Nuance Communications Shares Tumble

SAN FRANCISCO - Shares of Nuance Communications(NUAN Quote - Cramer on NUAN - Stock Picks) fell Tuesday after the company said that its third-quarter loss narrowed and that it will offer $150 million in convertible notes.

The maker of voice-activation software posted a loss of $7.6 million, or 4 cents a share, slightly improved from a loss of $9.4 million, or 6 cents a share, a year earlier.

Excluding items, EPS was 14 cents, 2 cents ahead of analysts' expectations.

Revenue rose 39% to $156.6 million. Analysts polled by Thomson Financial had expected $155.8 million.

Nuance said its offering of $150 million of senior convertible debentures will partially fund its previously announced acquisition of Tegic Communications.

Shares of Nuance were recently down $1.41, or 8.1%, to $15.37.