Nuance Announces First Quarter Fiscal 2015 Results
Revenue and EPS Exceed Targets as Company Sustains Growth in Recurring Revenue, Operating Cash Flow and Deferred Revenue
Nuance Communications, Inc. (NASDAQ: NUAN) today announced financial results for its first quarter fiscal 2015, ended December 31, 2014.
In the first quarter of fiscal 2015, Nuance reported GAAP revenue of $474.0 million, up 0.9% from $470.0 million in the first quarter of fiscal 2014. Nuance reported non-GAAP revenue of $489.0 million, which includes $15.0 million of revenue lost to accounting treatment in conjunction with acquisitions, compared to $490.1 million in the first quarter of fiscal 2014. In the first quarter of fiscal 2015, Nuance reported net new bookings of $303.8 million, compared to $321.5 million in the first quarter of fiscal 2014.
In the first quarter of fiscal 2015, Nuance recognized GAAP net loss of $(50.5) million, or $(0.16) per share, compared to GAAP net loss of $(55.4) million, or $(0.18) per share, in the first quarter of fiscal 2014. In the first quarter of fiscal 2015, Nuance reported non-GAAP net income of $82.0 million, or $0.25 per diluted share, up from non-GAAP net income of $76.6 million, or $0.24 per diluted share, in the first quarter of fiscal 2014. Nuance’s first quarter fiscal 2015 non-GAAP operating margin was 22.0%, up from 21.6% in the first quarter of fiscal 2014. Nuance reported cash flow from operations of $95.7 million in the first quarter of fiscal 2015, up 22.4% from $78.2 million in the first quarter of fiscal 2014. Nuance ended the first quarter of fiscal 2015 with $621.1 million in total deferred revenue, up 28.2% from $484.3 million at the end of the first quarter of fiscal 2014. Nuance ended the first quarter of fiscal 2015 with $606.1 million in cash, cash equivalents and marketable securities.
“First quarter revenue and EPS exceeded our targets. First quarter recurring revenues represented 66% of total revenue, up 3 percentage points from last year’s first quarter, while we continue to transition our revenue model toward more stable, predictable recurring revenue streams. Our recurring revenues continue to benefit the business as we sustained growth in deferred revenue and operating cash flow and delivered our second consecutive quarter of year-over-year improvement in EPS and operating margin,” said Tom Beaudoin, Nuance CFO.
Highlights from the Quarter
- Healthcare – For Nuance’s healthcare solutions, first quarter fiscal 2015 non-GAAP revenue was $231.0 million. Key customers in the quarter included Catholic Health Systems, Centura Health, Children’s Hospital of Orange County, Hamad Medical Center, Maine Medical, OA Centers for Orthopaedics, Universal Health Services, University of Florida Shands Hospital, University of South Alabama, University of Texas MD Anderson Cancer Center, US Veteran’s Administration, and Vidant Health.
- Mobile & Consumer – For Nuance’s mobile and consumer solutions, first quarter fiscal 2015 non-GAAP revenue was $107.3 million. Key customers and OEM design wins in the quarter included BMW, Bosch, ChuangZu, DoCoMo, Ford, Fujitsu, Harman, Honda, Huawei, LG, Mahindra, Mitac, Motorola, Optus, Panasonic, Peugeot, Pioneer, Renault, Samsung, Subaru, Thales, Vivo, and ZTE.
- Enterprise – For Nuance’s enterprise solutions, first quarter fiscal 2015 non-GAAP revenue was $90.6 million. Key customers in the quarter included Barclays, Citigroup, Delta Airlines, Deutsche Telekom, Ford, Jetstar, Metro PCS, Moshi Moshi, PayPal, Scotia Bank, SK Telecom, Telecom Italia, Vodafone, and Westpac Bank.
- Imaging – For Nuance’s document imaging solutions, first quarter fiscal 2015 non-GAAP revenue was $60.1 million. Key customers in the quarter included City of Denver, Connolly, DLA Piper, Hyland, Stikeman Elliott, Swiss Post, Telecom Italia, US Department of Veteran’s Affairs, and ZKB Zurcher Kantonal Bank.