Four months after introducing its Dragon TV voice recognition solution, Nuance (NUAN) says the software will be built into Samsung's high-end Smart TV line. The arrival of an Apple TV set would likely be a positive for Nuance, given expectations an Apple set will contain Siri, which is based on Nuance's technology.
Nuance (NUAN +6.7%) jumps after guiding for FQ2 revenue of $416M-$418M and EPS of $0.42-$0.43, above a consensus of $405.5M and $0.38. The acquisition-happy voice recognition software giant, which reports on May 10, says organic revenue growth was 14%, and its Enterprise division delivered strong results. (PR)
Nuance (NUAN) +2.8% after announcing its acquisition of Transcend Services (TRCR +39.6%), a provider of medical transcription and speech editing services. Nuance claims the all-cash deal will add $140M-$150M to FY13 revenue, and $0.08-$0.09 to EPS. Transcend's offerings, which are focused on small and mid-sized hospitals, will complement Nuance's existing voice recognition solutions for the healthcare market.
Nuance Communications (NUAN +1.7%) begins to claw back after shares swooned 13% Friday on missing FQ1 expectations. The voice-recognition software maker still reported growing sales and is an integral part of Apple's iPhone 4S killer app Siri; "it will be worth watching to see if investors have forgotten why they were interested in NUAN in the first place," David Penn writes.
Nuance (NUAN -13.4%), whose shares had nearly doubled since August, is off sharply after its FQ1 report (I, II) raises fears that Apple's Siri may not be as profitable as hoped. Wedbush (Underperform) notes Nuance's top-line miss occurred in spite of the acquisition of Vlingo. Needham (Buy), however, is optimistic attempts by phone vendors to catch up to Siri will drive demand for Nuance's software. (transcript)
More on Nuance's FQ1: Company attributes shortfall to "delayed revenues" from some mobile customers (Apple?). Deferred revenue rose 8% Q/Q to $299.4M. Nuance guides in prepared remarks (.pdf) for FQ2 revenue of $395M-$415M and EPS of $0.36-$0.42 (consensus of $404.5M and $0.38). Guides for FY12 revenue of $1.66B-$1.71B and EPS of $1.55-$1.62 (consensus of $1.68B and $1.60). NUAN -8.3% AH. (PR)
Nuance Communications (NUAN +3.8%) surges ahead of its FQ1 report; earnings at the maker of speech recognition software believed to be used in Apple's Siri voice-command system for mobile phones is expected to rise 29% vs. a year ago. Discussing NUAN, CNBC commentators say the stock is attractive, sparked by Apple TV as a "game changer."
ThinkEquity raises its rating on Nuance Communications (NUAN +1%) to Buy from Hold and hikes its price target to $34 from $22. Shares are up 69% in six months, but the rally can continue “due to sustainable factors of a secular market opportunity in speech [recognition] technology, particularly in mobile and consumer product markets and Nuance’s unique competitive scale."