Nuance Announces 2005 Fourth-Quarter Results
Tuesday December 6, 4:06 pm ET
Organic Growth Exceeding 30 Percent Driven by Strong Performance in Speech Business and Successful Launch of ScanSoft OmniPage 15
BURLINGTON, Mass.--(BUSINESS WIRE)--Dec. 6, 2005--Nuance Communications, Inc. (Nasdaq: NUAN - News), formerly ScanSoft, Inc., today announced financial results for the fourth quarter ended September 30, 2005. On October 18, 2005, the Company changed its name from ScanSoft, Inc. to Nuance Communications, Inc. and on November 21, 2005, the Company changed its ticker symbol from "SSFT" to "NUAN".
Nuance reported fiscal fourth quarter revenues of $61.9 million, a 47 percent increase over revenues of $42.0 million in the quarter ended September 30, 2004. Nuance recognized a net loss of $7.7 million, or $0.06 per share, in the quarter ended September 30, 2005 compared with a net loss of $6.2 million, or $0.06 per share, in the comparable period 2004. These GAAP figures include revenues and expenses associated with the acquisition of the former Nuance for the period following September 15, 2005.
In addition to using GAAP results in evaluating the business, management also believes it is useful to evaluate results using non-GAAP measures. Using a non-GAAP measure, Nuance reported revenues of $59.8 million for the quarter ended September 30, 2005, a 42 percent increase over revenues of $42.0 million for the same period 2004. Nuance reported non-GAAP net income of $7.4 million, or $0.06 per diluted share, for the period ending September 30, 2005, compared to a net loss of $300,000, or breakeven per share, in the same period 2004.
These non-GAAP figures exclude revenues and expenses associated with the acquisition of the former Nuance for the period following September 16, 2005; Nuance-related restructuring and other charges; and as applicable, non-cash taxes, interest and stock-based compensation, amortization of intangible assets, and other charges. See "GAAP to non-GAAP Reconciliation" below for further information on the Company's non-GAAP measure.
"The Company had a solid finish to the year, producing strong organic revenue growth of more than 30 percent in the quarter and experiencing strong performance across nearly all major product areas," said Paul Ricci, chairman and CEO, of Nuance. "Our sustained operational performance, strong revenue growth and an increasing demand for our speech solutions provide us with confidence and momentum as we begin fiscal 2006, determined to extend our market leadership, provide value to our customers and deliver results to our shareholders."
Consistent with the Company's strategy and recent trends, highlights from the quarter include:
* Robust Performance in Network Speech - The Company generated strong revenue from its network speech technologies, applications and services, benefiting from new and expanded agreements with leading businesses and telecommunications providers, including Cox Communications, Empire Blue Cross Blue Shield, the Social Security Administration, T-Mobile, Verizon Wireless and Wal*Mart.
* Demand for Dictation Solutions - The Company saw continued demand and significant growth for its Dragon Dictation Solutions. Through its Dragon NaturallySpeaking and Dragon MT Workflow, Nuance continued to generate customer demand in its core markets and secured a number of volume license agreements both in North America and internationally as organizations, especially in the healthcare and legal fields, experience the value these speech recognition solutions provide.
* Design Wins for Embedded Speech - Nuance continued to secure important design wins with automotive and handset manufacturers as they utilize speech to differentiate their offerings and meet growing demand for improved interfaces. In particular, the Company believes handsets present opportunities for growth and in the quarter signed agreements with Kyocera, Nokia, Samsung and Tegic, a subsidiary of AOL.
* Expanded Speech Portfolio - The Company completed the acquisition of the former Nuance, bringing together the industry's most comprehensive portfolio of speech applications, technologies and expertise that will enable customers to effectively deploy innovative speech-based solutions. As a result, the Company has the technical resources and intellectual property required to develop new and innovative speech solutions that deliver enhanced value to customers.
* Successful OmniPage Launch - The August 2005 launch of ScanSoft OmniPage 15, the world's most popular optical character recognition (OCR) and document conversion software, contributed to the strong performance for the Company's imaging products. The success of OmniPage 15 is due in large part to significant enhancements to the features that matter most to OCR users - accuracy and speed. |
