Organic growth was up 36% year over year; when you add the purchased companies
it was up 47%.
Integration of Nuance and ScanSoft appear to be working out better than
expected. In my mind this was much better than expected. The growth and profoma
profit showed a robust surprise. Before the merger, Nuance and ScanSoft were
major factors in the speech recognition market. Since they merged it appears
that the industry has become less competitive. With less competition there is
less need to discount to "win" the deal.
The company stated that this current quarter would still have some digestion
issues. This was the first quarter that speech-recognition revenues have
exceeded the slower growing scanning business.
Usually during the first quarter of a merger, a company has real integration
problems. Seldom does a company report that growth is well above the market and
organic growth is inline with the industry. "Voice business services will be one
of the fastest growing value chain segments through 2008, with a CAGR of 35%".
Source: Research and Markets November 21, 2005.
The Nuance Speech Recognition Market
Network Call Centers
Embedded Mobil Devices
Automotive Hands Free Devices
Nuance Company forecasted flat gross margins and believes it will be able to
reduce costs by taking out redundancies caused by the mergers.
For 2006, it forecasts $315-325 million in sales.
They also forecast 29-31c per share in profit.
With a forward PE of 22 and 3.65 times sales, this appears to be a company with
a low valuation, especially with a leading position in a 35% growth industry.
Conclusion
More and more states are requiring hands free calling when driving a car. The
networked based voice recognition call center is often rated higher than
operators or "press 1" for x and "press 2" for y maze solutions. When you
consider that it often saves companies money significantly over time, it's
understandable why the industry receives such a high growth forecast.
It appears that voice recognition is starting to receive growth from the upturn
in the high-end cell phone market along with others. Keeping in mind that some
integration issues still need be worked through, if Nuance can achieve organic
growth at industry levels, in my opinion, this company could be valued
significantly higher.
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Discolsure
I own Nuance in discretionary clients portfolios and in my own account.
Past performance is not a guarantee for future returns especially since we
were rated
#2 U.S. Equity, Large Capitalization Blend, Ranked by 1 year annual return 4th
Quarter 2004, By Money Manager Review
About the Author
Durig Capital is a registered investment advisor. You can contact us at toll
free 971-732-5119 or http://www.durig.com or e-mail rdurig@durig.com - Enjoy
the Magic of Prosperityby: Keith VarnumThere is an art and a science to
prosperity. The art is playing with the magic of prosperity. The science is
aligning with the physics of prosperity. Play at Life!Why does the money run
out? Why doesn't passion stay around? Why doesnt health last? Perhaps because
were not playing. Instead, were analyzing and strategizing. By not being
innocent, open, willing, spontaneous and flexible, we kill the magic of natural
prosperity. Results are important in life. And life works out best when played
like a kids gamein the spirit of a fun adventure between two best friends. When
approached lightlynot as a deadly serious contestlife actually responds more
readily to our wishes. In fact, the happiest outcomes occur when we play along
with the fluctuations of life instead of fighting them. Humor and laughter
activate energy flow, which, in turn, generates abundance.Ride the Pulse of
ProsperityJust like the bodys circulatory system, prosperity has a pulse, a
rhythm. When were willing to go along with the pace and pattern of lifes
changes, we prosper. When we tighten up, hold back, or try to control or
micro-manage lifes vacillations, we cut ourselves off from lifes natural bounty.
The magic dies.Align with AttractionDo you feel stuck? Are you struggling to
make life work? Tired of your own soap opera reruns? Get your life aligned with
the Law of Attraction!Scientists agree with spiritual teachers. Prosperity is
simply the natural physics of the universe. Science calls it the Law of Quantum
Physics. Metaphysics calls it the Law of Spiritual Attraction. Like energy
attracts like energy. Like vibration attracts like vibration. Like qualities
attract like qualities. This is Instant Karma in all its beauty and fierce
justice. Scientifically speaking, all physical matter in life is pulsating
electromagnetic energy that undulates in a wave motionand thus, naturally
connects with those aspects of life that are on that same wavelength.An Inside
JobSo how do you put cash in your pocket, romance in your bedroom, and vitality
in your body? The Latin root of prosperity means to make happy, favorable,
successful, fortunate, thriving. Prosperity is not an outer circumstance or
state. Prosperity is an inner feeling or spacean experience of oneself as joyful
and flourishing. Outer events are the reflections of how you have been flowing
from your Source Energy. This is what a good creator doesflow energy.You can
attract prosperity with your personal magnetism. As you focus your attention on
your dream, the Law of Attraction brings your desires to you automatically.True
prosperity is having what you choose to have as you choose to have it. Here are
a few effective, pragmatic ways to tap into the River of Plenty.Master the Law
of Giving and ReceivingWhen you give freely of your gifts and talents, you
receive back in kind. The key to success here is how you give, not what you
give. When you come from a place of bountiful giving, you receive plentifulness
in return. When you give from a place of lack or limitation (for example,
expecting something in return as a pay-off), you receive back the same vibration
or qualitya reflection of lack and limitation. When you give from a space or
energy of fear (scarcity consciousness), the universe mirrors that poverty back
to you. Align Your Personality with Your SoulAlign your personalitys actions and
attitudes with your soul purpose and passionand your life will unfold in a
profoundly easy, delightful and bountiful way. Walk with an Appreciative
HeartWhat you appreciate in life appreciatesincreases, grows. The more aspects
of life you appreciate, the richer you become inwardlyand, in turn, outwardly,
according to the Law of Attraction.Prosperity Begets ProsperityProsperity is a
living, organic state of being. Prosperity defies the laws of economics in that
its not a commodity that we have less of when we give some away. Prosperity
grows greater for the giver as its given. The more you share, the more you end
up receiving. Give and you shall attract. Nature does abhor a vacuum!Draw from
Your Prosperity Consciousness Bank AccountVibrations of good times can be stored
up for retrieval during challenging times. Prosperous times can remind you
emotionally and physically of how the vibration of happiness feelsand shift you
palpably into those good vibes in the present. Experientially re-living peak
moments from the past is more transforming than mentally remembering an event.
Positive experiencing is even more powerful than positive thinking.Make Room for
Miracles Create the attitude and conditions that make miracles more likely to
occur. Fear less and dare more. Invite surprise. Welcome serendipity. Be open to
unexpected sources of income, resources and supportespecially those that dont
make sense to the intellect with its limited range of possibilities. And stay
open to invisible assistance from your spirit friendsbe they angels, Ascended
Masters or spirit guides.Ask "Why not?" Take the road less traveled. Be
different, creative, fluid, experimental. See fresh possibilities, better
combinations, and new opportunities and challenges where others see problems or
limitations. Exude excitement and enthusiasm about daily life. The
electromagnetic energy of this exuberant, open attitude will attract magic,
meaning and money into your world.Quit Energizing the PastThe past only exists
to the degree we unconsciously drag it into the present. Take charge of how
yesterday affects your today. Regard the past as an eternal stream of "practice
takes" that allow you to "get it right" in this moment! And energize only the
elements of the past that feed the plentiful reality you are creating now.
Forgive then Forgive Some More!By learning to forgive ourselves and others, we
give ourselves the gift of freedom from the past. Forgiveness loosens the
debilitating constraints of anger, resentment, cynicism, regret and despairand
releases our hearts to swell with aliveness and compassion. Give yourself and
others Blanket Forgivenessnow!Take Charge of the Present Moment"Now" is the only
time you can control. All success and bounty flows from the power of the
vibration you are in each moment. By learning to be present in the current
momentin the current of the momentyou naturally receive the treasures that it
carries.Feng-shui Your Life!Give yourself a "Spacelift. By intuitively
re-arranging the elements of your daily life, you can create the quality of time
and space that will increase your ability to receive abundance. Clear your path
of illusions and lies so that your creating attention flows solely to your
dreams, not to the distractions and myths of life. Tap the Power of
SurrenderWorry serves as a signal that we must tend to some aspect of life. But
when we have done all that we do for the moment, it's time to let go of anxiety
and surrender to Universal Support. When intense emotions arisewhether delight
or grief, excitement or fearabandon yourself to them. Don't hold on! Relax that
death grip on your feelingsand, in doing so, on the inflow of lifes aliveness
and bounty!Feel ExtravagantlyFeel the pain as well as the joy. Shake with fear.
Let the anger rise up and roar! If you're not truly feeling, you're not truly
aliveyou're just going through the paces. Youre only having a NLENear-Life
Experience. You cant have money, love and health without feeling your emotions.
Primal Life Force is the energy that animates all of lifes rewards. That same
exact energy comprises the essence of all emotion. The core natures of
prosperity and emotion are one and the same: Source Energy. Make friends with
your feelings and you open the floodgate to easy, natural abundance in your
life!About The AuthorKeith Varnum has 30 years of practical success as an
author,accupuncturist, personal coach, filmmaker, vision quest guide and
international seminar leader, and is the owner of http://www.TheDream.com and
http://TheCareerDoctor.net.Keith@thedream.com
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