Mon, Jan. 26, 2:23 PM| 5 Comments
Mon, Jan. 12, 2:21 PM
- Asian Sweeper speculates Baidu could make a bid for Nuance (NUAN +1%), given its strong interest in voice recognition. "Building an organic solution would take time, but acquiring Nuance would gap [Baidu] in a position where they could immediately apply their technology to the real world."
- Of note: Baidu has never acquired a major foreign software company, never mind one with an enterprise value above $6B. In addition, regulators might closely scrutinize any attempt by a Chinese company to buy Nuance.
- Nuance has turned positive after previously following equity markets lower. Shares slumped on Friday thanks to a Goldman downgrade.
Fri, Jan. 9, 9:25 AM
- "We do not see NUAN as a potential acquisition candidate, and see growth and margins challenged," writes Goldman's Greg Dunham, downgrading the voice recognition software/services giant to Sell.
- Goldman's LBO model suggests a -1% IRR for a Nuance LBO under its base-case scenario, compared with a 20% IRR for enterprise software vendors CommVault and Informatica.
- The WSJ reported back in June Nuance had talked with Samsung and P-E firms about a potential sale. Speculation that Carl Icahn would push the company to sell itself has been around for some time.
- Shares have made new 52-week lows. They now go for ~3x estimated FY15 (ends Sep. '15) EV/sales.
Dec. 15, 2014, 7:54 AM
- The Q-50 Index houses those companies next-eligible for inclusion into the Nasdaq 100 (NASDAQ:QQQ). Amid the Nasdaq 100's annual changes which added and dropped three from the index, the Q-50's quarterly re-ranking adds and drops eleven.
- Added: Ainylam Pharma (NASDAQ:ALNY), Expedia (NASDAQ:EXPE), F5 Networks (NASDAQ:FFIV), JD.com (NASDAQ:JD), MercadoLibre (NASDAQ:MELI), Maxim Integrated (NASDAQ:MXIM), Old Dominion Freight Line (NASDAQ:ODFL), Shire (NASDAQ:SHPG), Splunk (NASDAQ:SPLK), Stratasys (NASDAQ:SSYS), United Therapeutics (NASDAQ:UTHR).
- Dropped: Avis Budget (NASDAQ:CAR), Cree (NASDAQ:CREE), First Solar (NASDAQ:FSLR), Golar LNG (NASDAQ:GLNG), Methanex (NASDAQ:MEOH), Melco Crown (NASDAQ:MPEL), Nuance (NASDAQ:NUAN), SolarCity (NASDAQ:SCTY). Also dropped are the three Nasdaq 100 additions: American Airlines, Lam Research, and Electronic Arts.
- Source: Press Release
- Previously: Who's in, who's out in annual change to Nasdaq 100 (Dec. 13, 2014)
Nov. 25, 2014, 9:15 AM
Nov. 24, 2014, 5:43 PM
Nov. 24, 2014, 4:22 PM
- Nuance (NASDAQ:NUAN) guides in its prepared remarks (.pdf) for FQ1 revenue of $480M-$490M and EPS of $0.21-$0.23, below a consensus of $500.6M and $0.27. FY15 (ends Sep. '15) guidance is healthier: Revenue of $2.02B-$2.08B and EPS of $1.10-$1.20 vs. a consensus of $2.07B and $1.15.
- Bookings rose 24.5% Y/Y in FQ4 to $497.7M, an improvement from FQ3's 16.7% growth. FY14 bookings totaled $2.44B, +27.4% Y/Y and above guidance of $2.35B-$2.4B. 6%-8% net new bookings growth is expected in FY15.
- Healthcare revenue (responsible for nearly half of all op. profit) +3% Y/Y to $238.3M; mobile & consumer -3% to $116.9M; enterprise -4% to $95.6M; imaging +9% to $69.5M.
- Healthcare growth improved from FQ3's -2% thanks to on-demand, diagnostics, and Clintegrity sales. Mobile & consumer benefited from auto growth, and was hurt by weak phone-related sales. Though enterprise revenue is soft, bookings (boosted by Nina) are healthier.
- No buybacks took place in FQ4. GAAP opex rose 5% Y/Y to $282.2M. Thanks to a shift towards subscriptions/recurring revenue streams, Nuance's deferred revenue balance rose 32% Y/Y to $548.1M.
- FQ4 results, PR
Nov. 24, 2014, 4:04 PM| Comment!
Nov. 23, 2014, 5:35 PM
Oct. 8, 2014, 3:59 PM
- A Carl Icahn tweet promising an "interesting" open letter will be sent to Tim Cook tomorrow has prompted a fresh round of speculation that Icahn will call on Apple to buy Nuance (NUAN +0.3%). The voice recognition software vendor's shares have turned positive after spending most of the day down over 1%.
- Though Nuance's voice recognition tech helps power Siri, Apple hasn't thus far shown any interest in buying the company, which still derives nearly half its revenue and an even larger portion of its segment op. profit from healthcare products/services.
- Nuance sold off in July after Wired reported Apple had built an internal voice recognition R&D team that included ex-Nuance researchers.
Aug. 22, 2014, 5:36 PM
Aug. 12, 2014, 9:16 AM
Aug. 11, 2014, 5:38 PM
Aug. 11, 2014, 4:23 PM
- Nuance (NASDAQ:NUAN) guides in its prepared remarks (.pdf) for FQ4 revenue of $500M-$520M and EPS of $0.24-$0.29, below a consensus of $540.5M and $0.34.
- Bookings rose 16.7% Y/Y in FQ3 to $547M, a slowdown from FQ2's 43% and FQ1's 26%. However, thanks to a rapid shift towards recurring/subscription revenue streams, the deferred revenue balance rose 32% to $523.4M.
- FQ3 healthcare revenue -2% Y/Y to $240.1M; mobile & consumer -4% to $109.2M; enterprise -8% to $85.1M; imaging -16% to $52.4M.
- Healthcare revenue remains pressured by the migration to EMR systems (hurts on-demand transcription sales), and mobile/consumer was hit by weak demand for Dragon NaturallySpeaking. The shift to recurring revenue streams is affecting enterprise sales.
- Segment op. profit as a % of revenue fell to 29% from 32% a year ago, thanks in part to a 350 bps drop in gross margin to 61%.
- 65% of FQ3 revenue was recurring. Cloud monthly active users grew 57% Y/Y to 120M. Along with its results, Nuance has announced it's redeeming $250M in convertible senior notes due 2027.
- FQ3 results, PR
Aug. 11, 2014, 4:05 PM| Comment!
Aug. 10, 2014, 5:35 PM
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