Revenue Flat for Nuance’s Third Quarter, But Loss Smaller than Third-Quarter Loss a Year Ago

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On August 8th, Nuance Communications reported financial results for its third quarter that ended on June 30, 2016. Nuance reported revenue of $477.9 million, compared to $477.9 million for third-quarter 2015. The firm also reported a net loss of $11.8 million, or $0.04 per share, compared to  a net loss of $39.4 million, or $0.13 per share, for third-quarter 2015.

It also reported non-GAAP (Generally Accepted Accounting Principles) revenue of $484.9 million, which includes $7.0 million of revenue excluded from GAAP revenue due to accounting related to acquisitions, as compared to $488.7 million for third-quarter 2015.

In its third quarter, recurring revenue represented 71 percent of Nuance’s total revenue, compared to 68 percent a year ago, on both a GAAP and non-GAAP basis. Nuance also reported new bookings of $362.9 million. This includes an expected decline from $484.4 million recorded in third-quarter 2015, as the prior-year period included “a significant automotive booking that caused bookings in that quarter to be unusually high.”

Nuance reported non-GAAP net income of $107.8 million, or $0.38 per diluted share, up from non-GAAP net income of $101.1 million, or $0.32 per diluted share, for third-quarter 2015.

Nuance’s third-quarter operating margin was 6.0 percent, up 3.0 percent versus third-quarter 2015.  Nuance reported cash flow from operations of $125.9 million for its third quarter, up slightly from the $120.3 million it reported for third-quarter 2015.

“Overall, we have delivered a solid performance in our third quarter and year-to-date 2016, particularly in our Enterprise segment and automotive business,” commented Daniel Tempesta, Nuance CFO. “Balancing our continued initiatives to reduce costs and improve productivity with investments in our products and growth markets, we believe we are positioning the company for renewed growth and profitability.”

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