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Nuance Communications, Inc. (NUAN)

  • 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
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  • Jan. 21, 2014, 5:46 PM
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  • 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.
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  • Nov. 26, 2013, 12:45 PM
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  • Nov. 25, 2013, 5:42 PM
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  • 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.
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  • Nov. 25, 2013, 4:26 PM
    • Nuance Communications (NUAN): FQ4 EPS of $0.30 beats by $0.01.
    • Non-GAAP revenue of $490.4M beats by $0.84M. GAAP revenue of $472.24M. Shares -3.1% AH. (PR)
  • Nov. 4, 2013, 2:45 PM
    • M&A rumors are once more giving Nuance (NUAN +2.1%) a lift. Such rumors have popped up occasionally since Carl Icahn, who now has a 17% stake in Nuance and two board seats, disclosed a position in the company in April.
    • Also: Deutsche is arguing Nuance's 30% YTD pullback translates into a buying opportunity, and that the voice recognition software leader's FQ4 report (due Nov. 25) could act as a turning point.
    • 6% of the float was shorted as of Oct. 15.
  • Sep. 12, 2013, 2:40 PM
    • A number of companies are outperforming or underperforming the market following executive presentations made either today or after the close yesterday at Deutsche's dbAccess Technology Conference.
    • Winners include YuMe (YUME +5.3%), Proofpoint (PFPT +2.5%), STMicroelectronics (STM +5.9% - previous), Angie's List (ANGI +1.4%), Synchronoss (SNCR +1.4%), Bazaarvoice (BV +1.3%), and Finisar (FNSR +1.2%).
    • Decliners include Nuance (NUAN -2%), Marin Software (MRIN -3.7%), Calix (CALX -1.5%), Xerox (XRX -1.5%), and Enphase Energy (ENPH -1.6%).
    • Yesterday's movers, conference schedule
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  • Aug. 30, 2013, 12:54 PM
    • Shares of Nuance Communications (NUAN +2.6%) are trading up after Carl Icahn disclosed an increased 16.9% stake in the company.
    • FBR's Daniel Ives sees a number of potential scenarios playing out: Icahn could move to agitate for board representation, remove CEO Paul Ricci, carve the businesses up, and/or sell Nuance further down the road. The most probable first step is a push for board representation, Ives says. The WSJ speculates the same.
    • For now, Ives believes Icahn's increased involvement will serve to put a floor on NUAN's price - welcome news for investors who have seen shares fall 20.6% in the last year.
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  • Aug. 13, 2013, 2:53 PM
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  • Aug. 7, 2013, 2:32 PM
    • Nuance (NUAN -1.8%) is now down just slightly after providing soft FQ4 guidance (attributed to a sales shift towards recurring revenue) to go with an FQ3 beat.
    • Though lowering its PT to $23 from $25, Oppenheimer thinks 10%+ shareholder Carl Icahn could soon push for a sale of the company.
    • FBR (Market Perform) argues the voice recognition software/services leader is "well-positioned given good secular trends and a strong product cycle," but remains cautious on account of "execution issues and a painful transition to a subscription model."
    • Nuance mentioned on its CC hosting-based sales now make up 32% of revenue (30% a year ago), and that the estimated 3-year value of its on-demand contracts is up 11% Y/Y. Also, professional services backlog grew 35% Y/Y in FQ3, and the number of "unique connected devices" relying on Nuance's cloud services doubled.
    • CEO Paul Ricci admitted "transitions and execution issues" affected Nuance's guidance, and that the company recently replaced a senior manager in its European sales ops. Ricci also reiterated Nuance is willing to let mobile deals "be delayed for the sake of price discipline."
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  • Aug. 7, 2013, 9:14 AM
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  • Aug. 6, 2013, 4:54 PM
    • In prepared remarks, Nuance (NUAN) guides for FQ4 revenue of $470M-$500M and EPS of $0.24-$0.32, below a consensus of $519.8M and $0.38.
    • The company blames its shift to recurring/subscription-based revenue streams, which leads to lower up-front sales. Mobile/consumer is singled out as an area where the shift "has the effect of elongating revenue."
    • FQ3 healthcare sales +2% Y/Y (boosted by acquisitions), even with FQ2; division made up 55% of segment profit. Mobile/consumer sales slumped: revenue -19% vs. -2%. Enterprise improved: revenue +7% vs. -20% in FQ2. Imaging -4% vs. -10%.
    • Healthcare transcription sales still weak, Clintegrity and Dragon Medical stronger. 1.8B cloud mobile/consumer transactions in FQ3, +80% Y/Y. Enterprise lifted by demand for Nina voice assistant apps.
    • Deferred revenue balance (stems from subscriptions/recurring revenue) was $396.5M, +2% Q/Q and +32% Y/Y. Operating cash flow was $85.5M vs. $141.5M a year ago.
    • $115M spent on buybacks.
    • FQ3 results, PR
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Company Description
Nuance Communications Inc provides voice and language solutions for healthcare, mobile, consumer, enterprise customer service and imaging markets.
Sector: Technology
Country: United States