"Intuit is executing on its strategy to drive profit and revenue growth - to make Intuit the best it can be," said Steve Bennett, Intuit's president and chief executive officer. "In a year that's been brutal for a lot of companies, Intuit delivered 42 percent growth in pro forma operating income and 15 percent revenue growth."

Fiscal 2001 Results
Intuit reported fiscal 2001 revenue of $1.26 billion, an increase of 15 percent over fiscal 2000 revenue of $1.09 billion. Revenue growth was driven by strong performance in three of Intuit's businesses -- Quicken Loans, payroll and consumer tax.

On a GAAP basis (see Table A), Intuit reported a net loss for the year of $82.8 million, or a loss of $0.40 per share, compared to net income of $305.7 million, or $1.45 per share, in fiscal 2000. Year-over-year GAAP comparisons are complicated due to significant non-operating events that impacted fiscal 2000 and 2001 differently.

• Fiscal 2000 results benefited from a net $481.1 million pre-tax gain (or $1.37 in after-tax earnings per share) relating to marketable securities and other investments, which did not occur this year.
• In fiscal 2001, Intuit's results were impacted by the following significant pre-tax charges totaling approximately $187.3 million (or $0.69 in after-tax earnings per share): $98.1 million in combined write-downs and losses related to marketable securities and other investments; and $89.2 million more in acquisition-related costs in fiscal 2001 compared to fiscal 2000, due primarily to the accelerated write-down of goodwill for prior acquisitions.

On the same pro forma basis Intuit has followed for a number of years (explained below), Intuit reported fiscal 2001 net income of $184.1 million, or $0.86 per share, up 37 percent from $134.2 million, or $0.64 per share in fiscal 2000. Pro forma operating income was $219.8 million for fiscal 2001, up 42 percent from the prior year. Strong business results as well as improved operational rigor drove the improvement in pro forma operating income. (See Table B)

Fourth-Quarter Results
Intuit reported revenue of $191.2 million for the fourth quarter of fiscal 2001, an increase of 18 percent over the $162.3 million for the year-ago quarter. Growth was driven by very strong results from two of Intuit's businesses - Quicken Loans and payroll.

On a GAAP basis (see Table A), Intuit reported a net loss for the quarter of $61.3 million, or a loss of $0.29 per share. Intuit typically reports a loss in its fourth quarter when revenue from tax preparation businesses is minimal, but operating expenses to develop new products and services continue at relatively consistent levels.

In the year-ago quarter, Intuit reported net income of $17.1 million, or $0.08 per share. Similar to annual results, quarterly GAAP comparisons are complicated due to a significant non-operating event.

• In fiscal 2000, fourth-quarter results benefited from a net $79 million pre-tax gain (or $0.22 in after-tax earnings per share) relating to marketable securities and other investments, which did not occur this year.

On the same pro forma basis Intuit has followed for a number of years (explained below), the company reported a fourth-quarter net loss of $17.1 million, or a loss of $0.08 per share, $0.02 better than consensus estimates. Intuit had a pro forma net loss of $8.2 million, or a loss of $0.04 per share, for the fourth quarter of fiscal 2000. Fourth-quarter EPS was down year over year primarily due to a decline in Internet-based advertising and marketing fees and the related impact on the bottom line. Even though quarterly revenue grew 18 percent over fiscal 2000, the incremental growth was not sufficient to fully compensate for the negative impact of the loss of this highly profitable revenue. (See Table B)

Annual Business Highlights
Three of the company's businesses had outstanding results in fiscal 2001:

• Quicken Loans had very strong growth, with revenue of $113.1 million, double the prior year. Quicken Loans had a 76 percent increase in the number of closed loans. The business also had a strong turnaround in profitability to a more than 25 percent pro forma operating profit margin.
• Intuit's payroll business also posted great results, with revenue of $118.1 million, up 57 percent from fiscal 2000. The payroll business added approximately 80,000 customers across its product line, up 13 percent. The business also had a significant profit turnaround.
• Intuit's consumer tax business had a record year. Revenue was up 26 percent and the business added 1.3 million new customers, up 21 percent.

Two of Intuit's businesses, QuickBooks-related businesses and Quicken.com, performed below the company's expectations. The company's remaining businesses were in line with Intuit's expectations.

Tax-Related Businesses Drive Growth and Create Opportunities
"As our customers run their businesses or manage their personal finances, dealing with tax requirements creates a lot of opportunities for Intuit," said Bennett. "These opportunities are much broader than our traditional consumer and professional tax businesses in the U.S. and Canada. Taxes also impact our payroll business as well as the tax forms part of our supplies business.

"Even in difficult economic times, people have to pay taxes. Our tax-related businesses continue to grow because tax laws continue to get more complex. This ongoing change and complexity makes Intuit's tax solutions even more valuable."

Intuit's tax-related businesses generate reliable recurring revenue, growth and strong profits. Nearly half of Intuit's revenue in fiscal year 2001 came from its tax-related businesses. Revenue from tax-related businesses was up 25 percent from the prior year. Tax businesses also are an engine of Intuit's profitable growth. Intuit's total tax-related businesses generated a pro forma operating profit margin of more than 30 percent in fiscal 2001. The company sees even greater opportunities for growth ahead because of the complex, multi-year phase-in of the Bush tax law changes starting in 2002.

Strong Balance Sheet
Intuit continues to have a strong balance sheet, with nearly $1.6 billion in cash and short-term investments at July 31, 2001, or more than $7.25 per share.

Guidance for Fiscal 2002
Intuit reiterated earlier guidance for fiscal year 2002, which ends July 31, 2002. Intuit is targeting pro forma operating income growth in the 25 percent to 30 percent range and revenue growth in the 15 percent to 20 percent range. This guidance does not anticipate the impact of acquisitions the company may make going forward.

The accompanying fact sheet has more details on Intuit's historical performance and financial projections. The company's policy is to not confirm, update or otherwise comment on its financial projections except in compliance with Regulation FD.

Information About Intuit's Seasonality and Financial Reporting
Intuit's financial results reflect the highly seasonal nature of its businesses, particularly its tax preparation businesses. Intuit typically reports a loss in its first and fourth quarters when revenues from tax businesses are minimal, but operating expenses to develop new products and services continue at relatively consistent levels. Intuit typically produces more than 100 percent of its annual profits in its second and third quarters combined.

Annual results may provide a more meaningful way to compare Intuit's operating performance than quarter-over-quarter comparisons. The timing of product launches and customer buying patterns can vary from one year to the next, shifting revenue to different quarters within a year.

The GAAP financial results are prepared in accordance with generally accepted accounting principles and are shown in Table A. Pro forma information, shown in Table B, is presented on the same basis Intuit has followed for a number of years. Pro forma results are presented using the same standards from quarter to quarter and year to year and consistently exclude acquisition-related charges, reorganization costs, gains as well as losses related to marketable securities and other investments, gains as well as losses on divestiture, and similar non-operating items. Table B describes the specific items excluded for the current comparison periods.

Power Point Presentation and Conference Call
A PowerPoint presentation accompanying the Intuit earnings conference call and a live audio Web-cast of the call is available at www.intuit.com/corporate/investor_relations and will remain available for two weeks. The conference call number is 800-895-1075 (212-748-2734 from international locations). No reservation or access code is needed. Those planning to listen to the conference call should download the PowerPoint file before the call begins. A replay of the call will be available for one week by calling 800-633-8284 (858-812-6440 for international locations). The reservation number is 19473317.