CONSOLIDATED FINANCIAL STATEMENTS  




CONSOLIDATED STATEMENTS OF OPERATIONS  FISCAL
(In thousands, except per share amounts) 2002 2003 2004
Net revenue:
    Product
 $ 973,795     $ 1,124,283     $ 1,212,362   
    Service   269,936     457,208     583,681  
    Other   68,497     69,252     71,620  
        Total net revenue   1,312,228     1,650,743     1,867,663  
Costs and expenses:
    Cost of revenue:
        Cost of product revenue
  157,373     173,800     172,059  
        Cost of service revenue   107,634     149,538     162,176  
        Cost of other revenue   24,366     20,626     27,362  
        Amortization of purchased software   7,159     13,796     13,456  
    Customer service and technical support   164,875     178,949     195,073  
    Selling and marketing   263,721     324,389     369,136  
    Research and development   198,471     255,821     281,129  
    General and administrative   109,076     148,855     183,080  
    Charge for purchased research and development   2,151     8,859     -  
    Charge (credit) for vacant facilities   13,237     (1,069 )   729  
    Acquisition-related charges   159,395     33,947     24,472  
    Loss on impairment of goodwill and purchased intangible assets   27,270     -     18,664  
    Loss on impairment of long-lived asset   27,000     -     -  
        Total costs and expenses   1,261,728     1,307,511     1,447,336  
        Income from continuing operations   50,500     343,232     420,327  
Interest and other income   27,276     38,694     30,844  
Gains (losses) on marketable securities and other investments, net   (15,535 )   10,912     1,729  
Gain on divestiture of business   8,308     -     -  
Income from continuing operations before income taxes   70,549     392,838     452,900  
Income tax provision   16,934     129,636     135,870  
Net income from continuing operations   53,615     263,202     317,030  
Discontinued operations, net of income taxes (Note 9):
    Net income from Quicken Loans discontinued operations
  47,100     -     -  
    Gain on disposal of Quicken Loans discontinued operations   23,300     5,556     -  
    Net income from Intuit KK discontinued operations   16,145     3,267     -  
    Gain on disposal of Intuit KK discontinued operations   -     71,009     -  
Net income from discontinued operations   86,545     79,832     -  
Net income $ 140,160   $ 343,034   $ 317,030  
Basic net income per share from continuing operations $ 0.25   $ 1.28   $ 1.62  
Basic net income per share from discontinued operations   0.41     0.39     -  
Basic net income per share $ 0.66   $ 1.67   $ 1.62  
Shares used in basic per share amounts   211,794     205,294     195,455  
Diluted net income per share from continuing operations $ 0.24   $ 1.25   $ 1.58  
Diluted net income per share from discontinued operations   0.40     0.38     -  
Diluted net income per share $ 0.64   $ 1.63   $ 1.58  
Shares used in diluted per share amounts   217,897     210,955     200,081  

See accompanying notes.