Nuance Communications, Inc. (NUAN), Wednesday reported significantly narrower loss for the first quarter, helped mainly by an increase in revenues from healthcare, and mobile and consumer segments. Excluding special items, adjusted earnings missed Street estimates by a penny, while revenues surpassed expectations.
Shares of the voice and language services company lost 9.8 percent in extended trade, following the news.
First-quarter net loss of the company was $9,000 or breakeven per share, compared to net loss of $4.3 million or $0.02 per share last year. Breakeven per share for the quarter is on account of higher share count.
Results for the quarter include, among other things stock-based expense of $32 million, while the year-ago quarter had a similar expense of $20 million.
Excluding special items, adjusted income was 86.1 million or $0.28 per share, compared to adjusted income of $84.3 million or $0.29 per share in the year-ago quarter.
On average, 19 analysts polled by Thomson Reuters expected earnings of $0.31 per share. Analysts' estimates typically exclude special items.
Chief Executive Officer Paul Ricci said, "Demand for our mobile and consumer offerings, along with continued progress in our healthcare and imaging business lines, enabled our revenue growth in the first quarter."
The Burlington, Massachusetts-based company reported revenues of $303.8 million, up 15.5 percent from $263.0 million in the same quarter of last year.
Including sales lost to accounting treatment in conjunction with acquisitions, revenues were higher by 11.5 percent at $317.3 million, compared to $284.6 million a year ago.
Wall Street analysts expected revenues of $319.64 million for the quarter.
Healthcare segment revenues grew 10.3 percent, on new bookings for medical and radiology products. Mobile and Consumer revenues swelled 32.1 percent, aided by new wins from Key mobile customers such as Amazon, Ask, Audi, BMW, Cisco.
Adjusted operating margin for the quarter declined to 30.5 percent from 32.6 percent a year before, reflecting increased investments.
Total operating expenses increased to $178.6 million from $165.5 million last year, while other expense dropped to $2.26 million from $7.8 million.
NUAN closed Wednesday's regular trade at $19.80, down $0.26 or 1.30 percent, on a volume of 2.75 million shares on the Nasdaq. In after hours, the stock further shed $1.94 or 9.80 percent.
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