7/25...NUAN...Reports Record Second Quarter Results
Demonstrates Leadership in Global Voice Web Market; Revenue Increases 167% From Second Quarter 1999
MENLO PARK, Calif., July 25 /PRNewswire/ -- Nuance Communications, Inc. (Nasdaq: NUAN - news) today announced financial results for the quarter ended June 30, 2000. Total revenue for the second quarter increased to a record $12.0 million, representing a 167% increase over revenue of $4.5 million for the same period last year. Year-to-date revenue increased to a record $19.9 million, a 109% increase over revenue of $9.5 million reported for the same period a year ago.
Software license revenue for the second quarter was $8.7 million, an increase of 211% over the same period in the prior year. Service revenue for the second quarter was $3.3 million, an increase of 83% over the same period last year.
Total expenses for the quarter, comprised of cost of services and operating expenses, were $18.7 million, including $1.1 million of non-cash compensation expense. These expenses reflect continued investment in all areas of Nuance's business, and are up from the $8.5 million spent in the same period last year. The net loss for the quarter was $5.7 million, or $0.20 per share, compared with a net loss of $3.8 million, or $0.21 per share, for same period last year. Excluding the effect of non-cash compensation expense, the net loss per share for the period was $0.16. The company has $100.1 million in cash and short-term investments as of June 30, 2000.
``Our strong second quarter results reflect Nuance's position as the leading provider of voice interface software,'' said Ronald Croen, president and CEO of Nuance. ``During the second quarter we announced a number of significant customer agreements in each of our target markets and expanded our international presence. By working with partners, customers and developers, we're dedicated to making the Voice Web a reality for the more than one billion telephone users worldwide.''
Nuance announced agreements with several international telecommunications companies, including BT Synchordia Solutions, Deutsche Telekom and NTT Software, to deliver a broad range of products and services based on Nuance's market-leading speech recognition software. BT Synchordia Solutions also announced plans to deploy services based on Nuance Voyager(TM), the company's voice browser. During the second quarter, Nuance continued its work with innovative voice portal companies, including BeVocal, GTG Technologies, GoSolo Technologies, ShopTalk and Tellme.
The company also introduced new versions of its flagship speech recognition and voice authentication software, Nuance 7.0 and Nuance Verifier(TM) 2.0. Nuance continued to support its enthusiastic and growing developer community with the launch of the SpeechObjects(TM) Exchange, and also introduced V-Builder(TM) 1.0, the industry's first graphical development tool for building VoiceXML-based applications.
About Nuance
Nuance develops, markets and supports a voice interface software platform that makes the information and services of enterprises, telecommunications networks and the Internet accessible from any telephone. Nuance systems keep people in touch with blue-chip companies like American Airlines, Charles Schwab, The Home Shopping Network, Lloyds TSB, Sears and United Parcel Service. Nuance is also driving the creation of the Voice Web and delivering software for V-Commerce(TM) (voice-enabled e-commerce) services and applications. Nuance is headquartered in Menlo Park, Calif., with global sales offices and partners supporting solutions in multiple languages around the world. For more information about Nuance, visit www.nuance.com or call 888-NUANCE-8.
Nuance, Voyager, Nuance Verifier, SpeechObjects, V-Builder and V-Commerce are trademarks or registered trademarks of Nuance Communications, Inc. All other trademarks are property of their respective owners.
Nuance Communications, Inc.
Consolidated Statement of Operations
For the Three and Six Months Ended June 30, 2000
(In Thousands, Except Per Share Amounts)
Three Months Ended: Six Months Ended:
June 30, June 30, June 30, June 30,
1999 2000 1999 2000
Revenue:
License $2,792 $8,692 $6,932 $14,720
Service 1,754 3,311 2,574 5,224
Total revenue 4,546 12,003 9,506 19,944
Cost of revenue:
License -- 13 -- 13
Service 1,390 2,120 2,572 3,725
Total cost of
revenue 1,390 2,133 2,572 3,738
Gross profit 3,156 9,870 6,934 16,206
Operating expenses:
Sales and marketing 3,716 8,053 6,319 14,839
Research and
development 2,531 4,727 4,676 9,123
General and
administrative 842 2,627 1,530 4,298
Non-cash compensation -- 1,138 -- 2,154
Total operating
expenses 7,089 16,545 12,525 30,414
Loss from operations (3,933) (6,675) (5,591) (14,208)
Interest and other
income, net 129 1,154 267 1,478
Loss before income
taxes (3,804) (5,521) (5,324) (12,730)
Provision for income
taxes 0 146 0 146
Net loss $(3,804) $(5,667) $(5,324) $(12,876)
Basic and diluted net
loss per share
share $(0.21) $(0.20) $(0.30) $(0.49)
Shares used to
compute basic and
diluted net loss
per share 18,095 28,783 18,018 26,137
Nuance Communications, Inc.
Condensed Consolidated Balance Sheets
June 30, 2000
(In Thousands)
December 31, June 30,
1999 2000
ASSETS
Current assets:
Cash and cash equivalents $18,073 $88,649
Short-term investments 23,353 12,125
Accounts receivable, net 4,892 9,810
Prepaid expenses and other current assets 3,027 4,726
Total current assets 49,345 115,310
Property and equipment, net 4,276 7,095
Other assets 101 11,610
Total assets $53,722 $134,015
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of debt $1,043 $323
Accounts payable 3,024 2,775
Accrued liabilities 7,034 10,915
Deferred revenue 4,337 6,724
Total current liabilities 15,438 20,737
Long-term debt, less current portion 1,333 --
Total liabilities 16,771 20,737
Stockholders' equity 36,951 113,278
Total liabilities and stockholders' equity $53,722 $134,015
SOURCE: Nuance |
