Nuance losses widen, despite higher revenues in Q3

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Nuance Communications, has reported its financial results for the third fiscal quarter of 2008, which ended June 30.
For the quarter, the Burlington, Mass.-based company reported revenues of $216.7 million, a 38 percent increase over revenues of $156.6 million in the same quarter last year.

Based on generally accepted accounting principles (GAAP), Nuance recognized a net loss of $9.9 million in the third quarter, compared with a net loss of $7.6 million in the year-ago period. Using a non-GAAP measure, Nuance reported non-GAAP net income of $51.4 million for the period, compared to non-GAAP net income of $27.9 million last year.

The non-GAAP net income amount excludes non-cash income taxes and interest, amortization of intangible assets, non-cash share-based payments, acquisition-related transition and integration costs, and restructuring and other charges (credits), net. 

Revenue from mobile and embedded solutions was $45.3 million, up from $33.9 million a year ago. The company said it continued to benefit from active product cycles, strong consumer demand and OEM agreements for devices and services from customers including LG, Nokia and Samsung, as well as other partners to be announced in coming months.

Healthcare revenue in the quarter grew sequentially as demand for clinical documentation solutions continued to grow, according to Nuance. The company said it sustained strong performance and growth for its on-demand solutions, signing several multi-million dollar, extended-term contracts in the quarter with organizations including Baptist Health System and MeritCare Health System. On May 20, Nuance closed the acquisition of eScription, which the company said expanded its on-demand, computer-aided medical transcription and clinical documentation solutions.