Summary
Intuit Inc. (INTU) filed an 8-K on August 21, 2002, reporting two significant events. First, the company announced a definitive agreement to acquire Blue Ocean Software Inc. for approximately $170 million in cash. Blue Ocean Software provides IT resource and asset management solutions for small businesses, and Intuit plans to integrate it into its Small Business and Personal Finance division, expecting it to contribute $45 million to $55 million in revenue in fiscal year 2003. This acquisition aims to bolster Intuit's offerings to its small business customer base. Second, Intuit released its fourth quarter and full fiscal year 2002 financial results. For fiscal year 2002, Intuit reported a substantial turnaround, with revenue increasing 18% to $1.36 billion and net income reaching $140.2 million, or $0.64 per share, a significant improvement from a net loss in fiscal year 2001. This growth was primarily driven by its core small business and tax segments. The company also reported a gain on the sale of its Quicken Loans mortgage business, which is being treated as a discontinued operation.
Key Highlights
- 1Intuit announced a definitive agreement to acquire Blue Ocean Software Inc. for approximately $170 million in cash.
- 2The acquisition of Blue Ocean Software is expected to contribute $45 million to $55 million in revenue in fiscal year 2003.
- 3Intuit reported a strong fiscal year 2002 performance with revenue of $1.36 billion, up 18% year-over-year.
- 4Fiscal year 2002 net income was $140.2 million, or $0.64 per share, a significant recovery from a net loss in fiscal year 2001.
- 5Growth in fiscal year 2002 was driven by the small business and tax segments.
- 6Intuit sold its Quicken Loans mortgage business, classifying it as a discontinued operation and reporting a gain on the sale.
- 7Intuit's Chief Financial Officer, Greg Santora, announced his retirement at the end of the calendar year, with a transition plan in place.