(RTTNews) - Monday, speech-based solutions provider Nuance Communications, Inc.(NUAN: News ), reported a lower profit for the fourth quarter from last year, impacted by a huge income tax provision. Adjusted earnings for the quarter, however, came in line with estimates.

The Burlington, Massachusetts-based company's fourth quarter GAAP net income dropped to $6.29 million or $0.02 per share from $22.01 million or $0.09 per share for the year-ago quarter. Non-GAAP net income was $90.78 million or $0.32 per share, down from $71.05 million or $0.29 per share in the same quarter last year.

Non-GAAP adjustments include non-cash income taxes of $23.24 million, acquisition-related adjustment of $12.42 million, amortization of intangible assets of $20.67 million and non-cash stock based compensation of $18.82 million.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.29 per share for the fourth quarter. Analysts' estimates typically exclude special items.

Nuance reported fourth quarter GAAP revenue of $263.3 million, a 3.9% increase over $253.4 million in the prior year quarter. Non-GAAP revenue was $275.7 million, up 5.8% from $260.7 million in the same quarter last year. Analysts expected revenue of $272.14 million for the quarter.

Commenting on the fourth quarter results, Paul Ricci, Chairman and Chief Executive Officer said, "Nuance's fourth quarter demonstrated a continuation of recent quarter trends, including a recovery in royalty and license revenues, increasing customer preference for on-demand solutions and sustained attention to cost and productivity initiatives."
On segment basis, the company's major source of revenues, product and licensing revenue slipped to $113.38 million from $125.77 million last year. However, professional services and hosting segment revenues surged to $107.20 million from $88.60 million a year earlier.

Quarterly revenue from Nuance's smallest revenue segment' maintenance and support rose to $42.75 million from $39.02 million last year.

Total cost of revenues rose to $94.91 million from $84.12 million for the same period last year. Cost of revenues related to professional services and hosting segment increased to $65.19 million from $57.18 million last year. Amortization of intangible assets expense increased to $10.95 million from $6.40 million a year-ago.

Total operating expenses declined to $135.98 million from $137.29 million for the year earlier period, sales and marketing expenses dropped to $57.24 million from $62.95 million last year.

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