Intuit reported quarterly revenue of $112.0 million, an increase of 17% compared to the same quarter a year ago.

On a GAAP basis and consistent with Intuit's normal seasonal performance outside of tax season, the Company reported a net loss of $49.2 million, or $0.83 per share, which included charges resulting from the amortization of goodwill and purchased intangibles of $22.8 million. Net loss for the first fiscal quarter last year was $12.8 million.

On a pro forma basis, the Company reported a first fiscal quarter net loss of $26.8 million, or $0.45 per share, again, reflecting Intuit's typical seasonal pattern that was intensified by the acquisition in June 1998 of Lacerte, a tax software company. Pro forma loss for the first fiscal quarter last year was $12.1 million, or $0.26 per share.

Growth in the Company's small business products and services along with the launch of its Quicken 99 product line in September accounted for the increase in first quarter revenue when compared to the same quarter a year ago. Operating expenditures to expand Internet businesses, to support Lacerte's tax business, and to increase market penetration of current software products led to the increase in first quarter expenses versus the same quarter a year ago.

Intuit's financial results reflect the highly seasonal nature of its businesses, particularly its tax return preparation products. Historically, revenue and profitability are highest in the January and April quarters which reflect the short season and intensity of tax product sales. The Company experiences significantly lower revenue levels in the July, and October quarters, while operating expenses to develop new products and services continue during these periods. As a result, Intuit typically produces more than 100% of its annual profits in the January and April quarters, and experiences losses in the July and October quarters.

As the Company has previously discussed, Intuit's quarterly revenue pattern within any given year varies from year to year. Therefore, annual results may provide a more meaningful comparison of operating results than quarter-over-quarter comparisons.

The GAAP financial results are prepared in accordance with generally accepted accounting principles and are shown in Table A. Pro forma financial information shown in Table B excludes discontinued operations, acquisition-related charges, restructuring costs, and other charges.

Business Highlights
Bill Harris, President and CEO, commented, "As we enter fiscal 1999, we remain committed to improving our operating performance and driving growth, both on the desktop and the Internet. During the first quarter, we made progress on both fronts with the growth in our QuickBooks business and continued expansion of our Internet presence."

"Intuit's success on the Web continues to ramp," added Scott D. Cook, Chairman of the Executive Committee. "We have achieved record traffic levels and solid increases in advertising and transaction revenue. Equally important, Intuit continues to win strong endorsements in the marketplace. We recently swept the PC Computing MVP Awards, with Quicken.com, QuickBooks Pro, and Quicken Deluxe 99 winning every category in which they were nominated."

QuickBooks Reaches New Record High
During the quarter, Intuit saw its QuickBooks product gain in popularity. As a result, QuickBooks  achieved its highest retail market share ever, capturing over 84% share of dollars at retail in the most recent quarter according to PC Data.

In October, Intuit launched the QuickBooks Online Payroll Service. This is important in two ways: It is the world's first internet-based payroll service and it takes Intuit into high-dollar, recurring revenue services. The typical customer will pay Intuit an estimated $600 per year in recurring revenue. This service provides small business owners with an easy and inexpensive way to do their payrolls, including payroll checks and all associated tax payments and filings, and W2 preparation. Initial response has been very positive, although it was not a significant contributor to the financial performance for this past quarter and won't be for some time.

Quicken Launched Five Weeks Earlier Than Last Year
Quicken is off to an early start with a launch in September, five weeks prior to last year. The Quicken 99 product family offers a full range of powerful, new, money and timesaving enhancements, resulting in a positive mix shift and increased revenue per customer. Consumers can customize their home page, receive news and market alerts, identify potential tax savings, and utilize remote Web-based entry - all within Quicken 99. In addition, Intuit introduced the Quicken Financial Center 99, which combines Quicken and TurboTax in a single product.

Quicken continues to be the most popular personal finance software product with over 80% share of dollars at retail.

With only five weeks of sales to date, it is too soon to assess the entire Quicken 99 season.

Quicken.com Advances Internet Leadership
The success of Quicken.com continues to grow. For the first time in its history, Quicken.com monthly pageviews exceeded 100 million, reaching 107 million in the month of October. This represents an annual growth rate of 410%.

On October 31, one year after its launch, QuickenMortgage is the first multi-lender website to offer loans throughout all the United States. Moreover, QuickenMortgage has hosted over 7 million visits in the past year and has originated more than $350 million in closed loans, over the last three quarters. QuickenMortgage has also launched its third release in 12 months and has added seven new lenders to its site, bringing the total to seventeen of the nation's top lending institutions. QuickenMortgage was the first, and is still the only such site to execute the complete process up through the good-faith estimate - entirely online.

Quicken InsureMarket continues to ramp its business. Traffic for the first tens months of the calendar year increased to over 4 million user sessions compared to1 million for all of calendar 1997. Recently Quicken InsureMarket expanded its auto insurance site adding online access to a database for rates from 50 insurers nationwide. As a result, over 70% of the nation's licensed drivers can now receive an average of seven or more real-time quotes in a fraction of the time it would take under traditional methods.

While the Internet presents many opportunities, Internet commerce revenue for fiscal 1998 was less than 10% of overall revenue. We remind investors that potential Internet-related revenue and profits may be difficult to predict or achieve and may be impacted by many factors including seasonal trends.

Tax Products to Ship in December
With tax season rapidly approaching, Intuit remains on track with its development efforts and this season's tax software products are scheduled to launch in December.