCOME, AND EPS
(All Figures Except GAAP EPS Exclude Intuit Information Technology Solutions)
(In thousands, except per share amounts)
(Unaudited)


	Three Months Ending July 31, 2005
	Non-GAAP										GAAP
	Range of Estimate										Range of Estimate
	From			To			Adjustments				From			To
Revenue	$	270,000		$	285,000		$	—			$	270,000		$	285,000
Operating loss		(45,000	)		(35,000	)		(6,500	)	[a]		(51,500	)		(41,500	)
Diluted loss per share	$	(0.12	)	$	(0.09	)	$	—		[b]	$	(0.12	)	$	(0.09	)
Shares		180,000			183,000			—				180,000			183,000


	Twelve Months Ending July 31, 2005
	Non-GAAP								GAAP
	Range of Estimate								Range of Estimate
	From		To		Adjustments				From		To
Revenue	$	2,005,000	$	2,020,000	$	—			$	2,005,000	$	2,020,000
Operating income		535,000		545,000		(26,800	)	[c]		508,200		518,200
Diluted earnings per share	$	1.96	$	1.99	$	0.06		[d]	$	2.02	$	2.05
Shares		189,000		194,000		—				189,000		194,000

[a]		Reflects estimated adjustments for amortization of purchased software of approximately $2.5 million and amortization of purchased intangible assets of approximately $4.0 million.

[b]		Reflects the adjustments in item [a], income tax expense related to these adjustments and estimated net income from discontinued operations of $4.0 million.

[c]		Reflects estimated adjustments for amortization of purchased software of approximately $10.3 million and amortization of purchased intangible assets of approximately $16.5 million.

[d]		Reflects the adjustments in item [c], income tax expense related to these adjustments and estimated net income from discontinued operations of $8.0 million.

The reconciliations of the forward-looking non-GAAP financial measures to GAAP in this Table E1 include all information reasonably available to Intuit at the date of this press release. The adjustments in this table are those that management can predict. Intuit’s non-GAAP financial measures exclude acquisition-related charges, discontinued operations and gains and losses on marketable securities. Events that could cause the reconciliation to change include acquisitions and divestitures of businesses, goodwill and other asset impairments and sales of marketable securities.

TABLE E2
INTUIT INC.
RECONCILIATION OF SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES
TO MOST DIRECTLY COMPARABLE GAAP MEASURES
(In thousands, except per share amounts)
(Unaudited)


	Three Months Ended October 31, 2003
	Non-
	GAAP			Adjustments				GAAP
Operating loss	$	(79,686	)	$	(8,974	)	[a]	$	(88,660	)
Diluted loss per share	$	(0.24	)	$	(0.03	)	[b]	$	(0.27	)


	Three Months Ended January 31, 2004
	Non-
	GAAP		Adjustments				GAAP
Operating income	$	229,150	$	(9,797	)	[c]	$	219,353
Diluted earnings per share	$	0.77	$	(0.04	)	[d]	$	0.73


	Three Months Ended April 30, 2004
	Non-
	GAAP		Adjustments				GAAP
Operating income	$	357,058	$	(9,506	)	[e]	$	347,552
Diluted earnings per share	$	1.20	$	0.13		[f]	$	1.33


	Three Months Ended July 31, 2004
	Non-
	GAAP			Adjustments				GAAP
Operating loss	$	(28,958	)	$	(8,353	)	[g]	$	(37,311	)
Diluted loss per share	$	(0.06	)	$	(0.16	)	[h]	$	(0.22	)


	Twelve Months Ended July 31, 2004
	Non-
	GAAP		Adjustments				GAAP
Operating income	$	477,564	$	(36,630	)	[i]	$	440,934
Diluted earnings per share	$	1.68	$	(0.10	)	[j]	$	1.58


	Three Months Ended October 31, 2004
	Non-
	GAAP			Adjustments				GAAP
Operating loss	$	(69,567	)	$	(7,798	)	[k]	$	(77,365	)
Diluted loss per share	$	(0.23	)	$	(0.01	)	[l]	$	(0.24	)


	Three Months Ended January 31, 2005
	Non-
	GAAP		Adjustments				GAAP
Operating income	$	231,933	$	(7,611	)	[m]	$	224,322
Diluted earnings per share	$	0.82	$	(0.05	)	[n]	$	0.77

[a]		Reflects adjustments for amortization of purchased software of $3.2 million and amortization of purchased intangible assets of $5.8 million.

[b]		Reflects the adjustments in item [a], an adjustment for net gains on marketable securities of $0.1 million and income tax expense related to these adjustments as well as net loss from discontinued operations of $0.5 million.

[c]		Reflects adjustments for amortization of purchased software of $3.3 million and amortization of purchased intangible assets of $6.5 million.

[d]		Reflects the adjustments in item [c], an adjustment for net gains on marketable securities of $0.1 million and income tax expense related to these adjustments as well as net loss from discontinued operations of $0.5 million.

[e]		Reflects adjustments for amortization of purchased software of $3.3 million and amortization of purchased intangible assets of $6.2 million.

[f]		Reflects the adjustments in item [e], an adjustment for net gains on marketable securities of $0.1 million and income tax expense related to these adjustments. Also reflects an adjustment to exclude the GAAP release of certain tax reserves as well as net loss from discontinued operations of $0.3 million.

[g]		Reflects adjustments for amortization of purchased software of $3.4 million and amortization of purchased intangible assets of $5.0 million.

[h]		Reflects the adjustments in item [g], an adjustment for net gains on marketable securities of $1.4 million and income tax expense related to these adjustments as well as net loss from discontinued operations of $18.7 million.

[i]		Reflects adjustments for amortization of purchased software of $13.2 million and amortization of purchased intangible assets of $23.4 million.

[j]		Reflects the adjustments in item [i], an adjustment for net gains on marketable securities of $1.7 million and income tax expense related to these adjustments as well as net loss from discontinued operations of $19.9 million.

[k]		Reflects adjustments for amortization of purchased software of $3.4 million and amortization of purchased intangible assets of $4.4 million.

[l]		Reflects the adjustments in item [k], an adjustment for net gains on marketable securities of $0.2 million and income tax expense related to these adjustments. Also reflects an adjustment to exclude certain GAAP tax benefits as well as net loss from discontinued operations of $3.7 million.

[m]		Reflects adjustments for amortization of purchased software of $3.4 million and amortization of purchased intangible assets of $4.2 million.

[n]		Reflects the adjustments in item [m], an adjustment for net gains on marketable securities of $0.1 million and income tax expense related to these adjustments as well as net loss from discontinued operations of $1.6 million.



*Intuit Facts*		Intuit Inc.

Q3/FY05 & FY04		Investor Relations (650) 944-5401

		NASDAQ: INTU

Financial Summary
($ millions)


	Actual			Actual			Actual			Actual			Actual			Actual			Actual			Actual
	Q1 FY04			Q2 FY04			Q3 FY04			Q4 FY04			FY04			Q1 FY05			Q2 FY05			Q3 FY05

Revenue:
Small & Medium Business
QuickBooks Related	$	129.9		$	201.4		$	169.9		$	152.7		$	653.9		$	145.6		$	222.3		$	196.6
% change YOY		19	%		16	%		27	%		13	%		18	%		12	%		10	%		16	%
Intuit-Branded Small Business	$	59.1		$	68.4		$	65.1		$	66.9		$	259.6		$	66.7		$	75.1		$	71.0
% change YOY		29	%		10	%		10	%		12	%		14	%		13	%		10	%		9	%

Tax
Consumer Tax	$	5.2		$	130.0		$	344.7		$	10.1		$	490.0		$	5.0		$	141.1		$	419.0
% change YOY		-15	%		36	%		10	%		19	%		16	%		-3	%		9	%		22	%
Professional Tax	$	6.9		$	156.8		$	82.5		$	5.7		$	251.9		$	7.4		$	150.6		$	99.8
% change YOY		7	%		4	%		3	%		-9	%		3	%		7	%		-4	%		21	%

Other Businesses	$	38.2		$	76.8		$	47.6		$	36.9		$	199.5		$	41.2		$	73.5		$	63.1
% change YOY		-9	%		4	%		6	%		16	%		4	%		8	%		-4	%		32	%


Total Revenue	$	239.3		$	633.4		$	709.8		$	272.3		$	1,854.9		$	266.0		$	662.6		$	849.5
% change YOY		14	%		14	%		12	%		13	%		13	%		11	%		5	%		20	%

GAAP Operating Income	$	(88.7	)	$	219.4		$	347.6		$	(37.3	)	$	440.9		$	(77.4	)	$	224.3		$	426.1
Non-GAAP Operating Income^[A]	$	(79.7	)	$	229.2		$	357.1		$	(29.0	)	$	477.6		$	(69.6	)	$	231.9		$	433.4
Non-GAAP Operating Margin %^[A]	NA				36	%		50	%	NA				26	%	NA				35	%		51	%

Interest and Other Income	$	7.5		$	7.2		$	4.8		$	11.4		$	30.8		$	4.0		$	3.1		$	5.8

GAAP EPS	$	(0.27	)	$	0.73		$	1.33		$	(0.22	)	$	1.58		$	(0.24	)	$	0.77		$	1.61
Non-GAAP EPS^[A]	$	(0.24	)	$	0.77		$	1.20		$	(0.06	)	$	1.68		$	(0.23	)	$	0.82		$	1.55

Basic Share Count		198.7			197.7			194.5			190.9			195.5			188.3			186.3			183.4

Fully Diluted Share Count	NA				203.4			198.7		NA				200.1		NA				190.1			186.9

Non-GAAP Tax Rate^[A]		34	%		34	%		34	%		34	%		34	%		34	%		34	%		34	%

Corporate Metrics

Q3/04

FYE/04

Q3/05

Capital Expenditure

38.5M

117.7M

18.8M

Depreciation

18.7M

77.5M

32.6M

Common Stock Outst.

192.0M

190.1M

181.9M

Full Time Employees

6,851

6,611

7,019

Portfolio and Segment Composition

Small & Medium Business


QuickBooks Related
		QuickBooks Software
		Financial Supplies
		QuickBooks Standard Payroll
		QuickBooks Enhanced Payroll
		QuickBooks Enhanced Payroll Plus
		Point of Sale
		QuickBooks Support Programs
		Innovative Merchant Solutions

Intuit-Branded Small Business
		Complete Payroll
		QuickBooks Assisted Payroll
		Premier Payroll
		Information Technology Solutions
		Intuit Construction Business Solutions
		Intuit Real Estate Solutions (MRI)
		Intuit Distribution Management Solutions (Eclipse)

Tax


Consumer Tax
		TurboTax

Professional Tax
		ProSeries
		Lacerte

Other


Other Businesses
		Quicken
		Canada/UK

^[A]	These are non-GAAP financial measures. See tables B1, B2, E1 and E2 of accompanying press release for GAAP reconciliations.

Note: All amounts exclude information related to Intuit Public Sector Solutions, which we divested in December 2004.



*Intuit Facts*		Intuit Inc.

		Investor Relations (650) 944-5401
		NASDAQ: INTU

Business Metrics


Units in thousands, except where noted	Q3/FY03			Q4/FY03			FY03			Q1/FY04			Q2/FY04			Q3/FY04			Q4/FY04			FY04			Q1/FY05			Q2/FY05			Q3/FY05

QuickBooks Related^[B]

Basic, Pro and Simple Start		283			215			998			163			262			312			205			942			152			318			325
Premier units		35			35			122			26			62			60			44			192			32			67			53
Enterprise units		1			1			4			1			1			1			2			5			2			3			3

Total QuickBooks software units sold		319			251			1,124			190			325			373			251			1,139			186			388			381

Net increase in Quickbooks software subscriptions^[C]		2			2			7			1			3			4			2			10			5			54			45

Total Quickbooks software units and increase in subscriptions^[C]		321			253			1,131			191			328			377			253			1,149			191			442			426

Total Quickbooks software subscription customers^[C]		9			11			11			12			15			19			21			21			26			80			125

Sell Thru Channel Mix^[D]
% of dollars at retail		55	%		47	%		54	%		59	%		49	%		48	%		53	%		51	%		62	%		47	%		49	%

QuickBooks Retail Share^[E]
Unit share FYTD		82	%		82	%		82	%		78	%		82	%		83	%		83	%		83	%		83	%		86	%		88	%
Dollar share FYTD		89	%		89	%		89	%		85	%		89	%		90	%		91	%		91	%		89	%		90	%		92	%

QuickBooks do-it-yourself payroll (customers)		711			739			739			753			776			806			807			807			816			837	^[F]		844

Intuit-Branded Small Business (selected)

Payroll Customers
Premier		25			24			24			24			23			22			21			21			20			19			17
Branded Outsourced (Assisted & Complete)		41			43			43			45			48			50			51			51			51			53			54

Total Payroll Customers		66			67			67			69			71			72			72			72			71			72			71

Consumer Tax^[B]

Federal TurboTax (millions)
Desktop units retail		2.1		NM				4.2		NM				2.4			2.3		NM				4.7		NM				2.6			2.7
Desktop units direct		0.9		NM				1.9		NM				1.2			0.5		NM				1.7		NM				1.1			0.6
Web units paid		2.1			0.1			2.4		NM				0.4			2.4		NM				2.8		NM				0.6			2.7
Free File Alliance		1.2		NM				1.3		NM				0.1			0.6		NM				0.7		NM				0.4			1.8

Total TurboTax federal units		6.3			0.1			9.8		NM				4.1			5.8		NM				9.9		NM				4.7			7.8

TurboTax Efile returns (millions)		11.0			0.2			12.3		NM				1.3			11.6			0.2			13.1		NM				1.8			14.4

Sell-Thru Channel Mix^[E]
% of dollars at retail		32	%	NM				36	%	NM				51	%		30	%	NM				36	%	NM				55	%		26	%

Federal TurboTax retail share^[G]
Unit share FYTD		71	%		71	%		71	%	NM				71	%		72	%		72	%		72	%	NM				75	%		79	%
Dollar share FYTD		79	%		79	%		79	%	NM				81	%		82	%		82	%		82	%	NM				81	%		85	%

Professional Tax
Professional Tax units		7		NM				96		NM				90			7		NM				97		NM				94			12
Efile returns (millions)		8.0			0.2			8.7			0.2			0.6			12.7			0.4			13.9			0.7			0.7			15.6

^[B]	Sales to end users (sell-through) by Intuit and via retailers and distributors for which Intuit relies on reports from these merchants. These numbers include estimates, including estimates of sales by merchants who do not report sales to Intuit.

^[C]	Includes QuickBooks Online Edition, QuickBooks Pro and QuickBooks Premier from Enhanced Payroll Plus subscription units.

^[D]	Estimate based on subset of retailers reporting.

^[E]	Sources: NPD Group Monthly Retail Software Report through December 2004 for FY03 and FY04, and NPD Group Weekly Retail Software reports for January 2005.

^[F]	Customer number has been revised for Q2/FY05.

^[G]	Sources: NPD Group Monthly Retail Software Report through December 2004 for FY03 and FY04, and NPD Group Weekly Retail Software reports for January 2005 as adjusted by Intuit estimates.



*Intuit Facts*		Intuit Inc.

FY05 Financial Outlook^{[H], [I]}		Investor Relations (650) 944-5401

		NASDAQ: INTU

Guidance
($ millions)


	Guidance	Guidance	Actual
	Q4 FY05	FY05	FY04

Revenue:
Small & Medium Business
QuickBooks Related			$653.9
% change YOY		10%-14%	18	%
Intuit-Branded Small Bus.			$206.9
% change YOY		6%-12%	11	%

Tax
Consumer Tax			$490.0
% change YOY		15%-16%	16	%
Professional Tax			$251.9
% change YOY		4%-5%	3	%

Other Businesses			$199.5
% change YOY		5-10%	4	%


Total Revenue	$270-$285	$2,005-$2,020	$1,802.2
% change YOY	5%-10%	11%-12%	13	%

Non-GAAP Operating Income^[A]	$(45)-$(35)	$535-$545	$453.1
Non-GAAP Operating Margin %^[A]		26%-28%	25	%
GAAP Operating Income	$(52)-$(42)	$508-$518	$419.5


Non-GAAP EPS^[A]	$(0.12)-$(0.09)	$1.96-$1.99	$1.59
GAAP EPS^[J]	$(0.12)-$(0.09)	$2.02-$2.05	$1.58

Basic Share Count	180-183	185-190	195.5

Fully Diluted Share Count		189-194	200.1

Non-GAAP Tax Rate^[A]	34%	34%	34	%

Portfolio and Segment Composition

Small & Medium Business


QuickBooks Related
		QuickBooks Software
		Financial Supplies
		QuickBooks Standard Payroll
		QuickBooks Enhanced Payroll
		QuickBooks Enhanced Payroll Plus
		Point of Sale
		QuickBooks Support Programs
		Innovative Merchant Solutions

Intuit-Branded Small Business
		Complete Payroll
		QuickBooks Assisted Payroll
		Premier Payroll
		Intuit Construction Business Solutions
		Intuit Real Estate Solutions (MRI)
		Intuit Distribution Management Solutions (Eclipse)

Tax


Consumer Tax
		TurboTax

Professional Tax
		ProSeries
		Lacerte

Other


Other Businesses
		Quicken
		Canada/UK

^[H]	All of the numbers provided in the table entitled “Guidance,” other than those under the heading” FY04” are forward-looking statements. Please see “Cautions About Forward-Looking Statements” in the pages accompanying this fact sheet for important information to assess when evaluating these statements.

^[I]	Excludes results of Intuit Information Technology Solutions (ITS). The figures in the Actual FY04 column exclude $52.6 million in ITS revenue, $24.5 million in ITS non-GAAP operating income, $21.5 million in ITS GAAP operating income and $0.08 non-GAAP EPS.

^[J]	In accordance with accounting rules, GAAP EPS includes ITS for all periods presented.

Cautions About Forward-Looking Statements
This Fact Sheet contains forward-looking statements, including forecasts of our expected financial results. All of the numbers provided in the table entitled “Guidance” other than under the heading “Actual FY04” are forward-looking statements. A number of risks and uncertainties may cause our actual results to differ materially from our expressed expectations. Some of the important factors that could cause our results to differ include the following: our revenue, profitability and market position can be negatively impacted in an unpredictable manner due to product introductions and price competition from our competitors, including competition from Microsoft, which recently announced its intention to target small business customers with accounting software and associated services, and governmental encroachment in our tax businesses; our participation in the Free File Alliance may result in lost revenue due to potential customers filing free federal returns and electing not to pay for state filing or other services and cannibalization of our traditional paid franchise; our revenue and earnings are highly seasonal and the timing of our revenue between quarters is difficult to predict which may cause significant quarterly fluctuations in our financial results; predicting tax-related revenues is challenging due to the heavy concentration of activity in a short time period; revenue growth for some of our products is slowing and we must successfully introduce new products and services to meet our growth and profitability objectives; our new product offerings may not succeed or they may negatively impact our profitability if customers elect to purchase lower-priced simplified offerings instead of our higher priced offerings; we have implemented new information systems and any problems with these new systems could interfere with our ability to ship and deliver products and gather information to effectively manage our business; litigation involving intellectual property, antitrust, shareholder and other matters may increase our costs; and our failure to maintain reliable and responsive service levels for our offerings could cause us to lose customers and negatively impact our revenues and profitability. More details about these and other risks that may impact our business are included in our Form 10-K for fiscal 2004 and in subsequent Form 10-Q, and other SEC filings. You can locate these reports through our website at http://www.intuit.com/about_intuit/investors. We do not undertake any duty to update the information in this Fact Sheet except as otherwise required by law.

Intuit (INTU) 8-KResults of Operations and Financial Condition