SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_______________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
February 14, 2002
(Date of report)
February 13, 2002
(Date of earliest event reported)
INTUIT INC.
(Exact Name of Registrant as Specified in its Charter)
| Delaware | 000-21180 | 77-0034661 | ||
| (State or other Jurisdiction of Incorporation) |
(Commission File Number) | (I.R.S. Employer Identification No.) |
2535 Garcia Avenue
Mountain View, CA 94043
(Address of Principal Executive Offices)
(Zip Code)
Registrant’s telephone number, including area code: (650) 944-6000
| ITEM 5. OTHER EVENTS. | ||||||||
| CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEET | ||||||||
| SIGNATURES | ||||||||
ITEM 5. OTHER EVENTS.
Announcement of Fiscal 2002 Second Quarter Results
On February 13, 2002, Intuit announced the financial results for its second quarter of fiscal 2002 ended January 31, 2002. Revenue was $547.2 million, up 20 percent over last year's second quarter. Intuit reported net income of $119.9 million, or $0.55 per share. This was up 351 percent from net income of $26.6 million, or $0.12 per share, in the year-ago quarter, reflecting a 29 percent increase in operating income. This year’s quarter also reflected a $19 million increase in acquisition-related charges compared to last year’s quarter. Included in this quarter’s acquisition-related charges was an impairment charge of $17 million related to Intuit’s Internet-based advertising revenue business. Last year’s second-quarter results included a net pre-tax loss on marketable securities and other investments of $71.9 million, compared to a $1.6 million gain this quarter.
INTUIT INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share data)
(unaudited)
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| January 31, | January 31, | |||||||||||||||||||
| 2001 | 2002 | 2001 | 2002 | |||||||||||||||||
Net revenue: |
||||||||||||||||||||
Products |
$ | 372,252 | $ | 422,827 | $ | 492,075 | $ | 537,410 | ||||||||||||
Services |
64,453 | 106,623 | 111,993 | 183,417 | ||||||||||||||||
Other |
20,855 | 17,795 | 41,014 | 35,184 | ||||||||||||||||
Total net revenue |
457,560 | 547,245 | 645,082 | 756,011 | ||||||||||||||||
Costs and expenses: |
||||||||||||||||||||
Cost of revenue: |
||||||||||||||||||||
Products, services and other |
103,819 | 121,064 | 170,713 | 193,416 | ||||||||||||||||
Amortization of purchased software and other |
3,858 | 7,171 | 6,845 | 8,877 | ||||||||||||||||
Customer service and technical support |
46,134 | 53,139 | 78,530 | 92,092 | ||||||||||||||||
Selling and marketing |
85,567 | 94,931 | 146,667 | 166,826 | ||||||||||||||||
Research and development |
54,599 | 53,263 | 102,477 | 103,203 | ||||||||||||||||
General and administrative |
25,914 | 32,123 | 53,697 | 60,716 | ||||||||||||||||
Acquisition-related charges |
43,074 | 62,099 | 82,753 | 103,186 | ||||||||||||||||
Loss on impairment of long-lived asset |
— | — | — | 27,000 | ||||||||||||||||
Total costs and expenses |
362,965 | 423,790 | 641,682 | 755,316 | ||||||||||||||||
Income from operations |
94,595 | 123,455 | 3,400 | 695 | ||||||||||||||||
Interest and other income and expense, net |
16,548 | 8,526 | 32,666 | 20,323 | ||||||||||||||||
Gains (losses) on marketable securities
and other investments, net |
(71,935 | ) | 1,632 | (75,803 | ) | (10,622 | ) | |||||||||||||
Gain on divestiture |
1,639 | — | 1,639 | — | ||||||||||||||||
Income (loss) before income taxes, minority
interest and cumulative effect of accounting change |
40,847 | 133,613 | (38,098 | ) | 10,396 | |||||||||||||||
Provision (benefit) for income taxes (i) |
14,188 | 13,745 | (16,728 | ) | (17,045 | ) | ||||||||||||||
Minority interest |
97 | — | 147 | — | ||||||||||||||||
Income (loss) before cumulative effect of accounting
change |
26,562 | 119,868 | (21,517 | ) | 27,441 | |||||||||||||||
Cumulative effect of accounting change, net of taxes of
$9,543 |
— | — | 14,314 | — | ||||||||||||||||
Net income (loss) |
$ | 26,562 | $ | 119,868 | $ | (7,203 | ) | $ | 27,441 | |||||||||||
Basic net income (loss) per share before
cumulative effect of accounting change |
$ | 0.13 | $ | 0.56 | $ | (0.10 | ) | $ | 0.13 | |||||||||||
Cumulative effect of accounting change |
— | — | 0.07 | — | ||||||||||||||||
Basic net income (loss) per share |
$ | 0.13 | $ | 0.56 | $ | (0.03 | ) | $ | 0.13 | |||||||||||
Shares used in per share amounts |
207,594 | 212,520 | 206,661 | 211,780 | ||||||||||||||||
Diluted net income (loss) per share before
cumulative effect of accounting change |
$ | 0.12 | $ | 0.55 | $ | (0.10 | ) | $ | 0.13 | |||||||||||
Cumulative effect of accounting change |
— | — | 0.07 | — | ||||||||||||||||
Diluted net income (loss) per share |
$ | 0.12 | $ | 0.55 | $ | (0.03 | ) | $ | 0.13 | |||||||||||
Shares used in per share amounts |
215,927 | 219,355 | 206,661 | 217,914 | ||||||||||||||||
| (i) | The difference in the effective tax rate for each of these periods was primarily due to the tax benefit related to divestitures that became available in the second quarter of fiscal 2002. The company also reported pre-tax income for the six months ended January 31, 2002 as opposed to a pre-tax loss for the six months ended January 31, 2001, which also contributed to the difference in the effective tax rate for these periods. |
INTUIT INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
(unaudited)
| July 31, | January 31, | |||||||||
| 2001 | 2002 | |||||||||
ASSETS |
||||||||||
Current assets: |
||||||||||
Cash and cash equivalents |
$ | 450,104 | $ | 488,555 | ||||||
Short-term investments |
1,119,305 | 1,004,829 | ||||||||
Marketable securities |
85,307 | 42,729 | ||||||||
Customer deposits |
230,410 | 256,313 | ||||||||
Accounts receivable, net |
27,990 | 262,513 | ||||||||
Mortgage loans |
123,241 | 268,025 | ||||||||
Deferred income taxes |
77,948 | 90,247 | ||||||||
Prepaid expenses and other current assets |
33,617 | 32,652 | ||||||||
Total current assets |
2,147,922 | 2,445,863 | ||||||||
Property and equipment, net |
185,969 | 183,389 | ||||||||
Goodwill and intangibles, net |
415,334 | 348,600 | ||||||||
Long-term deferred income taxes |
145,905 | 146,205 | ||||||||
Investments |
24,107 | 13,170 | ||||||||
Other assets |
42,499 | 13,651 | ||||||||
Total assets |
$ | 2,961,736 | $ | 3,150,878 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||||
Current liabilities: |
||||||||||
Accounts payable |
$ | 66,400 | $ | 100,440 | ||||||
Payroll tax obligations |
205,067 | 217,724 | ||||||||
Escrow liabilities |
23,373 | 37,906 | ||||||||
Drafts Payable |
63,518 | 70,962 | ||||||||
Deferred revenue |
137,305 | 156,337 | ||||||||
Income tax payable |
82,661 | 42,091 | ||||||||
Short-term note payable |
38,672 | 36,753 | ||||||||
Other current liabilities |
170,966 | 263,286 | ||||||||
Total current liabilities |
787,962 | 925,499 | ||||||||
Long-term obligations |
12,413 | 12,249 | ||||||||
Minority interest |
35 | 35 | ||||||||
Stockholders’ equity |
2,161,326 | 2,213,095 | ||||||||
Total liabilities and stockholders’ equity |
$ | 2,961,736 | $ | 3,150,878 | ||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: February 14, 2002. | INTUIT INC. | |
| | ||
| By: | /s/ Greg J. Santora | |
| Greg J. Santora Senior Vice President and Chief Financial Officer |
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