Nuance announces effects of malware incident in latest quarterly results

November 30, 2017 - 

Nuance Communications announced GAAP revenue of $465.9 million in its latest quarterly report, the company announced Tuesday, touting its performance for the 2017 fiscal year in net new bookings and recurring revenue, driven by demand for several products including its voice biometrics for enterprises.

Dragon Medical cloud solution, enterprise voice biometrics, omni-channel, and digital offerings, and clinical documentation solutions drove revenue during the year, according to the announcement for the fourth quarter, ending September 30.

A malware incident the company suffered in June, which caused downtime for its HIM services, had an estimated impact of $53 million in the quarter and $68 million for the full year, which counts against its revenue.

That and revenue loss related to acquisitions contributed to a revenue decrease of 9 percent from $512.4 million in the fourth quarter last year, Nuance says.

“Nuance delivered strong year-over-year net new bookings growth in FY17 of 10% and saw solid performance across revenue and earnings in the fourth quarter driven by momentum for our most advanced solutions,” said Dan Tempesta, Nuance’s CFO. “We expect our leadership in conversational AI to continue to attract customers to our growth business offerings in FY18 and beyond.”

Nuance stock was buoyed by the announcement, closing at $16.37 on Wednesday, up from a low of $14.19 in mid-November.

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About Chris Burt

Chris Burt is a writer and contributor to Biometric Update. He has also written nonfiction about information technology, dramatic arts, sports culture, and fantasy basketball, as well as fiction about a doomed astronaut. He lives in Toronto. You can follow him on Twitter @AFakeChrisBurt."