What a nice surprise:
ScanSoft Announces Preliminary Fiscal Third Quarter Results
Wednesday August 3, 4:18 pm ET
Revenue Driven by Continued Performance in Global Speech Business, Earnings Strength from Improved Cost Control and Operating Productivity
BURLINGTON, Mass.--(BUSINESS WIRE)--Aug. 3, 2005-- ScanSoft, Inc. (Nasdaq: SSFT - News), a global leader of speech and imaging solutions, today announced preliminary financial results for its third fiscal quarter, ended June 30, 2005, above its previously provided guidance. ScanSoft issued the preliminary results in advance of its participation in several investor conferences and meetings in the coming week.
Based on preliminary financial data, ScanSoft expects fiscal third quarter 2005 revenue between $55 million and $56 million; GAAP earnings between $(0.01) and $0.00 per share; and non-GAAP earnings between $0.04 and $0.05 per diluted share. These financial results are subject to revision until ScanSoft reports its final fiscal third quarter results on August 9, 2005.
On May 9, 2005, ScanSoft provided guidance for its fiscal third quarter 2005 of revenue between $53 million and $55 million, a GAAP loss between $(0.03) and $(0.04) per share, and non-GAAP earnings between $0.03 and $0.04 per diluted share.
In addition to using GAAP results in evaluating ScanSoft's business, management also believes it is useful to measure results using a non-GAAP measure of net income (loss), which excludes, as applicable, non-cash taxes, amortization of intangible assets, non-cash stock-based compensation and restructuring charges. See "GAAP to non-GAAP Reconciliation" below for further information on ScanSoft's non-GAAP measure.
"These preliminary results indicate that ScanSoft completed another strong quarter through sustained revenue growth and continued operating improvements," said Paul Ricci, chairman and CEO, at ScanSoft. "Our continued operational progress gives us additional confidence as we head into our fourth fiscal quarter and prepare to close the Nuance acquisition."
Highlights from the Fiscal Third Quarter 2005
* Achieved strong performance in ScanSoft's speech solutions - network speech, embedded speech and dictation;
* Exceeded expectations for the PDF Converter 3.0 launch through higher than expected upgrades and new volume license agreements;
* Improved operating margins by focusing on expense controls and generating additional cost synergies from recent acquisitions.
Expectations for the Fiscal Fourth Quarter 2005
In its fiscal fourth quarter, ending September 30, 2005, ScanSoft expects to benefit from continued strength in its speech business as well as a product release in its family of imaging products. ScanSoft is cautious, however, about possible disruptions in the quarter from the Nuance integration and reminds investors that the quarter ending September 30 is historically a seasonally weak quarter. Taking these factors into account, the company indicated it is comfortable with the range of current analyst expectations for revenue in the fourth fiscal quarter 2005 of $53.0 to $56.5 million. ScanSoft expects measured expense growth in the quarter and therefore also believes that the range of analyst GAAP earnings between $(0.01) and $0.01 per share and non-GAAP earnings between $0.03 and $0.05 per diluted share is reasonable. These expectations do not include the impact of ScanSoft's pending acquisition of Nuance Communications, Inc., which is anticipated to close in September 2005, or associated merger-related expenses or restructuring charges.
ScanSoft to Announce Final Third Quarter 2005 Earnings on August 9, 2005
On Tuesday, August 9, 2005, ScanSoft will announce final results for its fiscal third quarter of 2005 after the market close. In conjunction with the announcement, ScanSoft will broadcast its quarterly conference call over the Internet at 4:30 p.m. ET. Those who wish to listen to the live broadcast should visit the Investor Relations section of the Company's Web site at www.scansoft.com at least 15 minutes prior to the event and follow the instructions provided to ensure that the necessary audio applications are downloaded and installed.
The conference call can also be heard via telephone by dialing (888) 428-4473 or (612) 332-0228 five minutes prior to the call and referencing conference code 792067. A replay of the call will be available within 24 hours of the announcement. To access the replay, dial (800) 475-6701 or (320) 365-3844 and refer to access code 792067. |
