Voice and language solutions provider Nuance Communications, Inc. (NUAN: Quote) 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.
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by RTT Staff Writer
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