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Nuance Communications (NUAN) Message Board

  • lightningvinny lightningvinny Nov 26, 2008 11:12 AM Flag

    Clock is Ticking ZI

    Tick Tock,, I like the Trump style game Ricci is playing,,, Higher offer first,, You want to thumb your nose at that offer, ok, here is less! Turn this one down and we will either offer you 25 cents or pick up your assets in BK for a dime!
    Love hardball and am quite thrilled that MSFT of GOOG hasnt played hardball with us!

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    • Wish I could wish you good luck, but NUAN filed a lawsuit so I have to hope NUAN loses big in it.

      Don´t know if it would work here, but many companies in similar situations simply buy into the target at 10% or 20% at a premium to market. Obviously in this case they would settle the patent dispute. ZICA would get liquidity and the perception of backing, NUAN would get a cheap investment and ZICA could run with its tech as it is doing and NUAN could fold it into what it seeks, and the business referrals could be interesting going both ways. Both would gain the removal of the patent clouds, that lawsuit can´t be good for either business, lawyers win, both may lose in it.

    • As far as the loan being talked about there is a thread on the ZICA board discussing it better than I could, I am not big into details and do not know those kinds of details, especially if they are nothing but basher diversions which I do not know. To me ZICA at first looked like they would need to raise financing, then some contracts came in and they then said they might not have to raise money, pretty normal to me.

      As far as ZICA goes as an investment due your own due diligence, I do not and am not recommending it either way, I simply try to add to the discussion. I got in in the ones during a strong economy thinking it undervalued hoping for a solid run, figuring it either runs big on me or fails. The value then and now is obviously speculative, like any startup, for ZICA I see it as in the technology they have spent years developing after carefully tailoring it to customer needs, as well as in the contracts they have gotten over years of marketing it, they have been diligent in those things at least. Since I have bought it it has been valued at between around .30 to 4 or more.

      You assume that NUAN will win the lawsuit they filed, perhaps you know more than I. Otherwise, unfortunately for you it not so simple in patent disputes, if ZICA wins it may be NUAN having to pay ZICA. I was surprised your CEO filed that claim, and he did it at the worst possible moment. His statements about the finances of ZICA at the time may not help. Too much risk of it looking like it is being used to cost out and destroy a takeover target, funny how some posters brag on message boards like this one what a great move that would be, without even knowing how a court that hears that could really slam the one doing it. Plus ZICA has that long history of developing the tech and tailoring it to client needs that I know is well documented, because I have read the press releases over the years. Your CEO and management I wonder about, do they even know the history of the company they acquired, can they even vouch that they were there when their so called proprietary tech was developed and first marketed, or was it just one of their many acquisitions they do not know much about. Hey, they filed to suit playing tough guy, better hope they can back it up.

    • Zi. Oh, I mean si.

    • Does that mean we are to deduct wear and tear from the value of the stock, Mr. Chubby?

    • Fine, zica fans, let the deadline pass and watch zica's pps drop once again.....but, it really does not matter what we think anyway..... I'd rather nuan kept the 20m bought back shares or paid down debt....it seems to me they already have pretty broad coverage with their patents and products....but, zica must have something fairly significant or why would nuance bother with it?

    • Maybe Spanish would help:

      Calla te su grande boca! Pendejo!

    • Where did ZICA get the loan for payroll? What were the terms? What is their cash burn? If they lose the Patent case how do they pay NUAN? How do they pay their lawyers now?
      You seem to know way more about ZI then us so let us know why ZICA is a good value investment right now.
      Buyout or not, is NUAN not an ally as the only price movment for ZI this year has resulted from NUAN PRs!

    • I suggest you study your own balance sheet and the credit crisis surrounding all companies before you go spouting off about the demise of another company. Hey, you can hope for it as you state, but its the bashers over at the ZICA board that seem to be NUAN shareholders who are making bold unsubstantiated claims that lead me to respond here.

      According to the last quarterly news release, NUAN has a negative net tangible asset value of around 800M, which may or may not become an issue. IMO that alone is a balance sheet issue. IMO that is okay so long as you assume steady profits, but a problem and an issue if this thing returns to prolonged losses.

      Your analysis may apply assuming everything is rosey and NUAN will not turn to losses in a downturn, unfortunately its chart would indicate otherwise. During the last recession it took a long fall to sub 1. Your guess is as good as mine as what would happen then, but NUAN may need to raise money, I do not know its loan covenants but if they are violated you can chuck it all out the window IMO. Because it does not have the hard assets on the balance sheet to remove the issue.

      It looks like they have been acquiring companies using debt and marking it up to goodwill and intangible assets, at best I would say you may have goodwill that may eventually have to be written off, and that is a balance sheet issue. If you think otherwise go ahead and hold this thing when the large writeoffs come. Wish you luck, I am long ZICA as a speculative play, been watching this one for a while but never got in because of the balance sheet, now I am more reluctant because of the way the CEO handled the last bid and this one, seeing big mistakes. FWIW, I do not see a liquiditÿ risk at NUAN near term, I see a meltdown risk if the business turns back to losses and writeoffs of good will. You guys are the ones hoping that ZICA fails, this shareholder is simply hoping that your company fails in the undertake attempt, there is a difference. Just read this thread, and where it started.

    • Everybody got that?

    • I suggest you study the recent Nuan quarter financials
      before you start spouting off about " balance sheet
      issues ". The yr ended with $262 million in the till
      up $77 million from last year. Cash flow from the qrt
      operations were $66 million and capex was $3.8 million.
      Operational cash flow for the quarter was MUCH better than
      projected and now trades at 10 x's trailing free cash flow.
      Their debt at present is benefiting from low rates and
      Ricci's smarts to use rate swap hedges at some point will
      lock in fixed rates. Close to $300 million is fixed at a
      little over 3% and is not do until I think 2013 or 14.
      With recurring revenue making up 50% of their business and
      with solid organic growth in mobile and healthcare, Nuance's
      debt is being managed well. Hopefully, its just a matter of
      time like before we can say " down goes zi '!

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