Nuance misses Q3 targets
Nuance released mixed third quarter earnings and revenue results Monday after the bell.
The voice recognition software giant posted a net loss of $11.8 million, or four-cents per share.
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Non-GAAP earnings were 38 cents per share on revenue of $484.9 million.
Wall Street was expecting earnings of at least 37 cents per share on revenue of $489.54 million. Nuance's shares were down just over one percent in late trading Monday.
On the plus side, Nuance says it has made gains transitioning to a recurring revenue model, with that segment representing 71 percent of total revenue for the quarter.
In terms of bookings, revenue actually dropped to $362.9 million. The company said the decrease was due to an "unusually hight" booking in its automotive services business last year, which offset the results.
Looking at segment growth, Nuance's healthcare division still drives the most revenue. The company said its ongoing transition to cloud and term contracts in its healthcare business will accelerate growth over the fiscal year. Nuance's Mobile/consumer, enterprise, and imaging businesses all trailed, respectively.
"Overall, we have delivered a solid performance in our third quarter and year-to-date 2016, particularly in our Enterprise segment and automotive business," said Daniel Tempesta, Nuance CFO, in prepared remarks. "Balancing our continued initiatives to reduce costs and improve productivity with investments in our products and growth markets, we believe we are positioning the company for renewed growth and profitability."
For the current quarter, Nuance expects non-GAAP revenues between $498 million and $512 million, and non-GAAP EPS from 37 cents to 41 cents.