INTUIT DROPS SOURCE DOC Intuit has pulled its Source Doc scanning product from its 2007 tax software, after a year in which it faced technical difficulties.
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The system is supposed to recognize data from W-2 and 1009 forms, but there were industry reports that Source Doc wouldn't recognize some of Intuit's QuickBooks forms. Meanwhile, the company is discontinuing the ProSeries Express line, which is expected to cut $14 million from revenue for the Professional Tax group.
Intuit says that the group could have a revenue change for the year ending July 31, ranging from a 1 percent decline to a 1 percent increase.
ACCOUNTING RELIEF GOES ONLINE
AccountantsWorld is producing a small business accounting application as part of its Accounting Relief line that will operate with clients entering information via their accountant's Web sites.
AccountantsWorld CEO Chandra Bhansali says the approach is similar to consumers using a bank's Web site for their banking. "Similarly, they will go to their accountant's website to do accounting, because accountants are the ones who offer them accounting services," he says.
Small business clients enter the transactions while the accountants make adjusting entries, produce financial statements and use the data to prepare tax returns.
TAXWORKS GETS NEW HQ
TaxWorks, which was purchased earlier this year by H&R Block, in late October moved into a new 37,000-square-foot office building in its headquarter town of Kaysville, Utah.
TaxWorks, which has 200 employees, is now under a company called RedGear Technologies.
WK BUYING TEAMMATE
Wolters Kluwer Tax and Accounting has agreed to buy PricewaterhouseCoopers TeamMate, a suite of audit software that the companies say is used in 1,500 organizations in 96 countries.
The suite is comprised of the TeamMate EWP, electronic workpaper system, TeamCentral, advanced scheduling, TeamMate time and tracking. Forty of the accounting firm's staff will join Wolters Kluwer as part of the deal.
INTUIT LISTS SMITH'S PAY
Intuit has given Brad Smith, who is taking over as CEO in January, a 60 percent increase in base salary.
Smith's pay went from $500,000 a year to $800,000 and he is eligible for a target bonus of up to 120 percent of the base. He will also be granted a nonqualified stock option to purchase 260,000 shares of Intuit stock on the seventh business day of February, vesting in two stages over the next five years.
He also will get 130,000 restricted stock units at the time, issuable over four years and also vesting in two stages.
Acquisitions Boost Morningstar Results
Acquisitions pushed revenue at Morningstar to $111.9 million for the third quarter ended Sept. 30, up 37 percent from $81.8 million a year earlier.
Net income was $19.9 million, up 47 percent from $13.5 million in last year's corresponding period. Revenue for the company's advisor segment rose by 20 percent, with 6 percentage points coming from acquisitions. International revenue reached $24.9 million, an increase of 102 percent with $8.6 million coming from acquisitions.
ADVENT NET UP SHARPLY
Advent Software, which makes portfolio management products, reported net income of $3.3 million for the third quarter ended June 30, a large income from $952,000 in last year's corresponding period.
The higher earning came on revenue of $49.8 million, which was up from $45.5 million a year earlier.
BENNETT WALKS AWAY WITH $6.77 MILLION
Steve Bennett, who will leave his job as Intuit's CEO in January, will get a severance package of $6.77 million with the bulk of that in the form of $6.2 million in restricted stock units, whose vesting has been accelerated.
The remainder of the package is from a cash severance of $550,000. He will work as a consultant until July 31, the end of Intuit's fiscal year, and will receive his current base salary of $91,700 a month until that time.
Bennett is also eligible for his annual bonus of up to $1.76 million for fiscal 2008.