Nuance's healthcare division chief leaving

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.

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Comments (4)
  • Parker Logan
    , contributor
    Comments (247) | Send Message
    This is a good thing. I thought Janet needed to go in Dec. of 2012
    13 Mar 2014, 03:47 PM Reply Like
  • Enzo P
    , contributor
    Comments (18) | Send Message
    Hi, Teodor. Will you elaborate as to why?
    13 Mar 2014, 08:24 PM Reply Like
  • jzheng220wz
    , contributor
    Comments (132) | Send Message
    does anyone know why NUAN pops 10% in the middle of today?
    14 Mar 2014, 03:48 PM Reply Like
  • BostonRob
    , contributor
    Comments (24) | Send Message
    Also Paul Ricci needs to go.
    24 Mar 2014, 08:20 AM Reply Like
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