Nuance books strong Q2

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Nuance Communications has released positive financial results for its fiscal 2009 second quarter, which ended March 31.

The Burlington, Mass.-based company recognized a generally accepted accounting principles (GAAP) net income of $7.1 million in the second quarter, compared with a GAAP net loss of $26.8 million in the same quarter last year.

GAAP revenues were $229.1 million in this quarter, a 13 percent increase over GAAP revenues of $203.3 million in the year-ago quarter, according to Nuance.

For its healthcare-dictation division, the company saw non-GAAP revenues of $105.2 million, up 32 percent, as reported, from the same quarter last year. Nuance said its healthcare unit enjoyed year-over-year revenue growth fueled by its hosted, on-demand solutions. On-premise solutions, which require capital budgets, were sluggish, as a growing number of healthcare institutions moved toward on-demand services. It said that revenues from Dragon NaturallySpeaking in non-healthcare markets were weak due to a challenging environment for Microsoft Windows-based software, especially in consumer markets.

In imaging, revenues for Nuance's PDF and document imaging solutions were $14.1 million, down 37 percent, as reported, from the same quarter last year. The year-over-year decline reflects the continued weakness in Windows-based software sales, as well as reduced sales through its channels as Nuance prepares for new product release launches later this fiscal year.

"Despite the challenging environment for capital and consumer spending, Nuance made significant progress in operating margins and the growth of recurring revenue streams," said Paul Ricci, chairman and CEO of Nuance. "Strong expense controls, which we expect to continue for the remainder of the fiscal year, enabled us to exceed profit expectations."