Nuance Updates Guidance for Fourth Fiscal Quarter 2008

Nuance Communications announced that it has updated revenue and EPS guidance for the fourth fiscal quarter, ended September 30.

In a release, the company further disclosed that it expects record cash flows from operations, in excess of $58 million, for the quarter. Nuance issued the preliminary results in conjunction with today's announcement that it has acquired the Philips Speech Recognition Systems business from Royal Philips Electronics.

"Robust performance in our mobile business, combined with an enthusiastic reception to Dragon NaturallySpeaking 10, helped to produce strong results in the quarter," said Tom Beaudoin, chief financial officer at Nuance. "We achieved our revenue goals while maintaining strict discipline in our expenses."

Based on preliminary financial data, Nuance expects fiscal fourth quarter 2008 GAAP revenues between $248 million and $252 million; non-GAAP revenues between $258 million and $262 million, a GAAP net loss between $(0.01) and $(0.02) per share, and non-GAAP net income between $0.25 and $0.26 per diluted share. The preliminary expectations are subject to revision until the Company reports final fourth fiscal quarter and year-end results in mid-November 2008.

On August 11, Nuance provided initial guidance for fiscal fourth quarter 2008 of GAAP revenues between $245 million and $252 million, non-GAAP revenues between $255 million and $262 million, a GAAP net loss between $(0.02) and $(0.03) per share, and non-GAAP net income between $0.24 and $0.25 per diluted share.

In addition, in response to investor inquiries, the company said on the prospect for future business acquisitions. "Considering the turbulence in today's equity markets, we anticipate that the pace of acquisitions will slow substantially during our fiscal year 2009," added Beaudoin. "We believe that sellers will need time to recalibrate appropriate valuation in this more difficult equity market. Our focus will be on smaller businesses, which can be acquired primarily with cash. We would consider equity only for an acquisition which was financially and strategically very compelling for our shareholders."

Nuance Communications is a provider of speech and imaging solutions for businesses and consumers.

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