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Nuance Communications, Inc. (NUAN)

  • Aug. 11, 2014, 5:38 PM
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  • 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
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  • 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
    • The WSJ reports Nuance (NUAN +7.5%) is exploring a possible sale. Shares have spiked higher in response.
    • The voice recognition software leader has occasionally been the subject of M&A speculation, thanks in part to Carl Icahn's large stake.
  • 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.
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  • May 8, 2014, 4:05 PM
    • Nuance Communications (NUAN): FQ2 EPS of $0.28 beats by $0.05.
    • Revenue of $490M (+1.2% Y/Y) beats by $5.83M.
    • Shares +3.99%.
    • Press Release
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  • 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)
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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