Loss for Nuance’s First Quarter, But Bookings up 23 Percent

Nuance Communications today announced results for its first quarter of its fiscal 2017 that ended on December on 31, 2016, stating that it increased bookings and revenue for its enhanced solutions that combine speech and natural-language technologies with artificial intelligence, particularly for enterprise, automotive, and clinical documentation. The firm reported revenue of $487.7 million, compared to $486.1 million for first-quarter 2016, and a loss of $23.9 million, or a loss of $0.08 per share, compared to a loss of $12.1 million, or a loss of $0.04 per share, both versus the first-quarter 2016.

Nuance however reported net new bookings of $380.3 million, up 23 percent from $308.7 million in first-quarter 2016.

Nuance also reported non GAAP (Generally Accepted Accounting Principles) revenue of $496.0 million, which includes revenue lost to accounting involved with acquisitions, compared to $494.9 million in first-quarter 2016.

The firm reported non-GAAP net income of $102.5 million, or $0.35 per share, down from non-GAAP net income of $113.0 million, or $0.36 per share, for first-quarter 2016. Nuance’s first-quarter fiscal 2017 GAAP operating margin was 4.9 percent, down from 6.5 percent in first-quarter 2016.

The firm’s first-quarter fiscal 2017 non GAAP operating margin was 26.9 percent, down from 28.6 percent versus first-quarter 2016. Nuance reported cash flow from operations of $124.9 million for first-quarter 2017, down 12 percent from $141.1 million reported for first-quarter 2016.

Nuance Chief Financial Officer Dan Tempesta said in a prepared statement: “Nuance delivered strong performance against our guidance in the first quarter as we continued our execution and momentum across the business. We produced solid results in each of our key financial metrics including net new bookings, revenue, recurring revenue, deferred revenue, EPS and cash flow from operations. We believe last quarter’s groundwork and a robust outlook for the second quarter place the company on track for our fiscal year 2017 non-GAAP guidance with a return to organic revenue growth, and continued strong cost discipline and profitability.”

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