Loss for Nuance’s First Quarter, but Revenue Up
Nuance Communications reported a loss of $(12.1) million, or $(0.04) per share for its first quarter that ended on December 31, 2015, compared to a net loss of $(50.5) million, or $(0.16) per share, for the same period a year ago. However, first-quarter revenue was $486.1 million, an increase from the $474.0 million Nuance reported for its first-quarter a year ago.
Nuance reported non-GAAP (Generally Accepted Accounting Principles) revenue of $494.9 million, which includes $8.8 million of revenue lost to an accounting treatment involving acquisitions, compared to non-GAAP revenue of $489.0 million for the same period a year ago.
The firm says that its first-quarter 2016 revenue was hurt by currency fluctuations, and that if first-quarter 2015 currency rates were applied to first-quarter 2016 non-GAAP revenue, Nuance would have achieved approximately 2-percent organic non-GAAP revenue growth for the quarter.
In the first quarter of 2016, total non-GAAP recurring revenue was $332.5 million and represented 67 percent of total non-GAAP revenue, compared to $321.7 million and 66 percent a year ago. In the first quarter of fiscal 2016, Nuance reported net new bookings of $308.7 million, up 2 percent from $303.8 million a year ago. If first-quarter 2015 currency rates were applied to first=quarter 2016 net new bookings, new bookings would have been up approximately 7 percent from a year ago.
Nuance reported non-GAAP net income of $113.0 million, or $0.36 per diluted share, up from non-GAAP net income of $82.0 million, or $0.25 per diluted share for the quarter.
The company’s non GAAP operating margin was 28.6 percent, up from 22.0 percent versus the same period a year ago.
“In our first quarter, Nuance delivered strong revenue, non-GAAP EPS, and cash flow from operations,” commented Nuance CFO Dan Tempesta. “We continued to make substantial progress and achieve meaningful results from our formal transformation program. The entire organization is committed to ongoing performance enhancements that will lead us to improve growth, margins and shareholder value.”
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- August 2015: Smaller Loss for Nuance’s Third Quarter, Revenue Up
- 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