Revenue up for Nuance’s Fourth Quarter, Entire Year, but Reports Loss for Quarter and Year

nuance-logo-oFor the fourth quarter of its fiscal 2015 year, Nuance Communications reported revenue of $504.1 million, up from $502.3 million a year ago. However, for fourth-quarter 2015, Nuance reported a net loss of $11.0 million, or $0.04 per share, compared to a net loss of $1.5 million, or $0.00 per share, for fourth-quarter 2014.

Nuance reported non-GAAP (Generally Accepted Accounting Principles) net income of $129.6 million, or $0.41 per diluted share, up from non-GAAP net income of $107.6 million, or $0.33 per diluted share, for fourth-quarter 2014. Nuance’s fourth-quarter 2015 non GAAP operating margin was 30.2 percent, up from 25.9 percent for fourth-quarter 2014.

Nuance reported cash flow from operations of $151.6 million for fourth-quarter 2015, up 58.0 percent from $95.9 million for fourth-quarter 2014.

Fourth-Quarter 2015 Revenue

The firm also reported higher non-GAAP) revenue of $513.3 million, which includes $9.2 million of revenue lost to accounting treatment in conjunction with acquisitions, compared to non-GAAP revenue of $520.3 million for fourth-quarter 2014.

Nuance says its fourth-quarter 2015 revenue was negatively affected by currency fluctuations as well. If fourth-quarter 2014 currency rates were applied to fourth-quarter 2015 non-GAAP revenue, Nuance would have achieved approximately 1 percent non-GAAP revenue growth for the quarter.

In fourth-quarter 2015, total recurring revenue was $347.0 million and represented 68 percent of total non-GAAP revenue, compared to $325.7 million and 63 percent a year ago.

In fourth-quarter 2015, Nuance reported new bookings of $357.4 million, up 8.7 percent from $328.8 million a year ago. If fourth-quarter 2014 currency rates were applied to Nuance’s fourth quarter 2015, it says net new bookings would have been up 12 percent from a year ago.

“Nuance delivered a strong finish to its fiscal year, reporting revenue, EPS, cash flow from operations, margins and net new bookings that all exceeded our expectations,” commented Nuance CFO Dan Tempesta. “We made substantial progress on our company-wide transformation project, and continued to prioritize resources and focus toward our most significant market opportunities. We expect to continue our improvements in financial performance and lead the company to improved growth in 2016 and beyond.”

Fiscal Year 2015 Performance

For the entire year, Nuance GAAP revenue of $1,931.1 million, up from $1,923.5 million for 2014.

It reported non-GAAP revenue of $1,979.1 million, which includes $47.9 million of revenue lost to accounting treatment in conjunction with acquisitions.

Fiscal-2015 non-GAAP revenue declined slightly from non-GAAP revenue of $1,987.1 million for 2014.

Nuance again says fiscal-2015 revenue was negatively affected by currency fluctuations. If fiscal 2014 currency rates were applied to Nuance’s 2015 non-GAAP revenue, Nuance would have achieved approximately 1 percent non-GAAP revenue growth for the year.

In fiscal 2015, total recurring revenue was $1,314.7 million and represented 66 percent of total non-GAAP revenue, compared to $1,263.3 million and 64 percent in fiscal 2014.

In fiscal 2015, Nuance reported new bookings of $1,450.4 million, up 3.6 percent from $1,400.6 million for 2014. If fiscal year 2014 currency rates were applied to Nuance’s fiscal year 2015, new bookings would have been up 6 percent from a year ago.

For the entire year, Nuance reported a net loss of $115.0 million, or $0.36 per share, compared to a net loss of $150.3 million, or $0.47 per share, for 2014.

For the entire year, Nuance reported non-GAAP net income of $411.6 million, or $1.27 per diluted share, compared to $360.1 million, or $1.12 per diluted share, for 2014. Nuance’s fiscal 2015 non-GAAP operating margin was 26.2 percent, compared to 23.7 percent for 2014.

Nuance reported cash flow from operations of $487.6 million for 2015, compared to $358.1 million for 2014.

The company ended fiscal 2015 with total deferred revenue of $668.2 million, up 21.9 percent compared to $548.1 million a year ago, and with $568.8 million in cash, cash equivalents, and marketable securities.

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