"Intuit is off to a good start for the fiscal year with solid first-quarter results," said Steve Bennett, Intuit's president and chief executive officer. "Looking forward, we're excited about the busy tax and small business season ahead, with our new TurboTax and QuickBooks offerings hitting retail shelves in the next few weeks."

First-Quarter 2004 Highlights

• Revenue of $242.5 million increased 14 percent from the year-ago quarter. Growth was driven by strong performance in Intuit's QuickBooks, Small Business Products and Services and Vertical Business Management Solutions growth engines. Each of Intuit's business segments reached or exceeded the revenue targets provided three months ago.
• Intuit had a pro forma net loss of $47.9 million versus a pro forma net loss of $44.5 million in the year-ago quarter. The first-quarter per share results were a pro forma net loss of $0.24 versus a pro forma net loss of $0.21 in the first quarter of fiscal 2003. Intuit typically reports a loss in its first quarter when revenue from its tax business is low but expenses remain constant. Revenue from Intuit's large TurboTax and professional tax business is highly seasonal and occurs in the company's second and third quarters.
• On a GAAP (Generally Accepted Accounting Principles) basis, Intuit had a net loss of $54.0 million, better than a net loss of $54.7 million in the year-ago quarter. This represents a net loss of $0.27 per diluted share, versus a net loss of $0.26 per diluted share in the first quarter of fiscal 2003.

First-Quarter Business Segment Revenue Growth

• QuickBooks revenue grew 11 percent year-over-year to $42.8 million. Intuit reaffirmed guidance for annual QuickBooks revenue growth of 15 percent to 25 percent in fiscal 2004.
• Intuit's Small Business Products and Services revenue increased 22 percent over the year-ago quarter to $123.1 million. This unit includes Intuit's payroll business as well as other non-accounting products and services. Intuit reaffirmed guidance for annual Small Business Services revenue growth of 15 percent to 25 percent in fiscal 2004.
• TurboTax revenue of $5.2 million was down 15 percent from first-quarter 2003, as expected. Intuit reaffirmed guidance for annual TurboTax revenue growth of 10 percent to 20 percent in fiscal 2004.
• Revenue from Intuit's Professional Accounting Solutions (PAS) business increased 7 percent over the year-ago quarter to $6.9 million. Intuit reaffirmed guidance for annual PAS revenue growth of 7 percent to 12 percent.
• Intuit's Vertical Business Management Solutions unit had organic year-over-year revenue growth of 40 percent to $26.3 million. Intuit reaffirmed guidance for annual Verticals revenue growth of 15 percent to 25 percent in fiscal 2004.
• Revenue from Other Businesses, which includes Quicken and Canada, was $38.2 million, down 9 percent from the year-ago quarter, as expected.

Forward-Looking Guidance for Second-Quarter 2004
Intuit provided its guidance for the second quarter of fiscal 2004, which will end Jan. 31, 2004. Although financial analysts have developed their own estimates for Intuit's second-quarter performance, Intuit had not previously issued guidance for the quarter. Second-quarter 2004 guidance is:

• Revenue of $615 million to $640 million, or year-over-year growth of 10 percent to 15 percent.
• Pro forma operating income of $208 million to $218 million, or year-over-year growth of 13 percent to 18 percent, and GAAP operating income of $198 million to $208 million.
• Pro forma diluted earnings per share of $0.66 to $0.71, or year-over-year growth of 8 percent to 16 percent, and GAAP diluted earnings per share of $0.63 to $0.68.

Forward-Looking Guidance for Fiscal 2004
Intuit reaffirmed its pro forma guidance for fiscal 2004, which ends July 31, 2004. Intuit has recalculated its GAAP operating income and EPS guidance to reflect the additional amortization of intangibles associated with its October 2003 acquisition of Innovative Merchant Solutions:

• Revenue of $1.85 billion to $1.95 billion, or year-over-year organic growth of approximately 12 percent to 18 percent.
• Pro forma operating income of $480 million to $510 million, or growth of approximately 20 percent to 28 percent over fiscal 2003. On a GAAP basis, operating income is expected to be $443 million to $473 million, or growth of approximately 29 percent to 38 percent over fiscal 2003.
• Pro forma diluted earnings per share of $1.57 to $1.67, or growth of approximately 13 percent to 20 percent over fiscal 2003. Intuit expects that lower growth in Interest and Other Income will slow the growth in EPS versus the growth in operating income. On a GAAP basis, diluted EPS is expected to be $1.46 to $1.56, down approximately 4 percent to 10 percent from fiscal 2003. Fiscal 2003 GAAP EPS included net income and gains from discontinued operations of nearly $80 million, or $0.38 per diluted share, which is not anticipated to recur in fiscal 2004.

About pro forma, or non-GAAP, financial measures
Intuit computes its pro forma, or non-GAAP, financial measures using the same consistent method from quarter to quarter and year to year. Pro forma operating income excludes acquisition-related charges, such as amortization of intangibles and impairment charges, as well as amortization of purchased software and charges for purchased research and development. Pro forma net income and diluted earnings per share exclude discontinued operations, gains and losses on marketable securities and other investments, as well as the tax effects of these transactions. These pro forma financial measures are not prepared in accordance with generally accepted accounting principles and likely are different from non-GAAP or pro forma financial measures used by other companies. The accompanying tables and fact sheet have more details on Intuit's historical performance and financial projections, the GAAP financial measures that are most directly comparable to Intuit's pro forma financial measures, and the reconciliation of pro forma financial measures to GAAP.

Conference Call Scripts, Webcast and Conference Call Information
The script that accompanies the Intuit earnings conference call and a live audio webcast of the call is available at http://www.intuit.com/about_intuit/investors/webcast_events.html. The call begins today at 1:30 p.m. (PST). The replay of the audio webcast will remain on Intuit's Web site for one week after the conference call. This press release, including the tables, is available at that site and any other supplemental financial and statistical information required to be posted, including pro forma reconciliation, will be posted to that site.

The conference call number is (800) 615-5585 and (706) 679-0331 from international locations. No reservation or access code is needed. A replay of the call will be available for one week by calling (800) 642-1687, and (706) 645-9291 for international locations. The reservation number is 3719387.