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ONLINE GROWTH OUTSTRIPS QB DESKTOP

Brad Smithsales improved for Intuit's first quarter ended October 30, but that came as online subscriptions grew by 45.6 while the number of desktop units sold dropped by 20.3 percent.  Intuit sold 217,000 QuickBook Online Subscriptions for the quarter just ended, compared to 149,000 a year earlier. Meanwhile, desktop unit sales dropped to 281,000 from 353,000.
That translated into $154 million in revenue from what Intuit terms Financial Management Solutions, a 14-percent increase from $134 million for all QuickBooks products. Overal, Intuit had quarterly revenue of $532 million, up 12 percent from $474 million in last year's corresponding quarter. The company lost $39 million, compared to a year-earlier loss of $32 million. Intuit typically loses money during the first quarter. Besides the desktop unit decline, Intuit's market share at retail went down for the first time in years, with the unit share falling to 87 percent from 94 percent. In yesterday's earnings conference call, executives said that's because last year the company too aggressively discounted QB to bolster sales. CEO Brad Smith indicated this is not a tipping point because "What we are seeing online is people who are new to the franchise [QuickBooks][ and people that new to accounting software in general." QuickBooks Enterprise Solutions continued to show strong growth. At the end of the quarter, there were 47,000 active users, up 20.5 percent from 39,000 a year earlier.
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