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Intuit Aligns Organization to Invest in Connected Services Strategy
MOUNTAIN VIEW, Calif. 26, 2008- Intuit Inc. (Nasdaq: INTU) today announced it is aligning its organizational structure and reallocating both funding and its workforce to drive accelerated growth.
The changes better position the company to deliver on its comprehensive "Connected Services" strategy. The strategy increases Intuit's emphasis on developing value-added services for its desktop products and innovative online offerings. The company plans to focus on both traditional and new markets across the globe, while embracing social networking and mobile technology trends.
Under the new alignment, Intuit will streamline operations, particularly in its general and administrative functions, and reallocate those resources to invest in key growth businesses and accelerate innovation. As a result the company will eliminate approximately 575 positions, or about 7 percent of its workforce.
Intuit expects this action to result in a pre-tax charge of approximately $22 million, or $0.04 per share in Intuit's fourth fiscal quarter, which ends July 31. The charges include all actions taken in the fourth quarter.
Intuit is reaffirming revenue guidance for the quarter and full fiscal year 2008 last updated on May 20. The company is only changing operating income and earnings per share guidance by the amount of the charge. And the expected fiscal year 2008 revenue, non-GAAP operating income and earnings per share results represent record highs for Intuit.
Due to the charge, the company now expects:
- Fourth quarter GAAP loss per share of $0.18 to $0.20 and a non-GAAP loss per share of $0.07 to $0.09.
- Fiscal year 2008 GAAP operating income of $633 million to $643 million, which reflects growth of negative 1 percent to 1 percent over the prior year, and non-GAAP operating income of $838 million to $848 million, which reflects growth of 10 percent to 11 percent over the prior year.
- Fiscal year 2008 GAAP diluted earnings per share of $1.38 to $1.40, which reflects growth of 11 percent to 13 percent over the prior year, and non-GAAP diluted earnings per share of $1.57 to $1.59, which reflects growth of 10 percent to 11 percent over the prior year.
Intuit and the Intuit logo 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 includes 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 accompanying tables titled "About Non-GAAP Financial Measures."
Cautions About Forward-Looking Statements
This press release contains forward-looking statements, including forecasts of Intuit's expected financial results for the quarter and fiscal year ending July 31, 2008 and Intuit's expectations regarding future business and growth prospects.
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: the financial impact of the restructuring actions may be larger than we currently expect; 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 regulating the filing of tax returns could negatively affect our operating results and market position; we may not be able to successfully introduce new products and services to meet our growth and profitability objectives, and 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; any failure to maintain reliable and responsive service levels for our offerings could cause us to lose customers and negatively impact our revenues and profitability; any significant product quality problems or delays in our products 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; any failure to properly use and protect personal customer information could harm our revenue, earnings and reputation; our acquisition activities may be disruptive to Intuit and may not result in expected benefits; our use of significant amounts of debt to finance acquisitions or other activities could harm our financial condition and results of operations; 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 have implemented, and are continuing to upgrade, new information systems and any problems with these new systems could interfere with our ability to deliver products and services 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; 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 2007 and in our other SEC filings. You can locate these reports through our website at http://www.intuit.com/about_intuit/investors. Forward-looking statements are based on information as of June 26, 2008, and we do not undertake any duty to update any forward-looking statement or other information in these remarks.