Nuance fourth quarter results

by: admin Thursday, November 15th, 2007

Rating: voice mobile search is it the biz?

Nuance reported revenues of $179.9 million in the quarter ended September 30, 2007, a 40 percent increase over revenues of $128.1 million in the quarter ended September 30, 2006.

On a GAAP basis, Nuance recognized a net loss of $3.4 million, or $(0.02) per share, in the quarter ended September 30, 2007, compared with a net loss of $7.2 million, or $(0.04) per share, in the quarter ended September 30, 2006.

From the press release• Mobile Search and Communications Nuance expanded its voice search and mobile communications offerings through agreements with a large Asian telecommunications company and one of the world’s largest mobile navigation providers. The Company entered into the early stages of a partnership with another Internet search firm for the application of mobile search in consumer markets. Within its directory assistance business, the Company benefited from record automation rates with Jingle Networks (1-800-FREE411), new markets for AT&T?s 1-800-YellowPages service and contributions from Say Hello and Telstra. The Company also made significant progress with Nuance Voice Control, signing its first Healthcare edition customer, launching speech-based GPS search capabilities and delivering pre-loaded software on Sprint’s Palm Centro devices.

What we think?
We think Nuance has bitten off more than it can chew in 2007 when it comes to acquisitions. Its not often mentioned but Nuance also purchased BeVocal for about USD 140 million and the then VoiceSignal. The VoiceSignal services are being pushed and BeVocal’s are not indicating it was a rotten egg or an attempt simply to swallow the competition.

On top of all of that BKI Media tested Nuance VoiceSignal and read the report 2200 word article in The Mobile Search Analyst.