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
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
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.
Aug. 13, 2013, 2:53 PM
- Nuance (NUAN +2.3%) has spiked higher after Carl Icahn announced on Twitter he now has "a large position" in Apple.
- Icahn has gradually raised his stake in Nuance to 16% from the 9.3% originally disclosed in April, and there could be speculation Icahn will push Apple (not historically prone to making big acquisitions) to buy part or all of Nuance, whose voice-recognition tech helps power Siri.
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."
Aug. 7, 2013, 9:14 AM
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
Aug. 6, 2013, 4:04 PM
Apr. 30, 2013, 4:58 PM
Apr. 30, 2013, 12:46 PM
Apr. 30, 2013, 9:16 AMNuance (NUAN) -13.7% following its FQ2 miss. In prepared remarks, the company guides for FQ3 revenue of $480M-$495M and EPS of $0.30-$0.34, below a consensus of $554.1M and $0.49. FY13 guidance is for revenue of $1.96B-$2B and EPS of $1.33-$1.45, below a consensus of $2.16B and $1.80. Preliminary FY14 guidance is for organic growth in the "mid- to upper-single digit range;" consensus is for revenue of $2.44B. Mobile & Consumer sales -4% Y/Y in FQ2 after rising 17% in FQ1, and Enterprise -20% vs. +10% in FQ1. Healthcare (over half of profits) +2% (+3% prior); Imaging -10% (+6% prior). Buyback currently good for repurchasing 7.8% of shares. | Apr. 30, 2013, 9:16 AM | 1 Comment
Apr. 30, 2013, 9:10 AM
Apr. 24, 2013, 11:47 AMNuance (NUAN +4.6%) spikes as Dow Jones reports the company has hired Goldman to help find a buyer - there was a rumor along these lines two weeks ago. If true, look for Carl Icahn to take an active interest in the proceedings. 11.8% of Nuance's float was shorted as of March 28, but that was before Icahn disclosed his 9.3% stake. | Apr. 24, 2013, 11:47 AM | 1 Comment
Apr. 22, 2013, 10:35 AMNuance (NUAN +2.9%) breaks $21 after announcing HTC Car, a navigation/infotainment/hands-free control app provided with HTC's flagship One smartphone, is powered by Nuance's voice recognition tech. The One has generally received glowing reviews. (PR) (AutoNavi deal) | Apr. 22, 2013, 10:35 AM | Comment!
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