Smaller Loss for Nuance’s Third Quarter, Revenue Up

nuance hqNuance Communications today announced financial results for its third-quarter 2015 that ended June 30, 2015, with the firm reporting revenue of $477.9 million, compared to $475.5 million for third-quarter 2014.

Non-GAAP (Generally Accepted Accounting Principles) revenue was $488.7 million, which included $10.8 million of revenue lost due to accounting treatment in conjunction with acquisitions, compared to non-GAAP revenue of $486.8 million for third-quarter 2014. Nuance says third-quarter 2015 revenue was negatively affected by currency fluctuations. If third-quarter 2014 currency rates were applied to Nuance’s third-quarter 2015 revenue, third-quarter 2015 revenue would have been approximately $17 million higher. In third-quarter 2015, total recurring revenue was $330.4 million and represented 68 percent of total non-GAAP revenue, compared to $314.3 million and 65 percent in third-quarter 2014.

For third-quarter 2015, Nuance reported a net loss of $(39.4) million, or $(0.13) per share, compared to a net loss of $(54.2) million, or $(0.17) per share, for third-quarter 2014. Non-GAAP net income was $101.1 million, or $0.32 per diluted share, up from non-GAAP net income of $87.6 million, or $0.27 per diluted share, for third-quarter 2014.

Nuance’s third-quarter fiscal 2015 non GAAP operating margin was 26.4 percent, up from 23.5 percent in third-quarter 2014.

The firm reported cash flow from operations of $120.3 million for third-quarter 2015, up 24 percent from $97.0 million in the third quarter of fiscal 2014.

Nuance ended the third quarter of 2015 with $647.6 million in total deferred revenue, up 24 percent from $523.4 million at the end of the third-quarter 2014. New bookings were $484.4 million, compared to $330.4 million for third-quarter 2014.

Through the first three quarters of fiscal 2015, Nuance reported total net new bookings of $1,092.9 million, up 2 percent from $1,071.7 million for the first three quarters of fiscal 2014. Nuance ended the third quarter of 2015 with $488.7 million in cash, cash equivalents, and marketable securities.

“In our third quarter, Nuance delivered revenue and EPS that exceeded our non-GAAP guidance ranges, and net new bookings that have us on track to our full fiscal year guidance,” commented Nuance Chief Financial Officer Dan Tempesta. “Last quarter, we announced a formal transformation program with a goal of delivering $125 million in annualized expense reductions by the end of fiscal 2016. Actions taken to date under that program are expected to deliver $50 million in annualized expense reductions and contributed to improved third quarter EPS, operating margin and operating cash flow.”

More Resources

November 2013: Revenue up 12.3 Percent for Nuance’s Fiscal Year, but Reports Loss for Full Year and Fourth Quarter

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