Scansoft - Verbeterde vooruitzichten : ScanSoft Boosts 3Q Outlook and Guides 4Q Expectations in Line With Wall Street Estimates

ScanSoft Raises Third-Quarter OutlookWednesday
August 3, 6:48 pm ET
ScanSoft Boosts 3Q Outlook and Guides 4Q Expectations in Line With Wall Street Estimates
BURLINGTON, Mass. (AP) -- ScanSoft Inc., a provider of speech and imaging products, raised its third-quarter guidance on Wednesday, citing revenue growth and cost controls, and projected fourth-quarter results in line with Wall Street estimates.
The company's shares rose 28 cents, or about 7 percent, to $4.30 in after-hours trading, following their close down 10 cents, or 2.4 percent, at $4.02 on the Nasdaq.
ScanSoft said it expects quarterly results between a loss of 1 cent to break-even per share, or earnings of 4 cents to 5 cents per share excluding items, on revenue of $55 million to $56 million.
The company previously expected a third-quarter loss of 3 cents to 4 cents per share, or earnings between 3 cents and 4 cents per share excluding items, on revenue of $53 million to $55 million.
Analysts expect a profit of 3 cents per share excluding items, on revenue of $54.4 million, according to a Thomson Financial poll.
"These preliminary results indicate that ScanSoft completed another strong quarter through sustained revenue growth and continued operating improvements," said Paul Ricci, chairman and chief executive, in a statement. "Our continued operational progress gives us additional confidence as we head into our fourth fiscal quarter."
The company said its revenue was driven by continued performance in its global speech business, while earnings were helped by cost controls and improved productivity.
ScanSoft said it expects the fourth quarter to benefit from continued strength in its speech business and a new imaging product release, but cautioned that there could be possible disruptions from the integration of acquired assets, and noted the quarter is historically weak.
But the company said it is comfortable with analysts' expectations for fourth-quarter results ranging from a loss of 1 cent per share to a profit of 1 cent per share, or earnings between 3 cents and 5 cents per share excluding items, on revenue of $53 million to $56.5 million.
Analysts, on average, expect a fourth-quarter profit, excluding items, of 4 cents per share on $54.4 million in revenue.
ScanSoft said the expectations exclude the impact of its pending acquisition of Nuance Communications Inc., which is expected to close in September, as well as merger-related expenses or restructuring charges.