- Janet Dillione, head of Nuance's (NUAN -2.4%) healthcare unit, is resigning from her position, effective March 21. (8-K)
- Nuance's healthcare division saw only 1% Y/Y organic rev. growth in the December quarter, though that was better than the 7% decline seen by the company overall. The division was responsible for 46% of Nuance's revenue, and 58% of its op. profit (though its op. margin fell to 35% from 41%).
- The unit has seen its mainstay transcription services ops pressured by a shift to electronic health record (EHR) systems and Nuance's Dragon Medical software. Dragon Medial, diagnostics, and clinical documentation software sales have been faring relatively well.
- Oppenheimer (Outperform) isn't surprised by Dillione's departure, given recent execution issues and Nuance's ongoing shift (in healthcare and elsewhere) towards term licenses/recurring revenue streams. The firm also notes Nuance just hired a new sales chief.