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| Intuit Raises Third-Quarter and FY 2006 Revenue and EPS Guidance |
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| TurboTax Season-to-Date Unit Sales Up 16 Percent |
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MOUNTAIN VIEW, Calif. -
March
9,
2006 -
With stronger-than-expected TurboTax sales in recent weeks – particularly TurboTax Online – Intuit Inc. (Nasdaq: INTU) today raised its revenue and earnings guidance for its third quarter and fiscal year 2006.
"With two more weeks of strong TurboTax sales – especially TurboTax Online – the tax season is turning out better than we expected," said Steve Bennett, Intuit’s president and chief executive officer. "As a result, we’re raising our guidance for both total company and TurboTax growth for the year."
Intuit Raises Third-Quarter 2006 Guidance
Intuit expects the following results for its third quarter, which will end April 30, 2006:
- Revenue of $880 million to $900 million, which represents year-over-year growth of 5 percent to 8 percent. Prior guidance was for growth of 3 percent to 5 percent.
- GAAP diluted earnings per share of $1.56 to $1.60. Prior guidance was for EPS of $1.54 to $1.58.
- Non-GAAP diluted EPS of $1.64 to $1.68, which represents year-over-year growth of 6 percent to 9 percent. Prior guidance was for growth of 5 percent to 8 percent.
Intuit Raises Fiscal Year 2006 Guidance
Intuit expects the following results for its fiscal year 2006, which will end July 31, 2006:
- Revenue of $2.24 billion to $2.28 billion, which represents year-over-year growth of 10 percent to 12 percent. Prior guidance was for growth of 9 percent to 11 percent.
- GAAP diluted EPS of $2.18 to $2.23, versus $2.03 in fiscal 2005. Prior guidance was for GAAP diluted EPS of $2.16 to $2.21.
- Non-GAAP diluted EPS of $2.29 to $2.34, which represents year-over-year growth of 14 percent to 16 percent. Included in this new GAAP and non-GAAP guidance is the expected impact of Intuit’s tax rate increasing from 35 percent to 36 percent for fiscal 2006, which is approximately $0.04 per share, and a $3.3 million accrual for freight and delivery expense in the second quarter that was identified after Intuit issued its earnings release on Feb. 16, 2006. Prior guidance was for non-GAAP EPS of $2.27 to $2.32, which represents growth of 13 percent to 15 percent.
- The company has not changed its guidance for the fourth quarter.
TurboTax Season-to-Date Unit Sales Up 16 Percent
Intuit also announced that through March 4, season-to-date TurboTax federal unit sales increased 16 percent over the same period last year. At this point last year, Intuit posted a 9 percent gain over prior year sales. Intuit said it now expects 2006 Consumer Tax revenue to grow 12 percent to 15 percent over fiscal 2005. Prior guidance was for growth of 10 percent to 12 percent.
Season-to-Date TurboTax Federal Unit Data
|
Comparable Prior-Year Period |
Season Through 3/4/06 |
% Change YOY |
| TurboTax federal desktop units sold through at retail |
4,293,000 |
4,421,000 |
+3% |
| TurboTax federal desktop units sold direct |
1,423,000 |
1,312,000 |
-8% |
| TurboTax Online federal returns sold |
2,070,000 |
3,276,000 |
+58% |
| TOTAL PAID RETURNS |
7,786,000 |
9,009,000 |
+16% |
| Free File Alliance federal units |
1,376,000 |
831,000 |
-40% |
| Total FFA and paid units |
9,162,000 |
9,840,000 |
+7% |
|
Intuit intends to continue issuing bi-weekly updates of its season-to-date end-user purchase data, based on Intuit’s best assessment of its unit sales. The company expects to issue future reports before the market opens every other Thursday through the end of the tax season. Season-to-date TurboTax federal unit sales data for the past three tax seasons and information related to Intuit’s second-quarter results are available on Intuit’s Web site at http://www.intuit.com/about_intuit/investors/.
About Intuit Inc.
Intuit Inc. is a leading provider of business and financial management solutions for small- and mid-sized businesses, consumers and accounting professionals. Its flagship products and services, including QuickBooks®, Quicken and TurboTax® software, simplify small business management and payroll processing, personal finance, and tax preparation and filing. ProSeries® and Lacerte® are Intuit’s leading tax preparation software suites for professional accountants.
Founded in 1983, Intuit had annual revenue of more than $2 billion in its fiscal year 2005. The company has nearly 7,000 employees with major offices in 13 states across the United States, and offices in Canada and the United Kingdom. More information can be found at www.intuit.com.
Sales Data and Estimates Used
The unit numbers reported are based on weekly sales reports received by Intuit from its retailers and distributors as well as the number of units sold directly from Intuit. The numbers included in these updates are preliminary and include estimates, including estimates of sales by merchants that do not report their sales to Intuit. Although Intuit takes steps to verify the reliability of the sales data, Intuit believes that errors in the sales reported by its retailers and distributors may impact its reported retail unit numbers on an immaterial basis.
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Intuit, the Intuit logo, TurboTax, among others, are registered trademarks and/or registered service marks of Intuit Inc. in the United States and other countries.
Cautions About Forward-Looking Statements
This press release contains forward-looking statements, including forecasts of our expected financial results; our prospects for the business in fiscal 2006 and beyond; our expectations about tax rates; and all of the statements under the headings “Intuit Raises Third-Quarter 2006 Guidance” and “Intuit Raises Fiscal Year 2006 Guidance.” Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause our actual results to differ materially from the expectations expressed in the forward-looking statements. These factors include, without limitation, the following: product introductions and price competition from our competitors, including Microsoft, can have unpredictable negative effects on our revenue, profitability and market position; governmental encroachment in our tax businesses or other governmental activities regulating the filing of tax returns could negatively effect our operating results and market position; current and future products and services may not adequately address customer needs and may not achieve broad market acceptance, which could harm our operating results and financial condition; we may not be able to accurately predict consumer behavior, and consumers may not respond as we expect to our advertising and promotional activities; our participation in the Free File Alliance may result in lost revenue due to potential customers filing free federal returns and electing not to pay for state filing or other services and cannibalization of our traditional paid franchise; our revenue and earnings are highly seasonal and the timing of our revenue between quarters is difficult to predict, which may cause significant quarterly fluctuations in our financial results; predicting tax-related revenues is challenging due to the heavy concentration of activity in a short time period; we may not be able to successfully introduce new products and services to meet our growth and profitability objectives; our new product or service offerings may not attract customers or they may negatively impact our profitability if the business models for new offerings are not successful or if customers elect to purchase lower-priced alternatives; we have implemented, and are continuing to upgrade, new information systems and any problems with these new systems could interfere with our ability to ship and deliver products and gather information to effectively manage our business; our financial position may not make repurchasing shares advisable or we may issue additional shares in an acquisition causing our number of outstanding shares
to grow; litigation involving intellectual property, antitrust, shareholder and other matters may increase our costs; and our failure to maintain reliable and responsive service levels for our offerings and protect customer data could cause us to lose customers and negatively impact our revenues and profitability. More details about these and other risks that may impact our business are included in our Form 10-K for fiscal 2005 and in our other SEC filings. You can locate these reports through our Web site at http://www.intuit.com/about_intuit/investors. Forward-looking statements are based on information as of March 9, 2006, and we do not undertake any duty to update any forward-looking statement or other information in this press release.
(Reconciliation of Forward-Looking Guidance follows)
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