Nuance has delivered solid results in another fiscal update, this time concerning the second quarter of its fiscal year, for the period ended March 31, 2021.
The artificial intelligence specialist raked in revenues of $347 million for the quarter, compared to revenues of $315.9 million in the same period a year ago. Its GAAP net result was income of $12.7 million, compared to a GAAP net loss of 26.5 million in the comparable quarter of the previous fiscal year.
The results are impressive from a year-over-year perspective, and relatively stable with respect to Nuance’s results in Q1 of its fiscal 2021, for which the company reported revenues of $345.8 million and a net income of just under $14.9 million.
Also in keeping with Nuance’s previous quarterly update, the company saw particularly strong growth in the areas of healthcare and biometric enterprise security. In his commentary on the latest results, Nuance CEO Mark Benjamin noted that revenues from Nuance’s Dragon Medical & DAX Cloud solutions grew 30 percent year-over-year and that healthcare revenues in general were up 24 percent year-over-year, adding that Nuance’s enterprise activities “delivered a solid quarter with particular growth in our Security & Biometrics offerings.”
“Q2 marked a solid quarter in which we delivered on our strategic and financial objectives,” Benjamin said. “This execution translated to both our top-line and bottom-line, with revenue within our guidance range expectations and EPS exceeding our expectations.”
Of course, the biggest news for the company came after the quarter’s end, when it was revealed that Microsoft had agreed to acquire the company in a $16 billion deal (or about $19 billion inclusive of Nuance’s debt). In his own comments on the deal, Microsoft CEO Satya Nadella emphasized the opportunities it would open up in the healthcare sector, but Nuance’s biometric solutions were also considered an asset in Microsoft’s official announcement of the deal.
The acquisition is expected to close by the end of the fiscal year, after which Nuance will cease to be a publicly traded company.
May 11, 2021 – by Alex Perala