Form: 8-K

Current report filing

November 15, 2002

Table of Contents

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549



FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

November 15, 2002
(Date of report)

November 13, 2002
(Date of earliest event reported)

INTUIT INC.
(Exact Name of Registrant as Specified in its Charter)

         
Delaware
(State or other Jurisdiction
of Incorporation)
  000-21180
(Commission File Number)
  77-0034661
(I.R.S. Employer
Identification No.)

2535 Garcia Avenue
Mountain View, CA 94043

(Address of Principal Executive Offices) (Zip Code)

Registrant’s telephone number, including area code: (650) 944-6000

 


TABLE OF CONTENTS

ITEM 5. OTHER EVENTS.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
CONDENSED CONSOLIDATED BALANCE SHEET
SIGNATURES


Table of Contents

ITEM 5. OTHER EVENTS.

Announcement of Fiscal 2003 First Quarter Results

On November 13, 2002, Intuit Inc. announced the results for its first quarter of fiscal 2003, which ended October 31, 2002. Revenue increased 32 percent over the first quarter of fiscal 2002 to $223.3 million. Intuit narrowed its seasonal net loss to $54.7 million, or $0.26 per share. This is down significantly from a net loss of $92.4 million, or $0.44 per share in the first quarter of fiscal 2002. Intuit typically reports a loss in its first quarter when revenue from its tax preparation businesses is minimal, but operating expenses to develop new products and services continue at relatively consistent levels. Two factors contributed to the lower loss: lower acquisition-related charges due to the adoption of the Financial Accounting Standards Board’s SFAS 142 and the absence of a charge for impairment of long-lived assets.

 


Table of Contents

INTUIT INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share data)
(unaudited)

                     
        Three Months Ended
        October 31,
       
        2001   2002
       
 
Net revenue:
               
 
Products
  $ 114,583     $ 146,992  
 
Services
    36,755       60,941  
 
Other
    17,389       15,349  
 
   
     
 
Total net revenue
    168,727       223,282  
Costs and expenses:
               
 
Cost of revenue:
               
   
Products, services and other
    61,789       71,313  
   
Amortization of purchased software
    1,706       2,977  
 
Customer service and technical support
    37,759       41,752  
 
Selling and marketing
    59,953       78,801  
 
Research and development
    48,857       65,682  
 
General and administrative
    26,557       40,161  
 
Charge for purchased research and development
    —       7,789  
 
Acquisition-related charges
    41,081       9,455  
 
Loss on impairment of long-lived asset
    27,000       —  
 
   
     
 
   
Total costs and expenses
    304,702       317,930  
 
   
     
 
Loss from continuing operations
    (135,975 )     (94,648 )
Interest and other income
    9,810       8,336  
Gains (losses) on marketable securities and other investments, net
    (12,254 )     253  
 
   
     
 
Loss from continuing operations before income taxes
    (138,419 )     (86,059 )
Income tax benefit(i)
    (36,263 )     (25,818 )
 
   
     
 
Loss from continuing operations
    (102,156 )     (60,241 )
Discontinued operations, net of income taxes (vi):
               
 
Net income from Quicken Loans discontinued operations
    9,729       —  
 
Gain on disposal of Quicken Loans discontinued operations
    —       5,556  
 
   
     
 
Net income from discontinued operations
    9,729       5,556  
 
   
     
 
Net loss
  $ (92,427 )   $ (54,685 )
 
   
     
 
Basic and diluted net loss per share from continuing operations
  $ (0.48 )   $ (0.29 )
Basic and diluted net income per share from discontinued operations
    0.04       0.03  
 
   
     
 
Basic and diluted net loss per share
  $ (0.44 )   $ (0.26 )
 
   
     
 
Shares used in basic and diluted per share amounts
    211,039       207,965  
 
   
     
 

 


Table of Contents

INTUIT INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
(unaudited)

                     
        July 31,   October 31,
        2002   2002
       
 
ASSETS
               
Current assets:
               
 
Cash and cash equivalents
  $ 435,087     $ 308,176  
 
Short-term investments
    815,342       522,980  
 
Marketable securities
    16,791       27,462  
 
Customer deposits
    300,409       308,149  
 
Accounts receivable, net
    56,467       65,353  
 
Deferred income taxes
    67,799       66,957  
 
Prepaid income taxes
    —       56,915  
 
Prepaid expenses and other current assets
    50,729       36,771  
 
Amounts due from discontinued operations entities
    252,869       184,538  
 
   
     
 
   
Total current assets
    1,995,493       1,577,301  
Property and equipment, net
    181,758       189,550  
Goodwill and purchased intangibles, net
    554,422       707,402  
Long-term deferred income taxes
    176,553       171,428  
Loans to executive officers and other employees
    21,270       20,585  
Other assets
    33,530       13,481  
 
   
     
 
Total assets
  $ 2,963,026     $ 2,679,747  
 
   
     
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
Current liabilities:
               
 
Accounts payable
  $ 76,669     $ 80,847  
 
Accrued compensation and related liabilities
    91,507       77,595  
 
Payroll service obligations
    300,381       308,117  
 
Deferred revenue
    159,758       166,075  
 
Income taxes payable
    442       —  
 
Short-term note payable
    17,926       18,026  
 
Other current liabilities
    86,094       87,092  
 
   
     
 
   
Total current liabilities
    732,777       737,752  
Long-term obligations
    14,610       14,384  
Stockholders’ equity
    2,215,639       1,927,611  
 
   
     
 
Total liabilities and stockholders’ equity
  $ 2,963,026     $ 2,679,747  
 
   
     
 

 


Table of Contents

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

     
Date: November 15, 2002. INTUIT INC.
 
 
  By:  /s/ STEPHEN M. BENNETT
 
  Stephen M. Bennett
President and Chief Executive Officer