On May 8, speech-recognition software maker Nuance Communications (NASDAQ:NUAN) released second-quarter earnings for the period ended March 31.

  • Revenue for the Motley Fool Hidden Gems recommendation increased by 84% as the company experienced solid growth in each of its business lines, particularly in health care and embedded speech.
  • The stock carries a solid four-star rating in Motley Fool CAPS.

(Figures in millions, except per-share data)

Income Statement Highlights

Q2 2007

Q2 2006

Change

Sales

$132.1

$71.7

84.1%

Net Profit

($1.7)

($1.4)

N/A

EPS

($0.01)

($0.01)

N/A

Diluted Shares

171.7

163.4

5.1%

Get back to basics with the income statement.

Margin Checkup

Q2 2007

Q2 2006

Change*

Gross Margin

66.6%

71.8%

(5.3)

Operating Margin

4.4%

2.3%

2.1

Net Margin

(1.3%)

(1.9%)

0.6

*Expressed in percentage points.

Margins are the earnings engine.

Balance Sheet Highlights

Assets

Q2 2007

Q2 2006

Change

Cash + ST Invest.

$89.2

$71.3

25.1%

Accounts Rec.

$122.7

$104.7

17.2%

Liabilities

Q2 2007

Q2 2006

Change

Accounts Payable*

$90.1

$74.2

21.5%

Long-Term Debt

$348.7

$351.5

(0.8%)

*Includes accrued expenses.

The balance sheet reflects the company's health.

Cash Flow Highlights
Unfortunately, management stiffed us on the cash flow data.

Free cash flow is a Fool's best friend.

Related Foolishness:

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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.