Finally got the 4th quarter results, of course the numbers had already been pre-announced on 2-2, so no really big surprises.
I listened to the conference call on 2-26, which sounded upbeat, and we were given some conservative forward guidance.
I have to agree with the yahoos, Ricci does not come across well in these settings.
The stock went down 0.43 on volume of 2.5 mill, however, on the day of the pre-announcement, the stock went up 0.40 on volume of 3.8 mill, so I am not disappointed.
I will continue to hold, as I expect some good news during the Microsoft Speech Server 2004 conference.
PEABODY, Mass., February 26, 2004 - ScanSoft, Inc. (Nasdaq: SSFT), the leading supplier of speech and imaging solutions, today announced financial results for the fourth quarter and full year ended December 31, 2003.
ScanSoft reported fourth quarter 2003 revenue of $46.9 million, a 65 percent increase over fourth quarter 2002 revenue of $28.4 million. Net income before amortization of acquisition-related intangible assets, restructuring charges and non-cash stock compensation was $6.0 million, or $0.05 per diluted share, compared with $6.7 million, or $0.09 per diluted share, for the fourth quarter of 2002. After including amortization of acquisition-related intangible assets, restructuring charges and non-cash stock compensation, ScanSoft reported fourth quarter 2003 net income of $1.3 million, or $0.01 per diluted share, compared with fourth quarter 2002 net income of $4.4 million, or $0.06 per diluted share.
For the year ended December 31, 2003, ScanSoft reported total revenue of $135.4 million, up 27 percent from revenue of $106.6 million in 2002. Net income before amortization of acquisition-related intangible assets, restructuring charges and non-cash stock compensation was $11.3 million, or $0.12 per diluted share, versus $18.6 million, or $0.26 per diluted share, for 2002. After including amortization of acquisition-related intangible assets, restructuring charges and non-cash stock compensation, ScanSoft reported a net loss of $5.5 million, or $0.07 per diluted share, for 2003 compared with net income of $6.3 million, or $0.09, for 2002.
"ScanSoft achieved solid revenue growth in the fourth quarter, driven by strong performance across all business segments," said Paul Ricci, chairman and CEO of ScanSoft. "Our results reflected significant progress in the SpeechWorks integration and strong performance by our channel partners, resulting in continued momentum in our network and embedded speech businesses. In addition, key new product launches in our productivity applications revitalized our imaging business."
Fourth quarter highlights
* Strength in Network Speech: ScanSoft experienced strong revenue from its SpeechWorks network speech solutions. The company's results were driven in part through the performance of its channel partners including Accenture, Avaya, Aspect, and Nortel Networks. Key customers in the quarter include Bank of America, PG&E, Hewlett-Packard, Telstra, Orange and Verizon. ScanSoft saw strong demand in packaged applications as it signed several SpeechPAK for Healthcare customers, and expanded its packaged application portfolio with the acquisition of LocusDialog, the leading supplier of speech-based auto-attendant applications.
* SpeechWorks Integration: ScanSoft largely completed the integration of SpeechWorks International, Inc., and expects to fully realize the anticipated cost synergies from the acquisition by the second quarter of 2004. All product direction and migration plans have been communicated and embraced by customers and partners, resulting in continued growth in network and embedded speech.
* Strategic Design Wins in Embedded Markets: In the fourth quarter, ScanSoft expanded its embedded business with key design wins and strengthened agreements with existing automotive partners worldwide. The company signed or expanded strategic agreements with leading manufacturers and technology companies including Bosch Blaupunkt, Infineon, Pioneer and Polycom.
* Renewed Growth in Imaging: Fueled by the launch of OmniPage Pro 14 and the newly introduced PDF Converter, ScanSoft experienced renewed growth in its imaging business. PDF Converter officially launched in October in conjunction with the worldwide Microsoft Office 2003 launch, while ScanSoft's flagship OCR solution, OmniPage Pro 14 Office, was introduced late in the quarter and was one of the most successful product launches in the company's history.
* Growing Demand for PDF Solutions: In the fourth quarter, ScanSoft launched PDF Converter, the first in a series of PDF-related products. These products build on ScanSoft's heritage of rich imaging capabilities and leverage the strength of partners and channels to bring innovative solutions to the market. Positive response from customers underscores the market opportunity for PDF solutions and alternatives.
"2003 was a year of important accomplishment for ScanSoft and one that provided a strategic and operational foundation for the future," Ricci continued. "Our employees continue to drive innovation and improve our competitive position such that we look forward to 2004 with a unified vision and plan for success in the exciting markets for speech and imaging solutions worldwide."
ScanSoft will discuss the quarter and year in greater detail, progress on its integration, and revenue and earnings guidance on its investor conference call scheduled for this morning.
Amended 10b5-1 Policy
The company also stated that its board of directors has amended a policy intended to regulate trading in ScanSoft securities for insiders and affiliates, including all officers and directors of ScanSoft. The amended policy recommends all insiders and affiliates make purchases or sales of ScanSoft common stock pursuant to individual trading plans according to Rule 10b5-1 of the Securities Exchange Act. Any such plan must be implemented not less than 90 days in advance of any trading. Rule 10b5-1 trading plans provide for the periodic disposition of shares, according to a predetermined schedule of amounts and dates. 10b5-1 plans can only be implemented or amended during an open trading window. Insiders and affiliates who chose not to sell pursuant to a 10b5-1 plan may sell in compliance with Rule 144 of the Securities Act during an open trading window. |
