Nuance Communications is seeing strong growth in the medical sector, and is expecting the automotive sector to lead its mobile business going forward, according to the company’s latest corporate update.
The update covers the fourth quarter and fiscal year ended September 30th. The quarter saw GAAP revenue of 465.9 million, down from $506.2 million in Q4 of the 2016 fiscal year. Nuance also reports a GAAP net loss for the quarter of $65.4 million, compared to a net income of $18.5 million a year ago.
Looking to the fiscal year, GAAP revenues came in at just under $1.94 billion, compared to just under $1.95 billion in FY 2016; and Nuance saw a net loss of $151 million this fiscal year, compared to a net loss of $12.5 million in FY 2016.
In a statement, Nuance called this latest “a strong fourth quarter”, and said that the fiscal year had seen a “solid performance in net new bookings and recurring revenue driven by demand for its Dragon Medical cloud solution, Enterprise, specifically voice biometrics and omni-channel and digital offerings, and clinical documentation improvement solutions”; and given that Nuance just announced its new Dragon Medical Virtual Assistant in October, it’s fair to expect its strong performance in its medical business to continue.
Looking ahead, Nuance also expects its automotive solutions to lead growth in its mobile business over the next fiscal year, with double-digit growth helping to offset losses from declines in its handset business. Meanwhile, demand for its AI solutions for the enterprise sector is expected to stay strong, and Nuance’s management team “expect strong growth in our biometrics, security, and digital messaging solutions,” according to prepared remarks on the corporate update.
Nuance projects organic revenue growth of between two and four percent over the 2018 fiscal year.
November 29, 2017 – by Alex Perala