TaxACT parent swings to profit

Blucora Inc., corporate parent of TaxACT, has posted a second-quarter profit and named the co-founder and former chief executive officer of the Cedar Rapids tax preparation software company to its board of directors.

Bellevue, Wash.-based Blucora, which bought TaxACT in January, reported net income of $9.7 million, or 23 cents per share, in the three months that ended June 30, compared with a loss of $4.7 million, or 12 cents per share, in the same period last year.

Revenue soared 86 percent, to $100.9 million, in the second quarter from $54.3 million in the same period last year.

Tax preparation revenue was $19.1 million in the second quarter of 2012, and segment income was $12 million. Search revenue for the second quarter was $81.8 million, up 51 percent from $54.3 million in the same quarter of 2011.

Blucora, which also owns InfoSpace, an online search and monetization solutions business, is expecting third-quarter revenues between $90 million and $93 million. The company is projecting net income between $500,000 and $1.5 million, or 1 cent to 4 cents per diluted share.

Blucora also announced that it has appointed former TaxACT CEO Lance Dunn to serve on its board of directors. Dunn, who co-founded TaxACT, has more than 28 years of experience in the tax preparation industry.

"Lance is a seasoned technology professional with an accomplished history in consumer tax preparation and software development," said John Cunningham, chairman of the Blucora board of directors. "Lance was instrumental in building the TaxACT software business. His knowledge and expertise align well with Blucora and he will help support the continued growth of TaxACT."

Before he co-founded TaxAct in 1998, Dunn was vice president of software development at Parsons Technology, where he played a significant role in the development and growth of Personal Tax Edge, the company's tax preparation program. He previously served as an accountant for Ernst & Young and TLS Inc.