Nuance Announces Second Quarter Fiscal 2015 Results
Achieves Revenue and EPS Above Guidance Ranges; Delivers 38% Operating Cash Flow Growth and 26% Deferred Revenue Growth
Nuance Communications, Inc. (NASDAQ: NUAN) today announced financial results for its second quarter fiscal 2015, ended March 31, 2015.
In the second quarter of fiscal 2015, Nuance reported GAAP revenue of $475.1 million, compared to $475.7 million in the second quarter of fiscal 2014. Nuance reported non GAAP revenue of $488.1 million, which includes $13.0 million of revenue lost to accounting treatment in conjunction with acquisitions, compared to $490.0 million in the second quarter of fiscal 2014. Q2 15 revenue was negatively affected by currency fluctuations. If we applied Q2 14 currency rates to our Q2 15 revenue, Q2 15 revenue would have been approximately $14 million higher.
In the second quarter of fiscal 2015, Nuance recognized GAAP net loss of $(14.1) million, or $(0.04) per share, compared to GAAP net loss of $(39.2) million, or $(0.12) per share, in the second quarter of fiscal 2014. In the second quarter of fiscal 2015, Nuance reported non-GAAP net income of $98.9 million, or $0.30 per diluted share, up from non-GAAP net income of $88.3 million, or $0.28 per diluted share, in the second quarter of fiscal 2014. Nuance’s second quarter fiscal 2015 non GAAP operating margin was 25.9%, up from 23.9% in the second quarter of fiscal 2014. Nuance reported cash flow from operations of $119.9 million in the second quarter of fiscal 2015, up 37.8% from $87.0 million in the second quarter of fiscal 2014. Nuance ended the second quarter of fiscal 2015 with $637.8 million in total deferred revenue, up 26.3% from $504.9 million at the end of the second quarter of fiscal 2014. In the second quarter of fiscal 2015, Nuance reported net new bookings of $304.7 million. Nuance ended the second quarter of fiscal 2015 with $566.9 million in cash, cash equivalents and marketable securities.
“Nuance delivered second quarter revenue and EPS that exceeded our guidance. Our improved EPS, operating margin and operating cash flow reflect the results of our continuing efficiency and cost control initiatives. We are also building shareholder value through renewed execution under our stock repurchase plan, which we recently increased by $500 million,” said Tom Beaudoin, Nuance CFO.
Nuance Authorizes Additional $500 Million under Stock Repurchase Plan
During Q2 15, Nuance repurchased 8.557 million shares of our common stock, for a total amount of $120.3 million at an average price per share of $14.06. During Q3 15, up to May 6, 2015, Nuance repurchased an additional 5.300 million shares of our common stock, for a total amount of $77.2 million. From the inception of the plan in April 2013 through May 6, 2015, Nuance repurchased an aggregate of 25.298 million shares of our common stock, for an aggregate amount of $408.3 million at an average price per share of $16.14. Following these repurchases, Nuance had $91.7 million remaining under the original authorization. Today, Nuance announced that its board of directors has authorized an additional $500 million under the plan, bringing the unused authorization to a total of $591.7 million.
Stock repurchases may be made through a variety of methods, which may include open market purchases, privately negotiated transactions, block trades, accelerated stock repurchase transactions, or any combination of such methods. The timing and the amount of any purchases will be determined by the Company’s management based on its evaluation of market conditions, capital allocation alternatives, and other factors. The share repurchase plan does not require the Company to acquire any specific number of shares and may be modified, suspended, extended or terminated by the Company at any time without prior notice. The share repurchase plan is designed to comply with U.S. securities laws, rules and safe harbors for purchases that do not constitute tender offers. These restrictions can lengthen the time it may take for Nuance to acquire its shares under this repurchase plan.