Scansoft reported a fourth-quarter net profit of $4.4m, compared with a net loss of $2.3m, on revenue of $28.4m, up 53% from $18.5m in the year-ago quarter. For the year to December 31, it reported a net profit of $6.3m, compared with a net loss of $16.8m, on revenue of $106.6m, up from $62.7m in 2001. The figures include a restructuring charge of $1m for the year, and a $1.7m charge for amortization of intangible assets, compared with $13.3m in 2001.
During the fourth quarter, the Peabody, Massachusetts-based company experienced strong performance in international markets, as well as growth from its largest digital imaging OEM partners, which offset some weakness in its domestic channel sales.
Last October, ScanSoft signaled its intention to take on IBM Corp in the speech-recognition market, with the acquisition of the speech-processing business units of Royal Philips Electronics for $35.4m. The new products from this acquisition, along with expected product launches in each of its solution categories during 2003, plus an expanded sales presence, are going to be used to power the company’s growth during 2003 according to Paul Ricci, chairman and CEO of ScanSoft. We expect another record year for ScanSoft in 2003, with record profits and cash flow on revenue growth of more than 25%, he said.
Accordingly, ScanSoft expects 2003 revenue to be in the $135m to $140m range. After acquisition-related amortization and restructuring charges, the company expects 2003 earnings per diluted share to be in the range of $0.20 to $0.22. It also expects revenue to be evenly split between its document-capture and speech solutions.
Source: Computerwire
