Nuance Reports Financials, Says Malware Attack Cost Some $68 Million
On November 28th, Nuance Communications announced financial results for its fiscal 2017 year, and for its fourth quarter that ended on September 30, 2017, both of which were affected by a global malware attack.
The firm says it “delivered a strong fourth quarter and ended fiscal 2017 with solid performance in net new bookings and recurring revenue driven by demand for its Dragon Medical cloud solution, Enterprise, specifically voice biometrics and omni-channel and digital offerings, and clinical documentation improvement solutions.”
Fourth Quarter of Fiscal 2017 Performance
Nuance reported revenue of $465.9 million for the fourth quarter, compared to $506.2 million a year ago. In the fourth quarter, total recurring revenue represented 71 percent of total revenue, up 100 points from a year ago. Nuance reported net new bookings for the fourth quarter of $424.4 million, down 18 percent from $516.9 million a year ago.
Nuance reported a net loss of $65.4 million for the fourth quarter, or $0.23 per share, compared to net income of $18.5 million, or $0.06 per share, for fourth-quarter 2016.
The company estimates that a malware incident had an impact of approximately $53.0 million on revenues in the fourth quarter. It estimates that the effect of the incident on fourth-quarter earnings per share was approximately $0.19.
The company estimates that in fiscal 2017 the malware incident had an impact of approximately $68.0 million on GAAP and non-GAAP ( (Generally Accepted Accounting Principles) revenues. It estimates the effect of the incident on fiscal 2017 earnings per share was approximately $(0.25) and non-GAAP earnings per share was approximately $(0.13).
The malware attack occurred earlier this year in June (see Nuance Communications Hit by Global Malware Attack).
The company’s estimate for revenue affected by the malware attack is based on downtime of its HIM services as well as credits and concessions issued to HIM customers, which are netted against revenue.
Fiscal Year 2017 Performance
For its fiscal 2017 year, Nuance reported revenue of $1,939.4 million, down from $1,948.9 million for fiscal 2016. In fiscal 2017, total recurring revenue represented 73 percent of total revenue, compared to 70 percent in fiscal 2016. For fiscal 2017, Nuance reported net new bookings of $1,653.6 million, up 10 percent from $1,502.3 million in fiscal 2016.
For its complete fiscal year, Nuance recognized a net loss of $151.0 million, or $0.52 per share, compared to a net loss of $12.5 million, or $0.04 per share, for fiscal 2016.
For fiscal 2017, Nuance reported non-GAAP net income of $309.0 million, or $1.05 per diluted share, compared to $343.4 million, or $1.15 per diluted share, in fiscal 2016.
Nuance ended fiscal 2017 with $874.1 million in cash, cash equivalents and marketable securities.
“Nuance delivered strong year-over-year net new bookings growth in FY17 of 10 percent and saw solid performance across revenue and earnings in the fourth quarter driven by momentum for our most advanced solutions,” said Dan Tempesta, Nuance’s CFO. “We expect our leadership in conversational AI to continue to attract customers to our growth business offerings in FY18 and beyond.”
- August 2017: Higher Revenue for Nuance’s Third Quarter, Despite Malware Incident
- June 2017: Nuance Communications Hit by Global Malware Attack
- May 2017: Nuance Delivers ‘Strong’ Revenues, EPS, New Bookings, Recurring Revenue for Second Quarter
- May 2017: Nuance Document-Management, Print Solutions Now Available via Lexmark Dealers
- February 2017: Loss for Nuance’s First Quarter, But Bookings up 23 Percent
- December 2016: Nuance AutoStore, Equitrac Office Solutions Now Available for Toshiba MFPs
- November 2016: Nuance Reports Record New Bookings, but Records Loss for Fiscal Year 2016