Intuit Affirms Outlook

The company apologizes for the problems with TurboTax.
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Intuit

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, coming off the recent embarrassing system snag that flustered thousands of last-minute tax filers, said Thursday that this year's TurboTax federal unit sales increased 5% from the same period in 2006.

The tax and accounting software seller also reiterated the guidance it offered in February, when it said fiscal 2007 adjusted earnings should be $1.33 to $1.37 a share with revenue of $2.625 billion to $2.675 billion.

A crush of filings inundated Intuit's TurboTax electronic-filing service Tuesday evening, causing servers to crash and leaving huge numbers of taxpayers unsure if their claims had been properly submitted.

The Internal Revenue Service said it wouldn't penalize anyone who was affected by the problem, and the agency offered an extension.

"We very much regret the poor experience some of our customers had earlier this week," said Brad Henske, senior vice president and general manager of Intuit's consumer tax operation. "That said, online unit sales in the second half of the season were very strong and we are pleased with the customer response to our 2007 product lineup and pricing strategy."

Shares of Intuit dropped 1.8% to $29 in late trading.