RPT13w$_July 31December 3107/20/9507/20/9507/20/95 [Fo+e*D 05/24/95 This company develops and markets personal finance and small business accounting software and complementary supplies and services for personal computer users, including Quicken, which lets users organize and manage their personal finances. ChipSoft, which develops, markets and supports tax preparation and related software (sold under the brand names TurboTax and MacInTax) was acquired in December 1993. In May 1995, Intuit and Microsoft agreed to terminate a planned merger rather than pursue months of litigation with the Justice Department over possible anti-trust law violations. The shares fell sharply following the annnouncement. No cash dividends have been paid. The company intends to retain earnings for use in the business and does not expect to pay cash dividends in the foreseeable future. STOCK SPLITS DURING LAST FIVE YEARS: To split 2-for-1,ex Aug 22 46120210 31-MAY-95 Intuit Inc. develops and markets personal finance and small business accounting software and complementary supplies and services for personal computer (PC) users. Its principal product is Quicken, which lets users organize and manage their personal finances. In December 1993, it acquired Chipsoft, Inc., the leading provider of tax preparation software for PCs. Quicken is the leading personal finance product in each of the Windows, DOS and Macintosh operating environments. Designed to look and work like a checkbook, Quicken provides users with an easy-to-use method for recording and categorizing their financial transactions. It can be used to reconcile bank accounts and track credit card purchases, investments, cash and other assets and liabilities. Quicken also allows users to make payments by printing computer checks or by initiating payment via modem. Sales of Quicken and Quicken-related supplies and services accounted for more than 30% of Intuit's and ChipSoft's combined pro forma net sales in fiscal 1994. Intuit has also developed a line of small business application products, including QuickBooks, which supports both cash-based and accrual-based accounts payable; QuickPay, a payroll add-on product; QuickInvoice, which allows users to generate professional-looking invoices and to track revenues and receivables balances; and TurboTax for Business, which allows small businesses to prepare their own corporate tax returns. Service offerings include Quicken VISA card with IntelliCharge, which combines the use of a credit card with software and communications technology; Electronic Bill Payment, which allows users to pay bills without paper checks by transmitting payment instructions via modem; and QuickenQuotes, a stock price 900-number service that allows modem-equipped users to download current stock prices into Quicken for Windows. ChipSoft develops, markets, and supports tax preparation and related software, sold under the brand names TurboTax and MacInTax. Its products have a significant presence in both consumer and professional tax preparation markets. Intuit offers supplies (paper checks, invoices and window envelopes) that work with its software products to increase automation of transaction execution and recordkeeping. Revenues from supplies represented 19% of Intuit's and ChipSoft's combined pro forma net sales for fiscal 1994. May 95 - Intituit and Microsoft Corp. said they had terminated a planned merger, rather than pursue lengthy litigation with the Justice Department. The companies announced their intention to merge in October 1994, but a Justice Department's investigation into possible anti-trust violations delayed the transaction. The shares dropped sharply following the announcement that the agreement had been terminated. Feb 95 - The Justice Department issued subpoenas in its examination of Microsoft Corp.'s agreement to acquire Intuit, with each Intuit common share to be exchanged for 1.336 Microsoft common shares, with a guaranteed minimum of $71 of Microsoft stock per share. The Justice Department's probe relates to the possible anticompetitive effects of the transaction. If Intuit and Microsoft agree to contest any action challenging the acquisition on antitrust grounds, the deadline will be August 29, 1995. 07/20/95 Intuit Inc. (INTU) announced that its board declared a two-for-one stock split on common, payable on or about August 21 to holders of record August 4. 07/14/95 UP 2 3/4... Co., 19 financial institutions including CHEMICAL BANK, CHASE MANHATTAN working together to offer financial services through INTU's Quicken. 06/14/95 Intuit Inc. (INTU) announced that it filed a registration statement with the SEC for a public offering of 1,000,000 common shares. Net proceeds will be used for general corporate purposes, including capital expenditures and working capital. A portion of the proceeds also may be used to acquire or invest in complementary businesses or products or to obtain the right to use complementary technologies. Morgan Stanley & Co. Inc., Hambrecht & Quist LLC, San Francisco, UBS Securities Inc. and William Blair & Co., Chicago, will act as underwriters for the offering. 06/02/95 June 1, 1995 Intuit Inc. reported April 1995 three-month loss per share of $0.18 vs loss of $0.33 for same period a year ago. Nine-month loss of $2.14 vs loss of $10.75 for same period a year ago. Results for nine-month period includes a pre-tax charge of $2.18 per share in 1995 and $9.93 per share for purchased research & development costs. Note: Company reported the following pro forma results, on a basis excluding merger related charges:Three-month earnings of $0.29 vs $0.16 for same period a year ago. Nine-month earnings of $1.61 vs $1.82 for same period a year ago. 05/22/95 DOWN 12 1/2... Co., MICROSOFT agree to terminate merger... Bear Stearns says good news for INTU, industry... William Blair upgrades... 05/22/95 1:30 pm... UPDATE... INTUIT (INTU 61-1/4) DOWN 13-1/4, CO., MICROSOFT AGREE TO TERMINATE MERGER... WILLIAM BLAIR UPGRADES INTU TO HOLD FROM SELL... Analyst David Farina tells MarketScope upgrade function of INTU being too good a co. to be "sell..." Notes not taken by surprise, did not think deal was going through... Says, in fact, surprised stock holding up as well as it is... Thinks investors now looking at co. from fundamental standpoint, determining what co.'s shares worth on standalone basis... Says he sees $50-$55 value... Says his buy point below $55... Cuts $1.65 FY 96 (July) EPS estimate to $1.53... Sees $1.87 calendar 96 EPS./B.Brodie 05/22/95 10:20 am... INTUIT (INTU 62) DOWN 12-1/2, CO., MICROSOFT AGREE TO TERMINATE PLANNED MERGER... BEAR STEARNS SAYS GOOD NEWS FOR INTU, INDUSTRY... Analyst Peter Rogers tells MarketScope news not surpising, felt all along low probability of deal going through... Says surprised MSFT decided to pull plug so abruptly... Says clearly it was uphill battle, MSFT not willing to choose this as battle in which to engage Justice Dept., notes it will have to at some point... Says decline today in INTU shares just a lot of arbitrage money coming out of shares... Sees $1.15 FY 95 (July) EPS, $1.50 FY 96... Says INTU currently not rated, will rate after co. reports next week./B.Brodie 05/20/95 Intuit Inc. (INTU) announced that the merger agreement with Microsoft Inc. (MSFT) was terminated in light of government lawsuits to block the merger. INTU said the parties entered into a termination agreement under which MSFT agreed to pay INTU a termination fee of $46,250,000. INTU added that, while it preferred to challenge the government's lawsuit to block the merger, the two companies were unable to agree mutually to pursue the litigation. INTU said MSFT cited concerns about the protracted period required to gain approval of the merger through the judicial process. Under the merger agreement, which already had been approved by INTU shareholders, each INTU share common share would have be exchanged for 1.336 MSFT shares, with an adjustment mechanism designed to ensure that INTU shareholders would have received no less than $71 per INTU share in MSFT stock. 04/28/95 DOWN 5... Co., MSFT firmly committed to merger, seeking speedy trial to prove that it should be allowed to proceed... INTU, MSFT down yesterday after Justice Dept. filed lawsuit to block merger. 04/27/95 Microsoft Corp. (MSFT) and Intuit Inc. (INTU), responding to a Justice Department lawsuit challenging the proposed merger of the two companies, stated that they "remain firmly committed to the merger and are seeking a speedy trial to prove that it should be allowed to proceed.' MSFT and INTU said that they have agreed not to close the merger without two court days' notice to the Justice Department while they attempt to finalize a case management stipulation calling for a prompt trial. MSFT stated that it believes the merger is "procompetitive,' and noted that its agreement to transfer its personal finance software product, Microsoft Money, to Novell Inc. (NOVL) "should have eliminated any concerns the Justice Department might have about the merger.' MSFT added, "We will vigorously contest the Justice Department's contrary position at trial.' 04/27/95 HALTED... Was down 10... Justice Dept. files lawsuit to block MSFT's acquisition of INTU... says would likely lead to higher prices, lessened innovation in personal finance software. Chrmn: S. D. Cook Pres & CEO: W. V. Campbell CFO & Investor Contact: William H. Lane III Exchange: NNM Symbol: INTU Primary Business: Dvlp financial softwr prd Number of Employees: 1,228 Incorporated in California in 1984; reincorporated in Delaw Headquarters: 155 Linfield Ave. Menlo Park, CA 94025 (415) 322-0573 199419951996 +z??8?̂B33EBq= p09/14/95BB+122q=?- +Q8?33{BA-NAnterBpeף@1,723 oupr121,607 95 CANA1993n 19912/31/89Q(1994Ap]A%1995 כ@1996gAR.A=4Q 1995zz??Q??33??@@ #<<̂B33EB1995G:>@zDecember1November4stOctober992nSeptemberAAugust{Aq=JulyAJune)\A\?u?ףp?u?G?̌?ף??1996(\ @DecembeřNovember@QOctober6so1September IAugust1992sJulyac)\@)\?)\?)\?(333?Hold96ti199333?NA4veNR3t 1992ok1991t1995 1994>199319921991 1990=)\B=B B"C{B33AB\YB{AA= Bfffffk@HzW^@(\T@QEF@Hz@@199519941993199219911990 gA Aף AG@R@AQ@333333@L#@ ףp=%@1995ec1994 19931992Af1991A1990̀ffV @zD@dA#ף?pHq= ?p%q=:@HzeR @Q@333333@{Gz @1995e1994 1993w1992t19911990AR.?z>+?{*{.>Q8L=q= u>{Gz%Gz??zG? ףp= ?1995D1994Y1993199219911990July 31l al1990 p1991ve1992l 1993ar1994prffvB33/BBffA8?ffBA̬AffVA8?33AffA8AffVAB B BB8?@̬@33@8Afff?ff??fff?3Bff B5B33)BIco?Activ1991 I1992ng1993 p1994TS1995(:BBBAAnB33{B8?A8?1992oc1993tr1994st"@C@T@+@:@B@6@P@]@ffffff@333333@,_@=@33333sR@33333n@333333(@8@ffffffI@?? @(@8@ffffffM@L1@H@9g@=@33333sR@33333n@Intuit InccreasinGSOFtrGEmerging Softwaregulations. 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Software stSTACco?Stac Electronicsthe market: tSOTAP @State Of The Artervices indexSULe 3Sulcus Computersus a 19% gainATGIthAlpha Technologies Grpex roseTMBS% Timberline Softwaree S&P 500.TRPSel?Tripos Incment outlook for soVRTSe @VERITAS Softwareve, in generaWIZ.ECWiz Technologyrategy lies witXPRTes@Expert Softwarehe various sof The software market is one of the fastest growing segments of the computer industry and, as such, is an attractive area for investment. Software stocks continue to outperform the market: the S&P Computer Software & Services index rose 31% through June, versus a 19% gain for the S&P 500. In 1994, the index rose 17.9% versus a 1.5% drop in the S&P 500. We believe the investment outlook for software stocks remains positive, in general, and believe the best strategy lies with investing in leaders of the various software markets. Unit sales of mainframes are expected to remain sluggish, but many of the software vendors that have traditionally served this market should do well: they are best positioned to provide systems management, administration and support solutions for the relatively new "distributed" technology (often called client/server) systems; they continue to serve users relying on mainframes for large computing needs; and, since existing mainframes are often upgraded to increase their power, segment revenues should continue to rise because the price of each software program in these markets is partly related to the processing power of the computer on which it resides. The PC segment is attractive; sales should be up over 20% again in 1995. Software vendors have tapped the expanded capabilities of today's newest PCs and are bringing increased usefulness to the desktop, spurring even greater demand for the PC and its software. The number of programs installed on each PC continues to rise. The next version of Windows, named "Windows 95," which is expected to ship in August 1995, will launch a major new product cycle for PC software vendors. Access to various "on-line" services, as well as gateways to the information superhighway, will also provide opportunities for the industry. The database and networking markets are also growing fast, driven by users' need to access and manipulate ever-increasing amounts of information, from different computing environments. The urge to merge remains strong in the rapidly growing computer software market as larger companies seek to leverage their established distribution channels and available financial resources while smaller companies strive for critical mass. Consolidation within the software industry will continue, adding an extra kick to the stock price of targeted software firms.