Summary
Intuit Inc. reported a net loss of $45.8 million for the three months ended October 31, 2005, which equates to a loss of $0.26 per share. This represents a slight widening of the net loss from the same period in the prior year, which was $46.1 million, or $0.24 per share. The company's total net revenue increased by 20% year-over-year to $304.1 million, driven primarily by strong performance in the QuickBooks-Related segment. However, operating expenses also increased, notably due to the adoption of SFAS 123(R) impacting share-based compensation expenses. The company continues to repurchase its stock, with significant cash outflows dedicated to these programs. Looking ahead, Intuit is focused on growth in its core markets and the introduction of new products and services. The company is also proceeding with the planned sale of its Intuit Information Technology Solutions (ITS) business, expected to close in the second quarter of fiscal year 2006, for approximately $200 million. Despite the quarterly net loss, Intuit ended the period with a healthy cash and investments balance of $697.3 million, providing liquidity for ongoing operations and strategic initiatives.
Key Highlights
- 1Reported a net loss of $45.8 million for the quarter, a slight increase from the prior year's loss of $46.1 million.
- 2Total net revenue grew 20% year-over-year to $304.1 million, driven by strong performance in the QuickBooks-Related segment.
- 3Operating expenses increased, partly due to the adoption of SFAS 123(R) impacting share-based compensation expenses.
- 4The company announced a definitive agreement to sell its Intuit Information Technology Solutions (ITS) business for approximately $200 million, expected to close in Q2 FY06.
- 5Intuit continued its aggressive share repurchase program, spending $194.8 million in the quarter and announcing a new $500 million repurchase program.
- 6The company maintained a strong liquidity position with $697.3 million in cash and investments at the end of the quarter.