To: Jorgen Jensen who wrote (819) | 12/24/2017 8:46:43 PM | From: Savant | | | Picked up some extra NUAN t'other day, looking for inclusion in cars in the future....voice control better than fiddlin' w/knobs or trying to see/touch a screen off to the side.
They say it can differentiate between driver's voice and that of other chatterboxes in the car. |
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To: Savant who wrote (821) | 2/15/2018 2:52:10 PM | From: Savant | | | BURLINGTON, Mass., Feb. 14, 2018 (GLOBE NEWSWIRE) -- Nuance Communications, Inc. ( NASDAQ:NUAN) today announced that it has advanced its text-to-speech (TTS) technology with deep neural networks (DNN) to deliver a new standard of quality, reducing errors by 40 percent compared to previous speech synthesis techniques.
Combining advancements in deep learning with knowledge-based developments, Nuance’s Vocalizer suite of TTS solutions – including Vocalizer Embedded for embedded platforms, Vocalizer Server for cloud applications and the Vocalizer Studio development tool – enables speech output that is nearly indistinguishable from human speech, enriching user experiences across automotive, enterprise, healthcare, IoT and smart home offerings and resulting in a more intuitive and conversational interaction between people and machines. The application of artificial intelligence (AI) techniques gives Vocalizer the ability to quickly learn new words, phrases and pronunciations and communicate with more expressivity and personality across more than 50 languages.
Nuance’s approach to use deep neural networks for speech synthesis is as follows. First, the networks learn the relation between written text and the corresponding voice characteristics from Nuance’s vast speech data. Then, the system applies this knowledge to the words and phrases in an unseen text. In addition to learning the relations between the orthographic representation of the words and the acoustic output, Nuance’s deep neural nets also use the context of the utterances to ensure that words are spoken in the appropriate expressive manner for the application, with the proper pattern of stress and intonation. For example, street names and driving directions sound clearly intelligible and articulated, whereas dialogs with a virtual assistant sound more fluent and dynamic.
“The advancements we have made through the application of DNN allow our text-to-speech technology to deliver high-quality, more expressive speech output, enabling more natural interactions between man and machine,” said Christophe Couvreur, vice president and general manager of TTS at Nuance. “We’re able to create highly tailored and computationally efficient solutions adapted to our customers’ unique needs, their application domains and the voice persona they want to realize.”
Key applications of Nuance Vocalizer include:
Automotive in-dashboard systems and virtual assistantsRobotics and autonomous virtual agentsDigital television and set-top boxesOmni-channel customer engagement servicesNuance’s enhanced text-to-speech solutions are available for the cloud today and will be made available for embedded devices this year. For more information about Vocalizer, including voice samples, visit https://www.nuance.com/mobile/mobile-solutions/vocalizer-expressive.html.
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 and the Nuance logo 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.
Contact Information
For Press Kate Hickman Nuance Communications, Inc. Tel: 781-565-4627 Email: kathryn.hickman@nuance.com
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From: Jorgen Jensen | 3/27/2018 2:52:01 PM | | | | Neuberger Berman Sends Open Letter To Nuance Communications Board And Incoming CEO Mark Benjamin
REITERATES CALL FOR BOARD AND GOVERNANCE CHANGES SUPPORTED BY A DECISIVE SHAREHOLDER VOTE
prnewswire.com/news-releases/neuberger-berman-sends-open-letter-to-nuance-communications-board-and-incoming-ceo-mark-benjamin-300620132.html |
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From: Savant | 4/25/2018 8:58:53 PM | | | | Nuance Communications Inc. (NUAN) filed a Form 8K - Director, Officer or Compensation Filing - with the U.S Securities and Exchange Commission on April 25, 2018.
As previously reported in the Current Report on Form 8-K filed by the Company on March 22, 2018, Paul Ricci terminated employment with the Company effective March 29, 2018 (the "Separation Date") and no longer is the Company's Chief Executive Officer.
In connection with Mr. Ricci's termination of employment, on April 19, 2018, the Company and Mr. Ricci entered into a Separation & Release Agreement (the "Separation Agreement") as provided in the Amended and Restated Employment Agreement between Mr. Ricci and the Company, effective November 17, 2016 (the "Employment Agreement"). The Employment Agreement previously was filed with the Commission on Form 8-K on November 17, 2016. Pursuant to the Separation Agreement, Mr. Ricci provided a full release of all claims in favor of the Company for matters related to Mr. Ricci's employment with the Company. As a result, Mr. Ricci became entitled to receive the severance payments and benefits provided under the Employment Agreement for a resignation with "good reason" under the Employment Agreement. As a condition to receiving the severance payments and benefits under the Employment Agreement, Mr. Ricci agreed to a twenty-four (24) month non-competition and non-solicitation covenant and to other covenants including continued protection of the Company's confidential information and non-disparagement of the Company and its employees and directors, all as provided in the Employment Agreement and/or Separation Agreement.
In addition, in connection with Mr. Ricci's departure, on April 25, 2018, the Company and Mr. Ricci expect to enter into an Advisor Agreement, pursuant to which Mr. Ricci will provide advisory services to the Board and the Company's incoming Chief Executive Officer, Mark Benjamin, relating to transition of Mr. Ricci's former role as Chief Executive Officer and other strategic business matters, as reasonably requested by the Board and Mr. Benjamin until March 29, 2019. Mr. Ricci will not receive cash, stock or other direct compensation or benefits for such services, although he will be provided use of an office and reasonable administrative and IT support as determined by the Company.
The foregoing descriptions are qualified in their entirety by reference to the full text of the Separation Agreement and the Advisor Agreement, copies of which will be filed as exhibits to the Company's Quarterly Report on Form 10-Q for the fiscal quarter ending June 30, 2018.
The full text of this SEC filing can be retrieved at: sec.gov
Any exhibits and associated documents for this SEC filing can be retrieved at: sec.gov
Public companies must file a Form 8-K, or current report, with the SEC generally within four days of any event that could materially affect a company's financial position or the value of its shares. |
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From: Savant | 5/10/2018 9:51:22 AM | | | | Nuance Announces Second Quarter 2018 Results
Delivers Organic Revenue Growth, Non-GAAP Revenue and Earnings in Line with Guidance, and Strong Cash Flow from Operations
-- GAAP revenue of $514.2 million, up 3% over prior year -- Non-GAAP revenue of $518.3 million, up 1% over prior year -- Organic revenue growth of 1% over the prior year -- GAAP EPS of $(0.56); non-GAAP diluted EPS of $0.27 -- Cash flow from operations of $109.3 million, or 138% of non-GAAP net income
BURLINGTON, Mass., May 09, 2018 (GLOBE NEWSWIRE) -- Nuance Communications, Inc. (NASDAQ:NUAN) today announced financial results for its second quarter fiscal year 2018, the three months ending March 31, 2018.
"We are pleased with the progress in our business and first-half results, especially the early returns from our investments and focus on our growth businesses," said Dan Tempesta, Nuance's chief financial officer. "This strategy is producing measurable results, driving organic revenue growth for the second sequential quarter and producing non-GAAP revenue and EPS in line with our guidance for the quarter."
During the quarter, Nuance made progress in key vertical industries and growth businesses, including:
-- Next-generation automotive interface and user experience offerings showcased with Daimler and Toyota; -- Significant, continued growth in the Dragon Medical cloud platform; -- Introduction of new core engine capabilities that include AI, voice recognition and text-to-speech capabilities for human-like dialog for Enterprise customers; -- Enhancements to its voice biometrics offerings leveraging deep neural networks; and, -- New design wins for Nuance's AI and virtual assistant offerings with key customers, including AT&T, BMW, Cisco, Ford, Geely and Wells Fargo.
"In just a few weeks, my conviction about the potential of this company has been affirmed. There is real momentum in the core business, making it an exciting opportunity to step in at this pivotal moment," said Mark Benjamin, Nuance's chief executive officer. "A top priority is to work with the team to take a comprehensive look at Nuance's entire portfolio, so we can quickly make smart choices on how to accelerate our momentum in growth businesses, deliver innovations for customers, and generate value for our shareholders."
Second Quarter Performance Highlights
On a GAAP basis:
-- GAAP revenue of $514.2 million, up 3% compared to $499.6 million a year ago, with 71% of total GAAP revenue as recurring revenue, compared to 74% a year ago. -- The Company recognized a goodwill impairment of $137.9 million in the quarter related to two businesses, Subscriber Revenue Services (SRS) and Devices, which affected GAAP results. -- GAAP net loss of $(164.1) million, or $(0.56) per share, compared to a loss of $(33.8) million, or $(0.12) per share, in the second quarter of fiscal year 2017. -- GAAP operating margin of (25.1)%, compared to 6.3% in the second quarter of fiscal year 2017. -- Cash flow from operations of $109.3 million in the second quarter of fiscal year 2018, compared to $125.4 million in the second quarter of fiscal year 2017.
On a Non-GAAP basis:
-- Non--GAAP revenue of $518.3 million, up 1%, compared to $511.1 million in the second quarter of fiscal year 2017. -- Organic revenue growth of 1% compared to the prior year, led by 8% growth in Healthcare and 12% growth in Automotive. -- Net new bookings of $376.6 million, down 8%, from $410.4 million a year ago. -- Non-GAAP recurring revenue of 71% ofSHY total non-GAAP revenue, compared to 75% a year ago. -- Non-GAAP net income of $79.1 million, or $0.27 per diluted share, compared to non-GAAP net income of $92.8 million, or $0.32 per diluted share, in the second quarter of fiscal year 2017. -- Non--GAAP operating margin of 24.4%, down from 30.6% in the second quarter of fiscal year 2017. -- Cash flow from operations as a percentage of non-GAAP net income was 138% of non-GAAP net income.
Company Discusses Changes in Business and Outlook
Beginning this quarter, the Company is reporting results in five segments: Healthcare, Enterprise, Automotive, Imaging and Other. The Other segment includes Nuance's Subscriber Revenue Services (SRS) and Devices businesses. Nuance's Enterprise segment now includes Dragon TV solutions. The changes to Nuance's reporting segments are part of the Company's ongoing actions to simplify the business, more efficiently address its best market opportunities and improve transparency for shareholders.
In the second quarter, as noted, the Company recorded goodwill impairments of $137.9 associated with its SRS and Devices businesses. An impairment of $102.8 million for the SRS business is the result of reduced demand for the Company's services among mobile carriers, primarily in India and Brazil, due to dramatic shifts in their business models. An impairment of $35.1 for the Devices business is the result of an impairment evaluation, conducted in conjunction with the reorganization of Nuance's reporting segments, that found the carrying value of this business exceeded its estimated fair value.
Due primarily to the significant changes in Nuance's SRS business and outlook, the Company revised its fiscal year 2018 growth estimates to 2% to 4% organic growth from 3% to 5% organic growth. Despite these changes, the Company is reiterating its expectation for 5% to 7% growth in net new bookings in fiscal year 2018.
For a complete discussion on Nuance's second quarter results and business outlook, please see the Company's Prepared Remarks document available at nuance.com
Please refer to the "Discussion of Non-GAAP Financial Measures," and "GAAP to Non-GAAP Reconciliations," included elsewhere in this release, for more information regarding the company's use of non-GAAP.
Conference Call and Prepared Remarks
Nuance provides 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.
Nuance will host an investor conference call today that will begin at 5:00 p.m. ET and will include brief comments followed by questions and answers. To access the live broadcast, please visit the Investor Relations section of Nuance's website at investors.nuance.com. The call can also be heard by dialing 800-230-1074 or 612-234-9960 at least five minutes prior to the call and referencing code 448075. A replay will be available within 24 hours of the announcement via the webcast link at investors.nuance.com or by dialing 800-475-6701 or 320-365-3844 and using the access code 448075.
About Nuance Communications, Inc.
Nuance Communications, Inc. (NASDAQ:NUAN) is the pioneer and leader in conversational AI innovations that bring intelligence to everyday work and life. The Company delivers solutions that can understand, analyze and respond to human language to increase productivity and amplify human intelligence. With decades of domain and artificial intelligence expertise, Nuance works with thousands of organizations -- in global industries that include healthcare, telecommunications, automotive, financial services, and retail -- to create stronger relationships and better experiences for their customers and workforce. For more information, please visit www.nuance.com.
Trademark reference: Nuance and the Nuance logo 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.
Safe Harbor and Forward-Looking Statements
Statements in this document regarding future performance and our management's future expectations, beliefs, goals, plans or prospects constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that are not statements of historical fact (including statements containing the words "believes," "plans," "anticipates," "expects," or "estimates" or similar expressions) should also be considered to be forward-looking statements. There are a number of important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including but not limited to: fluctuations in demand for our existing and future products; further unanticipated costs resulting from the FY17 malware incident including potential costs associated with litigation or governmental investigations that may result from the incident; our ability to control and successfully manage our expenses and cash position; our ability to develop and execute in a timely manner our productivity and cost initiatives; the effects of competition, including pricing pressure, and changing business models in the markets and industries we serve; changes to economic conditions in the United States and internationally; uncertainties associated with the transition of our chief executive officer; the imposition of tariffs or other trade measures particularly between the United States and China; potential future impairment charges related to our newly reorganized business reporting units; fluctuating currency rates; possible quality issues in our products and technologies; our ability to successfully integrate operations and employees of acquired businesses; the conversion rate of bookings into revenue; the ability to realize anticipated synergies from acquired businesses; and the other factors described in our Form 10-Q for the period ended December 31, 2017. We disclaim any obligation to update any forward-looking statements as a result of
developments occurring after the date of this document.
Definitions of Bookings and Net New Bookings
Bookings. Bookings represent the estimated gross revenue value of transactions at the time of contract execution, except for maintenance and support offerings. For fixed price contracts, the bookings value represents the gross total contract value. For contracts where revenue is based on transaction volume, the bookings value represents the contract price multiplied by the estimated future transaction volume during the contract term, whether or not such transaction volumes are guaranteed under a minimum commitment clause. Actual results could be different than our initial estimates. The maintenance and support bookings value represents the amounts billed in the period the customer is invoiced. Because of the inherent estimates required to determine bookings and the fact that the actual resultant revenue may differ from our initial bookings estimates, we consider bookings one indicator of potential future revenue and not as an arithmetic measure of backlog.
Net new bookings. Net new bookings represents the estimated revenue value at the time of contract execution from new contractual arrangements or the estimated revenue value incremental to the portion of value that will be renewed under pre-existing arrangements. Constant currency for net new bookings is calculated using current period net new bookings denominated in currencies other than United States dollars, converted into United States dollars using the average exchange rate for those currencies from the prior year period rather than the actual exchange rate in effect during the current period.
Discussion of non-GAAP Financial Measures
We believe that providing the non-GAAP information to investors, in addition to the GAAP presentation, allows investors to view the financial results in the way management views the operating results. We further believe that providing this information allows investors to not only better understand our financial performance, but more importantly, to evaluate the efficacy of the methodology and information used by management to evaluate and measure such performance. The non-GAAP information included in this press release should not be considered superior to, or a substitute for, financial statements prepared in accordance with GAAP.
We utilize a number of different financial measures, both Generally Accepted Accounting Principles ("GAAP") and non-GAAP, in analyzing and assessing the overall performance of the business, for making operating decisions and for forecasting and planning for future periods. Our annual financial plan is prepared both on a GAAP and non-GAAP basis, and the non-GAAP annual financial plan is approved by our board of directors. Continuous budgeting and forecasting for revenue and expenses are conducted on a consistent non-GAAP basis (in addition to GAAP) and actual results on a non-GAAP basis are assessed against the non-GAAP annual financial plan. The board of directors and management utilize these non-GAAP measures and results (in addition to the GAAP results) to determine our allocation of resources. In addition, and as a consequence of the importance of these measures in managing the business, we use non-GAAP measures and results in the evaluation process to establish management's compensation. For example, our annual bonus program payments are based upon the achievement of consolidated non-GAAP revenue and consolidated non-GAAP earnings per share financial targets. We consider the use of non-GAAP revenue helpful in understanding the performance of our business, as it excludes the purchase accounting impact on acquired deferred revenue and other acquisition-related adjustments to revenue. We also consider the use of non-GAAP earnings per share helpful in assessing the organic performance of the continuing operations of our business. By organic performance we mean performance as if we had owned an acquired business in the same period a year ago. By constant currency organic performance, we mean performance excluding the effect of current foreign currency rate fluctuations. By continuing operations, we mean the ongoing results of the business excluding certain unplanned costs. While our management uses these non-GAAP financial measures as a tool to enhance their understanding of certain aspects of our financial performance, our management does not consider these measures to be a substitute for, or superior to, the information provided by GAAP financial statements. Consistent with this approach, we believe that disclosing non-GAAP financial measures to the readers of our financial statements provides such readers with useful supplemental data that, while not a substitute for GAAP financial statements, allows for greater transparency in the review of our financial and operational performance. In assessing the overall health of the business during the three and six months ended March 31, 2018 and 2017, our management has either included or excluded items in seven general categories, each of which is described below.
Acquisition-related revenue and cost of revenue.
We provide supplementary non-GAAP financial measures of revenue that include revenue that we would have recognized but for the purchase accounting treatment of acquisition transactions. Non-GAAP revenue also includes revenue that we would have recognized had we not acquired intellectual property and other assets from the same customer. Because GAAP accounting requires the elimination of this revenue, GAAP results alone do not fully capture all of our economic activities. These non-GAAP adjustments are intended to reflect the full amount of such revenue. We include non-GAAP revenue and cost of revenue to allow for more complete comparisons to the financial results of historical operations, forward-looking guidance and the financial results of peer companies. We believe these adjustments are useful to management and investors as a measure of the ongoing performance of the business because, although we cannot be certain that customers will renew their contracts, we have historically experienced high renewal rates on maintenance and support agreements and other customer contracts. Additionally, although acquisition-related revenue adjustments are non-recurring with respect to past acquisitions, we generally will incur these adjustments in connection with any future acquisitions.
Acquisition-related costs, net.
In recent years, we have completed a number of acquisitions, which result in operating expenses, which would not otherwise have been incurred. We provide supplementary non-GAAP financial measures, which exclude certain transition, integration and other acquisition-related expense items resulting from acquisitions, to allow more accurate comparisons of the financial results to historical operations, forward looking guidance and the financial results of less acquisitive peer companies. We consider these types of costs and adjustments, to a great extent, to be unpredictable and dependent on a significant number of factors that are outside of our control. Furthermore, we do not consider these acquisition-related costs and adjustments to be related to the organic continuing operations of the acquired businesses and are generally not relevant to assessing or estimating the long-term performance of the acquired assets. In addition, the size, complexity and/or volume of past acquisitions, which often drives the magnitude of acquisition related costs, may not be indicative of the size, complexity and/or volume of future acquisitions. By excluding acquisition-related costs and adjustments from our non-GAAP measures, management is better able to evaluate our ability to utilize our existing assets and estimate the long-term value that acquired assets will generate for us. We believe that providing a supplemental non-GAAP measure, which excludes these items allows management and investors to consider the ongoing operations of the business both with, and without, such expenses.
These acquisition-related costs fall into the following categories: (i) transition and integration costs; (ii) professional service fees and expenses; and (iii) acquisition-related adjustments. Although these expenses are not recurring with respect to past acquisitions, we generally will incur these expenses in connection with any future acquisitions. These categories are further discussed as follows:
(i) Transition and integration costs. Transition and integration costs include retention payments, transitional employee costs, and earn-out payments treated as compensation expense, as well as the costs of integration-related activities, including services provided by third-parties.
(ii) Professional service fees and expenses. Professional service fees and expenses include financial advisory, legal, accounting and other outside services incurred in connection with acquisition activities, and disputes and regulatory matters related to acquired entities.
(iii) Acquisition-related adjustments. Acquisition-related adjustments include adjustments to acquisition-related items that are required to be marked to fair value each reporting period, such as contingent consideration, and other items related to acquisitions for which the measurement period has ended, such as gains or losses on settlements of pre-acquisition contingencies.
Amortization of acquired intangible assets.
We exclude the amortization of acquired intangible assets from non-GAAP expense and income measures. These amounts are inconsistent in amount and frequency and are significantly impacted by the timing and size of acquisitions. Providing a supplemental measure which excludes these charges allows management and investors to evaluate results "as-if" the acquired intangible assets had been developed internally rather than acquired and, therefore, provides a supplemental measure of performance in which our acquired intellectual property is treated in a comparable manner to our internally developed intellectual property. Although we exclude amortization of acquired intangible assets from our non-GAAP expenses, we believe that it is important for investors to understand that such intangible assets contribute to revenue generation. Amortization of intangible assets that relate to past acquisitions will recur in future periods until such intangible assets have been fully amortized. Future acquisitions may result in the amortization of additional intangible assets.
Non-cash expenses.
We provide non-GAAP information relative to the following non-cash expenses: (i) stock-based compensation; and (ii) non-cash interest. These items are further discussed as follows:
(i) Stock-based compensation. Because of varying valuation methodologies, subjective assumptions and the variety of award types, we believe that excluding stock-based compensation allows for more accurate comparisons of operating results to peer companies, as well as to times in our history when stock-based compensation was more or less significant as a portion of overall compensation than in the current period. We evaluate performance both with and without these measures because compensation expense related to stock-based compensation is typically non-cash and the options and restricted awards granted are influenced by the Company's stock price and other factors such as volatility that are beyond our control. The expense related to stock-based awards is generally not controllable in the short-term and can vary significantly based on the timing, size and nature of awards granted. As such, we do not include such charges in operating plans. Stock-based compensation will continue in future periods.
(ii) Non-cash interest. We exclude non-cash interest because we believe that excluding this expense provides senior management, as well as other users of the financial statements, with a valuable perspective on the cash-based performance and health of the business, including the current near-term projected liquidity. Non-cash interest expense will continue in future periods.
Other expenses.
We exclude certain other expenses that result from unplanned events outside the ordinary course of continuing operations, in order to measure operating performance and current and future liquidity both with and without these expenses. By providing this information, we believe management and the users of the financial statements are better able to understand the financial results of what we consider to be our organic, continuing operations. Included in these expenses are items such as restructuring charges, asset impairments and other charges (credits), net. These items include losses from extinguishing our convertible debt. Other items such as consulting and professional services fees related to assessing strategic alternatives and our transformation program, implementation of the new revenue recognition standard (ASC 606), and expenses associated with the malware incident and remediation thereof are also excluded.
Non-GAAP income tax provision.
Effective Q2 2017, we changed our method of calculating our non-GAAP income tax provision. Under the prior method, we calculated our non-GAAP tax provision using a cash tax method to reflect the estimated amount we expected to pay or receive in taxes related to the period, which is equivalent to our GAAP current tax provision. Under the new method, our non-GAAP income tax provision is determined based on our non-GAAP pre-tax income. The tax effect of each non-GAAP adjustment, if applicable, is computed based on the statutory tax rate of the jurisdiction to which the adjustment relates. Additionally, as our non-GAAP profitability is higher based on the non-GAAP adjustments, we adjust the GAAP tax provision to remove valuation allowances and related effects based on the higher level of reported non-GAAP profitability. We also exclude from our non-GAAP tax provision certain discrete tax items as they occur, which in fiscal year 2018 also includes certain impacts from the Tax Cuts and Jobs Act of 2017.
Contact Information Richard Mack Nuance Communications, Inc. Tel: 781-565-5000 Email:richard.mack@nuance.com Suzanne DuLong Nuance Communications, Inc. Tel: 781-565-5077 Email:suzanne.dulong@nuance.com
Financial Tables Follow
Nuance Communications, Inc. Condensed Consolidated Statements of Operations (in thousands, except per share amounts) Unaudited Three months ended Six months ended March 31, March 31, 2018 2017 2018 2017 Revenues: Professional services and hosting $ 274,574 $258,690 $ 533,601 $512,107 Product and licensing 161,284 159,258 323,094 311,010 Maintenance and support 78,366 81,625 159,174 164,114 Total revenues 514,224 499,573 1,015,869 987,231 Cost of revenues: Professional services and hosting 181,051 164,170 353,579 329,062 Product and licensing 18,966 18,790 38,035 37,168 Maintenance and support 14,191 13,240 28,432 26,838 Amortization of intangible assets 14,780 17,218 30,136 32,760 Total cost of revenues 228,988 213,418 450,182 425,828 Gross profit 285,236 286,155 565,687 561,403 Operating expenses: Research and development 74,185 66,232 147,551 132,554 Sales and marketing 94,187 93,674 196,147 195,190 General and administrative 74,288 41,518 127,180 81,308 Amortization of intangible assets 22,670 27,912 45,734 55,771 Acquisition-related costs, net 2,360 5,379 7,921 14,405 Restructuring and other charges, net 8,948 19,911 23,749 26,614 Impairment of goodwill 137,907 - 137,907 - Total operating expenses 414,545 254,626 686,189 505,842 (Loss) income from operations (129,309) 31,529 (120,502) 55,561 Other expenses, net (32,200) (56,196) (66,300) (93,803) Loss before income taxes (161,509) (24,667) (186,802) (38,242) Provision (benefit) for income taxes 2,544 9,141 (75,977) 19,494 Net loss $(164,053) $(33,808) $ (110,825) $(57,736) Net loss per share: Basic $ (0.56) $ (0.12) $ (0.38) $ (0.20) Diluted $ (0.56) $ (0.12) $ (0.38) $ (0.20) Weighted average common shares outstanding: Basic 294,103 291,021 292,720 289,976 Diluted 294,103 291,021 292,720 289,976 Nuance Communications, Inc. Condensed Consolidated Balance Sheets (in thousands) Unaudited ASSETS March 31, 2018 September 30, 2017 Current assets: Cash and cash equivalents $ 468,642 $ 592,299 Marketable securities 153,008 251,981 Accounts receivable, net 411,648 395,392 Prepaid expenses and other current assets 107,929 88,269 Total current assets 1,141,227 1,327,941 Marketable securities 27,087 29,844 Land, building and equipment, net 172,521 176,548 Goodwill 3,472,849 3,590,608 Intangible assets, net 596,060 664,474 Other assets 147,016 142,508 Total assets $ 5,556,760 $ 5,931,923 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current portion of long-term debt $ - $ 376,121 Contingent and deferred acquisition payments 20,926 28,860 Accounts payable, accrued expenses and other current liabilities 307,447 340,505 Deferred revenue 413,126 366,042 Total current liabilities 741,499 1,111,528 Long-term debt 2,311,484 2,241,283 Deferred revenue, net of current portion 469,575 423,929 Other liabilities 140,520 223,801 Total liabilities 3,663,078 4,000,541 Stockholders' equity 1,893,682 1,931,382 Total liabilities and stockholders' equity $ 5,556,760 $ 5,931,923 Nuance Communications, Inc. Consolidated Statements of Cash Flows (in thousands) Unaudited Three months ended Six months ended March 31, March 31, 2018 2017 2018 2017 Cash flows from operating activities: Net loss $(164,053) $ (33,808) $(110,825) $ (57,736) Adjustments to reconcile net loss to net cash
provided by operating activities: Depreciation and amortization 52,740 58,638 107,055 116,644 Stock-based compensation 33,749 40,348 71,735 79,478 Non-cash interest expense 11,854 13,732 25,195 26,771 Deferred tax provision (benefit) 6,895 3,637 (90,331) 5,643 Loss on extinguishment of debt - 18,565 - 18,565 Impairment of goodwill 137,907 - 137,907 - Impairment of fixed asset 434 10,944 1,780 10,944 Other 1,294 487 579 2,342 Changes in operating assets and liabilities, excluding effects of acquisitions: Accounts receivable 23,925 8,282 (12,415) (1,431) Prepaid expenses and other assets (3,087) 3,704 (22,059) (12,295) Accounts payable 8,083 20,244 (3,773) (1,000) Accrued expenses and other liabilities 2,131 (16,420) 5,230 (10,579) Deferred revenue (2,612) (2,919) 85,287 72,988 Net cash provided by operating activities 109,260 125,434 195,365 250,334 Cash flows from investing activities: Capital expenditures (12,783) (7,388) (25,326) (18,787) Payments for business and asset acquisitions, net of cash acquired (4,120) (50,041) (12,768) (72,990) Purchases of marketable securities and other investments (60,547) (81,054) (92,994) (153,851) Proceeds from sales and maturities of marketable securities and other investments 35,468 59,553 195,273 69,658 Net cash (used in) provided by investing activities (41,982) (78,930) 64,185 (175,970) Cash flows from financing activities: Repayment and redemption of debt - (634,055) (331,172) (634,055) Proceeds from issuance of long-term debt, net of issuance costs - 343,959 - 838,959 Payments for repurchase of common stock - (99,077) - (99,077) Acquisition payments with extended payment terms (47) - (16,927) - Proceeds from issuance of common stock from employee stock plans 9,354 8,553 9,360 8,598 Payments for taxes related to net share settlement of equity awards (5,389) (2,993) (44,006) (43,353) Other financing activities (582) (119) (647) (206) Net cash provided by (used in) financing activities 3,336 (383,732) (383,392) 70,866 Effects of exchange rate changes on cash and cash equivalents (433) 1,261 185 (1,210) Net increase (decrease) in cash and cash equivalents 70,181 (335,967) (123,657) 144,020 Cash and cash equivalents at beginning of period 398,461 961,607 592,299 481,620 Cash and cash equivalents at end of period $ 468,642 $ 625,640 $ 468,642 $ 625,640 Nuance Communications, Inc. Supplemental Financial Information - GAAP to Non-GAAP Reconciliations (in thousands) Unaudited Three months ended Six months ended March 31, March 31, 2018 2017 2018 2017 GAAP revenues $ 514,224 $ 499,573 $1,015,869 $ 987,231 Acquisition-related revenue adjustments: professional services and hosting 1,020 2,817 2,295 5,250 Acquisition-related revenue adjustments: product and licensing 2,934 8,313 8,781 14,029 Acquisition-related revenue adjustments: maintenance and support 136 394 194 605 Non-GAAP revenues $ 518,314 $ 511,097 $1,027,139 $1,007,115 GAAP cost of revenues $ 228,988 $ 213,418 $ 450,182 $ 425,828 Cost of revenues from amortization of intangible assets (14,780) (17,218) (30,136) (32,760) Cost of revenues adjustments: professional services and hosting (1) (6,322) (8,080) (13,729) (16,490) Cost of revenues adjustments: product and licensing (1) (112) (102) (378) (194) Cost of revenues adjustments: maintenance and support (1) (885) (1,010) (2,089) (1,987) Non-GAAP cost of revenues $ 206,889 $ 187,008 $ 403,850 $ 374,397 GAAP gross profit $ 285,236 $ 286,155 $ 565,687 $ 561,403 Gross profit adjustments 26,189 37,934 57,602 71,315 Non-GAAP gross profit $ 311,425 $ 324,089 $ 623,289 $ 632,718 GAAP (loss) income from operations $ (129,309) $ 31,529 $ (120,502) $ 55,561 Gross profit adjustments 26,189 37,934 57,602 71,315 Research and development (1) 8,396 8,398 18,092 16,888 Sales and marketing (1) 8,366 11,018 19,042 22,987 General and administrative (1) 9,668 11,740 18,405 20,932 Acquisition-related costs, net 2,360 5,379 7,921 14,405 Amortization of intangible assets 22,670 27,912 45,734 55,771 Restructuring and other charges, net 8,948 19,911 23,749 26,614 Impairment of goodwill 137,907 - 137,907 - Other (4) 31,212 2,721 43,176 5,711 Non-GAAP income from operations $ 126,407 $ 156,542 $ 251,126 $ 290,184 GAAP loss before income taxes $ (161,509) $ (24,667) $ (186,802) $ (38,242) Gross profit adjustments 26,189 37,934 57,602 71,315 Research and development (1) 8,396 8,398 18,092 16,888 Sales and marketing (1) 8,366 11,018 19,042 22,987 General and administrative (1) 9,668 11,740 18,405 20,932 Acquisition-related costs, net 2,360 5,379 7,921 14,405 Amortization of intangible assets 22,670 27,912 45,734 55,771 Restructuring and other charges, net 8,948 19,911 23,749 26,614 Impairment of goodwill 137,907 - 137,907 - Non-cash interest expense 11,854 13,732 25,195 26,771 Loss on extinguishment of debt - 18,565 - 18,565 Other (4) 31,212 2,721 43,176 5,711 Non-GAAP income before income taxes $ 106,061 $ 132,643 $ 210,021 $ 241,717 (4) Includes approximately $28 million and $38 million in professional services costs associated with considering strategic alternatives for certain businesses and establishing our Automotive business as an independent reporting segment, for the three and six months ended March 31, 2018, respectively. Nuance Communications, Inc. Supplemental Financial Information - GAAP to Non-GAAP Reconciliations, continued (in thousands, except per share amounts) Unaudited Three months ended Six months ended March 31, March 31, 2018 2017 2018 2017 GAAP provision (benefit) for income taxes $ 2,544 $ 9,141 $ (75,977) $ 19,494 Income tax effect of Non-GAAP adjustments 37,069 50,658 69,230 93,289 Removal of valuation allowance and other items (20,540) (18,254) (34,083) (39,001) Removal of discrete items (3) 7,874 (1,675) 91,069 (1,732) Non-GAAP provision for income taxes $ 26,947 $ 39,870 $ 50,239 $ 72,050 GAAP net loss $(164,053) $(33,808) $(110,825) $(57,736) Acquisition-related adjustment - revenues (2) 4,090 11,524 11,270 19,884 Acquisition-related costs, net 2,360 5,379 7,921 14,405 Cost of revenue from amortization of intangible assets 14,780 17,218 30,136 32,760 Amortization of intangible assets 22,670 27,912 45,734 55,771 Restructuring and other charges, net 8,948 19,911 23,749 26,614 Loss on extinguishment of debt - 18,565 - 18,565 Impairment of goodwill 137,907 - 137,907 - Stock-based compensation (1) 33,749 40,348 71,735 79,478 Non-cash interest expense 11,854 13,732 25,195 26,771 Adjustment to income tax expense (24,403) (30,729) (126,216) (52,556) Other (4) 31,212 2,721 43,176 5,711 Non-GAAP net income $ 79,114 $ 92,773 $ 159,782 $169,667 Non-GAAP diluted net income per share $ 0.27 $ 0.32 $ 0.53 $ 0.58 Diluted weighted average common shares
outstanding 296,449 293,072 299,822 293,331 (3) As a result of the Tax Cuts and Jobs Act of 2017 ('TCJA'), for the six months ended March 31, 2018, we record a tax benefit of approximately $87.0 million related to remeasuring certain deferred tax assets and liabilities at the lower rates, offset in part by a $2.0 million provision for the deemed repatriation of foreign cash and earnings. For the three months ended March 31, 2018, we recorded a tax expense of approximately $10.0 million, as we revised our estimates of the deferred tax benefit, offset by a cash tax benefit of $12.0 million based on recent IRS guidance regarding the mandatory one-time repatriation tax, reducing the original $14.0 million tax expense recorded in the first quarter of 2018. Also for the three and six months ended March 31, 2018, we recorded a tax benefit of $8.5 million related to the impairment of deductible goodwill in Brazil. (4) Includes approximately $28 million and $38 million in professional services costs associated with considering strategic alternatives for certain businesses and establishing our Automotive business as an independent reporting segment, for the three and six months ended March 31, 2018, respectively. Nuance Communications, Inc. Supplemental Financial Information - GAAP to Non-GAAP Reconciliations, continued (in thousands) Unaudited Three months ended Six months ended March 31, March 31, 2018 2017 2018 2017 (1) Stock-based compensation -------------------- Cost of professional services and hosting $ 6,322 $ 8,080 $ 13,729 $16,490 Cost of product and licensing 112 102 378 194 Cost of maintenance and support 885 1,010 2,089 1,987 Research and development 8,396 8,398 18,092 16,888 Sales and marketing 8,366 11,018 19,042 22,987 General and administrative 9,668 11,740 18,405 20,932 Total $ 33,749 $ 40,348 $ 71,735 $79,478 (2) Acquisition-related revenue and cost of revenue -------------------- Revenues $ 4,090 $ 11,524 $ 11,270 $19,884 Total $ 4,090 $ 11,524 $ 11,270 $19,884 Nuance Communications, Inc. Supplemental Financial Information -- GAAP to Non-GAAP Reconciliations, continued (in millions) Unaudited Hosting Revenues Q1 Q2 Q3 Q4 FY Q1 Q2 ------------- 2017 2017 2017 2017 2017 2018 2018 ------------- GAAP Revenues $193.3 $202.2 $189.4 $149.0 $ 733.8 $185.1 $194.4 Adjustment 2.3 2.7 3.1 2.0 10.1 1.2 1.0 Non-GAAP Revenues $195.6 $204.8 $192.5 $150.9 $ 743.9 $186.3 $195.4 Maintenance and Support Revenues Q1 Q2 Q3 Q4 FY Q1 Q2 ------------- 2017 2017 2017 2017 2017 2018 2018 GAAP Revenues $ 82.5 $ 81.6 $ 80.5 $ 82.5 $ 327.1 $ 80.8 $ 78.4 Adjustment 0.2 0.4 0.2 0.2 1.0 0.1 0.1 Non-GAAP Revenues $ 82.7 $ 82.0 $ 80.7 $ 82.7 $ 328.1 $ 80.9 $ 78.5 Perpetual Product and Licensing Revenues Q1 Q2 Q3 Q4 FY Q1 Q2 ------------- 2017 2017 2017 2017 2017 2018 2018 GAAP Revenues $ 78.7 $ 76.5 $ 73.5 $ 77.3 $ 306.0 $ 76.6 $ 73.0 Adjustment 0.7 0.5 0.9 0.4 2.4 0.4 0.3 Non-GAAP Revenues $ 79.3 $ 77.0 $ 74.4 $ 77.7 $ 308.4 $ 76.9 $ 73.3 Recurring Product and Licensing Revenues Q1 Q2 Q3 Q4 FY Q1 Q2 ------------- 2017 2017 2017 2017 2017 2018 2018 GAAP Revenues $ 73.1 $ 82.8 $ 80.8 $ 92.8 $ 329.4 $ 85.2 $ 88.3 Adjustment 5.1 7.8 5.0 6.1 24.1 5.4 2.7 Non-GAAP Revenues $ 78.2 $ 90.6 $ 85.8 $ 98.9 $ 353.5 $ 90.7 $ 90.9 Professional Services Revenues Q1 Q2 Q3 Q4 FY Q1 Q2 ------------- 2017 2017 2017 2017 2017 2018 2018 GAAP Revenues $ 60.1 $ 56.5 $ 62.1 $ 64.3 $ 243.1 $ 73.9 $ 80.2 Adjustment 0.2 0.1 0.1 0.1 0.5 0.1 - Non-GAAP Revenues $ 60.3 $ 56.7 $ 62.2 $ 64.4 $ 243.6 $ 74.0 $ 80.2 Total Recurring Revenues Q1 Q2 Q3 Q4 FY Q1 Q2 ------------- 2017 2017 2017 2017 2017 2018 2018 GAAP Revenues $353.0 $370.2 $354.5 $328.6 $1,406.4 $355.3 $365.0 Adjustment 7.5 11.4 8.7 8.2 35.9 6.9 3.9 Non-GAAP Revenues $360.5 $381.7 $363.2 $336.8 $1,442.3 $362.2 $368.9 Schedules may not add due to rounding. |
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From: Savant | 6/12/2018 10:09:33 AM | | | | Independent Research Firm Names Nuance "Killer Solution" and a "Strong Performer" in New Conversational Computing Report
Evaluated Alongside Tech's Biggest Names, Nuance Receives Differentiated Rating in Key Criteria
BURLINGTON, Mass., June 12, 2018 (GLOBE NEWSWIRE) -- Nuance Communications, Inc. (NASDAQ:NUAN), a leader in conversational AI innovations, today announced that Forrester Research has identified the company as one of the top emerging voice and chat companies in the "The New Wave(TM): Conversational Computing Platforms, Q2 2018" report.
The report identifies the most significant providers in the industry, evaluating Nuance along with technology powerhouses Amazon, Google, Microsoft and IBM on current offering, strategy and market presence. Nuance was recognized for enabling human-machine conversations, earning a differentiated rating in the criteria of breadth of services, UX support, geography and languages, and analytics.
While the Conversational Computing market is still nascent, Forrester asserts that "voice and chat interactions are quickly moving into the mainstream." With the reliability of voice technology, pervasiveness of connected devices, and strong preference for ease-of-use, peoples' expectations for digital interactions are dramatically increasing. Conversational Computing Platforms are what enable this on-demand, personalized, and connected experience, handling a variety of complex requests and tasks: from asking your car for directions to the nearest coffee shop to checking your bank balance through a virtual assistant. As Forrester notes: The ability to talk to devices at home; request information through a chat interface; and place an order while driving a car, using only your voice are quickly moving from the realm of science fiction into daily life(1) .
In the report, Forrester notes that "Nuance Communications is a killer solution with a development platform. [It] has been enabling human-machine conversations for many years in the call center, giving it a running start in enabling tomorrow's conversational computing platforms."(1) Forrester also stated in the report that "Nuance tackles large, complex, conversational problems that are often mission-critical. It has strong industry expertise, especially in the call center, along with professional services to back that up."(1) Nuance expertise in delivering solutions for multifaceted, complicated business cases has resulted in the company's impressive roster of relationships with global organizations.
This recognition follows Nuance's #1 ranking in Forrester's June 2017 report, The Top 10 Chatbots For Enterprise Customer Service. These growing accolades underscore Nuance's AI prominence, especially in bringing real, conversational experiences to complex industries, such as healthcare, automotive, telecommunications and financial services. Nuance works with thousands of the world's leading companies, including BMW, Ford, Daimler, HSBC, FedEx, Coca-Cola, American Airlines and Partners HealthCare to bring intelligence to work and life and transform the way people experience technology.
"To be included in this report and evaluated as a strong performer is testament to the tremendous work and advances our team delivers enabling our customer success every day," said Robert Weideman, Executive Vice President & General Manager, Nuance Enterprise Division. "We are laser-focused on helping our customers bring AI to life, simplify daily interactions and solve their most complex business problems."
For more information on Nuance's Conversational Computing capabilities, please visit: nuance.com
About Nuance Communications, Inc.
Nuance Communications, Inc. (NASDAQ:NUAN) is the pioneer and leader in conversational AI innovations that bring intelligence to everyday work and life. The company delivers solutions that can understand, analyze and respond to human language to increase productivity and amplify human intelligence. With decades of domain and artificial intelligence expertise, Nuance works with thousands of organizations -- in global industries that include healthcare, telecommunications, automotive, financial services, and retail -- to create stronger relationships and better experiences for their customers and workforce. For more information, please visit www.nuance.com.
Trademark reference: Nuance and the Nuance logo 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.
Contact Information
For Press
US
Katie Byrne
Nuance Communications, Inc.
Tel: 781-565-5290
Katie.byrne@nuance.com
(1) New WAVE(TM): Conversational Computing Platforms, Forrester Research, Inc., April 12, 2018 |
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From: Jorgen Jensen | 6/26/2018 9:18:03 AM | | | | Three longtime directors exiting at Nuance Communications Jun. 26, 2018 8:38 AM ET|About: Nuance Communications, Inc. (NUAN)|By: Stephen Alpher, SA News Editor Continuing to shake up leadership under activist pressure, Nuance Communications (NASDAQ: NUAN) announces the retirement (at month-end) of three long-standing members of its board.
The board also announces two new committee chairs and has adopted majority voting as the standard for uncontested director elections. It'll also be easier for shareholders to call special meetings.
The board has engaged a search firm to find new independent directors. |
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From: Jorgen Jensen | 11/12/2018 5:54:03 PM | | | | Nuance Signs Definitive Agreement to Sell Document Imaging Division to Kofax November 12, 2018 Enables Nuance to sharpen focus on its conversational AI- and cloud-related technologies, simplify its business, and improve its growth profile
BURLINGTON, Mass., Nov. 12, 2018 (GLOBE NEWSWIRE) -- Nuance Communications, Inc. (NASDAQ: NUAN) today announced the company has signed a definitive agreement to sell its Document Imaging division to Kofax, Inc. The sale enables Nuance to focus the business entirely on its conversational AI- and cloud- based solutions while simplifying the organization and improving its growth profile. For Kofax, the Document Imaging division bolsters the company’s leadership in Intelligent Automation technologies. Total consideration for the transaction is $400 million in cash. The deal, which is subject to customary closing conditions, is expected to close by the end of Nuance’s second fiscal quarter.
“Nuance is entering the next phase of our organization’s growth and while selling the Document Imaging division was not an easy decision given its many years of contributions and dedication of our Imaging associates, it became clear in our portfolio reviews that this is the right outcome,” said Mark Benjamin, chief executive officer of Nuance. “Selling the Imaging division enables us to sharpen focus on our conversational AI- and cloud-related portfolio and accelerate the transformation well underway at the Company.”
Nuance Document Imaging provides the software solutions and expertise required by professionals and organizations to more securely and efficiently optimize information-centric processes. The Company’s expansive portfolio enables strict compliance with information security policies and regulations while enabling organizations to streamline and eliminate gaps across the full spectrum of workflows spanning the lifecycle of their documents from origin to archiving. For users, Nuance’s Imaging solutions deliver an experience that is consistent, familiar and intuitive for more efficient, natural, and intelligent interactions with technologies used to create, capture, and process documents.
“Through the acquisition of Nuance’s Document Imaging division, Kofax will drive customer value by adding key technologies, including cloud compatibility, scan-to-archive, scan-to-workflow, print management and document security, to our end-to-end Intelligent Automation platform,” said Reynolds C. Bish, Chief Executive Officer of Kofax. “In addition, we will now be able to combine the best capture capabilities available in the market into one product portfolio.”
Additional details will be discussed on the Company’s November 19, 2018 fourth quarter earnings call. BofA Merrill Lynch served as Nuance’s financial advisor, and Paul, Weiss, Rifkind, Wharton & Garrison LLP and Baker McKenzie served as Nuance’s legal advisors on the transaction.
About Nuance Communications, Inc. Nuance Communications, Inc. (NASDAQ: NUAN) is the pioneer and leader in conversational AI innovations that bring intelligence to everyday work and life. The company delivers solutions that understand, analyze and respond to human language to increase productivity and amplify human intelligence. With decades of domain and artificial intelligence expertise, Nuance works with thousands of organizations – in global industries that include healthcare, telecommunications, automotive, financial services, and retail – to create stronger relationships and better experiences for their customers and workforce. For more information, please visit www.nuance.com.
Trademark reference: Nuance and the Nuance logo 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.
Investor and Press contact: Richard Mack Nuance Communications, Inc. Tel: 781-565-5055 Email: richard.mack@nuance.com
Press contact: Kelby Troutman Nuance Communications, Inc. Tel: 781-791-8935 Email: kelby.troutman@nuance.com
Source: Nuance Communications, Inc.
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