Pete, the P/E reported by various internet sites that I have found range from 27 to 187. This is due to the various dealings that INTU has made in the last year and recorded them as one time charges or gains. An excerpt from their last 10Q follows.
In March 1997, Intuit KK, a wholly owned subsidiary of Intuit, completed its
acquisition of Nihon Micom Co. Ltd. ("Nihon Micom"), a Japanese small business
accounting software company, for cash. The acquisition was treated as a purchase
for accounting purposes. The purchase price of the acquisition was approximately
$39.9 million. In addition, liabilities of approximately $9.6 million were
assumed. Approximately $32.8 million was allocated to identified intangible
assets and goodwill, which is being amortized over a period not to exceed three
years. An in-
process research and development charge of $6.1 million was expensed in the
quarter ended April 30, 1997. Under the terms of the agreement, Intuit issued
options to purchase 89,170 shares of Intuit common stock to employees of Nihon
Micom on the date of acquisition. Pro forma information for Nihon Micom has not
been presented because it is not material.
Consistent with the guidelines established by SFAS 86, "Accounting for the Costs
of Computer Software to Be Sold, Leased or Otherwise Marketed," for each
acquisition accounted for as a purchase, Intuit determined the amounts allocated
to developed and in-process research and development based on whether
technological feasibility had been achieved and whether there was an alternative
future use for the technology. Due to the absence of detailed program designs,
evidence of technological feasibility was established through the existence of a
completed working model at which point functions, features and technical
performance requirements can be demonstrated. As of the respective dates of the
acquisitions, Intuit concluded that the in-process research and development had
no alternative future use after taking into consideration the potential for
usage of the software in different products, resale of the software and internal
usage.
3. DISCONTINUED OPERATIONS AND DIVESTITURES
On January 27, 1997, Intuit completed the sale of its online banking and bill
payment transaction processing subsidiary, Intuit Services Corporation ("ISC"),
to Checkfree in exchange for 12.6 million shares of Checkfree common stock. The
closing price of Checkfree common stock was $14.75 per share on January 24,
1997, the last business day prior to closing. As a result of the divestiture,
Intuit recorded a gain on sale of discontinued operations of $71.2 million, net
of tax, in the quarter ended January 31, 1997. This gain has been recorded net
of certain contingent items relating to the divested business. In February 1997,
Intuit sold two million shares of the acquired Checkfree common stock, reducing
its investment in Checkfree to approximately 19.6% of the resulting 54.2 million
shares of Checkfree common stock outstanding following consummation of the
transaction.
The divested online banking and bill payment business of ISC was accounted for
as a discontinued operation. Operating results for discontinued operations for
the period beginning August 1, 1996 until the close of the sale on January 27,
1997 were deferred. These losses were approximately $5.8 million, net of a tax
benefit of approximately $3.9 million, and were netted against the gain on sale
of discontinued operations.
On August 7, 1997, the Company completed the sale of Parsons, its consumer
software and direct marketing subsidiary, to Broderbund Software, Inc. for
approximately $31 million. Net assets assumed by Broderbund as a result of the
sale were approximately $17 million and direct costs incurred by Intuit relating
to the sale were approximately $9.5 million. As a result of the divestiture, the
Company recorded a pre-tax gain of $4.3 million and a related tax provision of
$2.7 million in the quarter ended October 31, 1997.
The following information shows pro forma net revenue, net loss and net loss per
share of Intuit as if the disposition of Parsons had taken place as of the
beginning of fiscal 1997:
<TABLE>
<CAPTION>
THREE MONTHS ENDED
OCTOBER 31, 1996
----------------
(In thousands, except per share amounts)
<S> <C>
Net revenue .................................. $ 84,781
Net loss ..................................... (27,842)
Net loss per share ........................... $ (0.60)
</TABLE>
4. INVESTMENTS
In June 1997, Intuit purchased 2.9 million shares of Excite common stock for
$13.50 per share, or approximately $39.2 million. The shares represented
approximately 19% of Excite's outstanding common stock after the transaction.
Under the purchase agreement, Intuit may not sell any shares until December
1998, and sales after
December 1998 are restricted. Intuit is currently carrying
this investment at cost as a long-term asset. As resale restrictions lapse over
time, unrestricted shares will be accounted for as marketable securities. |
