EXHIBIT 99.1
CONTACTS: INVESTORS MEDIA
Linda Fellows, VP, Treasurer Heather McLellan
Intuit Inc. Intuit Inc.
(650) 944-5436 (650) 944-3501
or
Holly Anderson
Sandhill Communications
(615) 377-6902
FOR IMMEDIATE RELEASE
INTUIT UPDATES FISCAL 2003 GUIDANCE
Company Lowers Growth Projections in Second Half of Fiscal 2003
Annual Revenue Now Expected to Grow 25-29 Percent over Fiscal 2002
MOUNTAIN VIEW, CALIF. -- MARCH 20, 2003 -- Intuit Inc. (NASDAQ: INTU)
today announced that it has revised its fiscal 2003 guidance to reflect the
impact of the nation's economic slowdown on its business. Intuit now expects
revenue of $1.65 billion to $1.69 billion for the fiscal year ending in July
2003, which represents growth of approximately 25-29 percent over fiscal 2002.
The company has taken appropriate action to realign costs with revenue and
expects pro forma earnings per share of $1.30 to $1.35, or growth of 41-47
percent over the prior year.
"Intuit continues to grow revenue and earnings at a faster pace than
last year and each of our growth engines is still growing within its expected
range," said Steve Bennett, Intuit's president and chief executive officer. "Our
share of retail sales for QuickBooks and TurboTax has remained steady and
strong, but the categories are simply growing more slowly.
"We're disappointed to see a sluggish economy worsening in the past few
weeks with a further decrease in customer spending in all our categories. This
is not an issue with just one of our businesses -- all our businesses have been
affected. Consequently, we won't grow as fast as we'd originally projected."
Intuit had expected that additional strength in its businesses would
have offset the more than $20 million in second-half revenue that the company
will not receive due to the recent sale of its Japanese subsidiary. This
additional strength has not materialized.
Consumer tax is Intuit's largest revenue driver in its third quarter,
which ends April 30. Intuit, along with others in the industry, has experienced
a slower start to its consumer tax season this year. The company believes this
has caused slower growth in the consumer tax category while TurboTax's share of
retail season-to-date sales has remained steady at approximately 68 percent of
units and nearly 77 percent of dollars(1).
However, with three of the busiest weeks of the tax season still to come
and with products and promotions that make it easy for consumers to do their
taxes at the last minute, the company could benefit from stronger-than-expected
season-end sales. Given the slower start and the impact of the economy on its
other businesses, however, the company believes it's prudent to re-set
expectations.
COMPANY MAINTAINS GROWTH RANGES IN ALL FIVE GROWTH ENGINES
Intuit has not changed the fiscal 2003 growth rate ranges for any of its
five growth engines, but now expects to come in at the lower ends of the ranges.
Those growth rate ranges are:
- QuickBooks 20-30 percent revenue growth
- Small Business Services 30+ percent revenue growth
- TurboTax 20-30 percent revenue growth
- Professional Accounting Solutions 10-15 percent revenue growth
- Business Verticals 10-30 percent revenue growth
UPDATED GUIDANCE
Dollars in millions except per share data Q3 03 Q4 03 FY 03
- ----------------------------------------- ----- ----- -----
REVENUE $630 to $660 $245 to $255 $1,646 to $1,686
YOY Growth 28% to 34% 31% to 36% 25% to 29%
PRO FORMA OPERATING INCOME $320 to $330 ($35) to ($30) $394 to $409
YOY Growth 47% to 52% NA 44% to 50%
PRO FORMA EARNINGS PER SHARE $1.00 to $1.03 ($.10) to ($.08) $1.30 to $1.35
YOY Growth 44% to 49% NA 41% to 47%
"Despite the economy and overall business conditions, we still expect
another strong year at Intuit, with revenue growth of at least 25 percent and
pro forma operating income growth of at least 44 percent," said Bennett.
ADDITIONAL INFORMATION
Intuit's prior guidance for fiscal 2003 revenue was $1.71 billion to $1.77
billion, or growth of 30 percent to 35 percent. Because of the seasonal nature
of its business, most of the slower revenue growth should occur in the third
quarter. Prior guidance for fiscal 2003 pro forma operating income was $419
million to $434 million, or growth of 53-59 percent. Prior guidance for fiscal
2003 pro forma EPS was $1.38 to $1.42, or growth of 50-54 percent.
The company's policy is to not confirm, update or otherwise comment on its
financial projections except in compliance with Regulation FD. See Cautions
about Forward-Looking Statements below.
Intuit always reports pro forma performance to provide investors with an
alternative method for assessing ongoing core operating results. Intuit's pro
forma results are presented for information purposes only and use the same
consistent methods from quarter to quarter and year to year. Pro forma operating
income always excludes acquisition-related charges, such as amortization of
goodwill and intangibles and impairment charges, as well as amortization of
purchased software and charges for purchased research and development. Pro forma
net income and earnings per share exclude discontinued operations, gains and
losses on marketable securities and other investments, as well as the tax
effects of these transactions. Pro forma results are not computed according to
GAAP. Because there are no generally accepted industry standards for presenting
pro forma results, the method Intuit uses may differ from the methods used by
other companies.
CAUTIONS ABOUT FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements about future financial
results and other events that have not yet occurred, including guidance about
Intuit's expected results for the remainder of fiscal 2003. Statements with
words like "expects," "anticipates" or "believes," and statements in the future
tense, are forward-looking statements. Actual results may differ materially from
Intuit's expressed expectations because of risks and uncertainties about the
future. Some of the important factors that could cause Intuit's results to
differ are listed below. More details about these and other risks are included
in Intuit's fiscal 2002 Form 10-K and other SEC filings and at
www.intuit.com/company/investors/considerations.html. The company does not
intend to update the information in this press release if any forward-looking
statement later turns out to be inaccurate.
- Seasonality causes significant quarterly fluctuations in
Intuit's revenue and net income.
- The increased use of Intuit's web-based consumer tax products
and the shift in customer purchases through Intuit's direct
marketing channel affect the timing of its consumer tax revenue
during the tax season. These factors, among others, have
increased the uncertainty for the full tax season.
- Actual product returns may exceed product return reserves,
particularly for Intuit's tax preparation software.
- If Intuit fails to maintain reliable and responsive service
levels for its electronic tax offerings or customer support
function, it could lose revenue and customers.
- Integrating acquired businesses creates challenges for Intuit's
operational, financial and management information systems. If
Intuit is unable to adequately address these and other issues
presented by acquisitions, Intuit may not fully realize the
intended benefits of its acquisitions.
- Expansion of Intuit's product and service offerings requires
Intuit to develop and enhance more and increasingly complex
products, market and sell higher priced products and
services and distribute and support an expanding portfolio of
products and services. It also increases the number and
complexity of Intuit's revenue models. If Intuit is unable to
support its expanded businesses, they may not achieve
sustainable financial viability or broad customer acceptance.
- Intuit faces competitive pressures in all of its businesses,
which can have a negative impact on its revenue, profitability
and market position.
- Risks related to Intuit's distribution channels include
challenges in negotiating favorable terms with retailers and the
negative affect of the current economic environment on retail
sales. In addition, expansion of Intuit's product and service
offerings requires Intuit to develop and manage a direct sales
organization, which is a new distribution method for Intuit.
- A continuation of the recent general decline in economic
conditions and the softness in retail sales could lead to
significantly reduce demand for Intuit's products and services.
- Revenue growth for Intuit's vertical business management
solutions is subject to risks such as the negative impact of the
current economic environment and the potential disruption to the
businesses during the acquisition integration process.
- Risks relating to customer privacy and security and increasing
governmental regulation could hinder the growth of Intuit's
businesses.
ABOUT INTUIT INC.
Intuit Inc. (NASDAQ: INTU) is a leading provider of business and financial
management solutions for small businesses, consumers and accounting
professionals. Its flagship products and services, including QuickBooks(R),
Quicken(R) and TurboTax(R) software, simplify small business management and
payroll processing, personal finance, and tax preparation and filing.
ProSeries(R) and Lacerte(R) are Intuit's leading tax preparation software suites
for professional accountants.
Founded in 1983, Intuit has annual revenue of more than $1 billion. The company
has nearly 7,000 employees with major offices in 13 states across the U.S. and
offices in Canada and the United Kingdom. More information can be found at
www.intuit.com.
###
Intuit, the Intuit logo, Quicken, QuickBooks, Quicken Loans and TurboTax, among
others, are registered trademarks and/or registered service marks of Intuit Inc.
in the United States and other countries. Quicken.com, among others, is a
trademark and/or service mark of Intuit Inc. or one of its subsidiaries, in the
United States and other countries. Other parties' trademarks or service marks
are the property of their respective owners and should be treated as such.
(1) NPD Techworld March 8, 2003.