<SEC-DOCUMENT>0000950123-19-006588.txt : 20191004
<SEC-HEADER>0000950123-19-006588.hdr.sgml : 20191004
<ACCEPTANCE-DATETIME>20190723175750
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000950123-19-006588
CONFORMED SUBMISSION TYPE:	DRSLTR
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20190723

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Cerence LLC
		CENTRAL INDEX KEY:			0001768267
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-PREPACKAGED SOFTWARE [7372]
		IRS NUMBER:				834719946
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		DRSLTR

	BUSINESS ADDRESS:	
		STREET 1:		15 WAYSIDE ROAD
		CITY:			BURLINGTON
		STATE:			MA
		ZIP:			01880
		BUSINESS PHONE:		781-565-5000

	MAIL ADDRESS:	
		STREET 1:		15 WAYSIDE ROAD
		CITY:			BURLINGTON
		STATE:			MA
		ZIP:			01880

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	Cerence LLC
		DATE OF NAME CHANGE:	20190513

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	Diamond SpinCo, LLC
		DATE OF NAME CHANGE:	20190215
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Confidential Treatment Requested by Cerence LLC </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Pursuant to 17 C.F.R. Section&nbsp;200.83 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>CERENCE LLC </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>15 Wayside
Road </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Burlington, MA 01803 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right">July&nbsp;23, 2019 </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>VIA EDGAR AND FEDEX
</U></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of
Corporation Finance </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">100 F Street, N.E. </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Washington, D.C.
20549 </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="top">Attention:</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Barbara Jacobs and Edwin Kim</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
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<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Division of Corporate Finance</TD></TR>
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<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Office of Information Technologies and Services</TD></TR>
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<TD VALIGN="top" ALIGN="right"><B>Re:</B></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"><B>Cerence LLC</B></TD></TR>
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<TD VALIGN="top"></TD>
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<TD VALIGN="top"><B>Draft Registration Statement on Form 10</B></TD></TR>
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<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"><B>CIK No.&nbsp;0001768267</B></TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Dear Ms.&nbsp;Jacobs and Mr.&nbsp;Kim: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">On behalf of Cerence LLC, a Delaware limited liability company (the &#147;<U>Company</U>&#148;), we confidentially submitted in electronic form
for nonpublic review the accompanying Amendment No.&nbsp;1 (&#147;<U>Amendment No.</U><U></U><U>&nbsp;1</U>&#148;) to the Draft Registration Statement on Form 10 for the Company&#146;s common stock (the &#147;<U>Registration Statement</U>&#148;) as
originally submitted with the Securities and Exchange Commission (the &#147;<U>Commission</U>&#148;) on May&nbsp;20, 2019. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Amendment
No.&nbsp;1 reflects the responses of the Company to comments received in a letter from the Staff of the Commission (the &#147;<U>Staff</U>&#148;), dated June&nbsp;17, 2019 (the &#147;<U>Comment Letter</U>&#148;), and the inclusion of certain other
information in order to comply with requirements under the Commission&#146;s rules and regulations. The discussion below is presented in the order of the numbered comments in the Comment Letter. Certain capitalized terms set forth in this letter are
used as defined in Amendment No.&nbsp;1. For your convenience, set forth below are the Staff&#146;s comments followed by the Company&#146;s responses thereto and also provided are hard copies of Amendment No.1, marked to show changes from the
initial confidential submission of the Registration Statement on May&nbsp;20, 2019. All references to page numbers in our responses are to the pages of the information statement filed as Exhibit 99.1 (the &#147;<U>Information Statement</U>&#148;) to
Amendment No.&nbsp;1. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The Company respectfully submits the following as its responses to the Staff: </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Confidential Treatment Requested by Cerence LLC </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Pursuant to 17 C.F.R. Section 200.83 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of Corporation
Finance </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">July 23, 2019 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> Page&nbsp;
 2
 </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Draft Registration Statement on Form 10-12B submitted May&nbsp;21, 2019 </U></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Business </U></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Market Opportunities and Industry Trends,
page 65 </U></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B><I>1.</I></B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left"><B><I>You indicate that autonomous driving is a key industry trend and cognitive assistance in the domain of
trip planning will gradually and partially replace physical driving controls. Please clarify whether your products are currently used in autonomous driving systems. </I></B></P></TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">In response to the Staff&#146;s comment, the Company has added disclosure on pages&nbsp;9 and 64. Although the Company has
entered into agreements to provide its solutions and has had its solutions used in trials for autonomous driving systems, the Company&#146;s solutions have not yet been used in commercially available applications. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Research, Development, and Intellectual Property, page 68 </U></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B><I>2.</I></B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left"><B><I>Please provide a brief description of how your intellectual property portfolio that you will take
possession as part of the <FONT STYLE="white-space:nowrap">spin-off</FONT> differs from the intellectual property that will be retained by Nuance. On pages 108 and 109, you refer to the Nuance intellectual property as &#147;related to the
Business&#148; of Cerence or its &#147;field of use.&#148; Please provide more specificity as to range of intellectual property Cerence will receive, the intellectual property that Nuance will license to Cerence, and the intellectual property that
are not part of intellectual property agreement. </I></B></P></TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">In response to the Staff&#146;s comment, the
Company has provided additional disclosure on pages&nbsp;111 and 112. </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B><I>3.</I></B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left"><B><I>To the extent there are any material restrictions as to the use of either your intellectual property or
those from Nuance subject to the intellectual property agreement, please consider adding a risk factor to address such restrictions. </I></B></P></TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">In response to the Staff&#146;s comment, the Company has supplemented its disclosure on page&nbsp;32 and 33. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Key Metrics, page 70 </U></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B><I>4.</I></B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left"><B><I>Please advise whether the current management of the units that will comprise Cerence uses any key
performance indicators to evaluate their business beyond the financial measures provided on page 72. For example, you referenced an installed base figure on page 64 and units to be shipped, renewals, and vehicle end users on page 61.
</I></B></P></TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">Current management determined the financial metrics provided on page&nbsp;73 to be the only key
performance indicators for Cerence. As the Company onboards the future management team, the Company will continue to reevaluate other financial metrics and metrics as key performance indicators. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Confidential Treatment Requested by Cerence LLC </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Pursuant to 17 C.F.R. Section 200.83 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of Corporation
Finance </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">July 23, 2019 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> Page&nbsp;
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 </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations Operating
Results, page 74 </U></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B><I>5.</I></B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left"><B><I>Please explain the basis for your accounting classification treatment of acquired patent amortization
included within cost of revenues whereas the amortization of other intangible assets, such as acquired customer relationships, trade names and trademarks, are included within operating expenses. </I></B></P></TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">The Company&#146;s acquired intangible assets include technology and customer relationships. In determining the appropriate
classification of amortization of acquired intangible assets, the Company considers (i)&nbsp;the nature of the underlying assets, (ii)&nbsp;the classification of expenses that would have otherwise incurred internally had these assets not been
acquired externally, and (iii)&nbsp;whether the expenses are directly or indirectly related to providing the Company&#146;s products and services. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">The Company&#146;s core and completed technology assets primarily consist of those technologies that are currently in use and
integrated in the Company&#146;s software products and connected services. The amortization expense is directly related to the Company&#146;s products and services and thus is included within cost of revenues. The Company&#146;s customer
relationship assets represent the relationships with new customers that were acquired through business acquisitions. Customer acquisition costs that would have been incurred otherwise are included within sales and marketing expenses. Similarly, had
the Company developed the trade names and trademarks that it acquired externally, the costs incurred would have been included within sales and marketing. Therefore, the Company respectfully advises the Staff that it believes that its current
presentation of amortization expenses related to acquired intangible assets is appropriate. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Future Liquidity, page 86 </U></P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B><I>6.</I></B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left"><B><I>Please discuss the adequacy of the cash and cash equivalents that will be transferred to Cerence from
Nuance at the close of the distribution. </I></B></P></TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">In response to the Staff&#146;s comment, Amendment No.1
has been supplemented in Future Liquidity on page&nbsp;86 with a statement disclosing that Cerence will have adequate cash and cash equivalent resources at the close of the distribution. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Reorganization Transactions, page 104 </U></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B><I>7.</I></B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left"><B><I>Please provide a materially complete description of the reorganization transactions that must occur
through the close of the distribution to Nuance stockholders of shares of Cerence. An illustration of the reorganization transactions and the <FONT STYLE="white-space:nowrap">spin-off</FONT> may be useful to stockholders.
</I></B></P></TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">In response to the Staff&#146;s comment, the Company has revised the disclosure on page&nbsp;107
to provide a general description of the principal components of the Reorganization Transactions. Historically, although Nuance&#146;s automotive business has been reported as a separate segment, it has been fully integrated with the rest of
Nuance&#146;s businesses. As a result, a complex series of transactions that comprise the Reorganization Transactions are necessary to separate Nuance&#146;s </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Confidential Treatment Requested by Cerence LLC </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Pursuant to 17 C.F.R. Section 200.83 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of Corporation
Finance </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">July 23, 2019 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> Page&nbsp;
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automotive business from its remaining businesses. More specifically, the Reorganization Transactions involve over 70 steps with over 40 different subsidiaries in more than 15 jurisdictions, all
of which are designed to effect the transfer of assets and liabilities comprising the Business to the Company or its subsidiaries, and the transfer of assets and liabilities comprising the business retained by Nuance to Nuance or its subsidiaries.
The Company respectfully submits that more granular detail concerning the Reorganization Transactions would not provide investors with additional information useful to an investment decision but, to the contrary, would likely be confusing to
investors in its volume and technical nature. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Exclusive Forum, page 113 </U></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B><I>8.</I></B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left"><B><I>Your forum selection provision identifies the Court of Chancery of the State of Delaware as the exclusive
forum for certain litigation, including any &#147;derivative action.&#148; Please disclose whether this provision applies to actions arising under the Securities Act or Exchange Act. In that regard, Section&nbsp;27 of the Exchange Act creates
exclusive federal jurisdiction over all suits brought to enforce any duty or liability created by the Exchange Act or the rules and regulations thereunder, and Section&nbsp;22 of the Securities Act creates concurrent jurisdiction for federal and
state courts over all suits brought to enforce any duty or liability created by the Securities Act or the rules and regulations thereunder. If the provision applies to Securities Act claims, please revise to state that there is uncertainty as to
whether a court would enforce such provision and to state that stockholders will not be deemed to have waived the company&#146;s compliance with the federal securities laws and the rules and regulations thereunder. If this provision does not apply
to actions arising under the Securities Act or Exchange Act, please ensure that the exclusive forum provision in the governing documents states this clearly. </I></B></P></TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">In response to the Staff&#146;s comment, the Company has revised the disclosure on pages&nbsp;36 and 117. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Index to combined financial statements, page <FONT STYLE="white-space:nowrap">F-1</FONT> </U></P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B><I>9.</I></B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left"><B><I>We note your Emerging Growth Company status where you have presented audited financial statements for the
last two fiscal years. Furnish all financial statements required by Regulation <FONT STYLE="white-space:nowrap">S-X</FONT> and the supplementary financial information required by Item 302 of Regulation <FONT STYLE="white-space:nowrap">S-K</FONT>
pursuant to Item 13 of Form 10. Please also refer to the Division of Corporation Finance Financial Reporting Manual 10220.1(d). </I></B></P></TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">In response to the Staff&#146;s comment, the Information Statement has been supplemented on
<FONT STYLE="white-space:nowrap">page&nbsp;F-33</FONT> to include additional information as required by Item&nbsp;302 of <FONT STYLE="white-space:nowrap">Regulation&nbsp;S-K</FONT> pursuant to Item&nbsp;13 of Form&nbsp;10. As discussed with the
Staff, the Company expects to file a future amendment to the Form&nbsp;10 in August 2019 to supplement the Information Statement with additional financial information for fiscal year 2016 as required by
<FONT STYLE="white-space:nowrap">Regulation&nbsp;S-X.</FONT> </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Confidential Treatment Requested by Cerence LLC </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Pursuant to 17 C.F.R. Section 200.83 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of Corporation
Finance </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">July 23, 2019 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> Page&nbsp;
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B><I>10.</I></B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left"><B><I>Please update your financial statements in your next amendment to Form 10. Please refer to Rule <FONT
STYLE="white-space:nowrap">3-12(g)</FONT> of Regulation <FONT STYLE="white-space:nowrap">S-X.</FONT> </I></B></P></TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">In response to the Staff&#146;s comment, the Information Statement has been updated to include interim financial statements for
the six months ended March&nbsp;31, 2019. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Notes to the Combined Financial Statements </U></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Note 2. Basis of Presentation, page <FONT STYLE="white-space:nowrap">F-9</FONT> </U></P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B><I>11.</I></B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left"><B><I>You disclose that the combined financial statements include the allocation of certain assets and
liabilities that have historically been held at the Nuance corporate level by shared entities but which are specifically identifiable or allocable to the Cerence business. Regarding the allocations, revise to disclose more fully the allocation
methods and assumptions used. For example, disclose the guidance, assumptions and methodology used to allocate Nuance goodwill Cerence. Please refer to SAB Topic 1.B.1 and specifically, with respect to the goodwill, ASC <FONT
STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">350-20-35-45</FONT></FONT></FONT> and 46. </I></B></P></TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">In response to the Staff&#146;s comment, the Company has supplemented the Information Statement in footnote 2 to the audited
financial statements on <FONT STYLE="white-space:nowrap">page&nbsp;F-9</FONT> to disclose in more detail the allocation methods and assumptions used to allocate assets and liabilities of Nuance corporate, with the exception of goodwill, to the
Cerence business. Additionally, the Company has revised footnote 3(e) on <FONT STYLE="white-space:nowrap">page&nbsp;F-13</FONT> to include the goodwill allocation methodology. </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>

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<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B><I>12.</I></B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left"><B><I>Tell us and disclose the rationale for not reflecting the Nuance allocable stock-based compensation in
the Cerence Combined Statements of Operations while reflecting it in the net parent investment as you have disclosed on page <FONT STYLE="white-space:nowrap">F-10.</FONT> </I></B></P></TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">The Company respectfully advises the Staff that Nuance allocable stock-based compensation was reflected in the Company&#146;s
Combined Statement of Operations and appears in the Information Statement in footnote 13 on <FONT STYLE="white-space:nowrap">page&nbsp;F-25,</FONT> which discloses the split of stock-based compensation across the financial statement line items of
the Company&#146;s Combined Statements of Operations. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Note 3. Summary of Significant Accounting Policies </U></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>(c) Revenue recognition, page <FONT STYLE="white-space:nowrap">F-11</FONT> </U></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
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<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B><I>13.</I></B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left"><B><I>On page <FONT STYLE="white-space:nowrap">F-11,</FONT> you state that you offer some of your products via
a <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">Software-as-a-Service</FONT></FONT></FONT> model also known as a hosted model. In this type of arrangement, you are compensated in three ways:
(1)&nbsp;fees for <FONT STYLE="white-space:nowrap">up-front</FONT> <FONT STYLE="white-space:nowrap">set-up</FONT> of the service environment and (2)&nbsp;fees charged for hosted service subscriptions. However, you only cited two ways in your
disclosures. Please clarify or revise to denote the <FONT STYLE="white-space:nowrap">on-demand</FONT> service subscription fees as item &#147;(3).&#148; </I></B></P></TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">In response to the Staff&#146;s comments, the Company has revised the Information Statement in footnote 3(c) to the audited
financial statements on <FONT STYLE="white-space:nowrap">page&nbsp;F-11</FONT> to only reference &#147;two ways&#148;. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Confidential Treatment Requested by Cerence LLC </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Pursuant to 17 C.F.R. Section 200.83 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of Corporation
Finance </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">July 23, 2019 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> Page&nbsp;
 6
 </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>General </U></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B><I>14.</I></B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left"><B><I>You disclose that Nuance may distribute at least 80.1% of the common stock of Cerence, Inc. to
stockholders , but as much as 100% of the Cerence shares if you do not receive a private letter ruling from the IRS as to the tax free treatment of the <FONT STYLE="white-space:nowrap">spin-off</FONT> prior to the distribution. You further indicate
that Nuance may retain up to 18.5% ownership interest in Cerence, but will sell all of the shares to third parties so soon as reasonable practicable following the <FONT STYLE="white-space:nowrap">spin-off.</FONT> Please clarify how you will disclose
to investors whether the IRS private letter ruling has been received and the amount of shares that Nuance will retain. Further, if Nuance has discretion as to the amount of Cerence shares it will retain, please clarify how Nuance&#146;s management
will decide on the appropriate amounts and its potential impact on the operations and financial condition for Cerence. For example, it is unclear whether the size of the amount of shares retained by Nuance will impact the Cerence dividend policy,
the amount of cash transferred to Cerence as part of the <FONT STYLE="white-space:nowrap">spin-off,</FONT> and the amounts of indebtedness to be incurred by Cerence. </I></B></P></TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">The Company expects to receive the IRS private letter ruling in advance of requesting that the Registration Statement be
declared effective and, as a result, the Information Statement that is distributed to Nuance stockholders will indicate whether the IRS private letter ruling has been obtained and, if applicable, the actual number of shares that Nuance will retain.
The Company believes the amount of shares retained by Nuance will not impact Cerence&#146;s operations or financial condition. Cerence has no current plans to raise funds by selling equity securities. In addition, the retention of shares by Nuance
will not impact Cerence dividend policy, the amount of cash transferred to Cerence as part of the <FONT STYLE="white-space:nowrap">spin-off</FONT> or the amount of indebtedness to be incurred by Cerence. The retention determination to be made by
Nuance is only expected to impact the number of Cerence shares to be distributed to its stockholders. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">* * * </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Confidential Treatment Requested by Cerence LLC </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Pursuant to 17 C.F.R. Section 200.83 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of Corporation
Finance </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">July 23, 2019 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> Page&nbsp;
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">If you have any questions regarding Amendment No.&nbsp;1 and the Information Statement,
please do not hesitate to contact the undersigned at (781) <FONT STYLE="white-space:nowrap">565-4792</FONT> or John C. Kennedy of Paul, Weiss, Rifkind, Wharton&nbsp;&amp; Garrison LLP at (212) <FONT STYLE="white-space:nowrap">373-3025.</FONT> </P>
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<TD VALIGN="top">Sincerely,</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">/s/ Leanne Fitzgerald</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Leanne Fitzgerald</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Vice President, Associate General Counsel&nbsp;&amp; Assistant Secretary of Nuance Communications, Inc., as sole member of Cerence LLC</TD></TR>
</TABLE></DIV> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">cc:</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">Arthur Giterman, Chief Accounting Officer </P></TD></TR></TABLE>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman">Nuance Communications, Inc. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">John C. Kennedy </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">Steven J.
Williams </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">David E. Sobel </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman">Paul, Weiss, Rifkind, Wharton&nbsp;&amp; Garrison LLP </P>
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