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Popular Tax Preparation Software Turbo Charging Intuit’s Revenues

Though based in Mountain View, Intuit Inc. has a large presence here thanks to its acquisition of ChipSoft Inc. in 1993. The local company created the popular tax preparation software TurboTax, which now commands 75 percent of the market against H & R; Block’s Tax Cut.

So far this tax season, which began in January, the firm has sold 8.3 million units of TurboTax, up 1 percent compared with last year at this time, and there’s still six weeks left in the season. For all of 2006, Intuit sold 14.1 million federal tax units, including 7 million sold over the Internet.

In dollars, Intuit’s consumer tax division, essentially the TurboTax product, for the second quarter ended Jan. 31 was $226 million, up 18 percent from the like period of 2006.

The consumer tax unit made up 30 percent of Intuit’s total revenue for the quarter.

Intuit said it expects revenue from the consumer tax division to rise 10 percent to 15 percent this year.

Intuit’s San Diego operations are growing so fast that the firm has been preparing to move into new offices in Carmel Valley this summer. The new complex consists of four buildings and 480,000 square feet and will accommodate 1,200 local employees now working in three buildings at two sites.

Traded on Nasdaq under INTU, shares closed at $30.88 on Feb. 26 and have ranged from $23.99 to $35.98 in the past 52 weeks.

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AMS Sells Unit To New York Publisher:

Bankrupt Advanced Marketing Services Inc., a San Diego book distribution company that serves mostly warehouse stores such as Costco and Sam’s Club, arranged for the sale of its Publishers Group West unit to Perseus Books Group, a New York publishing house. The sale announced Feb. 16 calls for Perseus to pay 70 cents on the dollar on PGW debt owed to smaller publishers.

The price wasn’t released, and an AMS spokesman noted that Perseus acquired the debt owed to more than 100 smaller publishers. PGW was founded in Berkeley 30 years ago, and made its name by publishing the work of Beat Generation writers.

A federal bankruptcy court in Delaware ruled in favor of Perseus over a competing bid made by National Book Network, owned by Maryland-based Rowman & Littlefield Publishing Group Inc. and reportedly the third largest independent book distributor in the nation. The deal was expected to close Feb. 28.

In another sale arranged through the court, Baker & Taylor, based in Charlotte, N.C., is buying the rest of AMS for $76 million. However, that sale could be trumped if a higher bid is received by Feb. 28, according to bankruptcy filings. If that occurs, the court would hold an auction March 2, and determine a buyer by March 5.

AMS filed for Chapter 11 bankruptcy protection Dec. 29 after three years of dealing with an accounting scandal that involved filing false reports on how funds to promote certain books were spent. Three AMS officers pleaded guilty to fraud.

AMS was supposed to restate past financial results, but it hasn’t done so since 2004. The last time the firm released any financial data in 2006, it said the prior fiscal year’s revenues were estimated at $915 million. AMS has 1,200 employees worldwide, including 164 in San Diego.

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Axesstel Breaks Into Black:

Axesstel Inc., a provider of fixed wireless phones mainly in developing nations, reported net income of $139,000 on revenue of $30.1 million in the fourth quarter. That compared with a net loss of $4.6 million on revenue of $11.8 million for the fourth quarter of 2005.

For the full year, Axesstel reported a net loss of $6.6 million on revenue of $95.5 million, compared with a net loss of $10.2 million on revenue of $94.7 million for 2005.

Chief Executive Officer Marv Tseu said the firm intends to broaden its product portfolio and increase profit margins this year. He forecast 2007 revenue of $135 million, and gross margins in the “upper teens.”

Traded under AFT on the American Stock Exchange, shares closed Feb. 26 at $2.11, and have ranged from $1.08 to $2.58 in the past 52 weeks.

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WebSideStory Inc. Posts Loss:

WebSideStory Inc., a local provider of Internet analysis services, reported a net loss of $1.4 million on revenue of $18.2 million for the fourth quarter ended Dec. 31.

That compared with net income of $5.6 million on revenue of $11.7 million for the like period of 2005.

For the full year, the company reported a net loss of $7.4 million on revenue of $64.3 million. Sales were up 63 percent for the year.

That compared with net earnings of $9.7 million on revenue of $39.5 million for 2005.

The company said increased expenses associated with stock option costs, and merging of certain functions contributed to the net loss.

WebSideStory, founded in 1996, said it expected sales for the first quarter to come in between $19.5 million to $20 million. For the full year, it forecast revenue between $89.5 million to $91.5 million.

Shares fell 3.5 percent in after-hours trading Feb. 26 to $13.70. Its 52-week range was between $9.60 and $17.64.

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St. Bernard Net Loss Doubles:

St. Bernard Software, a local maker of security software, reported a net loss of $7.5 million on revenue of $22.6 million for 2006. That compared with a net loss of $2.9 million on revenue of $23.9 million for 2005.

The company sustained higher expenses last year when it conducted a merger with an existing public firm, and also acquired another company, Singlefin.

Traded under SBSW.OB on the Over the Counter Bulletin Board, shares traded at $1.80 on Feb. 26, a 52-week high.


Send any news of locally based public companies to Mike Allen via e-mail at

mallen@sdbj.com

. He can be reached at (858) 277-6359.

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