Nuance Communications, Inc. Message Board

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Technology Stocks : Nuance Communications, Inc.

NUAN 54.84

0.0%

Aug 11 5:00 PM EST

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From: Jorgen Jensen	7/19/2006 7:02:42 PM
	of 834

Lifted from the yahoo message board: Raymond James comments 7-19: Nuance released the latest version of its PC dictation product, Dragon Naturally Speaking 9 (DNS 9), today. This product converts naturally spoken language into text or commands for PC's. Dragon represents about 10% of revenue. The last version of DNS, released in the December 2004 quarter, had unprecedented success, leading to more than 150% sequential growth from $6.2 million to $15.6 million; organic growth the following year, FY05, was 48% for the product. We believe DNS 9 offers strong growth potential, is an important part of the growth story heading forward, and is likely to be a material driver of sequential growth in the September quarter. DNS 9 improves accuracy by 20% (second-highest increase ever) vs. DNS 8, which improved accuracy by 30%. DNS 9 also eliminates training vs. DNS 8, which required 5 minutes; ease of use is critical to improved adoption. DNS 8 reduced training time to 5 minutes from 10-15 minutes. DNS 9 has about 99% accuracy. DNS 9 should continue to be fruitful in the medical and disabled community base, but also should appeal to a broader consumer market. We are reiterating our Strong Buy rating and $15 target based on a 31X P/E appied to our 2H07 EPS estimate annualized; 31X represents a PEG of about 1X. NUAN is trading at less than 19X our FY07 EPS estimate.

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