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Nuance Communications Lowers FY17 Guidance On Malware Incident - Quick Facts

Nuance Communications, Inc. (NUAN) announced, for 2017, the company revised its GAAP earnings range to a loss of $0.64 to $0.55 and non-GAAP range to profit of $0.96 to $1.03, which represents a reduction of $0.16 to previous May 2017 midpoint guidance. The company revised organic revenue change target to a decline of 4% from prior growth target of approximately 1%, as a consequence of the malware incident. The company revised fiscal 2017 GAAP revenue guidance range to $1.906 to $1.936 billion and non-GAAP revenue guidance range to $1.945 to $1.975 billion, which represents a reduction of $90 million from the midpoint of May 2017 guidance range.

"As a result of the malware incident, we expect a material financial impact within the fourth quarter of fiscal 2017, which will also have impacts continuing into fiscal 2018, due to the business disruption, particularly in our HIM transcription business, as well as the associated costs related to restoring and enhancing our security environment," the company said.

For the fourth-quarter, the company expects: non-GAAP EPS in the range of $0.12 to $0.19; and Non-GAAP revenue in the range of $442.0 to $472.0 million. The company noted that its Cash Flow from Operations will be materially reduced in the fourth quarter due to the malware incident.

For the third-quarter, non-GAAP net income was $79.2 million, or $0.27 per share, down from non-GAAP net income of $83.3 million, or $0.30 per share, in the third quarter of fiscal 2016. Non-GAAP revenue was $495.6 million, which includes revenue lost to accounting treatment in conjunction with acquisitions, compared to $484.9 million in the third quarter of fiscal 2016. Nuance reported net new bookings for the third quarter of $438.5 million, up 21% from $362.9 million a year ago.

by RTT Staff Writer

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