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
Mar. 13, 2014, 2:34 PM
- 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.
Jan. 22, 2014, 9:09 AM
Jan. 21, 2014, 5:46 PM
Jan. 21, 2014, 4:35 PM
- Nuance (NUAN) now expects to report FQ1 (Dec. quarter) revenue of $487M-$491M and EPS of $0.23-$0.24. That's above prior guidance of $477M-$487M and $0.18-$0.21, and a consensus of $482.5M and $0.20. (PR)
- Nuance also announces it has hired former Symantec sales EVP Bill Robbins to be its new sales chief.
- FQ1 results arrive on Feb. 10. Nuance's shares were battered after the company provided disappointing FQ1 and FY14 guidance in November.
Jan. 15, 2014, 1:53 PM
- Ahead of a JPMorgan conference presentation (webcast), Allscripts (MDRX +9.1%) has forecast it will see a 5%-8% revenue CAGR and an 18%-22% adjusted EBITDA CAGR in the 2014-2016 timeframe. (8-K)
- With the healthcare software provider currently expected to post just 4.3% 2014 revenue growth (following a 6.5% 2013 decline), investors are pleased with the numbers.
- Peer Quality Systems (QSII +2%) is also higher, as is electronic health record (EHR) software partner Nuance (NUAN +1.7%), whose healthcare ops have been pressured by a shift away from transcription sales. Quality recently fell after issuing a Dec. quarter warning.
- Allscripts' Q4 report arrives on Feb. 20.
Nov. 26, 2013, 12:45 PM
Nov. 25, 2013, 5:42 PM
Nov. 25, 2013, 5:00 PM
- For the second straight quarter (previous), Nuance (NUAN) has beat quarterly estimates and provided below-consensus guidance. In prepared remarks, the voice recognition software leader guides for FQ1 revenue of $477M-$487M and EPS of $0.18-$0.21, below a consensus of $494.7M and $0.33. Also, Nuance is guiding for FY14 (ends Sep. '14) revenue of $2.03B-$2.09B and EPS of $1.05-$1.15, largely below a consensus of $2.08B and $1.41.
- One bright spot: Nuance forecasts FY14 bookings of $2.15B-$2.25B, up from an FY13 level of $1.92B and implying a book-to-bill above 1 (FY13 book-to-bill was 0.98).
- Nuance once more says the transition to cloud/subscription-based sales from up-front licenses is hurting near-term revenue. The company also states ongoing weakness in healthcare transcription sales (previous), smartphone consolidation (gives Apple/Samsung more control), and the adoption of services-based mobile models (such as Siri) will hurt FY14 sales. Meanwhile, major mobile, cloud, and healthcare R&D investments will pressure EPS.
- On the other hand, Nuance expects growth in the enterprise, automotive, diagnostics, and managed print services markets, as well as for its DragonTV, Clintegrity (clinical documentation), and voicemail-to-text offerings.
- NUAN -4.9% AH. CC at 5PM ET. FQ4 results, PR.
Nov. 25, 2013, 4:26 PM
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