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Executives

Paul A. Ricci – Chairman of the Board & Chief Executive Officer

Thomas L. Beaudoin – Chief Financial Officer & Executive Vice President

Analysts

Daniel Ives – FBR Capital Markets

Jeff Van Rhee – Craig-Hallum Capital

Richard Davis – Needham & Company

Shyam Patil – Raymond James

Tom Roderick – Thomas Weisel Partners

Derek Bingham – Goldman Sachs

Craig Nankervis – First Analysis Corp.

John Bright – Avondale Partners, LLC.

Ilya Gorozovsky – Morgan Joseph & Co.

Scott Sutherland – Wedbush Morgan Securities, Inc.

Bradley Whitt – Broadpoint Amtech

Abhey Lamba – ISI Group

Nuance Communications, Inc. (NUAN) F4Q09 Earnings Call November 23, 2009 5:00 PM ET

Operator

Welcome to Nuances fourth quarter 2009 conference call. (Operator Instructions) I would now like to turn the conference over to our host, Chief Executive Officer of Nuance, Mr. Paul Ricci and Chief Financial Officer Mr. Tom Beaudoin. At this time I’d like to turn the conference over to Mr. Ricci. Please go ahead, Sir.

Paul Ricci

Thank you. Before we begin, I remind everyone that matters we discuss this afternoon include predictions, estimates, expectations and other forward-looking statements. These statements are subject to risks and uncertainties that could cause actual results to differ materially. You should refer to our recent SEC filings for a detailed list of risk factors. As noted in our press release we issued along with our release a set of prepared remarks in advance of this call. Those remarks are intended to serve in place of an extended formal comments and we will not repeat them here.

Before taking your questions I might recap a few points from our release and prepared remarks. As our comments suggest, strength in mobile and enterprise license revenue, continued momentum in healthcare on-demand and strength in imagine enabled Nuance to report non-GAAP revenue at the high end of our guidance. We believe that bookings and pipeline activity in the quarter reflect an improvement in purchasing attitude among our customers. Interest in on-demand models remains high.

This quarter we have reported net metrics to give you an indication of underlying bookings and demand growth in fiscal 2009 and in fiscal 2010. We expect to report these metrics on a continuing basis and to provide additional data points and details in future quarters.

During fiscal 2009 Nuance continued to improve operating leverage. In fiscal 2010 we intend to undertake additional investments targeted at enhancing growth while remaining mindful of operating efficiencies. These investments will focus on three areas; sales personnel, advertising and demand creation and research and development personnel.

Finally, we want to reiterate our conviction in the fundamental attractiveness of our markets and in our position in these markets. In healthcare we believe the combination of quality and costs enabled by our solutions are reshaping the delivery of clinical documentation. In mobility the unsurpassed number of units upon which we ship software provides a platform through which to deliver additional innovation, new mobile services and a disruptive new model for mobile care. Within enterprise markets, Nuance has emerged as trusted provider of speech enabled call center solutions to large enterprises that seek to modernize call center operations and transform their customer’s experiences.

We will now take your questions.

Question-and-Answer Session

Operator

(Operator Instructions) The first question comes from the line of Daniel Ives – FBR Capital Markets.

Daniel Ives – FBR Capital Markets

Could you for next year talk about implied in your guidance for fiscal 2010 what type of growth you are looking for on healthcare?

Paul Ricci

We don’t forecast organic growth and I want to refrain from that practice. Having said that I will simply indicate that the plans would imply double digit growth organically for healthcare next year.

Daniel Ives – FBR Capital Markets

When you went to customers this quarter what do you think is the biggest change you have seen just given the performance on the enterprise front? Is it Nuance specific that you are seeing strength or just more better budgets? Maybe talk about the pent up demand and what you are seeing in enterprise in North America.

Paul Ricci

I think if we looked back over the sweep of the past year we could find a continuum of attitudes that were at first declining and then flattening and then ever so gradually inclining just in the last quarter or perhaps the last 4-5 months. I don’t want to overstate that but there definitely is a sense among our enterprise customers of getting back to business. That is of realizing decisions they have made about upgrading infrastructure for cost reduction purposes or quality and customer satisfaction purposes while delayed during the last 18 months have to be gotten on with and they are beginning to do that. I don’t want to overstate that. It is a modest incline.

The other thing I would mention is there has been an awful lot of restructuring and turbulence among some of our most important telecommunications solutions partners. At least some of that has settled out now and so through some of that we are seeing improvements in their performances and therefore their licenses to us, their royalties to us.

One more point I should mention, it is the end of our fiscal year and so of course there are benefits accrued to sales organizations and sales personnel individually for their performance at the end of the year. As you know there is some effect to that and we have seen that historically and that needs to be factored into an understanding of that particular segment as well.

Operator

The next question comes from the line of Jeff Van Rhee – Craig-Hallum Capital.

Jeff Van Rhee – Craig-Hallum Capital

First on the mobile side, the prepared script comments about the largest booking in the history of the company. Can you give us a sense of what the previous record was and the type of functionality that signing was for?

Paul Ricci

I’m sorry I can’t tell you the previous record. I don’t know it off the top of my head. What I can say is that with our mobile partners there has been an interest in negotiating longer term arrangements in which we both have predictable relationship and they can have certainty and we can have certainty around certain price expectations. That also of course allows us to work more closely with them on ensuring that they are going to be getting the necessary innovations and we can plan and invest in those innovations. I think this particular booking was related to some of our capabilities that are embedded in the device.

Jeff Van Rhee – Craig-Hallum Capital

On the enterprise side a tremendous jump sequentially. Is there any more color you can give there? Was there 1, 2 or 3 particularly large deals that drove that? Understandably going back, you haven’t given that number historically. There are all sorts of complexities around the duration of the deals, etc. but any color there around the duration of the deals or some way to comprehend the magnitude of that sequential growth and what drove that?

Paul Ricci

Let me say a couple of things about the two data points we did offer. The professional services is a number that you and your colleagues have been asking for some time. Because we talked about professional services being linked ultimately to long-term license sales and people deploy applications and the scope of those applications grow and the amount of traffic on that application grows then more licenses are required. So we thought establishing a baseline from which you all could measure would be constructive for you.

With respect to the numbers we offered related to enterprise on demand I think you are aware that our on-demand enterprise business targets very large deals with very large enterprises so there will be a certain amount of lumpiness in that as we sign additional deals and we can’t predict what quarter they are going to be signed in and so forth. You should expect that to be somewhat irregular shaped curve. This particular quarter benefited from several important deals. It was a very active quarter in that respect in our hosted enterprise business.

Jeff Van Rhee – Craig-Hallum Capital

On the sales, clearly you are going to get more aggressive in terms of the sales efforts. Can you just expand a little bit in terms of end markets, where you are going to be devoting most of those resources and any additional resources that is?

Paul Ricci

There is a priority focus right now on increasing the sales representation in healthcare in particular. We have been doing that. We think our advantages in offering a complete set of capabilities to the largest healthcare customers in North America in particular is very attractive and the more direct representation we can get in that business we think the better off we will be so that is a priority right now.

We also have targeted significant investments in Asian markets where you would expect us to be focused on long-term growth opportunities. Those will see some revenue benefits later this year but they are also an investment for future years. Then there are additional investments in our enterprise business both in Europe and in North America.

Operator

The next question comes from the line of Richard Davis – Needham & Company.

Richard Davis – Needham & Company

Two questions regarding kind of the healthcare side. Given you are hiring a bunch of sales people and haven’t really said exactly where it is going to be, is would seem to me is it accurate to assume from your actions that the gating issue for the pace of adoption for digital transaction on the healthcare side is sales capacity? That doesn’t mean it is free sailing but is that a fair way to think about it?

Paul Ricci

Let me say that sales representation is a necessary condition to further growth. Large healthcare providers involve long sales cycles. They are very demanding customers. They have considerable concerns about their level of support and they are risk averse. So all the things you have to do in selling in an environment like that are essential and therefore direct contact with that customer at senior levels of the account is essential. Given that we have those sales people, these are protracted sales cycles. But that is in fact the gating item.

Richard Davis – Needham & Company

I noticed the EHR vendors with whom you partnered most of them are kind of behind the firewall vendors, I guess other than Athena. I’m not sure if the other guys are. Is your software equally functional in the cloud as it is behind the firewall?

Paul Ricci

The dichotomy you point out is a reflection of course of the way EMR systems are being deployed unfortunately. Not really a technical issue.

Operator

The next question comes from the line of Shyam Patil – Raymond James.

Shyam Patil – Raymond James

Could you talk a little bit about the level of visibility you have into your 2010 guidance? If you could just couch it relative to prior years as well.

Paul Ricci

As comments in the press release or in the prepared remarks suggest, the nature of our revenues continues to shift towards on-demand contracts, longer-term on-demand contracts, longer-term subscription and transactional pricing, large solutions which involve the application of both technology and professional services and mobile services which are also longer-term engagements. In that respect, visibility and predictability of our revenue stream which I think relatively speaking has been pretty good is going to continue to increase. That is reflected in a somewhat narrower range of revenue guidance this year than we have historically offered. It is a continuum. I don’t want to overstate it but I do think the level of predictability continues to rise year-over-year.

You had another question?

Shyam Patil – Raymond James

Related to the Dragon medical product I think there was some expectation there would be definition of meaningful use by year-end and that could potentially catalyze sales for Dragon Medical. Could you maybe talk about what you are seeing there and what your expectations are?

Paul Ricci

It is certainly the case that our collaboration with the EMR vendors is strengthening and accelerating and that is being driven by their perceptions and our perceptions and customer’s understandings of what would be required to achieve meaningful use and what would be required to ultimately make these systems as successful as possible. I don’t know if the particular milestone you point out is going to be a precipitating event of any magnitude. Again, there has been a growing intensity around that with our partners and we have responded with devotion of more and more technical and end marketing and sales support to try and capitalize on that.

Shyam Patil – Raymond James

I know you typically don’t give color around the imaging business but in light of the acquisition you made there could you provide any type of guidance on what we should be modeling that business to do next year?

Paul Ricci

No. Not beyond what I have provided. I think that I would say that we have probably given you some indications in the past about the contribution of the eCopy revenues and it seems the public documents I have read that have modeled that seem reasonably accurate. I think that information is already showing up in models. I think we will see a bit better growth in the imaging business this year. I will say that. It was a difficult year. Although we had a very good fourth quarter in imaging it was a difficult year for a lot of reasons. Our partners are beginning to recover. That is an important fact because royalties play a growing proportion of revenues in that business and I think small business purchases are improving as well. That also helps.

Operator

The next question comes from the line of Tom Roderick – Thomas Weisel Partners.

Tom Roderick – Thomas Weisel Partners

In the context of your 2010 revenue guidance and looking at non-GAAP revenue growth of 12-15% can you give us a sense of how much of that you are assuming is organic and how much will be contributed from acquisitions that were made throughout this year?

Paul Ricci

Well, by throughout this year I assume you mean throughout last year. Let me just remind you that our calculation of organic revenues which we don’t forecast but report retrospectively includes the full stream of revenues of those acquired assets as if we had owned them in the previous yearly period. Let me say that organic revenue will be up appreciably this year in our plans. I don’t want to say more than that about a specific forecast. For the most part, assets we have acquired over the last year are growing at or above the overall corporate rate so they will contribute some amount but last year’s acquisitions are relatively small in proportion to the overall revenues of the company.

Tom Roderick – Thomas Weisel Partners

A follow-up on the revenue guidance, the commentary suggests we will see at least a modest back end shift in those revenues to the second half of the year given the model change we are going through. Obviously on the healthcare side this started pretty aggressively last year. Is this commentary meant to reflect you are kind of in a second year of that model shift and by the of this year will be completing it? Or is it more reflective of perhaps hitting an inflection point in the demand for the enterprise hosted solutions and yet that is another maybe multi-year model shift to go through on the enterprise side?

Paul Ricci

We are going to see in healthcare as you say the shift has been going on for some time. I think it is going to continue and perhaps even accelerate this year. So that will have the effect of somewhat elongating revenue streams this year and it will also have the effect of building additional momentum, as you suggest into next year. I think that is even more pronounced within enterprise. The deployment cycles in the enterprise base are quite long so major engagements that we won even six months ago are only going to contribute revenue toward the end of this year. As we have modeled the revenue contribution of those in 2011 they are significantly higher than 2010.

Operator

The next question comes from the line of Derek Bingham – Goldman Sachs.

Derek Bingham – Goldman Sachs

I have a question on the gross margin for your services line. We entered the year on a non-GAAP basis in the high 30’s and about 38 and exiting out at about 42 and as that becomes a bigger part of your business I am wondering if you can give us some thoughts on can we continue to sort of march that forward over the course of FY10 by the same handful of clients like we saw in the past year?

Paul Ricci

Just remember that the services line includes the on-demand and the margin contribution for on-demand as that proportion has gone up has helped drive that margin upwards. So if we see in fact that same factor in 2010 we may get some additional benefit from it. We did have some productivity gains in our conventional professional services as well. The opportunity for that gain wont’ be as significant in that piece in 2010 as it was in 2009.

Derek Bingham – Goldman Sachs

Looking at your guidance for next year as well, I guess this is just kind of housekeeping but the tax rate on a non-GAAP basis looked like it was starting to come up. Now it is going back down again. Could you give us a sense of what your expectation is on the tax line?

Paul Ricci

I think what we would say is you should assume it is going up slightly. Do you have a specific target you want to provide?

Thomas Beaudoin

We don’t have a specific percentage at this point but we did see the benefit as we closed out the year around continued use of our NOLs and that. We did see a Q4 benefit. We continue to have opportunities in that area. At this point we are basically from a cash tax perspective we are only reflecting foreign tax estates and the alternative minimum tax. I think we will see it go up but probably to where we thought we were going to end up this year. In that kind of mid to high single digits.

Derek Bingham – Goldman Sachs

The services revenue and I think you addressed this somewhat but I just want to make sure I understand the right dynamics, the services revenue went down sequentially for the first time in several years. That has been a line that has been very steadily building. Was it just a tough compare over June? Because it is ratable in nature and it is a growing part of your business. It seems unusual that it should step down like that. Can you just help me understand what happened?

Paul Ricci

There were a couple of contributions but the most important one was a significant amount of our mobile care revenues are recognized through the services line and are linked to a percent of completion accounting. For a variety of reasons that recognition was low, the achievement against that with that accounting treatment was significantly low in the fourth quarter of this year. That had been true I think in the first quarter of the year as well. It has resulted in some amount of lumpiness in the revenues in mobile care but that is really just a period timing issue.

Derek Bingham – Goldman Sachs

So you expect that services revenue to get back on that sequential growth track I assume?

Paul Ricci

We would, yes. As we stated in the documents, the backlog in services actually is looking quite strong.

Operator

The next question comes from the line of Craig Nankervis – First Analysis Corp.

Craig Nankervis – First Analysis Corp.

Following on with the last question, do I understand when you talk about percentage of completion related to mobile care you are talking about SNAPin specifically or is it broader than that?

Paul Ricci

Mobile care involves a number of technologies of which SNAPin is the center piece but not the only piece.

Craig Nankervis – First Analysis Corp.

Can you say whether SNAPin met your original revenue goal for the year or did this issue in the quarter sort of not enable you to have…

Paul Ricci

SNAPin was essentially at the revenue targets we announced, we predicted when we did the acquisition for the full year.

Craig Nankervis – First Analysis Corp.

How are you thinking about SNAPin going forward and can you roughly share what kind of growth you think you can get from that business in the current fiscal year?

Paul Ricci

No, we don’t give that level of detail. I did say a couple of things in the prepared remarks but I will reiterate. One is we have a deployment with Mobile Care now that is achieving extraordinary automation rates that are well outside the convention for how calls tend to be handled in our business. We think that the economics and the satisfaction rates around that technology are strong enough we are going to continue to see acceptance of it. I have also indicated because of the nature of the deployment of the contracts and the services related to that the recognition of revenues can be somewhat lumpy. So it is hard to know quite what the timing is. I do think the medium term growth potential of that business remains quite robust.

Craig Nankervis – First Analysis Corp.

Is your success, as you look into the current fiscal year, is your success there still largely centered on telco’s or are you in fact starting to close deals or anticipate in closing deals in broader segments than just telco?

Paul Ricci

We are doing some work outside of the telecommunications segment but our focus has intentionally remained within telecommunications. I think that will continue to be the predominate focus for next year.

Craig Nankervis – First Analysis Corp.

On the healthcare side, are the leasing dynamics changing at all to perhaps help the on-premise deployment cause?

Paul Ricci

Are the what dynamics changing?

Craig Nankervis – First Analysis Corp.

Financing.

Paul Ricci

I suppose some. Capital constraints within healthcare providers is a significant issue and was a more pronounced issue in 2009 than we had anticipated. But I also believe there is a growing customer preference for the on-demand suite for reasons that go beyond just the capital constraints. The cost, the quality and the speed are just compelling and amidst the many things healthcare providers have to worry about this represents a very attractive option for them.

Craig Nankervis – First Analysis Corp.

So when you are talking about double digit healthcare growth in this current fiscal year it sounds then like all or the lion’s share of that is coming from your anticipated and hosted growth rather than on-premise springing back to any notable degree. Is that fair?

Paul Ricci

No. What I would say is this. The two biggest contributors to growth in healthcare will be the sale of our Dragon product lines associated with EMR deployments and the growth of our hosted solutions. We do anticipate actually improved sales in our on-premise products but I don’t think that is going to be the leading card in that business right now.

Craig Nankervis – First Analysis Corp.

Are you breaking out the Q4 contribution for X solutions?

Paul Ricci

No we are not.

Operator

The next question comes from the line of John Bright – Avondale Partners, LLC.

John Bright – Avondale Partners, LLC.

Organic growth trends to this point have continued to go the wrong direction but your guidance looks very positive for 2010. For those investors that say what are the 1, 2, 3 things you are looking at and you think are going to drive a change in that organic growth profile in 2010? What would those be?

Paul Ricci

Just to recap some of the things we have talked about, a significant improvement in healthcare growth. As the proportion of revenues associated with on-demand which has been a steadily growing segment contributes greater absolute growth. The associated Dragon growth I have already alluded to as well. I think in on-demand that is what is causing the improvement. In enterprise we talked about improvement in the buying attitudes among large enterprises and their capital budgets which simply enables us to get back to business with them and a business that though it has been awhile was once quite a robust business for us and where we think the demands of companies for further automation and streamlining and modernizing their call centers remains strong. Of course in Mobile we will enjoy benefits from the resumption in growth of mobile units as well as new services we are bringing online with carriers.

John Bright – Avondale Partners, LLC.

In your prepared remarks you called out the federal stimulus and the collaboration between Nuance and EMR system companies as well as the voice mail to text on the mobile side. You character that as a meaningful benefit from that. Would you expand upon how you think you are going to benefit from stimulus in 2010 and do you think there is going to be a large adoption on the…

Paul Ricci

The federal stimulus and other impetuses within the federal government are driving the adoption of digital patient records and in particular the use of EMR systems. EMR vendors are working with Nuance to couple our solutions with theirs because they have learned and we have learned it helps physicians to more effectively use those systems. I think that is the linkage there.

John Bright – Avondale Partners, LLC.

You are also expecting a meaningful adoption in mobile services open carriers related to voice mail to text?

Paul Ricci

We are.

John Bright – Avondale Partners, LLC.

Thanks for the metrics. How should we think about pricing associated with those metrics?

Thomas Beaudoin

I think all of those metrics are an accumulation through those businesses of various offerings. I think trying to aggregate them into a pricing model is a little difficult at this time.

Operator

The next question comes from the line of Ilya Gorozovsky – Morgan Joseph & Co.

Ilya Gorozovsky – Morgan Joseph & Co.

Can you talk a little bit about what is happening in the federal government as far as any legislation relative to texting while driving and how you feel that could affect your business if there were to be greater adoption of text to speech within all cell phones?

Paul Ricci

I’m not qualified to tell you in depth about the state of legislation. We have participated in Washington in activities to study and review this issue. What I think I would say is that we are all seeing a growing concern not just in the US but elsewhere on the hazards associated with the use of devices while driving. Our belief is that is going to increase the interest in voice enabled solutions and voice enabled access to information and functionality in the car. I think that is an accelerant on what has been a trend underway for some time. We work very closely with the automotive manufacturers and they have appreciated this problem for some time, not just with respect to texting but other functionality in the car.

We have initiatives underway with those companies to try to innovate in how speech can help allow the driver to get what they need done while continuing to focus on the road. I do think it is an issue that is getting growing attention. I think that is appropriate and will drive additional interest in speech solutions.

Operator

The next question comes from the line of Scott Sutherland – Wedbush Morgan Securities, Inc.

Scott Sutherland – Wedbush Morgan Securities, Inc.

I wanted to go back to your embedded part of your business. You talk about the unit volumes improving. Can you talk first about are you seeing more on the mobile phones and the navigation devices or are you seeing kind of new device categories? Can you give an update on the pricing? You have talked in the past where pricing was tough there. Have you seen any change?

Paul Ricci

There are new devices coming out but it is of course important to remember that the volume of mobile phones being shipped today is so large and the volume of automobiles so substantial the newer devices still are relatively small contributors to our overall revenue stream in that space. I think I would say about pricing in mobility as that it hasn’t gotten worse in recent months. It was a very tough year, particularly the first half of the year, and it is an industry that is very disciplined about their negotiations. I would say it hasn’t gotten worse.

Scott Sutherland – Wedbush Morgan Securities, Inc.

On your imaging side it looks like you had a small contribution from your acquisitions in Q4. Can you kind of discuss high level what your expectations were for revenue and accretion in 2010 guidance?

Paul Ricci

I think that at the time we closed or signed the eCopy deal we gave earnings indication of a penny or two pennies. Or perhaps we didn’t but I think you might think of it in that. We didn’t give specific revenue guidance for eCopy but I did comment earlier that the growth people seem to have built into their models seems essentially appropriate to us.

Operator

The next question comes from the line of Bradley Whitt – Broadpoint Amtech.

Bradley Whitt – Broadpoint Amtech

Looking at the enterprise backlog with the new metric you have provided I am wondering is that a multi-year number? Is that revenue to be recognized in the next quarter? How should we think about that?

Paul Ricci

I assume you are referring to the on-demand. It is for the life of the contract. The span of those contracts ranges from 18 months to 5 years I believe.

Bradley Whitt – Broadpoint Amtech

Can we maybe get a year-over-year comparison? We would think fiscal Q4 would jump up from Q3 due to seasonality. Would that be up year-over-year?

Paul Ricci

There is some seasonality…the year-over-year is greater. It would be a larger jump than the third quarter to fourth quarter. We intend to publish the numbers on a quarterly basis. It is true there is a little bit of seasonality because sales personnel have an incentive to book the contract by the end of the year for their sales compensation. These are long-term negotiations and the revenue is recognized well down the road so I don’t think seasonality in the hosting business is quite so germane.

Bradley Whitt – Broadpoint Amtech

Just curious as you look into fiscal year 2010 whether you have built in any particular earn outs and how should we be thinking about earn outs and how it could impact your expenses in fiscal year 2010?

Paul Ricci

Whatever the earn outs are, they are documented in our Q’s and K’s so I would refer you there.

Operator

The next question comes from the line of Abhey Lamba – ISI Group.

Abhey Lamba – ISI Group

What were the dynamics in the healthcare business during the quarter? What caused the year-over-year decline on an organic basis?

Paul Ricci

I just had a bit of trouble. You broke up a little. Could you say it one more time please?

Abhey Lamba – ISI Group

What were the dynamics in healthcare during the quarter? What caused the year-over-year on an organic basis?

Paul Ricci

The year-over-year decline was because bundled into the healthcare dictation line is the consumer and professional non-medical dictation Dragon sold through conventional Windows software channels. That number dropped significantly year-over-year for two reasons. One, sales were down in that channel. Secondly, we launched the latest version of Dragon in the previous August. So it is a comparison against a year-over-year, against a launch year for Dragon consumer in the prior year.

Abhey Lamba – ISI Group

Given your plans to invest aggressively in sales and marketing and demand innovation, how much of a revenue bump are you giving in your guidance currently? If these will have a material impact can we see some margin leverage next year?

Paul Ricci

Our investments in sales and marketing are intended to strengthen our revenue growth as we go throughout this year. Our hope and expectation is that as we get towards the end of this fiscal year we will see improving growth rates resulting from those investments and that momentum will carry us into next year. If it performs as we expect we should see margin improvement in the following year but of course there could be a lot of contravening things between now and then.

Operator

Thank you. We have no more questions in queue. Please continue.

Paul Ricci

We thank you all for joining us again this quarter and we look forward to talking to you in our conference call at the end of the first quarter. Take care.

Operator

Ladies and gentlemen this conference will be available for replay after 7 p.m. today through midnight December 7, 2009. You may access the AT&T replay system any time by dialing 800-475-6701 and entering the access code 120809. International participants may dial 320-365-3844. This does conclude our conference for today. Thank you for your participation and for using AT&T Executive Teleconference Service. You may now disconnect.

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