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Press release from Business Wire

CORRECTING and REPLACING Intuit Reaffirms First Quarter and Fiscal 2012 Guidance

Wednesday, September 21, 2011

CORRECTING and REPLACING Intuit Reaffirms First Quarter and Fiscal 2012 Guidance19:46 EDT Wednesday, September 21, 2011 MOUNTAIN VIEW, Calif. (Business Wire) -- Please replace the release with the following corrected version due to multiple revisions. The corrected release reads: INTUIT REAFFIRMS FIRST QUARTER AND FISCAL 2012 GUIDANCE Intuit Inc. (Nasdaq:INTU) reaffirmed its financial guidance for the first quarter and the full fiscal year 2012, initially provided on Aug. 18. The company's fiscal year runs from Aug. 1 to July 31. Intuit reiterated its outlook in conjunction with today's Investor Day, an annual event held at the company's Mountain View, Calif. headquarters. The meeting includes a discussion of the company's strategy for fiscal year 2012 led by Chief Executive Officer Brad Smith and Chief Financial Officer Neil Williams with presentations from business segment leaders. Forward Looking Guidance Intuit's guidance for fiscal year 2012 is as follows: Revenue of $4.185 billion to $4.285 billion, growth of 9 to 11 percent. GAAP operating income of $1.185 billion to $1.21 billion, growth of 18 to 20 percent. Non-GAAP operating income of $1.4 billion to $1.425 billion, growth of 12 to 14 percent. GAAP diluted EPS of $2.38 to $2.47, growth of 19 to 24 percent. Non-GAAP diluted EPS of $2.85 to $2.94, growth of 14 to 17 percent. Intuit expects the following revenue growth by segment for fiscal year 2012: Small Business Group: 10 to 12 percent. Consumer Tax: 10 to 13 percent. Accounting Professionals: 5 to 8 percent. Financial Services: 7 to 10 percent. Other Businesses: 3 to 7 percent. For the first quarter of fiscal 2012, Intuit expects: Revenue of $575 million to $585 million, growth of 8 to 10 percent. GAAP operating loss of $95 million to $105 million, compared to a loss of $104 million in the year-ago quarter. Non-GAAP operating loss of $40 million to $50 million, compared to a loss of $53 million in the year-ago quarter. GAAP net loss per share of $0.24 to $0.26, compared to a loss of $0.22 in the year-ago quarter. Non-GAAP net loss per share of $0.11 to $0.13, compared to a loss of $0.12 in the year-ago quarter. Webcast Information Investor Day will be broadcast live on Intuit's website at http://www.intuit.com/about_intuit/investors/webcast.jhtml beginning at 1:00 p.m. Pacific time. A replay of the webcast will be available on Intuit's website two hours after the meeting ends. About Intuit Inc. Intuit Inc. is a leading provider of business and financial management solutions for small and mid-sized businesses; financial institutions, including banks and credit unions; consumers and accounting professionals. Its flagship products and services, including QuickBooks®, Quicken® and TurboTax®, simplify small business management and payroll processing, personal finance, and tax preparation and filing. ProSeries® and Lacerte® are Intuit's leading tax preparation offerings for professional accountants. Intuit Financial Services helps banks and credit unions grow by providing on-demand solutions and services that make it easier for consumers and businesses to manage their money. Founded in 1983, Intuit had annual revenue of $3.9 billion in its fiscal year 2011. The company has approximately 8,000 employees with major offices in the United States, Canada, the United Kingdom, India and other locations. More information can be found at www.intuit.com. Intuit and the Intuit logo, among others, are registered trademarks and/or registered service marks of Intuit Inc. in the United States and other countries. About Non-GAAP Financial Measures This press release and the accompanying tables include non-GAAP financial measures. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles, please see the section of the accompanying tables titled "About Non-GAAP Financial Measures" as well as the related Table 1. A copy of the press release issued by Intuit today can be found on the investor relations page of Intuit's Web site. Cautions About Forward-Looking Statements This press release contains forward-looking statements, including forecasts of Intuit's future expected financial results; forecasts of expected growth by segment; and all of the statements under the heading “Forward-looking 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: inherent difficulty in predicting consumer behavior; difficulties in receiving, processing, or filing customer tax submissions; consumers may not respond as we expected to our advertising and promotional activities; product introductions and price competition from our competitors can have unpredictable negative effects on our revenue, profitability and market position; governmental encroachment in our tax businesses or other governmental activities or public policy affecting the preparation and filing of tax returns could negatively affect our operating results and market position; we may not be able to successfully innovate and introduce new offerings and business models to meet our growth and profitability objectives, and current and future offerings may not adequately address customer needs and may not achieve broad market acceptance, which could harm our operating results and financial condition; business interruption or failure of our information technology and communication systems may impair the availability of our products and services, which may damage our reputation and harm our future financial results; as we upgrade and consolidate our customer facing applications and supporting information technology infrastructure, any problems with these implementations could interfere with our ability to deliver our offerings; any failure to properly use and protect personal customer information and data could harm our revenue, earnings and reputation; if we are unable to develop, manage and maintain critical third party business relationships, our business may be adversely affected; increased government regulation of our businesses may harm our operating results; if we fail to process transactions effectively or fail to adequately protect against potential fraudulent activities, our revenue and earnings may be harmed; any significant offering quality problems or delays in our offerings could harm our revenue, earnings and reputation; our participation in the Free File Alliance may result in lost revenue opportunities and cannibalization of our traditional paid franchise; the continuing global economic downturn may continue to impact consumer and small business spending, financial institutions and tax filings, which could negatively affect our revenue and profitability; year-over-year changes in the total number of tax filings that are submitted to government agencies due to economic conditions or otherwise may result in lost revenue opportunities; 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; 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; our inability to adequately protect our intellectual property rights may weaken our competitive position and reduce our revenue and earnings; our acquisition and divestiture activities may disrupt our ongoing business, may involve increased expenses and may present risks not contemplated at the time of the transactions; our use of significant amounts of debt to finance acquisitions or other activities could harm our financial condition and results of operation; and litigation involving intellectual property, antitrust, shareholder and other matters may increase our costs. More details about these and other risks that may impact our business are included in our Form 10-K for fiscal 2011 and in our other SEC filings. You can locate these reports through our website at http://investors.intuit.com. Forward-looking statements are based on information as of September 21, 2011, and we do not undertake any duty to update any forward-looking statement or other information in these materials.   TABLE 1   INTUIT INC. RECONCILIATION OF FORWARD-LOOKING GUIDANCE FOR NON-GAAP FINANCIAL MEASURES TO PROJECTED GAAP REVENUE, OPERATING INCOME (LOSS), AND EPS (In millions, except per share amounts) (Unaudited)         Forward-Looking GuidanceGAAP     Non-GAAPRange of EstimateRange of EstimateFrom   ToAdjustmentsFrom   ToThree Months Ending     October 31, 2011 Revenue $ 575 $ 585 $ - $ 575 $ 585 Operating loss $ (105 ) $ (95 ) $ 55 [a] $ (50 ) $ (40 ) Diluted earnings per share $ (0.26 ) $ (0.24 ) $ 0.13 [b] $ (0.13 ) $ (0.11 )   Twelve Months EndingJuly 31, 2012 Revenue $ 4,185 $ 4,285 $ - $ 4,185 $ 4,285 Operating income $ 1,185 $ 1,210 $ 215 [c] $ 1,400 $ 1,425 Diluted earnings per share $ 2.38 $ 2.47 $ 0.47 [d] $ 2.85 $ 2.94   See “About Non-GAAP Financial Measures” immediately following this Table 1 for information on these measures, the items excluded from the most directly comparable GAAP measures in arriving at non-GAAP financial measures, and the reasons management uses each measure and excludes the specified amounts in arriving at each non-GAAP financial measure. [a] Reflects estimated adjustments for share-based compensation expense of approximately $40 million; amortization of acquired technology of approximately $4 million; and amortization of other acquired intangible assets of approximately $11 million. [b] Reflects the estimated adjustments in item [a] and income taxes related to these adjustments. [c] Reflects estimated adjustments for share-based compensation expense of approximately $172 million; amortization of acquired technology of approximately $15 million; and amortization of other acquired intangible assets of approximately $28 million. [d] Reflects the estimated adjustments in item [c] and income taxes related to these adjustments. INTUIT INC.ABOUT NON-GAAP FINANCIAL MEASURES The accompanying press release dated September 21, 2011 contains non-GAAP financial measures. Table 1 reconciles the non-GAAP financial measures in that press release to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles (GAAP). These non-GAAP financial measures include non-GAAP operating income, non-GAAP net income and non-GAAP net income per share. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same names and may differ from non-GAAP financial measures with the same or similar names that are used by other companies. We compute non-GAAP financial measures using the same consistent method from quarter to quarter and year to year. We may consider whether other significant items that arise in the future should be excluded from our non-GAAP financial measures. We exclude the following items from all of our non-GAAP financial measures: Share-based compensation expense Amortization of acquired technology Amortization of other acquired intangible assets Goodwill and intangible asset impairment charges Charges for historical use of technology licensing rights Professional fees for business combinations We also exclude the following items from non-GAAP net income and diluted net income per share: Gains and losses on debt securities and other investments Income tax effects of excluded items and discrete tax items Discontinued operations We believe that these non-GAAP financial measures provide meaningful supplemental information regarding Intuit's operating results primarily because they exclude amounts that we do not consider part of ongoing operating results when planning and forecasting and when assessing the performance of the organization, our individual operating segments or our senior management. Segment managers are not held accountable for share-based compensation expense, amortization, or the other excluded items and, accordingly, we exclude these amounts from our measures of segment performance. We believe that our non-GAAP financial measures also facilitate the comparison by management and investors of results for current periods and guidance for future periods with results for past periods. The following are descriptions of the items we exclude from our non-GAAP financial measures. Share-based compensation expenses. These consist of non-cash expenses for stock options, restricted stock units and our Employee Stock Purchase Plan. When considering the impact of equity awards, we place greater emphasis on overall shareholder dilution rather than the accounting charges associated with those awards. Amortization of acquired technology and amortization of other acquired intangible assets. When we acquire an entity, we are required by GAAP to record the fair values of the intangible assets of the entity and amortize them over their useful lives. Amortization of acquired technology in cost of revenue includes amortization of software and other technology assets of acquired entities. Amortization of other acquired intangible assets in operating expenses includes amortization of assets such as customer lists, covenants not to compete and trade names. Goodwill and intangible asset impairment charges. We exclude from our non-GAAP financial measures non-cash charges to adjust the carrying values of goodwill and other acquired intangible assets to their estimated fair values. Professional fees for business combinations. We exclude from our non-GAAP financial measures the professional fees we incur to complete business combinations. These include investment banking, legal and accounting fees. Gains and losses on debt securities and other investments. We exclude from our non-GAAP financial measures gains and losses that we record when we sell or impair available-for-sale debt securities and other investments. Income tax effects of excluded items and discrete tax items. We exclude from our non-GAAP financial measures the income tax effects of the items described above. In addition, the effects of one-time income tax adjustments recorded in a specific quarter for GAAP purposes are reflected on a forecasted basis in our non-GAAP financial measures. This is consistent with how we plan, forecast and evaluate our operating results. Operating results and gains and losses on the sale of discontinued operations. From time to time, we sell or otherwise dispose of selected operations as we adjust our portfolio of businesses to meet our strategic goals. In accordance with GAAP, we segregate the operating results of discontinued operations as well as gains and losses on the sale of these discontinued operations from continuing operations on our GAAP statements of operations but continue to include them in GAAP net income or loss and net income or loss per share. We exclude these amounts from our non-GAAP financial measures. The reconciliations of the forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures in Table 1 include all information reasonably available to Intuit at the date of this press release. These tables include adjustments that we can reasonably predict. Events that could cause the reconciliation to change include acquisitions and divestitures of businesses, goodwill and other asset impairments, and sales of available-for-sale debt securities and other investments. Intuit Inc.Matt Rhodes, 650-944-2536 (Investors)matthew_rhodes@intuit.comDiane Carlini, 650-944-6251 (Media)diane_carlini@intuit.com