Intuit Third Quarter 99 Results

Table A (1 of 2) INTUIT INC. GAAP CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (In thousands, except per share data) (Unaudited)
	Three Mos. Ended		Nine Mos. Ended
	April 30,		April 30,
	1998	1999	1998	1999

Net revenue	$141,996	$239,701	$475,467	$697,620
Costs and expenses:
Cost of goods sold:
Product	29,331	50,070	97,206	151,100
Amortization of purchased
software and other	588	1,885	1,941	5,586
Customer service &
technical support	26,389	28,557	91,821	98,312
Selling & marketing	55,067	43,884	134,006	151,520
Research & development	25,381	34,325	78,159	104,346
General & administrative	9,180	14,421	27,387	40,689
Other acquisition costs, including
amortization of goodwill and
purchased intangibles	3,369	20,890	12,230	62,822

Total costs & expenses	149,305	194,032	442,750	614,375

Income (loss) from operations	(7,309)	45,669	32,717	83,245

Interest and other income and
expense, net	3,104	5,344	7,375	12,642
Realized gain on sale of
marketable securities		58,596		68,684
Gain on disposal of business	--	--	4,321	--

Income (loss) before income taxes	(4,205)	109,609	44,413	164,571
Income tax provision (benefit)	(1,999)	37,054	17,534	51,349

Net income	$ (2,206)	$ 72,555	$ 26,879	$ 113,222

Table A (2 of 2) INTUIT INC. GAAP CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (In thousands, except per share data) (Unaudited)
	Three Mos. Ended		Nine Mos. Ended
	April 30,		April 30,
	1998	1999	1998	1999

Basic net income (loss) per share	$ (0.05)	$ 1.18	$ 0.56	$ 1.87

Shares used in per share amounts	48,209	61,553	47,618	60,409



Diluted net income (loss) per share	$ (0.05)	$ 1.12	$ 0.54	$ 1.79

Shares used in per share amounts	48,209	64,817	49,560	63,192

Table B (1 of 2) INTUIT INC. PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (i) (In thousands, except per share data) (Unaudited)
	Three Mos. Ended		Nine Mos. Ended
	April 30,		April 30,
	1998	1999	1998	1999

Net revenue	$141,996	$239,701	$475,467	$697,620
Costs and expenses:
Cost of goods sold:
Product	29,331	50,070	97,206	151,100
Customer service &
technical support	26,389	28,557	91,821	98,312
Selling & marketing	38,913	43,884	117,852	151,520
Research & development	25,381	34,325	78,159	104,346
General & administrative	9,180	14,421	27,387	40,689

Total costs & expenses, excluding
acquisition related charges and
charge for AOL agreement	129,194	171,257	412,425	545,967

Income from operations	12,802	68,444	63,042	151,653

Interest and other income and
expense, net	3,104	5,344	7,375	12,642

Income, excluding acquisition
related charges, gain on disposal
of business, charge for AOL agreement
and realized gain on sale of marketable
securities before income taxes	15,906	73,788	70,417	164,295
Income tax provision	5,726	26,564	25,350	59,146

Net income, excluding acquisition
related charges, gain on disposal
of business, charge for AOL agreement
and realized gain on sale of marketable
securities	$ 10,180	$ 47,224	$ 45,067	$ 105,149

Table B (2 of 2) INTUIT INC. PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (i) (In thousands, except per share data) (Unaudited)
	Three Mos. Ended		Nine Mos. Ended
	April 30,		April 30,
	1998	1999	1998	1999


Basic net income per share, excluding
acquisition related charges, gain
on disposal of business, charge for
AOL agreement and realized gain
on sale of marketable securities	$ 0.21	$ 0.77	$ 0.95	$ 1.74

Shares used in per share amounts	48,209	61,553	47,618	60,409


Diluted net income per share, excluding
acquisition related charges, gain
on disposal of business, charge for
AOL agreement and realized gain
on sale of marketable securities	$ 0.20	$ 0.73	$ 0.91	$ 1.66

Shares used in per share amounts	50,823	64,817	49,560	63,192

(i) This statement of operations information for the three and nine month periods ended April 30, 1999 and 1998 is for illustrative purposes only and is not prepared in accordance with generally accepted accounting principles. It shows the operating results of the Company, excluding acquisition related charges of $22.8 million and $68.4 million for the three and nine month periods ended April 30, 1999, respectively, and $4.0 million and $14.2 million for the three and nine month periods ended April 30, 1998, respectively. The nine months ended April 30, 1998 exclude the gain on disposal of Parsons Technology of $4.3 million, the three and nine months ended April 30, 1998 exclude a $16.2 million charge for the AOL agreement entered into in February 1998, and the three and nine months ended April 30, 1999 exclude a realized gain on the sale of marketable securities of $58.6 million and $68.7 million respectively.

Table C (1 of 2) INTUIT INC. STATEMENT OF DIFFERENCES BETWEEN GAAP AND PRO FORMA CONDENSED CONSOLIDATED RESULTS OF OPERATIONS (ii) (In thousands, except per share data) (Unaudited)
	Three Mos. Ended		Nine Mos. Ended
	April 30,		April 30,
	1998	1999	1998	1999


Income (loss) before income taxes,
as reported	$ (4,205)	$109,609	$ 44,413	$ 164,571
Gain on disposal of business	--	--	(4,321)	--
Realized gain on sale of marketable
securities	--	(58,596)	--	(68,684)
Acquisition related charges:
Amortization of purchased
software and other in cost
of goods sold	588	1,885	1,941	5,586
Other acquisition costs,
including amortization of
goodwill and purchased
intangibles	3,369	20,890	12,230	62,822
Charge for AOL agreement	16,154	--	16,154	--

Income excluding acquisition
related charges, gain on disposal of
business, charge for AOL agreement
and realized gain on sale of
marketable securities	15,906	73,788	70,417	164,295
Income tax provision	5,726	26,564	25,350	59,146

Net income excluding acquisition
related charges, gain on disposal
of business, charge for AOL agreement
and realized gain on sale of
marketable securities	$ 10,180	$ 47,224	$ 45,067	$ 105,149

Table C (2 of 2) INTUIT INC. STATEMENT OF DIFFERENCES BETWEEN GAAP AND PRO FORMA CONDENSED CONSOLIDATED RESULTS OF OPERATIONS (ii) (In thousands, except per share data) (Unaudited)
	Three Mos. Ended		Nine Mos. Ended
	April 30,		April 30,
	1998	1999	1998	1999

Income (loss) before income taxes,
as reported	$ (4,205)	$109,609	$ 44,413	$ 164,571
Gain on disposal of business	--	--	(4,321)	--
Realized gain on sale of marketable
securities	--	(58,596)	--	(68,684)
Acquisition related charges:
Amortization of purchased
software and other in cost
of goods sold	588	1,885	1,941	5,586
Other acquisition costs,
Basic net income per share, excluding
acquisition related charges, gain
on disposal of business, charge for AOL
agreement and realized gain on sale
of marketable securities	$ 0.21	$ 0.77	$ 0.95	$ 1.74

Shares used in per share amounts	48,209	61,553	47,618	60,409


Diluted net income per share, excluding
acquisition related charges, gain
on disposal of business, charge for AOL
agreement and realized gain on sale
of marketable securities	$ 0.20	$ 0.73	$ 0.91	$ 1.66

Shares used in per share amounts	50,823	64,817	49,560	63,192

(ii) This statement illustrates the impact of acquisition related charges, the gain on disposal of business, the AOL charge and the realized gain on sale of marketable securities on reported net income. These items are included in the GAAP results of operations (Table A) and are excluded from pro forma results of operations (Table B).

Table D INTUIT INC. CONDENSED CONSOLIDATED BALANCE SHEET (In thousands) (Unaudited)

	July 31,	April 30,
	1998	1999
ASSETS:

Current assets:
Cash, cash equivalents and
short-term investments	$ 382,832	$ 666,150
Marketable securities	499,285	1,095,050
Accounts receivable, net	59,417	114,188
Inventories	3,695	2,267
Prepaid expenses and other current assets	34,896	77,154
Total current assets	980,125	1,954,809

Property and equipment, net	69,413	91,195
Intangibles, net	85,797	74,038
Goodwill, net	285,793	243,131
Other assets	10,937	7,895
Investments	17,009	43,223
Restricted investments	28,516	34,568
Long-term deferred income taxes	21,006	21,006
Total assets	$1,498,596	$2,469,865

LIABILITIES AND STOCKHOLDERS EQUITY:

Current liabilities:
Accounts payable	$ 44,035	$ 95,368
Accrued compensation and related liabilities	23,728	34,488
Deferred revenue	58,560	69,237
Income taxes payable	3,044	--
Deferred income taxes	120,482	361,379
Other accrued liabilities	124,820	199,175
Total current liabilities	374,669	759,647

Long-term obligations	35,566	36,043
Long-term deferred income taxes	--	770
Stockholders’ equity	1,088,361	1,673,405
Total liabilities and stockholders’ equity	$1,498,596	$2,469,865

Table E INTUIT INC. SCHEDULE OF ACQUISITION RELATED CHARGES (iii) (In thousands) (Unaudited)
	Three Mos. Ended		Nine Mos. Ended
	April 30,		April 30,
	1998	1999	1998	1999

Amortization of intangibles in:
Cost of goods sold	$ 588	$ 1,885	$ 1,941	$ 5,586
Operating expenses	3,369	20,890	12,230	62,822

Total acquisition related
charges in operating income	3,957	22,775	14,171	68,408
Tax effect (iv)	(1,583)	(9,110)	(5,668)	(27,363)

Net income effect	$ 2,374	$ 13,665	$ 8,503	$ 41,045


	Year Ended July 31,
	1999	2000	2001	2002

Amortization of intangibles in:
Cost of goods sold	$ 7,818	$ 6,749	$ 4,553	$ --
Operating expenses	84,396	78,758	69,844	69,091

Total acquisition related
charges in operating income	92,214	85,507	74,397	69,091
Tax effect (iv)	(35,888)	(34,123)	(29,759)	(27,636)

Net income effect	$ 56,326	$ 51,384	$ 44,638	$ 41,455

(iii) Assumes no change in the economic useful lives of intangible assets, no future acquisitions and is not necessarily indicative of Intuit Inc.'s future operating results.

(iv) Assumes tax rate generally at 40% applied to tax effectable items for fiscal years 1998 and beyond.