Loss for Nuance’s Second Quarter, but Sales are Up
Nuance Communications reported that for its second quarter ended March 31st, revenue was $475.7 million, compared to $451.0 million in second-quarter 2013, but the company reported a loss of $39.2 million, compared with a loss of $25.8 million in second-quarter 2013.
Nuance reported non GAAP revenue of $490.0 million, which includes $14.3 million in revenue lost to accounting treatment in conjunction with acquisitions, compared to $484.0 million in second quarter 2013. In the second quarter of fiscal 2014, Nuance reported bookings of $638.0 million, up 43.3 percent from $445.1 million in second-quarter 2013.
The firm ended the second quarter with total deferred revenue of $504.9 million, compared to $388.3 million a year ago, and a cash balance of $809.5 million.
“We are pleased with our second quarter and first half performance, particularly in our Healthcare and Mobile & Consumer businesses. We exceeded our targets for revenue, EPS and bookings. A growing proportion of our revenue and bookings continues to shift toward recurring revenue models, which reflects in our growing deferred revenue. Balancing more aggressive moves to reduce costs and improve productivity with investments in our products and markets, we believe we are well-positioned for renewed growth and profitability,” commented Nuance CEO Tom Beaudoin.
Highlights from the quarter include:
Imaging – For Nuance’s document-imaging solutions, second-quarter fiscal 2014 non-GAAP revenue was $56.0 million. Key imaging customers included ABN AMRO Bank, Canon, Falabella, Fuji Xerox, IKEA, Konica Minolta, Prince George, Ricoh, Stinson, Tetrapak, and Xerox.
Healthcare – For Nuance’s healthcare solutions, second-quarter fiscal 2014 non-GAAP revenue was $237.0 million. Key healthcare customers included Acadia Health, Cerner, Charleston Area Medical Center, Children’s Hospital of Atlanta, Cox Health Systems, Franciscan Alliance, Florida Hospital, Healthtrust, Life Span, Northwestern, Palomar Health, Shannon Health, Sutter Health Support Services, Trinity Health, Universal Health Services, and Vanderbilt University Hospital.
Mobile & Consumer – For Nuance’s mobile and consumer solutions, second-quarter fiscal 2014 non-GAAP revenue was $109.8 million. Key mobile customers included Audi, BMW, Comcast, CTIN Vietnam, DT, Elektrobit Automotive, Harmon, LG, Mercedes, Samsung, TISA, Toyota, and ZTE.
Enterprise – For Nuance’s enterprise solutions, second-quarter fiscal 2014 non-GAAP revenue was $87.2 million. Key enterprise customers included AT&T, Bell Canada, Charles Schwab, Delta Airlines, eBay, Health Care Services Corp, ING Canada, KCOM Group, Manulife, Microsoft, Oracle, Telstra, Time Warner Cable, UK DWP, UK HMRevenue, and Customs.