Nuance released their earnings after the close today. The reports doesn't look all that bad, and definitely not bad enough to justify the stock trading 25% below cash. They lost 29 cents per share versus the estimate for a 25 cent per share loss. Revenues were up both sequentially and year to year. They actually had some telecom wins from AT&T, Sprint PCS, and Verizon despite the drop in capital spending at those firms. Nuance ended the quarter with $150 million in cash and investments ($4.41 per share) versus $175 million at the end of Dec 2001. The stock is worth more than 25% less than its cash, and I'm not selling it.
biz.yahoo.com
Nuance Reports Second Quarter FY2002 Results
Company Delivers 25% Sequential Revenue Growth, Announces Management Changes
MENLO PARK, Calif.--(BUSINESS WIRE)--July 23, 2002--Nuance (Nasdaq:NUAN - News) today announced results for the quarter ended June 30, 2002. Total revenue for the quarter was $11.3 million, up 25 percent from $9.1 million in the preceding quarter, and compared with $10.0 million in the corresponding quarter of 2001.
Software license revenue for the second quarter was $7.6 million, up 30 percent from $5.9 million in the preceding quarter, and compared with $5.0 million in the same period last year. Service and maintenance revenue for the second quarter was $3.7 million, up from $3.2 million in the preceding quarter and as compared with $5.0 million in the same period last year.
Net loss on a GAAP basis for the second quarter was $9.7 million, or $0.29 loss per share, as compared with a net loss of $68.1 million, or $2.10 per share, for the corresponding quarter in 2001 which included restructuring charges and asset impairment costs totaling $55.0 million. Pro forma net loss for the second quarter was $9.4 million, excluding non-cash compensation expenses, or $0.28 loss per share. Comparable pro forma net loss for second quarter 2001 was $11.2 million, excluding amortization of intangibles, non-cash compensation expenses, and restructuring charges, or $0.34 loss per share.
As of June 30, 2002, the company had approximately $150 million in cash, cash equivalents and investments.
"We are pleased with our second quarter revenue, especially in the U.S. enterprise and telecommunications sectors. In the first two quarters, we took a number of actions to help our customers better understand the strategic value of speech and Nuance's advantages. We're beginning to see the results from those actions," said Ron Croen, president and chief executive officer of Nuance. "Expenses in the quarter were higher than we would have liked. While we continue to focus on making our customers successful with speech, we remain committed to bringing our expenses in better alignment with revenues."
Telecommunications Wins
In the quarter, Nuance saw deals with telecommunications carriers for new cost-saving customer service and enhanced services applications, as well as for capacity expansion of existing applications. Key wins in the second quarter included AT&T Wireless and Verizon Wireless among others. Faced with increasing call volumes, Sprint PCS also added more capacity to its existing customer self-service application to provide excellent customer service at a lower cost, while Bell Canada ramped its investment in Nuance's speech solutions. Also in the quarter, Cosmote in Greece and Gradiente in Brazil added capacity to their existing voice portal applications.
Enterprise Adoption
In banking and financial services, Nuance continued to grow its business globally. One of the largest banks in Brazil, Banco Itau, expanded its voice-driven telephone banking system working with Nuance. MoneyGram, the largest processor of money orders in the U.S. and an expanding global leader in the payment services industry, also joined Nuance's roster of financial services customers. MoneyGram plans to deploy a Nuance-powered bilingual call center application to serve their customers in the U.S. and Latin America.
In energy and utilities, Nuance added Omaha Public Power, among others, to its growing customer base in that industry. In insurance, Nuance also added two of the world's oldest and most respected mutual companies. And in government, Nuance added a range of local, state and national agencies to its customer list.
Global Partnerships
In the quarter, Nuance continued to team with partners such as Avaya, Edify, Gold Systems, Hey Anita, Intervoice-Brite, LM Systemas, Nortel Networks, Syntellect, and others to deliver Nuance-powered speech solutions worldwide. |
