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

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Nuance Communications today announced financial results for its fiscal 2013 year and fourth quarter that ended September 30, 2013.

In fiscal 2013, Nuance reported revenue of $1,855.3 million, a 12.3 percent increase over revenue of $1,651.5 million in fiscal 2012. In fiscal 2013, Nuance reported non-GAAP revenue of $1,957.7 million, which includes $102.4 million in revenue lost to accounting treatment in conjunction with acquisitions (GAAP refers to “Generally Accepted Accounting Practices”). Fiscal 2013 non GAAP revenue grew 12.6 percent over non GAAP revenue of $1,738.1 million in fiscal 2012.

In fiscal 2013, Nuance recognized a net loss of $115.2 million, or $0.37 per share, compared with net income of $207.1 million, or $0.65 per diluted share, in fiscal 2012. In fiscal 2013, Nuance reported non-GAAP net income of $428.0 million, or $1.33 per diluted share, compared to $555.9 million, or $1.73 per diluted share, in fiscal 2012. Nuance’s fiscal 2013 non-GAAP operating margin was 27.9 percent, compared to 35.8 percent in fiscal 2012. Nuance reported cash flow from operations of $395.0 million in fiscal 2013, compared to $473.0 million in fiscal 2012. Nuance ended fiscal 2013 with a balance of cash, cash equivalents and marketable securities of $846.8 million. As of September, Nuance had repurchased 9.805 million shares of common stock, for a total amount of $184.4 million at an average price per share of $18.81.

In the fourth quarter of fiscal 2013, Nuance reported revenue of $472.2 million, compared to $468.8 million in the fourth quarter of fiscal 2012. Nuance reported non-GAAP revenue of $490.4 million, which includes $18.2 million in revenue lost to accounting treatment in conjunction with acquisitions, compared to $490.1 million in the fourth quarter of fiscal 2012.

In the fourth quarter of fiscal 2013, Nuance recognized a loss of $32.3 million, or $0.10 per share, compared with GAAP net income of $117.6 million, or $0.36 per diluted share, in the fourth quarter of fiscal 2012. In the fourth quarter of fiscal 2013, Nuance reported non-GAAP net income of $95.2 million, or $0.30 per diluted share, compared to non-GAAP net income of $164.9 million, or $0.51 per diluted share, in the fourth quarter of fiscal 2012. Nuance’s fourth quarter fiscal 2013 non GAAP operating margin was 25.3 percent, down from 37.2 percent in the fourth quarter of fiscal 2012. Nuance reported cash flow from operations of $93.5 million in the fourth quarter of fiscal 2013, down from $141.5 million in the fourth quarter of fiscal 2012.

“We are pleased that we achieved fourth quarter results consistent with our guidance, and executed on our strategy to enter new growth markets, deliver a new generation of solutions and enable attractive, recurring revenue streams,” commented Paul Ricci, Nuance Chairman and CEO.

Highlights from the quarter include:

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  • Healthcare – For Nuance’s healthcare solutions, fourth quarter fiscal 2013 non-GAAP revenue was $226.7 million and fiscal 2013 non-GAAP revenue was $911.6 million. Nuance secured new business with key healthcare customers including Adventist, Brigham and Women’s Hospital, Brooklyn Hospital, Hackensack University, Steward, SW General, Tenet, UAB, UMH, Union, Unity, US Veterans Administration and Wilson.
  • Mobile & Consumer – For Nuance’s mobile and consumer solutions, fourth quarter fiscal 2013 non-GAAP revenue was $120.3 million and fiscal 2013 non-GAAP revenue was $479.2 million. Nuance secured new business or design wins with key mobile customers including Charter Communications, Cisco, Daimler, DoCoMo, GM, Huawei, Hyundai, iMobile, Kyocera, Mahindra, Motospeak, Nissan, Nokia, Panasonic, Roadtrack, Samsung, TCL CarTel, Telstra, TIM Brazil, Toyota, Verizon, Vodafone Spain, Vonage and VW.
  • Enterprise – For Nuance’s enterprise solutions, fourth quarter fiscal 2013 non-GAAP revenue was $86.4 million and fiscal 2013 non-GAAP revenue was $323.5 million. Nuance secured new business with key enterprise customers including Allstate, Australia Department of Health Services, Barclays, Cathay Pacific, Charles Schwab, CIBC, DBS Bank, FIS, Garanti Bank, ING, Kaiser, Korea Telecomm, Nice, Optus, PG&E, Prime Therapeutics, PSE&G, Singtel, State of Illinois, TalkTalk, U.K. HM Revenue & Customs, Verint, Vodafone, VSP, WellPoint, Wells Fargo and Windstream.
  • Imaging – For Nuance’s document imaging solutions, fourth quarter fiscal 2013 non-GAAP revenue was $57.0 million and fiscal 2013 non-GAAP revenue was $243.4 million. Nuance secured new business with key imaging customers including Adidas, Bank Danamon, Bart’s, Canon, City of Edmonton, Datev, HP, Ikea, Kodak, Nationwide, Ricoh, Steptoe & Johnson and Xerox.
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