Nuance Provides Preliminary First Quarter Fiscal 2018 Results
Company Expects Strong Revenue, EPS, Net New Bookings and Cash Flow; Provides Updates on Leadership and CEO Succession
BURLINGTON, Mass. – January 22, 2018 – Nuance Communications, Inc. (NASDAQ: NUAN) today announced preliminary results for its first quarter of fiscal 2018 and provided updates on executive leadership.
Strong Preliminary Q1 2018 Results
Based on preliminary financial data, Nuance expects fiscal first quarter GAAP revenues to be between $500.0 million and $503.0 million and non-GAAP revenues to be between $507.0 million and $510.0 million. The company expects fiscal first quarter GAAP earnings per share to be between $0.15 and $0.18 and non-GAAP earnings per share to be between $0.26 and $0.27, which includes approximately a $0.27 and $0.02 per share benefit to GAAP and non-GAAP earnings, respectively, for the estimated impact from new U.S. federal tax legislation.
These GAAP and non-GAAP revenue and earnings per share preliminary ranges are above the guidance ranges previously provided on November 28, 2017, for fiscal first quarter results. The Company’s expected outperformance against previous non-GAAP guidance is primarily due to revenue strength across Healthcare, Automotive and Imaging. Additionally, net new bookings in the quarter are expected to be strong, up approximately 10% year-over-year and owed to continued growth in Automotive, Enterprise, and Dragon Medical. Cash flow from operations is expected to be approximately $85.0 million.
These preliminary expectations are subject to revision until the Company reports final first quarter fiscal 2018 results on February 8, 2018. (Please see today’s separate advisory for details.)
Imaging Division Leadership, Al Monserrat Named EVP and GM
Al Monserrat, an accomplished technology veteran and the former CEO of RES Software, has joined the Company as an executive vice president and the general manager of its Imaging business. Mr. Monserrat has more than 25 years of broad technology and software experience, and a proven track record for developing successful strategies that result in expanded market opportunities, improved go-to-market execution, and accelerated revenue growth. Prior to serving as the CEO of RES, a leader in automated and secure digital workspaces that was recently acquired by Ivanti, Mr. Monserrat held numerous leadership roles at Citrix, including Senior Vice President of Global Sales and Services, Vice President of Global Channels, Sales Operations, and Emerging Products; and Vice President and General Manager of Citrix’s North American business.
“With years of technology and software experience, Al has successfully led the strategic transformation of numerous businesses, resulting in accelerated growth, market expansion, and improved go-to-market capabilities. We are pleased to welcome Al to our team as we mark this new chapter for our Imaging business,” said Paul Ricci, chairman and CEO, Nuance.
Mobile Division Reorganization and Leadership Update
Nuance announced that it is reorganizing its Mobile division to improve efficiency and better serve customers. Nuance’s Mobile Communications Service Provider (CSP) business will be merged into the Enterprise division, reporting to Robert Weideman, EVP and GM, and forming a consolidated focus on the Company’s business in the telecommunications market. And, as previously announced, the Company is moving forward with establishing its Automotive business as a separate, reportable segment and business line. In addition, Bob Schassler, Executive Vice President and General Manager, Mobile division, has resigned from the Company.
CEO Succession Planning
The Nuance Board of Directors confirmed that Paul Ricci will retire as CEO on or before March 31, 2018. The Search Committee has advanced its selection process and intends to appoint a new CEO on or before that date. In light of Mr. Ricci’s expected retirement as CEO, the Board will not nominate him for election as a director at the 2018 annual meeting of shareholders.