Summary
Intuit Inc. filed an 8-K on November 16, 2001, to report its financial results for the first fiscal quarter ended October 31, 2001. The company reported a 11% increase in revenue, reaching $208.8 million, compared to the prior year's quarter. However, Intuit experienced a significant net loss of $92.4 million, or $0.44 per share, which is a wider loss than the $33.8 million (or $0.16 per share) reported in the same quarter last year. The increased net loss was primarily attributed to substantial charges, including $35.4 million pre-tax, related to write-downs of marketable securities and other investments, as well as impairment charges for assets acquired from the prior sale of its online bill management business. While a first-quarter net loss is typical for Intuit due to seasonality in its tax preparation business, the additional charges highlight factors impacting profitability beyond seasonal trends. Investors should note the significant impact of investment write-downs on the reported loss.
Key Highlights
- 1Intuit reported Q1 revenue of $208.8 million, an 11% increase year-over-year.
- 2The company posted a net loss of $92.4 million, or $0.44 per share, for the quarter.
- 3The Q1 net loss widened significantly compared to the prior year's loss of $33.8 million, or $0.16 per share.
- 4A substantial portion of the increased loss ($35.4 million pre-tax) is due to write-downs of marketable securities and other investments.
- 5Impairment charges related to the sale of the online bill management business also contributed to the loss.
- 6First fiscal quarter losses are typical for Intuit due to the seasonal nature of its tax preparation business.
- 7Total assets decreased from $2,961.7 million to $2,854.0 million between July 31, 2001, and October 31, 2001.