Intuit is planning to sell its Quicken personal finance program and other assets to focus on such core strengths as the TurboTax tax preparation platform.
Quicken, a pioneer in desktop accounting software that was launched in 19844, was once Intuit’s core product. The financial software company is also selling off the QuickBase collaboration platform and Demandforce, a product it acquired only three years ago, for $423.5 million.
“Divesting Demandforce, QuickBase and Quicken enables both Intuit and these businesses to focus on meeting the needs of their respective customers, while allowing Intuit to accelerate our ability to deliver on our objectives,” Intuit CFO Neil Williams said in a news release.
As a result of the divestments, revenue in fiscal 2016 will be reduced by approximately $250 million and non-GAAP earnings per share will be reduced by approximately 10 cents, as the company reports these held-for-sale assets as discontinued operations. Intuit expects revenue of $4.525 to $4.6 billion and earnings excluding items of $3.40 to $3.45 for the year.
Intuit said Thursday its loss excluding items for the fiscal fourth quarter ended July 31 was five cents a share, while revenue rose 7%, to $696 million. It had expected a loss excluding items of 10 cents to 12 cents a share, on revenue of $720 million to $745 million.
Net income was $14 million, or five cents a share, compared with a net loss of $29 million, or 10 cents a share, a year earlier.
The company also increased its dividend by 20% to 30 cents a share from 25 cents.