Yahoo Finance Nuance Communications’ Revenue Rose and Income Fell in 4Q15
Nuance Communications Reports Mixed Fiscal 4Q15 Earnings
Nuance Communications’ price movement
Nuance Communications (NUAN) has a market cap of $5.3 billion. After the company’s fiscal 4Q15 earnings report, NUAN rose by 3.0% to close at $17.05 per share on November 16, 2015. NUAN’s price movements on weekly, monthly, and YTD bases are -1.7%, -0.23%, and 19.5%, respectively.
Technically, the stock has broken the support of 20-day and 50-day moving averages throughout 2015. Currently, NUAN is trading 0.37% below its 20-day moving average, 0.12% above its 50-day moving average, and 4.8% above its 200-day moving average.
The PowerShares Dynamic Software Portfolio ETF (PSJ) invests 2.7% of its holdings in Nuance Communications. The ETF uses a quantitative model to choose US software companies across the market cap spectrum. The YTD price movement of PSJ was 7.1% as of November 13, 2015.
Nuance Communications’ (NUAN) competitors and their market caps are listed below:
HP Development Company (HPQ)—$24.0 billion
Xerox Corporation (XRX)—$10.3 billion
West Corporation (WSTC)—$2.1 billion
Nuance Communications’ performance in fiscal 4Q15 and fiscal 2015
Nuance Communications reported 4Q15 total revenue of $504.1 million, a rise of 0.35% when compared to total revenue of $502.3 million in 4Q14. Revenue from the professional services and hosting and the maintenance and support segments rose by 0.42% and 1.3%, respectively, in 4Q15 on a quarter-over-quarter basis. The company’s operating income rose to $28.6 million in 4Q15, as compared to operating income of $10.0 million in 4Q14. Its net income and EPS (earnings per share) fell to -$11.0 million and -$0.04, respectively, in 4Q15, as compared to net income and EPS of -$1.4 million and $0.0, respectively, in 4Q14.
Nuance Communications’ key activities in Q315
The company opened a new automotive lab in the greater Detroit area to expand its local and global presence.
Nuance Communications introduced a new portfolio of Dragon speech recognition solutions, including the new Dragon Anywhere mobile app for iOS and Android, the new Dragon Professional Individual and Dragon for Mac desktop solutions, and the Dragon Professional Group with the Nuance User Management Center for group and corporate deployments.
It launched Dragon Medical Advisor, a next-generation computer-assisted physician documentation (CAPD) solution that provides real-time quality feedback to physicians.
Nuance Communications and PATEO have entered into a partnership to ship the Nuance Dragon Drive automotive-grade voice platform supporting the Mandarin Chinese language.
Nuance Communications and Samsung entered into a partnership to provide Nuance document imaging solutions.
Fiscal 2015 results
In fiscal 2015, the company reported total revenue of $1,931.1 million, a rise of 0.40% YoY (year-over-year). Revenue from the professional services and hosting segment and the maintenance and support segment rose by 0.94% and 4.6%, respectively, while revenue from the product and licensing segment fell by 2.1% in fiscal 2015. The company’s gross profit rose by 2.0% over the same period. Its net income and EPS rose to -$115.0 million and -$0.36, respectively, in fiscal 2015, as compared to net income and EPS of -$150.3 million and -$0.47, respectively, in fiscal 2014.
Meanwhile, Nuance Communications’ cash and cash equivalents fell by 12.4%, and its marketable securities rose by 39.5% in fiscal 2015. The company’s current ratio fell to 1.7, and its debt-to-equity ratio rose to 1.5 in fiscal 2015, as compared to its current ratio and debt-to-equity ratio of 1.8 and 1.3, respectively, in fiscal 2014.
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