8-KOther Events

INTUIT INC. 8-K Report (Aug 22, 2002)

Filed August 22, 2002For Securities:INTU

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.

Frequently Asked Questions

Intuit is acquiring Blue Ocean Software to strengthen its position in the small business market by adding IT resource and asset management capabilities. Blue Ocean will operate as a business unit within Intuit's Small Business and Personal Finance division, allowing Intuit to offer a more comprehensive suite of solutions to its small business customers.

Intuit showed significant financial improvement in fiscal year 2002. Revenue grew 18% to $1.36 billion, and the company reported a net income of $140.2 million, or $0.64 per share, a substantial rebound from a net loss in fiscal year 2001. This turnaround was largely attributed to strong performance in its core small business and tax businesses.

Intuit sold its Quicken Loans mortgage business on July 31, 2002, and has accounted for it as a discontinued operation. This transaction resulted in a gain that contributed positively to the fiscal year 2002 results, but the ongoing financial results of Quicken Loans are reported separately and no longer included in Intuit's continuing operations.

Intuit anticipates that the acquisition of Blue Ocean Software will contribute approximately $45 million to $55 million in revenue during fiscal year 2003. This provides a clear expectation for the immediate revenue impact of the newly acquired business.