Nuance Shares Slump on Weak Top Line
NEW YORK (TheStreet) -- Shares of Nuance Communications (NUAN) fell sharply in late trades after the maker of voice and language recognition software missed Wall Street's revenue expectations in its latest quarterly results.
On a non-GAAP basis, Nuance, which provides part of the technology behind Apple's (AAPL) Siri functionality, reported earnings of $164.9 million, or 51 cents a share, in its fiscal fourth quarter ended in October on revenue of $490.1 million, up 27.7% year-over-year.
Analysts polled by Thomson Reuters were looking for a profit of 48 cents per share on sales of $496.5 million in the quarter.
Nuance's overall results were helped by the performance of its mobile and consumer solutions business, which saw non-GAAP revenue rise 28.2% year-over-year to $152.2 million. Health care was another standout for Nuance, with this segment seeing a 27.6% rise in non-GAAP revenue to $189.7 million
"In fiscal 2012, Nuance delivered its strongest year ever, led by 25% revenue growth and 32% operating cash flow growth," said Tom Beaudoin, the company's chief financial officer, in a press release, adding later: "Across our markets, Nuance's ability to deliver customized voice and natural language solutions that understand user intent drove record bookings in fiscal 2012 and continues to drive unprecedented customer interest, positioning us well for growth in fiscal 2013."
Nuance plans to hold a conference call at 5:00 p.m. EST to discuss the results.
Shares of the Massachusetts-based Nuance closed higher Monday, up 6.04% at $21.58. The stock was last quoted at $21, down 2.6%, on volume of less than 80,000, according to Nasdaq.com.
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--Written by Chris Ciaccia in New York
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