Nuance Communications: Healthy 4Q, Solid Footing For FY10

This Morning, Northland Securities reiterated their “Outperform” rating for Nuance Communications Inc. (NASDAQ: NUAN) with a price target of $19.00.

Last night, NUAN reported Q4 EPS of $0.32, 3 cents better than the analyst estimate of $0.29. Revenue for the quarter was $275.7 million, which compares to the estimate of $272.14 million.

The Firm said “Our checks indicate the traditional, indirect Dragon channel will likely be weak until 2HCY10 and then extremely strong. Consumer dictation remained soft and led to a decline organically y/y for the total health and dictation segment.”

The Firm further added that” Imaging revenue was strong on new product releases in 4Q. $24.8 mil v. our $20.1 mil est and up 40% sequentially. Nuance recently acquired eCopy, which should add $30-$35 mil in 2010 revs.”