Thu, Mar. 19, 1:09 PM
- As part of a broader transfer of coverage for healthcare tech names, Baird has upgraded Cerner (CERN +3.3%) to Outperform, and hiked its target by $12 to $77. Allscripts (MDRX +3.6%) has been launched at Outperform, and assigned a $16 target. Quality Systems (QSII -1.1%) has been downgraded to Neutral.
- Also: Allscripts has announced it's partnering with healthcare voice recognition software vendor NoteSwift to resell NoteSwift's offerings with Allscripts' Professional EHR health record software, in response to customer demand. Nuance's (NASDAQ:NUAN) Dragon Medical powers NoteSwift's software.
- Cerner has made new highs. RBC downgraded Quality Systems last week.
Thu, Feb. 5, 5:35 PM
- Though it beat FQ1 estimates, Nuance (NASDAQ:NUAN) has guided in its prepared remarks (.pdf) for FQ2 revenue of $459M-$475M and EPS of $0.22-$0.26, below a consensus of $499.5M and $0.27. FY15 (ends Sep. '15) guidance is for revenue of $1.907B-$1.957B and EPS of $1.08-$1.18; the latter is in-line with a $1.13 consensus, but the former is below a $2.05B consensus.
- Net new bookings (excludes renewal bookings) fell 5.5% Y/Y in FQ1 to $303.8M. Nuance calls the 15 net new bookings it recorded "disappointing," and (thanks in part to forex) is lowering its FY15 net new bookings growth guidance to 4%-5% from 6%-8%.
- Thanks to the shift towards cloud/subscription revenue streams, the deferred revenue balance rose 28.2% to $484.3M. On-demand solutions made up 36% of revenue.
- Healthcare organic revenue growth was flat, mobile/consumer was -5%, enterprise -4%, and imaging -9%. Total organic growth was -3%. GAAP operating expenses rose by less than $300K Y/Y to $278.2M.
- Regarding mobile/consumer, Nuance notes mobile cloud transactions rose 66% Y/Y to 3.98B. But it also cautions it has "experienced pressure in the mobile phone industry as market share shifts among leading vendors and emerging companies, largely from China."
- FQ1 results, PR
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.
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!
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
Jun. 26, 2014, 1:56 PM
- Nuance's (NUAN -2.9%) acquisition talks have been slowed by deal complexities, sources tell dealReporter.
- The WSJ reported on June 16 Nuance (presumably with Carl Icahn's blessing) is exploring a possible sale, and has held talks with P-E firms and Samsung.
- Among the likely challenges facing a deal: Nuance's product line covers markets ranging from healthcare (still over half of op. profit) to mobile to enterprise, and a buyer may only be interested in parts of the business. Also, the fact the company's software and services support a wide array of platforms (iOS, Android, Windows, etc.) means a sale to a suitor such as Samsung could alienate some existing clients.
Jun. 16, 2014, 12:52 PM
- Sources tell the WSJ Nuance (NUAN +8.5%) has recently held talks with Samsung and P-E firms about a potential sale. However, it isn't clear where the talks currently stand.
- Nuance's voice recognition tech helps power Samsung's S-Voice platform, and has been integrated within Samsung phones, tablets, TVs, and smartwatches.
- It also helps power Apple's Siri - Cupertino likely wouldn't be pleased with a Samsung deal.
- With a current $5.8B market cap, Nuance would be a big fish to digest. 11% of the float was shorted as of May 30.
- Earlier: Nuance reportedly exploring sale
Jun. 16, 2014, 12:38 PM
May. 8, 2014, 4:31 PM
- Nuance (NUAN) guides in its prepared remarks (.pdf) for FY14 (end in September) revenue of $2B-$2.04B, below a $2.06B consensus. Due to planned cost cuts, the company is upping its FY14 EPS guidance by $0.02 to $1.09-$1.19 (consensus is at $1.12). FQ3 EPS is expected to be in a range of $0.24-$0.29, below a $0.30 consensus.
- Bookings rose 43% Y/Y in FQ2 (up from 26% growth in FQ1) to $638M. As a result, Nuance has hiked its FY14 bookings forecast by $100M to $2.25B-$2.35B. Deferred revenue, boosted by the ongoing shift to cloud/recurring revenue streams, rose 4% Q/Q and 30% Y/Y to $504.9M.
- Gross margin fell 40 bps Q/Q and 280 bps Y/Y to 61.6%. Opex rose 7% Y/Y to $264.6M.
- NUAN now -1.2% AH. FQ2 results, PR.
May. 8, 2014, 4:05 PM| Comment!
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