Stock Monitor: Aware Post Earnings Reporting
LONDON, UK / ACCESSWIRE / March 14, 2018 / Active-Investors.com has just released a free earnings report on Nuance Communications, Inc. (NASDAQ: NUAN) ("Nuance"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/'symbol=NUAN. The Company reported its financial results on February 08, 2018, for the first quarter of the fiscal year 2018 ended December 31, 2017. In Q1 FY18, the Company achieved an organic growth and delivered a strong performance across key financial metrics, outperforming the top-end of its initial revenue and earnings guidance ranges. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Nuance Communications most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Earnings Highlights and Summary
For Q1 FY18, Nuance's net revenues reached $501.65 million, up 2.87% from $487.66 million in Q1 FY17. The Company's adjusted revenues, including acquisition-related revenue adjustments, were $508.8 million in Q1 FY18; outpacing analysts' consensus estimates of $508.5 million. The Company returned to growth in Q1 FY18, delivering an organic revenue growth of 1% y-o-y. Nuance reported net new bookings of 418.4 million in Q1 FY18, an increase of 10.02% y-o-y.
Nuance's cost of revenues increased 4.14% to $221.19 million in Q1 FY18 from $212.41 million in Q1 FY17. The Company's gross profit was $280.45 million in the reported quarter, 1.89% higher than $275.25 million in the same period of last year.
Nuance's research and development (R&D) expenses jumped 10.62% to $73.37 million y-o-y, and its general and administrative (G&A) expenses increased 32.93% to $52.89 million y-o-y in the quarter ended December 31, 2017. The Company's total operating expenses were $271.64 million in Q1 FY18, up 8.13% from $251.22 million in Q1 FY17. The Company's income from operations fell 63.35% to $8.81 million in Q1 FY18 from $24.03 million in Q1 FY17.
Nuance generated a net income of $53.23 million in the reported quarter versus a net loss of $23.93 million in the year ago comparable quarter. The Company had diluted earnings per share (EPS) of $0.18 in Q1 FY18 compared to diluted loss per share of $0.08 in Q1 FY17. The Company's reported net income in Q1 FY18 included acquisition-related adjustments, amortization of intangible assets, restructuring charges, stock-based compensation expenses, and benefits due to adjustment of income tax expenses on account of the federal Tax Cuts and Jobs Act 2017 (TCJA). The Company's adjusted diluted EPS, excluding these special items, were $0.27 in Q1 FY18 compared to $0.26 in Q1 FY17, reflecting an increase of 3.85%. This was higher than analysts' consensus estimates of $0.24 per share.
Segment Details
During Q1 FY18, Nuance's Healthcare segment reported revenues of $245.5 million, up 2.63% from $239.2 million in Q1 FY17, due to the continued growth in Dragon Medical cloud, growth in Dragon Medical professional services, and a resurgence of growth in diagnostics. The segment's non-GAAP profit fell 1.53% to $77.4 million in the quarter under review from $78.6 million in the year ago corresponding quarter.
Nuance's Mobile segment reported revenues of $89.8 million in Q1 FY18, a decrease of 2.18% from $91.8 million in Q1 FY17, as a result of continued and expected declines in handset revenues. The segment's non-GAAP profit shrank 24.18% to $25.4 million in the reported quarter from $33.5 million in the previous year's same quarter.
For Q1 FY18, Nuance's Enterprise segment generated revenues of $117.8 million, an increment of 4.34% from $112.9 million in Q1 FY17. For the quarter ended December 31, 2017, the segment's non-GAAP profit was $38.9 million, an increase of 21.56% from $32 million in the comparable period of last year.
Nuance's Imaging segment reported revenues of $55.6 million in Q1 FY18 compared to $52.1 million in Q1 FY17, reflecting an increase of 6.72%. The segment had a non-GAAP profit of $15.6 million in Q1 FY18 compared to $17.6 million in Q1 FY17, reflecting a decrease of 11.36%.
Cash Matters
Nuance had cash and cash equivalents of $398.46 million as on December 31, 2017, a decrease of 32.73% from $592.3 million as on September 30, 2017, primarily due to collections shortfalls and expenses related to the 2017 malware incident. The Company's long-term debt increased 2.6% to $3 billion as on December 31, 2017, from $2.24 billion as on September 30, 2017.
For the quarter ended December 31, 2017, Nuance's net cash flow from operating activities was $86.11 million, a decrease of 31.06% from $124.9 million for the corresponding period in 2016.
Nuance incurred a capital expenditure of $12.54 million in Q1 FY18, an increase of 10.04% from $11.40 million in Q1 FY17. The Company repaid or redeemed debt of $331.17 million in the reported quarter.
Outlook
Nuance raised its previous fiscal year 2018 revenue and EPS guidance ranges. For the full fiscal year 2018, the Company increased its non-GAAP revenue guidance range to $2,055.0 million to $2,095.0 million from $2,030.0 to $2,080.0 million. The Company raised its guidance range for an organic revenue growth in FY18 to 3% to 5% from its previous guidance range of 2% to 4%. Nuance also increased its non-GAAP diluted EPS guidance to a range of $1.14 to $1.20 from $1.06 to $1.15, mainly due to the benefit from the new US Federal tax rates. The Company expects to deliver annual net new bookings growth of 5% to 7% in FY18.
For the second quarter of FY18, Nuance expects non-GAAP revenues to be in the band of $511.0 million to $525.0 million, and non-GAAP EPS to be in the range of $0.26 to $0.28.
Stock Performance Snapshot
March 13, 2018 - At Tuesday's closing bell, Nuance Communications' stock declined 3.12%, ending the trading session at $17.40.
Volume traded for the day: 3.60 million shares, which was above the 3-month average volume of 2.86 million shares.
Stock performance in the last month - up 8.07%; previous three-month period - up 11.54%; past twelve-month period - up 1.81%; and year-to-date - up 6.42%
After yesterday's close, Nuance Communications' market cap was at $5.11 billion.
The stock is part of the Technology sector, categorized under the Application Software industry.
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