Nuance Reports Loss for First Quarter, but Revenue Exceeds Expectations
February 9, 2015 – On February 5th, Nuance Communications (which now officially owns Notable Solutions) announced financial results for its first quarter for its fiscal year 2015 ending December 31, 2014, with revenue of $474.0 million, up 0.9 percent from $470.0 million reported for first-quarter 2014, and a net loss of $50.5 million, or $0.16 per share, compared to a net loss of $55.4 million, or $0.18 per share, in first-quarter fiscal 2014.
Non-GAAP (Generally Accepted Accounting Principles) net income was $82.0 million, or $0.25 per diluted share, up from non-GAAP net income of $76.6 million, or $0.24 per diluted share, in the first-quarter fiscal 2014.
New bookings for the first-quarter 2015 were $303.8 million, compared to $321.5 million in first-quarter fiscal 2014.
Nuance Chief Financial Officer Tom Beaudoin commented: “First-quarter revenue and EPS exceeded our targets. First-quarter recurring revenues represented 66 percent of total revenue, up 3 percentage points from last year’s first quarter, while we continue to transition our revenue model toward more stable, predictable recurring revenue streams. Our recurring revenues continue to benefit the business as we sustained growth in deferred revenue and operating cash flow and delivered our second consecutive quarter of year-over-year improvement in EPS and operating margin.”
Highlights from the Quarter
For Nuance’s document-imaging solutions business, first-quarter fiscal 2015 non-GAAP revenue was $60.1 million. Key customers in the quarter included the City of Denver, Connolly, DLA Piper, Hyland, Stikeman Elliott, Swiss Post, Telecom Italia, U.S. Department of Veteran’s Affairs, and ZKB Zurcher Kantonal Bank.
Following is results for Nuance’s other businesses:
- For Nuance’s healthcare-solutions business, first-quarter fiscal 2015 non-GAAP revenue was $231.0 million. Key customers in the quarter included Catholic Health Systems, Centura Health, Children’s Hospital of Orange County, Hamad Medical Center, Maine Medical, OA Centers for Orthopaedics, Universal Health Services, University of Florida Shands Hospital, University of South Alabama, University of Texas MD Anderson Cancer Center, U.S. Veteran’s Administration, and Vidant Health.
- For Nuance’s mobile- and consumer-solutions business, first-quarter fiscal 2015 non-GAAP revenue was $107.3 million. Key customers and OEM design wins in the quarter included BMW, Bosch, ChuangZu, DoCoMo, Ford, Fujitsu, Harman, Honda, Huawei, LG, Mahindra, Mitac, Motorola, Optus, Panasonic, Peugeot, Pioneer, Renault, Samsung, Subaru, Thales, Vivo, and ZTE.
- For Nuance’s enterprise-solutions business, first-quarter fiscal 2015 non-GAAP revenue was $90.6 million. Key customers in the quarter included Barclays, Citigroup, Delta Airlines, Deutsche Telekom, Ford, Jetstar, Metro PCS, Moshi Moshi, PayPal, Scotia Bank, SK Telecom, Telecom Italia, Vodafone, and Westpac Bank.
- January 2015: CHINESE COMPANY BAIDU RUMORED TO BE ACQUIRING NUANCE COMMUNICATIONS
- November 2014: NUANCE’S FOURTH-QUARTER EXCEEDS FORECAST, BUT REPORTS LOSS FOR FULL YEAR
- August 2014: REVENUE UP FOR NUANCE’S THIRD QUARTER, BUT FIRM REPORTS A LOSS
- July 2014: DOCUMENT-CAPTURE LEADER NUANCE REPORTEDLY BUYS NOTABLE SOLUTIONS
- May 2014: LOSS FOR NUANCE’S SECOND QUARTER, BUT SALES ARE UP
- November 2013: REVENUE UP 12.3 PERCENT FOR NUANCE’S FISCAL YEAR, BUT REPORTS LOSS FOR FULL YEAR AND FOURTH QUARTER