Smaller Loss for Nuance’s Third Quarter, Revenue Up
Nuance Communications today announced financial results for its third-quarter 2015 that ended June 30, 2015, with the firm reporting revenue of $477.9 million, compared to $475.5 million for third-quarter 2014.
Non-GAAP (Generally Accepted Accounting Principles) revenue was $488.7 million, which included $10.8 million of revenue lost due to accounting treatment in conjunction with acquisitions, compared to non-GAAP revenue of $486.8 million for third-quarter 2014. Nuance says third-quarter 2015 revenue was negatively affected by currency fluctuations. If third-quarter 2014 currency rates were applied to Nuance’s third-quarter 2015 revenue, third-quarter 2015 revenue would have been approximately $17 million higher. In third-quarter 2015, total recurring revenue was $330.4 million and represented 68 percent of total non-GAAP revenue, compared to $314.3 million and 65 percent in third-quarter 2014.
For third-quarter 2015, Nuance reported a net loss of $(39.4) million, or $(0.13) per share, compared to a net loss of $(54.2) million, or $(0.17) per share, for third-quarter 2014. Non-GAAP net income was $101.1 million, or $0.32 per diluted share, up from non-GAAP net income of $87.6 million, or $0.27 per diluted share, for third-quarter 2014.
Nuance’s third-quarter fiscal 2015 non GAAP operating margin was 26.4 percent, up from 23.5 percent in third-quarter 2014.
The firm reported cash flow from operations of $120.3 million for third-quarter 2015, up 24 percent from $97.0 million in the third quarter of fiscal 2014.
Nuance ended the third quarter of 2015 with $647.6 million in total deferred revenue, up 24 percent from $523.4 million at the end of the third-quarter 2014. New bookings were $484.4 million, compared to $330.4 million for third-quarter 2014.
Through the first three quarters of fiscal 2015, Nuance reported total net new bookings of $1,092.9 million, up 2 percent from $1,071.7 million for the first three quarters of fiscal 2014. Nuance ended the third quarter of 2015 with $488.7 million in cash, cash equivalents, and marketable securities.
“In our third quarter, Nuance delivered revenue and EPS that exceeded our non-GAAP guidance ranges, and net new bookings that have us on track to our full fiscal year guidance,” commented Nuance Chief Financial Officer Dan Tempesta. “Last quarter, we announced a formal transformation program with a goal of delivering $125 million in annualized expense reductions by the end of fiscal 2016. Actions taken to date under that program are expected to deliver $50 million in annualized expense reductions and contributed to improved third quarter EPS, operating margin and operating cash flow.”
- May 2015: Revenue Flat, Loss for Nuance Communications in Second-Quarter 2015
- February 2015: Nuance Reports Loss for First Quarter, but Revenue Exceeds Expectations
- 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
- May 2014: Loss for Nuance’s Second Quarter, but Sales are Up
- January 2014: Nuance Reports Preliminary Results for First Quarter, Revenue, EPS Better than Expected