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$9.75 -1.07 (-9.89%)
10/15/2008 4:00 PM

Nuance Communications, Inc. (NUAN)

CAPS Rating:
****

A provider of speech and imaging solutions for businesses and consumers. The Company's technologies, applications & services are transforming the way people create, use and interact with information & make the experience of its end users more convenient.

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Avatar DFritz35 (< 20) Submitted: 2/14/07 1:42 PM : Outperform Start Price: $14.37 NUAN Score: 6.05

It will outperform simply because it works and the market is ready for it!!

I work for a large voice and data professional services firm in Maron Structure Technoloogies out of the Chicago areat hat markets different services and applications to Enterprise organizations. I have never seen a product that has opened doors like this one.

For example take an organization who currently has 50,000 employees. Traditionally when one employee wants to reach another they have to spend time looking up extensions and other numbers in their printed,online and active directories to reach that person if at all. With their Speech activated auto attendant solution now all one has to do is hit one button on the phone and say the name of the person they would like to speak with. The call is then routed to that person's designated communication device for that day.

Because each individual can have up to 8 numbers associated to them they can be reached just about anywhere anytime. Also because it utilizes speech recognition by analyzing a users voice pattern for a user to redirect their calls or make a change it is much more secure than simply using a password or some other form of data which can easily be stolen by any hacker.

The pricepoint is exceptional,the ROI is almost immediate,it can be deployed across a large enterprise in one day and requires no training for the end users cause if you can push a button and speak an name you are trained. Name another technology you can say that about.

The accurracy rate amongst large organizations is approx 96% and even their largest user of this product with just over 400,000 employees has documented an accuracy rate of over 92%

This technology has matured, is easy to use and is making a huge impact in the marketplace. Keep in mind this is just one of several speech activated solutions they offer. There is no doubt that Nuance and the speech activated solutions they deliver are making a huge impact on a commercial,corporate and industrial marketplace that is now culturally ready to embrace this technology!!!

Don't believe me no problem.. as Nuance likes to say

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Avatar DFritz35 (< 20) Submitted: 2/14/07 2:35 PM

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The experience speaks for itself

http://www.nuance.com/autoattendant/partnerdemos/

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Avatar TDBEDJ (99.18) Submitted: 2/14/07 5:01 PM

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You may understand the voice and data industry better than I, but I will venture a guess that I know investments better than you (it's what I do for a living). While the technology may be good, the company has too much debt, not enough cash, and they are not profitable. If this continues (and I don't see any reason why it won't) then it will never outperform the S&P.

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Avatar lakers1000 (89.61) Submitted: 3/21/07 7:40 PM

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WOW!!

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Avatar scottlips (< 20) Submitted: 4/04/07 10:15 AM

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Nuance (formerly ScanSoft) has only turned a profit once in the last decade.

Big however...During the early years, they did not turn a profit because of the R&D dollars spent developing the current winning products. In the past three years, they have not turned a profit because of the dollars spent acquiring strategic small companies who added to their suite of products.

I am an IT guy and will add that there is simply no better voice recognition product out there...not even close. Oh, and they have some other good products as well like first class OCR software.

I personally think NUAN is positioned at this point to reap the benefits of their investments and reap them big. If you follow the life cycle of software development companies (the ones that are successful/good products), you see a similar pattern of losses for years then big profits. Even though NUAN has extended this window a few years with their acquisitions, they will likely turn a profit this year and much more in years to come.

Another big however...for a short term buy, I wouldn't recommend NUAN. I think in the next three years it could double or triple, but it could go down 50% during that same period. I am lucky; I bought at below $5. I would buy, but at 15-18, but it you do, you will have to hold it and be patient for a few years.

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Avatar paddypaws123 (98.10) Submitted: 5/07/07 6:56 PM

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If you go to any region in the world were language is a barrier to fast and easy communication You have to organise/book/pay for a translator this software on a mobile device can become the new standard in global communications.Your not thinking about were the world of business will be in 3-5 years.

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Avatar JTShideler (97.85) Submitted: 5/23/07 1:56 PM

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I tend to agree with others that the future of Voice solutions is really still in its infancy. While Dragon Naturally Speaking and Dictaphone and other Nuance products are best in class, I think a lot of the bears are missing the bigger picture that Nuance is positioned for. The aquisitions that Nuance are buying today are not necessarily for the revenues these systems have but for the patents they own. Nuance is building a deep intellectual property moat that will position them to be the premier voice solutions company for everything from Dictation, to Wireless Texting, Voice translations, etc. Who hasn't imagined a future where you bark voice commands to all of your appliances. Its already begining to take hold in automobiles but the practical applications of voice technology are almost limitless. Nuance is going to be well positioned because they have the early start, the technology and the intellectual patents to be the winner in this revolution.

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Avatar drcarts (< 20) Submitted: 6/21/07 4:21 PM

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Any thoughts on the recent drop in value? Also, do we need to worry about any legal issues relating
to L&H's court battle over supposed fraud - they sold their software to Nuance......drcarts

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Avatar jmoule (< 20) Submitted: 9/27/07 7:15 PM

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I am an engineer who has worked for high tech companies, served on the Board of high tech companies, and invested in high tech companies for over 50 years. I have came to the conclusion long ago that making money is a habit. Some CEOs have it and some don't. If top management does not have that habit, it does not make any difference how wonderful the product is.

I have read everything on the this board and looked at the numbers and the company history. My take is that Nuance management will always want to spend more on R&D, more for patents, etc. and that profits will never come. This is the most interesting short sale candidate that I can think of at the moment.

What causes me to pause before shorting is that a company with deep pockets that knows how to make money (Microsoft?) might buy Nuance for their technology.

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