Revenue rose to $187.5 million in the first quarter, compared to $176.9 million in the first quarter for fiscal 2000. Intuit attributed the gain to a 49 percent increase in payroll revenue; $5.1 million in new QuickBooks Internet Gateway revenue; and a 53 percent increase in Intuit funded online mortgage revenue.

The California-based software maker reported a net loss for the quarter of $33.8 million, or $0.16 per share, including net pre-tax losses on marketable securities and other investments of $3.9 million. It also included the cumulative effects of changes in accounting for derivatives, net of taxes, of about $14.3 million. In the year-ago quarter, Intuit reported a net loss of $65.9 million, or $0.33 per share, which included $17.3 million in net pre-tax losses.

Intuit posted a pro forma first-quarter net loss of $21.4 million, or $0.10 per share, 23 percent better than the year ago period, driven by an increase in interest income. For the first quarter of fiscal 2000, Intuit had a pro forma net loss of $25.3 million, or $0.13 per share. Pro forma financial information excludes acquisition-related charges, reorganization costs, the cumulative effect of accounting for derivatives and net pre-tax gains and losses related to marketable securities and other investments.

Intuit said slow first quarter results are in keeping with the highly seasonal nature of its business. The firm said it typically reports a loss in its first and fourth quarters when customers buy little tax software.

Intuit's mortgage business posted a slight operating profit in the first quarter, representing a $5.2 million turnaround from last year. Revenue from Intuit-funded online mortgages rose 53 percent over the prior year, driving a 7 percent increase in revenue for the total mortgage business. First quarter revenue from its online payroll business grew 186 percent over last year.

The firm said its QuickBooks Internet Gateway expanded from zero to $5.1 million in revenue in less than a year. In addition, Internet revenue, which grew 42 percent from the first quarter 2000, now represents 27 percent of total revenues.

Intuit last week announced that it would acquire EmployeeMatters, an online provider of employee administration, benefits and payroll services, in a stock deal valued at about $39 million. According to the firm, the acquisition allows Intuit to enter the under-served employee benefits space; adds a big-ticket business service to Intuit's portfolio; and will give Intuit a stand-alone Web payroll product to broaden the company's total payroll offering.

Intuit is also gearing up for the launch of QuickBooks 2001, which incorporates new features including an Internet payment service. The company plans other announcements in the small business Internet space, including Internet-based accounting, an application service provider for managing information that drives team productivity, more third-party solutions and increased connectivity.

This season Intuit rolled out the Automated Tax Return, which lets taxpayers import tax data from five brokerage firms and three payroll processors directly into their tax return forms in Quicken TurboTax. Intuit will also introduce services that enable taxpayers to fund an IRA through financial institutions or apply for a "quick refund" loan as they prepare their taxes.

Intuit said it expects revenue growth for the fiscal year of 22 percent, which translates into a range of $1.32 billion to $1.34 billion, and pro forma operating income growth in the low 30s, or about $202 million to $208 million.

The company expects some revenue to shift from its direct channel to its Web and retail channels, primarily in its tax business. As a result, Intuit expects revenue to be lower in its second quarter, and higher in the third quarter.

-- SmartPros News Staff

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