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Nuance Announces Second Fiscal Quarter 2009 Results

Strong Performance from On-Demand Solutions in Enterprise and Healthcare Drive Revenue; Cost Controls and Increased Services Margins Improve Profitability

BURLINGTON, MA — May 11, 2009 — Nuance Communications, Inc. (NASDAQ: NUAN)today announced financial results for the second fiscal quarter ended March 31, 2009.

Nuance reported GAAP revenues of $229.1 million in the quarter ended March 31, 2009, a 13 percent increase over GAAP revenues of $203.3 million in the quarter ended March 31, 2008. The Company reported non-GAAP revenue of approximately $238.8 million, which includes $9.6 million in revenue lost to accounting treatment in conjunction with the Company’s business and technology acquisitions. Using the non-GAAP measure, revenue grew approximately 9 percent over the same quarter last year.

Nuance recognized GAAP net income of $7.1 million, or $0.03 per diluted share, in the quarter ended March 31, 2009, compared with a GAAP net loss of $26.8 million, or $(0.13) per share, in the quarter ended March 31, 2008. Nuance reported non-GAAP net income of $63.4 million, or $0.24 per diluted share, for the period ended March 31, 2009, compared to non-GAAP net income of $41.7 million, or $0.18 per diluted share, in the quarter ended March 31, 2008.

The non-GAAP net income amount excludes non-cash income taxes and interest, amortization of intangible assets, non-cash share-based payments, acquisition-related transition and integration costs, and restructuring and other charges (credits). Non-GAAP net income includes revenue and cost of revenue related to acquisitions that would otherwise be recognized but for the accounting treatment related to the acquisitions. See “GAAP to non-GAAP Reconciliation” below for further information on the Company’s non-GAAP measures.

“Despite the challenging environment for capital and consumer spending, Nuance made significant progress in operating margins and the growth of recurring revenue streams,” said Paul Ricci, chairman and CEO of Nuance. “Strong expense controls, which we expect to continue for the remainder of the fiscal year, enabled us to exceed profit expectations. At the same time, Nuance has responded to the hastening interest within our healthcare, enterprise and mobile services markets for on-demand solutions with significant investments that position us for additional growth next year. In Q2, we won several long-term contracts in our enterprise and healthcare businesses, and had several design wins in our mobile business, that will begin contributing revenue in future quarters.”

Consistent with the Company’s strategy and recent trends, highlights from the quarter include:

Healthcare-Dictation — Non-GAAP revenues for Nuance’s healthcare and dictation solutions were $105.2 million, up 32 percent, as reported, from the same quarter last year. Nuance’s healthcare unit enjoyed year-over-year revenue growth fueled by its hosted, on-demand solutions. On-premise solutions, which require capital budgets, were sluggish, as a growing number of healthcare institutions moved toward on-demand services. Important contracts from the second quarter include Fletcher Allen, HCA Far West, Ottawa Healthcare and the University of Kentucky. Revenues from Dragon NaturallySpeaking in non-healthcare markets were weak due to a challenging environment for Windows-based software, especially in consumer markets.

Mobile-Enterprise — Non-GAAP revenues for Nuance’s enterprise and mobile solutions were $119.5 million, up slightly, as reported, from the same quarter last year. Nuance experienced continued strength in enterprise on-demand, professional services and maintenance contracts, especially in North America, and benefited from increased revenues associated with new mobile care solutions. Nuance’s mobile business showed modest growth. Although there was a decline in the number of devices shipped, this decline was offset by Nuance’s penetration on a higher percentage of OEM models, especially on handsets. In addition, Nuance speech solutions gained mainstream visibility through popular consumer devices from Amazon, Apple, Samsung and TomTom.

Imaging — Revenues for Nuance’s PDF and document imaging solutions were $14.1 million, down 37 percent, as reported, from the same quarter last year. The year-over-year decline reflects the continued weakness in Windows-based software sales, as well as reduced sales through its channels as Nuance prepares for new product release launches later this fiscal year.

Operational Achievement — Nuance increased its focus on expense controls and accelerating synergies from recent acquisitions to significantly improve non-GAAP margins. Non-GAAP operating margins rose to 31.3 percent, compared to 24.0 percent in the second quarter 2008. Nuance achieved non-GAAP gross margins of 68.2 percent in the second quarter 2009, compared to 66.8 percent in the same period last year. Cash flows from operations were $49.8 million in the second quarter 2009. On a year-to-date basis, cash flows from operations were $130.6, up $48.6 million from the same period in 2008. The Company’s cash balance as of March 31, 2009, was $421.0 million .

Conference Call and Prepared Remarks

Nuance is providing a copy of prepared remarks in combination with its press release. This process and these remarks are offered to provide shareholders and analysts with additional time and detail for analyzing results in advance of the Company’s quarterly conference call. The remarks will be available at www.nuance.com/earningsresults in conjunction with the press release.

As previously scheduled, the conference call will begin today, May 11, 2009 at 5:00 pm ET and will include only brief comments followed by questions and answers. The prepared remarks will not be read on the call. To access the live broadcast, please visit the Investor Relations section of Nuance’s Website at www.nuance.com. The call can also be heard by dialing (800) 230-1059 or (612) 234-9959 at least five minutes prior to the call and referencing conference code 998061. A replay will be available within 24 hours of the announcement by dialing (800) 475-6701 or (320) 365-3844 and using the access code 998061.

About Nuance Communications, Inc.

Nuance is a leading provider of speech and imaging solutions for businesses and consumers around the world. Its technologies, applications and services make the user experience more compelling by transforming the way people interact with information and how they create, share and use documents. Every day, millions of users and thousands of businesses experience Nuance’s proven applications and professional services. For more information, please visit: www.nuance.com.

Safe Harbor and Forward-Looking Statements

Statements in this document regarding the future demand for, performance of, and opportunities for growth in Nuance’s product offerings and solutions in healthcare and dictation, mobile-enterprise and imaging, anticipated expense reduction activities, Nuance’s revenue and earnings projections for the third quarter of fiscal 2009, Nuance’s financial performance during the remainder of fiscal 2009, and Nuance managements’ future expectations, beliefs, goals, plans or prospects constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that are not statements of historical fact (including statements containing the words “believes,” “plans,” “anticipates,” “expects,” or “estimates” or similar expressions) should also be considered to be forward-looking statements. There are a number of important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including: fluctuations in demand for Nuance’s existing and future products; economic conditions in the United States and abroad; Nuance’s ability to control and successfully manage its expenses and cash position; the effects of competition, including pricing pressure; possible defects in Nuance’s products and technologies; the ability of Nuance to successfully integrate operations and employees of acquired businesses; the ability to realize anticipated synergies from acquired businesses; and the other factors described in Nuance’s annual report on Form 10-K for the fiscal year ended September 30, 2008 and Nuance’s quarterly reports on Form 10-Q filed with the Securities and Exchange Commission. Nuance disclaims any obligation to update any forward-looking statements as a result of developments occurring after the date of this document.

The information included in this press release should not be viewed as a substitute for full GAAP financial statements

Discussion of Non-GAAP Financial Measures

Management utilizes a number of different financial measures, both GAAP and non-GAAP, in analyzing and assessing the overall performance of the business, for making operating decisions and for forecasting and planning for future periods. We consider the use of non-GAAP revenue helpful in understanding the performance of our business, as it excludes the purchase accounting impact on acquired deferred revenue and other acquisition-related adjustments to revenue. We also consider the use of non-GAAP earnings per share helpful in assessing the organic performance of the continuing operations of our business. By organic performance we mean performance as if we had owned an acquired asset in the same period a year ago. By continuing operations we mean the ongoing results of the business excluding certain unplanned costs. While our management uses these non-GAAP financial measures as a tool to enhance their understanding of certain aspects of our financial performance, our management does not consider these measures to be a substitute for, or superior to, the information provided by GAAP revenue and earnings per share. Consistent with this approach, we believe that disclosing non-GAAP revenue and non-GAAP earnings per share to the readers of our financial statements provides such readers with useful supplemental data that, while not a substitute for GAAP revenue and earnings per share, allows for greater transparency in the review of our financial and operational performance. In assessing the overall health of the business during the three months ended December 31, 2008 and 2007, and, in particular, in evaluating our revenue and earnings per share, our management has either included or excluded items in three general categories, each of which are described below.

Acquisition-Related Revenue and Cost of Revenue.
The Company provides supplementary non-GAAP financial measures of revenue which include revenue related to acquisitions, primarily from Phillips Speech Recognition Systems and Tegic, that would otherwise have been recognized but for the purchase accounting treatment of these transactions. Non-GAAP revenue also includes revenue that the Company would have otherwise recognized had the Company not acquired intellectual property and other assets from the same customer during the quarter. Because GAAP accounting requires the elimination of these revenues, GAAP results alone do not fully capture all of the Company’s economic activities. These non-GAAP adjustments are intended to reflect the full amount of such revenues. The Company includes non-GAAP revenue and cost of revenue to allow for more complete comparisons to the financial results of historical operations, forward looking guidance and the financial results of peer companies. The Company believes these adjustments are useful to management and investors as a measure of the ongoing performance of the business because the Company historically has experienced high renewal rates on maintenance and support agreements and other customer contracts, although we cannot be certain that customers will renew these contracts. Additionally, although acquisition related revenue adjustments are non-recurring with respect to past acquisitions, the Company generally will incur these adjustments in connection with any future acquisitions.


Acquisition-Related Expenses.
In recent years, the Company has completed a number of acquisitions, which result in operating expenses which would not otherwise have been incurred. The Company provides supplementary non-GAAP financial measures which exclude certain expense items resulting from acquisitions to allow more accurate comparisons of the financial results to historical operations, forward-looking guidance and the financial results of less acquisitive peer companies. These items are included in the following categories: (i) acquisition-related transition and integration costs; (ii) amortization of intangible assets; (iii) in-process research and development; and (iv) costs associated with the investigation of the financial results of acquired entities. These categories are further discussed as follows:

(i) Acquisition-related transition and integration costs. The Company excludes transition and integration costs such as retention and earnout bonuses for employees from acquisitions. The Company does not consider these expenses to be related to the organic continuing operation of its business, and believes it is useful to management and investors to understand the effects of these items on total operating expenses. Although acquisition-related transition and integration costs are not recurring with respect to past acquisitions, the Company generally will incur these expenses in connection with any future acquisitions.

(ii) Amortization of intangible assets. The Company excludes the amortization of intangible assets from non-GAAP expense and income measures. These amounts are inconsistent in amount and frequency and are significantly impacted by the timing and size of acquisitions. Providing a supplemental measure which excludes these charges allows management and investors to evaluate results “as-if” the acquired intangible assets had been developed internally rather than acquired and, therefore, provides a supplemental measure of performance in which the Company’s acquired intellectual property is treated in a comparable manner to its internally developed intellectual property. The Company believes that it is important for investors to understand that the use of intangible assets contributed to revenue earned during the periods presented and will contribute to future periods as well. Amortization of intangible assets that relate to past acquisitions will recur in future periods until such intangible assets have been fully amortized. Future acquisitions may result in the amortization of additional intangible assets.

(iii) In-Process research and development. The Company excludes expenses associated with acquired in-process research and development from non-GAAP expense and income measures. These amounts are inconsistent in amount and frequency and are significantly impacted by the timing, size and nature of acquisitions. Providing a supplemental measure which excludes these charges allows management and investors to evaluate results “as-if” the acquired research and development had been conducted internally rather than acquired. Although expenses associated with acquired in-process research and development are generally not recurring with respect to past acquisitions, the Company may incur these expenses in connection with any future acquisitions.

(iv) Costs associated with the investigation of the financial results of acquired entities. The Company excludes expenses incurred as a result of the investigation and, if necessary, restatement of the financial results of acquired entities. The Company also incurs post-closing legal and other professional services fees for non-recurring compliance and regulatory matters associated with acquisitions. The Company does not consider these expenses to be related to the organic continuing operations of the acquired businesses, and believes that providing a supplemental non-GAAP measure which excludes these items allows management and investors to consider the ongoing operations of the business both with, and without, such expenses. Although these expenses are not recurring with respect to past acquisitions, the Company may incur these expenses in connection with any future acquisitions.

Non-Cash Expenses.
The Company provides non-GAAP information relative to the following non-cash expenses: (i) stock-based compensation; (ii) certain accrued interest; and (iii) certain accrued income taxes. These items are further discussed as follows:

(i) Stock-based compensation. Because of varying available valuation methodologies, subjective assumptions and the variety of award types, the Company believes that the exclusion of share-based payments allows for more accurate comparisons of operating results to peer companies, as well as to times in the Company’s history when share based payments were more or less significant as a portion of overall compensation than in the current period. The Company evaluates performance both with and without these measures because compensation expense related to stock-based compensation is typically non-cash and the options granted are influenced by factors such as volatility and risk-free interest rates that are beyond the Company’s control. The expense related to stock-based awards is generally not controllable in the short-term and can vary significantly based on the timing, size and nature of awards granted. As such, the Company does not include such charges in operating plans. Stock-based compensation will continue in future periods.

(ii) and (iii) Certain accrued interest and income taxes. The Company also excludes certain accrued interest and certain accrued income taxes because the Company believes that excluding these non-cash expenses provides senior management as well as other users of the financial statements, with a valuable perspective on the cash-based performance and health of the business, including the current near-term projected liquidity. These non-cash expenses will continue in future periods.

Other Expenses.
The Company excludes certain other expenses that are the result of other, unplanned events to measure operating performance as well as current and future liquidity both with and without these expenses. Included in these expenses are items such as non-acquisition-related restructuring and other charges (credits), net. These events are unplanned and arose outside of the ordinary course of continuing operations. The Company assesses operating performance with these amounts included, but also excluding these amounts; the amounts relate to costs which are unplanned, and therefore by providing this information the Company believes management and the users of the financial statements are better able to understand the financial results of what the Company considers to be organic continuing operations.

The Company believes that providing the non-GAAP information to investors, in addition to the GAAP presentation, allows investors to view the financial results in the way management views the operating results. The Company further believes that providing this information allows investors to not only better understand the Company’s financial performance but more importantly, to evaluate the efficacy of the methodology and information used by management to evaluate and measure such performance.

Financial Tables Follow

Nuance Communications, Inc.

Condensed Consolidated Statements of Operations

(in thousands, except per share amounts)

Unaudited

 

 

 

 

 

 

 

 

 
   

Three months ended

 

Six months ended

   

March 31

 

March 31

   

 

2009

 

 

 

2008

 

 

 

2009

 

 

 

2008

 

               

 

Revenue:

               

Product and licensing

 

$

87,025

   

$

94,254

   

$

172,600

   

$

192,190

 

Professional services, subscription and hosting

   

103,004

     

72,203

     

193,196

     

134,623

 

Maintenance and support

 

 

39,116

 

 

 

36,845

 

 

 

80,183

 

 

 

71,513

 

Total revenue

 

 

229,145

 

 

 

203,302

 

 

 

445,979

 

 

 

398,326

 

               

 

Cost of revenue:

               

Product and licensing

   

9,051

     

10,686

     

17,808

     

22,271

 

Professional services, subscription and hosting

   

62,781

     

56,443

     

121,263

     

101,267

 

Maintenance and support

   

7,137

     

8,908

     

14,180

     

16,353

 

Amortization of intangible assets

 

 

9,409

 

 

 

7,759

 

 

 

17,427

 

 

 

12,746

 

Total cost of revenue

 

 

88,378

 

 

 

83,796

 

 

 

170,678

 

 

 

152,637

 

               

 

Gross profit

 

 

140,767

 

 

 

119,506

 

 

 

275,301

 

 

 

245,689

 

               

 

Operating expenses:

               

Research and development

   

27,766

     

30,908

     

58,779

     

58,753

 

Sales and marketing

   

50,369

     

56,766

     

111,615

     

112,773

 

General and administrative

   

27,902

     

28,074

     

58,159

     

53,309

 

Amortization of intangible assets

   

19,034

     

14,155

     

36,382

     

25,654

 

Restructuring and other charges, net

 

 

250

 

 

 

3,326

 

 

 

2,348

 

 

 

5,478

 

Total operating expenses

 

 

125,321

 

 

 

133,229

 

 

 

267,283

 

 

 

255,967

 

               

 

Income (loss) from operations

   

15,446

     

(13,723

)

   

8,018

     

(10,278

)

               

 

Other expense, net

 

 

(9,377

)

 

 

(12,299

)

 

 

(14,888

)

 

 

(26,543

)

               

 

Income (loss) before income taxes

   

6,069

     

(26,022

)

   

(6,870

)

   

(36,821

)

               

 

Provision (benefit) for income taxes

 

 

(998

)

 

 

769

 

 

 

10,613

 

 

 

5,394

 

               

 

Net income (loss)

 

$

7,067

 

 

$

(26,791

)

 

$

(17,483

)

 

$

(42,215

)

               

 

               

 

Net income (loss) per share:

               

Basic

 

$

0.03

 

 

$

(0.13

)

 

$

(0.07

)

 

$

(0.21

)

Diluted

 

$

0.03

 

 

$

(0.13

)

 

$

(0.07

)

 

$

(0.21

)

               

 

Weighted average common shares outstanding:

               

Basic

 

 

250,656

 

 

 

206,348

 

 

 

243,283

 

 

 

200,280

 

Diluted

 

 

269,187

 

 

 

206,348

 

 

 

243,283

 

 

 

200,280

 

Nuance Communications, Inc.

Supplement Financial Information - GAAP to Non-GAAP Reconciliations

(in thousands, except per share amounts)

Unaudited

 

 

 

 

 

 

 

 

 
   

Three months ended

 

Six months ended

   

March 31

 

March 31

   

 

2009

 

 

 

2008

 

 

 

2009

 

 

 

2008

 

               

 

GAAP revenue

 

$

229,145

   

$

203,302

   

$

445,979

   

$

398,326

 

Acquisition-related revenue adjustments: product & licensing

   

7,154

     

12,999

     

31,953

     

23,218

 

Acquisition-related revenue adjustments: professional services, subscription and hosting

   

1,210

     

2,262

     

2,450

     

5,797

 

Acquisition-related revenue adjustments: maintenance and support

 

 

1,281

 

 

 

1,305

 

 

 

2,851

 

 

 

1,579

 

Non-GAAP revenue

 

$

238,790

 

 

$

219,868

 

 

$

483,233

 

 

$

428,920

 

               

 

GAAP cost of revenue

 

$

88,378

   

$

83,796

   

$

170,678

   

$

152,637

 

Cost of revenue from amortization of intangible assets

   

(9,409

)

   

(7,759

)

   

(17,427

)

   

(12,746

)

Cost of revenue adjustments: product & licensing (1,2,3)

   

(5

)

   

373

     

(11

)

   

337

 

Cost of revenue adjustments: professional services, subscription and hosting (1,2,3)

   

(2,711

)

   

(2,826

)

   

(4,368

)

   

(2,990

)

Cost of revenue adjustments: maintenance & support (1,2,3)

 

 

(249

)

 

 

(620

)

 

 

(335

)

 

 

(1,020

)

Non-GAAP cost of revenue

 

$

76,004

 

 

$

72,964

 

 

$

148,537

 

 

$

136,218

 

               

 

GAAP gross profit

 

$

140,767

   

$

119,506

   

$

275,301

   

$

245,689

 

Gross profit adjustments

 

 

22,019

 

 

 

27,398

 

 

 

59,395

 

 

 

47,013

 

Non-GAAP gross profit

 

$

162,786

 

 

$

146,904

 

 

$

334,696

 

 

$

292,702

 

               

 

GAAP income (loss) from operations

 

$

15,446

   

$

(13,723

)

 

$

8,018

   

$

(10,278

)

Gross profit adjustments

   

22,019

     

27,398

     

59,395

     

47,013

 

Research and development (1, 2)

   

3,373

     

6,227

     

6,526

     

10,210

 

Sales and marketing (1, 2)

   

6,454

     

7,307

     

14,557

     

13,450

 

General and administrative (1, 2)

   

8,089

     

8,073

     

17,791

     

14,823

 

Amortization of intangible assets

   

19,034

     

14,155

     

36,382

     

25,654

 

Restructuring and other charges, net

 

 

250

 

 

 

3,326

 

 

 

2,348

 

 

 

5,478

 

Non-GAAP income from operations

 

$

74,665

 

 

$

52,763

 

 

$

145,017

 

 

$

106,350

 

               

 

GAAP provision (benefit) for income taxes

 

$

(998

)

 

$

769

   

$

10,613

   

$

5,394

 

Non-cash taxes

 

 

4,356

 

 

 

(235

)

 

 

(1,955

)

 

 

(3,060

)

Non-GAAP provision for income taxes

 

$

3,358

 

 

$

534

 

 

$

8,658

 

 

$

2,334

 

               

 

GAAP net income (loss)

 

$

7,067

   

$

(26,791

)

 

$

(17,483

)

 

$

(42,215

)

Cost of revenue from amortization of intangible assets

   

9,409

     

7,759

     

17,427

     

12,746

 

Amortization of intangible assets

   

19,034

     

14,155

     

36,382

     

25,654

 

Non-cash share-based payments (1)

   

18,015

     

23,244

     

35,002

     

38,419

 

Non-cash interest expense, net

   

1,493

     

1,726

     

2,938

     

3,031

 

Restructuring and other charges, net

   

250

     

3,326

     

2,348

     

5,478

 

Non-cash income taxes

   

(4,356

)

   

235

     

1,955

     

3,060

 

Purchase accounting adjustment - cost of revenue (3)

   

(499

)

   

(1,135

)

   

(644

)

   

(2,291

)

Purchase accounting adjustment - revenue (3)

   

9,645

     

16,566

     

37,254

     

30,594

 

Acquisition-related transition and integration costs (2)

 

 

3,365

 

 

 

2,571

 

 

 

9,230

 

 

 

6,028

 

Non-GAAP net income

 

$

63,423

 

 

$

41,656

 

 

$

124,409

 

 

$

80,504

 

               

 

GAAP weighted average common shares outstanding - diluted

   

269,187

     

206,348

     

243,283

     

200,280

 

Adjustment for shares that are dilutive on a non-GAAP basis

 

 

-

 

 

 

23,370

 

 

 

18,601

 

 

 

24,347

 

Non-GAAP weighted average common shares outstanding - diluted

 

 

269,187

 

 

 

229,718

 

 

 

261,884

 

 

 

224,627

 

               

 

GAAP net income (loss) per share - diluted

 

$

0.03

   

$

(0.13

)

 

$

(0.07

)

 

$

(0.21

)

Adjustment for net income per share on a non-GAAP basis

 

 

0.21

 

 

 

0.31

 

 

 

0.55

 

 

 

0.57

 

Non-GAAP net income per share - diluted

 

$

0.24

 

 

$

0.18

 

 

$

0.48

 

 

$

0.36

 

Nuance Communications, Inc.

Supplement Financial Information - GAAP to Non-GAAP Reconciliations, continued

(in thousands)

Unaudited

 

 

 

 

 

 

 

 

 
   

Three months ended

 

Six months ended

   

March 31

 

March 31

   

 

2009

 

 

 

2008

 

 

 

2009

 

 

 

2008

 

(1) Non-cash share-based payments

               

Cost of product and licensing

 

$

4

   

$

10

   

$

6

   

$

14

 

Cost of professional services, subscription and hosting

   

3,147

     

3,416

     

4,927

     

5,021

 

Cost of maintenance and support

   

275

     

580

     

425

     

906

 

Research and development

   

2,937

     

5,520

     

5,627

     

9,104

 

Sales and marketing

   

6,228

     

6,523

     

13,559

     

11,563

 

General and administrative

 

 

5,424

 

 

 

7,195

 

 

 

10,458

 

 

 

11,811

 

Total

 

$

18,015

 

 

$

23,244

 

 

$

35,002

 

 

$

38,419

 

               

 

(2) Acquisition-related transition and integration costs

               

Cost of product and licensing

 

$

1

   

$

(2

)

 

$

1

   

$

-

 

Cost of professional services, subscription and hosting

   

27

     

164

     

(11

)

   

(91

)

Cost of maintenance and support

   

10

     

40

     

10

     

114

 

Research and development

   

436

     

707

     

899

     

1,106

 

Sales and marketing

   

226

     

784

     

998

     

1,887

 

General and administrative

 

 

2,665

 

 

 

878

 

 

 

7,333

 

 

 

3,012

 

Total

 

$

3,365

 

 

$

2,571

 

 

$

9,230

 

 

$

6,028

 

               

 

(3) Acquisition-related adjustments

               

Revenue

 

$

9,645

   

$

16,566

   

$

37,254

   

$

30,594

 

Cost of product and licensing

   

-

     

(381

)

   

4

     

(351

)

Cost of professional services, subscription and hosting

   

(463

)

   

(754

)

   

(548

)

   

(1,940

)

Cost of maintenance and support

 

 

(36

)

 

 

-

 

 

 

(100

)

 

 

-

 

Total

 

$

9,146

 

 

$

15,431

 

 

$

36,610

 

 

$

28,303

 

Nuance Communications, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

Unaudited

 

 

 

 

 

 
         

 

ASSETS

 

March 31, 2009

 

September 30, 2008

         

 

Current assets:

       
 

Cash and cash equivalents

 

$

420,982

 

$

261,540

 

Marketable securities

   

-

   

56

 

Accounts receivable and unbilled receivables, net

   

182,179

   

217,999

 

Inventories, net

   

8,503

   

7,152

 

Prepaid expenses and other current assets

 

 

34,953

 

 

28,536

 

Total current assets

   

646,617

   

515,283

         

 

Land, building and equipment, net

   

51,898

   

46,485

Goodwill

   

1,794,861

   

1,655,773

Intangible assets, net

   

647,874

   

585,023

Other assets

 

 

40,206

 

 

43,635

 

Total assets

 

$

3,181,456

 

$

2,846,199

         

 

LIABILITIES AND STOCKHOLDERS' EQUITY

       
         

 

Current liabilities:

       
 

Current portion of long-term debt and capital leases

 

$

6,902

 

$

7,006

 

Contingent and deferred acquisition payments

   

58,511

   

113,074

 

Accounts payable and accrued expenses

   

149,205

   

133,616

 

Deferred and unearned revenue

   

147,600

   

118,902

 

Other short term liabilities

 

 

10,031

 

 

9,166

 

Total current liabilities

   

372,249

   

381,764

         

 

Long-term portion of debt and capital leases

   

891,271

   

894,184

Long-term deferred revenue

   

20,985

   

18,134

Other long term liabilities

 

 

122,939

 

 

127,209

 

Total liabilities

 

 

1,407,444

 

 

1,421,291

         

 

Stockholders' equity

 

 

1,774,012

 

 

1,424,908

         

 

Total liabilities and stockholders' equity

 

$

3,181,456

 

$

2,846,199

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