Nuance Communications Posts Q4 Loss; Shares Down

(RTTNews) - Voice recognition software maker Nuance Communications Inc. (NUAN), Monday reported a swing to loss in the fourth-quarter from a profit last year, driven by some mediocre revenue growth that was offset by higher costs. Nonetheless, adjusted earnings and revenue for the quarter came in ahead of Wall Street estimates.

However, shares of Nuance fell about seven percent in after-hours trade, following the news.

Burlington, Massachusetts-based Nuance's reported a fourth-quarter loss of $32.3 million or $0.10 per share, compared to a profit of $117.6 million or $0.36 per share last year.

Adjusted earnings for the quarter were $0.30 per share compared to $0.51 per share a year ago. On average, 15 analysts polled by Thomson Reuters expected earnings of $0.29 per share for the quarter. Analysts' estimates typically exclude special items.

Nuance's revenues for the quarter grew to $472.2 million from $468.8 million last year. Adjusted revenues for the quarter rose to $490.4 million from $490.1 million a year ago. Fourteen analysts had a consensus revenue estimate of 489.56 million for the quarter.

Commenting on the results, CEO Paul Ricci said, "We are pleased that we achieved fourth quarter results consistent with our guidance, and executed on our strategy to enter new growth markets, deliver a new generation of solutions and enable attractive, recurring revenue streams."

Total cost of revenues increased to $198.7 million from $171.5 million, while operating costs rose to $269.8 million from $250.7 million a year ago.

NUAN closed Monday's trading at $15.99, down $0.38 or 2.32% on the Nasdaq. The stock further dropped $1.14 or 7.13% in after-hours trade.