logo
Share SHARE
FONT-SIZE Plus   Neg

Nuance Communications Q2 Results Top View

Voice and language solutions provider Nuance Communications, Inc. (NUAN) reported Thursday a profit for the second quarter that declined from last year, hurt by higher income tax provisions. However, adjusted earnings per share grew and topped analysts' expectation, reflecting improved margins and double-digit revenue growth across businesses.

The company noted that unprecedented demand for voice and natural language systems fueled growth in revenue and bookings for the quarter.

"Across our markets, we are experiencing unprecedented interest in voice and natural language systems that understand user intent, create conversational outcomes, and deliver answers to complex questions. Strong performance in all of our markets enabled us to deliver 15% organic revenue growth in the quarter," CFO Tom Beaudoin said in a statement.

The Burlington, Massachusetts-based company reported net income of $0.89 million or breakeven per share for the second quarter, marginally down from $1.74 million or $0.01 per share in the prior-year quarter.

Excluding items, adjusted net income for the quarter increased to $138.82 million or $0.43 per share from $99.88 million or $0.32 per share in the year-ago quarter.

On average, 13 analysts polled by Thomson Reuters expected earnings of $0.41 per share for the quarter. Analysts' estimates typically exclude special items.

The net result for the quarter included a tax provision of $11.47 million, higher than a provision of $2.39 million last year.

Revenue grew 22.4 percent to $390.34 million from $318.96 million last year. Meanwhile, adjusted revenues for the quarter increased 25.8 percent to $417.72 million from $332.01 million in the same quarter last year, and topped thirteen Wall Street analysts had a consensus revenue estimate of $412.64 million for the quarter.

Revenue growth was broad based across markets and across revenue types. Healthcare adjusted revenue grew 23.9 percent, mobile & consumer adjusted revenue increased 22.8 percent, enterprise adjusted revenue rose 23.5 percent, and imaging adjusted revenue surged 41.6 percent from last year.

Adjusted operating margin for the quarter expanded 390 basis points to 36.8 percent from last year's 32.9 percent.

NUAN closed Thursday's regular trading session at $23.09, down $0.31 or 1.32% on a volume of 4.92 million shares. The stock lost a further $1.09 or 4.72% in after-hours trading.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
The recent week marked the lull before the storm, with very few market moving economic numbers released during the week. However, the economic news flow picks up pace in the upcoming week, offering glimpses into every vehicle of economic growth, ranging from consumers to private sector activity to housing.... Life expectancy at birth in the U.S. is already lower than most other developed nations and is now projected to fall further behind by 2030, according to a new study. It also suggests that by 2030, national female life expectancy in South Korea could break the 90 year barrier. Department store chain J.C. Penney Co. Inc. on Friday reported a turnaround to profit in the fourth quarter as a slight decline in sales was more than offset by lower expenses. Adjusted earnings per share for the quarter beat analysts' expectations, while revenues slightly missed their estimates. Earlier today, J.C. Penny announced a plan to optimize its national retail operations.
comments powered by Disqus
RELATED NEWS
Trade NUAN now with 
Follow RTT