Market Commentary and Intraday News
Nuance 2Q profit up 90 pct, tops St. view
291 days ago
(AP:BURLINGTON, Mass.) Nuance Communications Inc.'s latest quarterly earnings climbed 90 percent as the company's voice recognition software resonated among more customers plugging the technology into smartphones, automobiles, TVs and medical devices.
The results released Tuesday reflect Nuance's increasingly important role in the communications between humans and machines.
Nuance's speech-recognition tools have helped power the iPhone's virtual assistant, Siri, and the company's other technology enables different gadgets to respond to voice commands.
The companies licensing Nuance's products include smartphone makers such as Nokia and HTC, consumer electronics makers such as Samsung and Sharp and automobile makers such as Chrysler and Toyota.
Nuance earned $79.3 million, or 25 cents, per share during its fiscal third quarter, a period spanning from April through June. The company, which is based in Burlington, Mass., posted net income of $41.6 million, or 13 cents per share, at the same time last year.
After subtracting certain accounting times unrelated to its ongoing business, Nuance said it would have earned 45 cents per share. That figure was 5 cents above the average estimate among analysts polled by FactSet.
Revenue for the period rose 31 percent from last year to $431.7 million. Analysts had forecast revenue of about $439 million.
If not for accounting rules affecting recent acquisitions, Nuance said its revenue would have totaled $448 million.
The company's mobile and consumer division enjoyed the most robust growth as revenue within those operations surged 42 percent to $132.4 million.
"Our ability to deliver voice and natural language systems that understand user intent, create conversational outcomes, and deliver answers to complex questions is driving design wins and unprecedented customer interest," said Tom Beaudoin, Nuance's chief financial officer.
Nuance's shares fell 63 cents, or 2.8 percent, to $21.76 in Tuesday's afternoon trading. The stock has ranged from $15.60 to $31.15 in the past year.
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