Accounting 101..............continued.
Cash as refered to by Barron's does not simply refer to; coin and folding money only....but is a generally acepted accounting principle which includes other type of assets a company may hold which can be readily converted to cash.
In Intuits' case this includes the 19% interest in a Company called Checkfree and a Company called Excite. Which on October 31 were worth just North of 350 Million.
So if you add the 'cash' to this you're over a 1/2 a Billion $$$. Or in other terms 1/3 of the current market price of all 47.2 Million Shares at $34 is 'cash or cash equivilants'.....?
5% of the total revenue came from the internet this Q.....So what was total renenue this Q 96 Million x .05 = 4.8 Million. Not bad for one year out....on par with Excite/Lycos/Seek/Yahoos' first year on a gross basis.
Now I guess I didn't read the thing well enough because I couldn't find the reference to... 'Quick Books is going to eat a big fat hole into that bank account real quick'.....but I did come across this from Dow Jones..........
Intuit Inc. To Ship New QuickBooks Version Next Summer
MOUNTAIN VIEW, Calif. (Dow Jones)--Intuit Inc. (INTU) next summer will ship a new version of its small business software that should more than double the amount of revenue Intuit gets from each customer, chief executive officer Scott Cook told Dow Jones.
The forthcoming version of Intuit's QuickBooks accounting software will allow more than one personal computer user on a company network to access the program at the same time, Cook said. That is not possible with Intuit's current software, a major deficiency compared with rivals' products, he added.
Once the new product arrives, Intuit for the first time will charge small-business customers for using multiple copies of QuickBooks. A firm that now pays Intuit $150 for one copy, for example, might pay $400 or more after the change, he said.
"For the first time we will be able to compete in the multiuser market," Cook said. "I can't wait to book the additional revenue."
The QuickBooks change is one of several positive elements in Intuit's outlook at the moment, Cook said. Small business is Intuit's largest segment, and continues to add customers at a steady rate, he said. The number of customers hit 1 million 18 months ago and 1.5 million in July, and the business is on track to hit 2 million by the end of 1997, Cook said.
In tax preparation software, Intuit's second-largest business, the company just shipped new versions for the 1997 tax year that began arriving in stores last weekend. That is the earliest Intuit has ever hit the market and, significantly, the new versions have all tax code changes and won't have to be replaced with final versions in the new year. That's a first for Intuit, and a big potential cost savings, Cook said.
"Fifty percent of the early editions would come back from the stores and end up in the landfill," Cook said.
Intuit is making an early push to help preserve its lead in that business, Cook said. The company lost about 10 points of market share last year, primarily to H&R Block Inc., but remains the No. 1 tax company, he said.
Most attention lately has been focused on Intuit's Internet-based financial business, which Cook said are getting off to a great start. The company recently completed a major overhaul of its Web site, which has financial-service features such as helping consumers comparison-shop for insurance and mortgages.
The mortgage shopping service, in which Intuit makes money on advertising and small fees for referrals or completed transactions, is ahead of plan by all measures. "Our mortgage site is running at double the numbers we expected," Cook said, though he declined to quantify the current rate or expectations.
Intuit is a year into its electronic-commerce initiatives and has projected they will be making money at the end of three years. "With the numbers so far, we are on track for that," Cook said.
"Dow Jones News Service"
"Copyright(c) 1997, Dow Jones & Company, Inc."
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