Nuance reports Q2 revenue and EPS strong against expectations on medical, auto and enterprise sales
Nuance Communications has reported revenue at the high end of expectations and EPS (earnings per share) above expectations for its second fiscal quarter of 2019, on strong performance by its Dragon Medical, Automotive, and Enterprise cloud voice biometric offerings, the company announced.
The company recorded revenue of $449 million, compared to $466.2 million in the same period in 2018, with organic revenue growth of negative 5 percent but recurring revenue up 250 basis points year over year. GAAP EPS was $0.01, compared to negative $0.57 in Q2 2018, and non-GAAP EPS was up from $0.23 to $0.29. By the ASC 6060 standard it is now using, Nuance booked GAAP revenue of $409.6 million and EPS of negative $0.07, and non-GAAP revenue of $411.2 million and earnings per diluted share of $0.20.
Nuance changed to the ASC 606 revenue recognition standard using the modified retrospective approach at the end of its fiscal 2018 year.
“We are extremely pleased with a strong second quarter and an excellent first half of fiscal 2019,” said Mark Benjamin, chief executive officer at Nuance. “We delivered on our commitments and made significant progress with our strategic initiatives and programs. Of note, we completed the Imaging sale, made excellent progress toward the Automotive spin, and attracted new leadership to the business. I’m proud of how our organization has performed, delivering strong results and putting us on track to meet our full-year expectations and goals.”
The total debt maturity value held by Nuance as of December 31, 2019 is approximately $2.14 billion, down from $2.44 billion as of December 31, 2018, after the company repaid its remaining 5.375 percent high-yield bonds at par during the quarter, which reduced its annual cash interest expense by roughly $16.1 million.
Since the close of the quarter, Nuance announced a new contract to provide its voice biometrics to Santander’s UK call center.