For Intuit, PC personal-finance giant, there is lots of life after Microsoft
Article Abstract:
Intuit's prospects in the personal finance software industry are still bright despite the cancelation of Intuit's acquisition by Microsoft due to Justice Department objections. Microsoft planned to acquire Intuit in a stock swap that would exchange all of Intuit's shares for Microsoft shares. Microsoft wanted to acquire Intuit's popular Quicken personal finance software. Quicken dominates the personal finance software market with about 7 million customers representing about 70% of the market. The failure of the Microsoft deal is only a temporary setback for Intuit because it is still well positioned to leverage its market dominance. Intuit chairman Scott Clark, who was personally hurt by the acquisition's collapse, states that the Microsoft deal was the only possible acquisition for Intuit, and the company was no longer for sale. Analysts believe that Intuit will be able to license its products to financial institutions such as banks, which will provide an important revenue source.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1995
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Intuit charge cuts Microsoft net for period
Article Abstract:
Microsoft's per-share profit declined for the first time ever due to the company's taking a charge for the stopped Intuit acquisition. Nevertheless, Microsoft had an excellent 4th qtr, thanks to sales of operating systems, Microsoft Office integrated software and other business applications. For the period ending June 1995, Microsoft netted $368 million, or 58 cents a share. There are more shares outstanding than over the same period in 1994 when per-share earnings were 59 cents, or $362 million. Sales in 1995 reached $1.62 billion, an increase of 25% over 1994's $1.29 billion. If Microsoft had not taken the charge for Intuit, earnings would have reached $397 million and 63 cents a share. Analysts had predicted 60 cents to 62 cents. Asia bought heavily from Microsoft, but North American sales increased only 9%, a figure that may reflect users waiting for the Windows 95 operating system. Microsoft spent 16% of revenue on research and 5.3% on administrative and legal costs.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1995
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Intuit to sell unit to CheckFree in shift toward open Internet banking system
Article Abstract:
Intuit is selling its Intuit Services Corp electronic transaction processing subsidiary to CheckFree Corp for $268 million in stock. Intuit will own about 23% of CheckFree after the deal is completed. CheckFree will issue 12.6 million shares of stock in order to make the purchase. The prices of both companies' stocks rose on the announcement of the agreement. Intuit reported a $22 million loss for its 4th qtr and has lowered its expectations for the next year. The company markets the popular Quicken personal financial application, but its tax preparation software was a major cause of the 4th qtr loss. Intuit Services Corp operates a private network that enables Quicken customers to pay their bills and handle their banking needs online. This market is being undermined by the Internet and banks, who may offer Quicken or Microsoft's rival software, resent the need to use Intuit Service Corp's network.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1996
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