Nuance - Nuance Sees 1Q Profit Ahead of Views

Nuance Sees 1Q Profit Ahead of Views

Nuance Communications Says First-Quarter Adjusted Profit to Top Prior Target
BURLINGTON, Mass. (AP) -- Nuance Communications Inc., a maker of digital imaging and speech software, on Wednesday said its first-quarter profit before items will be slightly better than previously estimated.
Preliminary results for the three months ended Dec. 31 point to a loss of 3 cents per share and $75.5 million in revenue, the company said. Without stock options, amortization and acquisition-related costs, earnings amounted to 7 cents per share.
In early December, the company had forecast results ranging from a loss of 2 cents per share to break even, or 4 cents to 6 cents before items. Revenue was pegged at $73 million to $77 million.
Analysts surveyed by Thomson Financial are expecting a profit of 5 cents per share and $74.9 million in revenue.
Separately, Nuance announced plans to acquire Dictaphone Corp., a provider of dictation and speech software to the health care industry, for about $357 million in cash. The deal is expected to boost 2006 revenue by $80 million to $85 million, while boosting earnings by 2 cents to 3 cents per share excluding items. Including items, the purchase is seen lowering profit by 11 cents to 12 cents per share.