|May 8, 2019 4:59 PM ET||
Nuance Communications (NASDAQ: NUAN) is up 1.5% after it cleared expectations in its fiscal Q2 earnings, with a better-than-expected revenue decline and EPS that grew more than 25% amid strength in Dragon Medical, Automotive and Enterprise cloud.
Net income grew to $84.8M from $68.4M, on revenues that dipped to $451M. Recurring revenue was $354.4M, up 250 basis points proportionally.
Operating margin (non-GAAP) was 27.3%, down from 24.2%.
Revenue by segment (comparing on ASC 605 basis): Hosting and professional services, $264.3M (down 3.3%); Product and licensing, $124.2M (down 4.8%); Maintenance and support, $60.5M (down 2.9%).
Operating cash flow (continuing operations) was $111.6M, up from $97.4M a year ago; it was 132% of non-GAAP net income.
Conference call to come at 5 p.m. ET.
In prepared remarks, it updated guidance and urged a segment trend look in a "year of transition." It's narrowed revenue guidance around a midpoint of $1.868B, with 2-4% growth in strategic segments.
It sees Enterprise revenue of $503M-$511M, up from a previous $490M-$500M, and healthcare revenue of $981M-$995M, down from a previous $989M-$1.011B.