Financial software and services firm Intuit Inc has reported a smaller-than-expected loss for its first fiscal quarter as revenue jumped 45.6% to $163.1m. The reported loss for the quarter was $61.7m, or $0.33 per share, up from a loss of $49.2m in the year-ago period. The bottom line was hit by $40.8m in acquisition-related charges and a $17.3m one-time loss from marketable securities. Excluding those items, the loss amounted to $0.12 per share, when analysts surveyed by First Call were expecting a loss of $0.19.
The top line was helped by revenue from payroll processing firm Computing Resources Inc, the acquisition of which was closed in the fourth quarter. Excluding CRI, year-over-year revenue growth for the quarter was 38%, which the Mountain View, California- based company attributed to strong market demand for QuickBooks, sales from the launches of new versions of Quicken and continued growth in internet-based revenue.
Intuit pointed out that the net loss was in keeping with its seasonal business pattern, which produces lower revenue and profits outside of the US tax season (January to mid-April). Thus, the company’s January and April quarters usually account for all of the year’s profitability while lower revenue and constant expense levels typically bring losses in the July and October quarters.
Total expenses in the first quarter, excluding one-time items, rose 31.5% to $207m as the company invested in the expansion of its internet businesses, and increased marketing expenditures to grow market share for current software products and to support the early Quicken 2000 launch. Internet-related revenue rose 119% year-over-year and accounted for 19% of overall revenue during the quarter. á
