Scansoft

ScanSoft Climbs to Quarterly ProfitTuesday August 9, 5:16 pm ET
ScanSoft Swings to Small Third-Quarter Profit From Loss on 23 Percent Jump in Revenue
BURLINGTON, Mass. (AP) -- ScanSoft Inc., a provider of digital imaging software and speech technology for call centers, said Tuesday that it swung to a profit in the fiscal third quarter on higher revenue and improved operating margins.
Net income totaled $160,000, or breakeven per share, up from a loss of $410,000, or nil per share, in the same period last year. The company's results were largely driven by a 23 percent jump in revenue, which rose to $56.8 million from $46.1 million a year earlier.
Excluding non-cash items, such as restructuring charges and stock-based compensation, ScanSoft said it would have reported third-quarter income of $5.9 million, or 5 cents per share, up from $4.3 million, or 4 cents per share, in the third quarter of 2004.
The adjusted results beat analysts' expectations for profit of 4 cents per share on revenue of $54.8 million, according to a Thomson Financial survey. ScanSoft shares rose 10 cents, or 2.2 percent, to close earlier at $4.54 on the Nasdaq.
Earlier this year, ScanSoft announced plans to buy rival Nuance Communications Inc. for $221 million. The company said Tuesday that it still expects to close the deal in September.

------------


ScanSoft posts Q3 net incomeTue Aug 9, 2005 06:23 PM ET BANGALORE, Aug 9 (Reuters) -
SCANSOFT INC. (SSFT.O: Quote, Profile, Research)
Latest Forecast* Yr ago qtr EPS (diluted, $/shr) 0.00 -- 0.00 EPS, pre ex#(dil, $/shr) 0.05 0.04** 0.04 Net income ($ thousands) 160 -- -410 Total revenue ($ million) 56.8 54.6** 46.1
*Source: Reuters Estimates
**5 analysts
#Excludes extraordinary, special or one-time items
--The maker of speech recognition software said it had about 116.4 million weighted average diluted shares outstanding in the latest quarter, compared with 103.9 million shares used in computing GAAP EPS and 113.5 million shares used in computing non-GAAP EPS in the year-ago quarter.
--On May 9, ScanSoft said it would acquire Nuance Communications Inc. (NUAN.O: Quote, Profile, Research) for about $221 million in cash and stock. The acquisition is expected to close in September 2005, pending stockholder and regulatory approvals.