June 1

June 1, 1997

Been there. Done that.

There is bound to be a lot of concern about Intuit's recently announced decision to sell Parsons to Broderbund. In addition to our customers being worried that the Church Software Division will somehow be crushed in the deal, our competitors are bound to leap on this opportunity to take advantage of a moment of weakness as they did when Intuit bought Parsons two and a half years ago.

After the Intuit purchase, the Church Software Division recorded its two best years. Sales hit record levels, and we doubled the number of programmers in the division. Rumors that Intuit was going to sell us off were unfounded.

So now we find ourselves in the center of another merger and dysinformation is flying. So let me fill you in on the facts.

Intuit is selling Parsons to Broderbund but without Personal Tax Edge. As a result, Intuit has ordered us to restructure in a way that is consistent with the fact that we no longer have PTE. That means the entire PTE team, plus large numbers of sales, support, administrative, etc. staff were all laid off on Thursday, May 29. A total of 235 (about 1/3 our total staff) was let go.

The Church Software Division lost 5 of our 30 (two programmers, two editors and one group leader). The rationale for cutting our division is that PTE brings new customers into the company, some of whom buy our Bible software, hence we need to save some operating costs this year.

We are maintaining the same development schedule for the next 12 months, but anticipate some short-term delays in some products that were due to hit the street in the next 6-8 weeks. This delay is primarily because of the confusion caused by the layoffs (we're still trying to figure out who's still here!).

I've spent a lot of time in the weeks prior to the announcement with Joe Durret (CEO, Broderbund) and Bill McDonagh (COO & President, Broderbund). They are very interested in the Bible software line and plant to not only continue it but look for ways to grow it. I've also had conversations this week with Bill Campbell (CEO, Intuit) in which he said that the "religious" software line was a shining star during our 2.5 year relationship.

The layoffs were done with generous severance packages and with dignity. Employees are on 60-day paid leave in lieu of notice and can return at any time for their personal belongings. They're able to get into the building without a security badge or escort and remove their stuff without being searched. During their 60-day leave they continue to have all employee privileges (such as discounts on our software) and benefits.

We're all doing well, though we've lost some great friends. It has been an emotional experience to be involved in deciding who stays and who goes, and in delivering the news. An experience I wouldn't ask for, but one during which I think I've learned a lot.

I was surprised at how quickly everyone wanted to get back on-task. I believe we'll be even more determined to get great products out the door and on time. We're looking forward to exploiting our new relationship with Broderbund -- and getting our beta copies of Riven: The Sequel to Myst. :-)