| Nuance Announces Fiscal 2013 and Fourth Quarter Results & CC | Nuance Delivers 12.6% FY 13 Revenue Growth; Key Customer Wins Demonstrate Progress in Attractive New Markets with Recurring Revenue Models
BURLINGTON, Mass.--(BUSINESS WIRE)--November 25, 2013--
Nuance Communications, Inc. (NASDAQ: NUAN) today announced financial results for its fiscal 2013 and fourth quarter, ended September 30, 2013.
In fiscal 2013, Nuance reported GAAP revenue of $1,855.3 million, a 12.3% increase over GAAP revenue of $1,651.5 million in fiscal 2012. In fiscal 2013, Nuance reported non-GAAP revenue of $1,957.7 million, which includes $102.4 million in revenue lost to accounting treatment in conjunction with acquisitions. Fiscal 2013 non-GAAP revenue grew 12.6% over non-GAAP revenue of $1,738.1 million in fiscal 2012.
In fiscal 2013, Nuance recognized GAAP net loss of ($115.2) million, or ($0.37) per share, compared with GAAP net income of $207.1 million, or $0.65 per diluted share, in fiscal 2012. In fiscal 2013, Nuance reported non-GAAP net income of $428.0 million, or $1.33 per diluted share, compared to $555.9 million, or $1.73 per diluted share, in fiscal 2012. Nuance's fiscal 2013 non-GAAP operating margin was 27.9%, compared to 35.8% in fiscal 2012. Nuance reported cash flow from operations of $395.0 million in fiscal 2013, compared to $473.0 million in fiscal 2012. Nuance ended fiscal 2013 with a balance of cash, cash equivalents and marketable securities of $846.8 million. As of September, Nuance had repurchased 9.805 million shares of common stock, for a total amount of $184.4 million at an average price per share of $18.81.
In the fourth quarter of fiscal 2013, Nuance reported GAAP revenue of $472.2 million, compared to $468.8 million in the fourth quarter of fiscal 2012. Nuance reported non-GAAP revenue of $490.4 million, which includes $18.2 million in revenue lost to accounting treatment in conjunction with acquisitions, compared to $490.1 million in the fourth quarter of fiscal 2012.
In the fourth quarter of fiscal 2013, Nuance recognized GAAP net loss of ($32.3) million, or ($0.10) per share, compared with GAAP net income of $117.6 million, or $0.36 per diluted share, in the fourth quarter of fiscal 2012. In the fourth quarter of fiscal 2013, Nuance reported non-GAAP net income of $95.2 million, or $0.30 per diluted share, compared to non-GAAP net income of $164.9 million, or $0.51 per diluted share, in the fourth quarter of fiscal 2012. Nuance's fourth quarter fiscal 2013 non-GAAP operating margin was 25.3%, down from 37.2% in the fourth quarter of fiscal 2012. Nuance reported cash flow from operations of $93.5 million in the fourth quarter of fiscal 2013, down from $141.5 million in the fourth quarter of fiscal 2012.
Please refer to the "Discussion of Non-GAAP Financial Measures" and to the "GAAP to Non-GAAP Reconciliations," included elsewhere in this release, for more information regarding the company's use of non-GAAP measures.
"We are pleased that we achieved fourth quarter results consistent with our guidance, and executed on our strategy to enter new growth markets, deliver a new generation of solutions and enable attractive, recurring revenue streams," said Paul Ricci, Nuance Chairman and CEO.
Highlights from the quarter include:
-- Healthcare -- For Nuance's healthcare solutions, fourth quarter fiscal 2013 non-GAAP revenue was $226.7 million and fiscal 2013 non-GAAP revenue was $911.6 million. We secured new business with key healthcare customers including Adventist, Brigham and Women's Hospital, Brooklyn Hospital, Hackensack University, Steward, SW General, Tenet, UAB, UMH, Union, Unity, US Veterans Administration and Wilson. -- Mobile & Consumer -- For Nuance's mobile and consumer solutions, fourth quarter fiscal 2013 non-GAAP revenue was $120.3 million and fiscal 2013 non-GAAP revenue was $479.2 million. We secured new business or design wins with key mobile customers including Charter Communications, Cisco, Daimler, DoCoMo, GM, Huawei, Hyundai, iMobile, Kyocera, Mahindra, Motospeak, Nissan, Nokia, Panasonic, Roadtrack, Samsung, TCL CarTel, Telstra, TIM Brazil, Toyota, Verizon, Vodafone Spain, Vonage and VW. -- Enterprise -- For Nuance's enterprise solutions, fourth quarter fiscal 2013 non-GAAP revenue was $86.4 million and fiscal 2013 non-GAAP revenue was $323.5 million. We secured new business with key enterprise customers including Allstate, Australia Department of Health Services, Barclays, Cathay Pacific, Charles Schwab, CIBC, DBS Bank, FIS, Garanti Bank, ING, Kaiser, Korea Telecomm, Nice, Optus, PG&E, Prime Therapeutics, PSE&G, Singtel, State of Illinois, TalkTalk, U.K. HM Revenue & Customs, Verint, Vodafone, VSP, WellPoint, Wells Fargo and Windstream. -- Imaging -- For Nuance's document imaging solutions, fourth quarter fiscal 2013 non-GAAP revenue was $57.0 million and fiscal 2013 non-GAAP revenue was $243.4 million. We secured new business with key imaging customers including Adidas, Bank Danamon, Bart's, Canon, City of Edmonton, Datev, HP, Ikea, Kodak, Nationwide, Ricoh, Steptoe & Johnson and Xerox.
Conference Call and Prepared Remarks
Nuance is providing a copy of prepared remarks in combination with its press release. These remarks are offered to provide shareholders and analysts with additional time and detail for analyzing results in advance of the company's quarterly conference call. The remarks will be available at nuance.com in conjunction with the press release.
As previously scheduled, the conference call will begin today, November 25, 2013 at 5:00 pm EST and will include only brief comments followed by questions and answers. The prepared remarks will not be read on the call. To access the live broadcast, please visit the Investor Relations section of Nuance's Website at www.nuance.com. The call can also be heard by dialing (800) 230-1074 or (612) 288-0329 at least five minutes prior to the call and referencing code 304712. A replay will be available within 24 hours of the announcement by dialing (800) 475-6701 or (320) 365-3844 and using the access code 304712.
About Nuance Communications, Inc
Nuance Communications, Inc. (NASDAQ: NUAN) is a leading provider of voice and language solutions for businesses and consumers around the world. Its technologies, applications and services make the user experience more compelling by transforming the way people interact with devices and systems. Every day, millions of users and thousands of businesses experience Nuance's proven applications. For more information, please visit www.nuance.com.
Trademark reference: Nuance, the Nuance logo, Dragon Medical and eScription are registered trademarks or trademarks of Nuance Communications, Inc. or its affiliates in the United States and/or other countries. All other trademarks referenced herein are the property of their respective owners.
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