Mountain View, Calif. (Aug. 20, 2004) -- Two years after its acquisition of nonprofit software brand FundWare, software maker Intuit Inc. said that it would put the division on the block.
"Over the past several years, we've made a number of changes to our portfolio -- acquiring or developing businesses that fit our growth criteria and exiting those that don't,” said Intuit president and chief executive Steve Bennett. “A combination of industry dynamics, our competitive position and our other opportunities make this the right decision for Intuit.”
News of the sale coincided with the release of Intuit’s fourth-quarter results. Intuit said that Denver-based FundWare chipped in roughly $13 million toward fiscal 2004 revenue. The Mountain View, Calif.-based company widened its final quarter losses to $42.1 million, versus the fourth quarter of last year. The company said that the quarterly results included an impairment charge of $18.7 million for goodwill related to the FundWare business.
Strong growth in Intuit's small business products and services segment helped boost fourth-quarter revenue 13 percent to $275.9 million, compared with the fourth quarter of last year. For fiscal 2004, Intuit’s net income slipped 8 percent, to $317 million versus fiscal 2003. The company said that its year-end 2003 results were boosted by a $71 million after-tax gain from the sales of a Japanese subsidiary.
Year-end revenue rose 13 percent, to $1.87 billion, versus the prior year. Intuit said that its flagship QuickBooks grew 12 percent to roughly $273 million, while its small business arm grew 20 percent, to $544.6 million. Revenue from TurboTax spiked 16 percent over the prior-year period to $490 million.
-- WebCPA staff
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