"Intuit delivered good results for the second quarter," said Steve Bennett, Intuit's president and chief executive officer. "Five of our six business segments delivered within or above their revenue guidance for the quarter and we're on track to meet Intuit's growth targets for the year."

Second-Quarter 2004 Highlights

• Revenue of $636.3 million increased 14 percent from the year-ago quarter.
• Intuit had pro forma net income of $155.7 million, up 21 percent from $128.8 million in the year-ago quarter. Pro forma diluted earnings per share (EPS) of $0.77 increased 26 percent from $0.61 in the second quarter of fiscal 2003.
• Intuit had GAAP net income (Generally Accepted Accounting Principles) of $149.1 million, up 16 percent from $128.4 million in the year-ago quarter. This represents GAAP EPS of $0.73 per diluted share, up 22 percent from $0.60 per diluted share in the second quarter of fiscal 2003.

Second-Quarter Business Segment Revenue Growth

• TurboTax revenue of $130.0 million was up 36 percent from second-quarter 2003. 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) segment increased 4 percent over the year-ago quarter to $156.8 million. Intuit reaffirmed guidance for annual PAS revenue growth of 7 percent to 12 percent.
• QuickBooks revenue grew 8 percent year-over-year to $101.3 million, below expectations. This was due to a drop in lower-priced QuickBooks Basic and Pro units that was not fully offset by upgrades to higher-priced, higher-end offerings. Intuit is lowering its targets for fiscal 2004 QuickBooks revenue growth to 0 percent to 10 percent.
• Intuit's Small Business Products and Services revenue increased 20 percent over the year-ago quarter to $145.3 million. This segment includes Intuit's payroll businesses as well as other non-accounting products and services. Intuit reaffirmed guidance for annual Small Business Products and Services revenue growth of 15 percent to 25 percent in fiscal 2004.
• Intuit's Vertical Business Management Solutions segment had organic year-over-year revenue growth of 9 percent to $26.1 million. Verticals have had 22 percent revenue growth fiscal year to date. 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 $76.8 million, up 4 percent from the year-ago quarter. Intuit is raising its fiscal 2004 revenue growth guidance for Other Businesses to 5 percent to 15 percent.

Forward-Looking Guidance for Third-Quarter 2004
Intuit provided its guidance for the third quarter of fiscal 2004, which will end April 30, 2004. Although financial analysts have developed their own estimates for Intuit's third-quarter performance, Intuit had not previously issued guidance for the quarter. Third-quarter 2004 guidance is:

• Revenue of $685 million to $725 million, or year-over-year growth of 8 percent to 14 percent.
• Pro forma operating income of $335 million to $355 million, or year-over-year growth of 4 percent to 11 percent, and GAAP operating income of $325 million to $345 million.
• Pro forma diluted earnings per share of $1.12 to $1.16, or year-over-year growth of 7 percent to 10 percent, and GAAP diluted earnings per share of $1.09 to $1.13.

FY 04 Revenue Guidance Reaffirmed; FY 04 Pro Forma EPS Guidance Raised
Intuit reaffirmed the revenue and pro forma operating income guidance for fiscal 2004 (which ends July 31, 2004) that it provided in May 2003:

• Revenue of $1.85 billion to $1.95 billion, or year-over-year 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.

Intuit has raised its pro forma EPS guidance for fiscal 2004 by three cents per share:

• New guidance is for pro forma diluted earnings per share of $1.60 to $1.70, or growth of approximately 15 percent to 22 percent over fiscal 2003. On a GAAP basis, diluted EPS is expected to be $1.48 to $1.58, down approximately 3 percent to 9 percent from fiscal 2003. Fiscal 2003 GAAP diluted 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.

Conference Call Scripts, Webcast and Conference Call Information
The script that accompanies Intuit's 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 5231499.

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.