Delaware | 000-27038 | 94-3156479 | ||
(State or other jurisdiction of | (Commission | (IRS Employer | ||
incorporation) | File Number) | Identification No.) |
ITEM 2.02 | Results of Operation and Financial Condition |
(i) Transition and integration costs. Transition and integration costs include retention payments, transitional employee costs, earn-out payments treated as compensation expense, as well as the costs of integration-related services provided by third parties. | ||
(ii) Professional service fees. Professional service fees include direct costs of the acquisition, as well as post-acquisition legal and other professional service fees associated with disputes and regulatory matters related to acquired entities. | ||
(iii) Acquisition-related adjustments. Acquisition-related adjustments include adjustments to acquisition-related items that are required to be marked to fair value each reporting period, such as contingent consideration, and other items related to acquisitions for which the measurement period has ended, such as gains or losses on settlements of pre-acquisition contingencies. |
(i) Stock-based compensation. Because of varying available valuation methodologies, subjective assumptions and the variety of award types, the Company believes that the exclusion of stock-based compensation allows for more accurate comparisons of operating results to peer companies, as well as to times in the Companys history when stock-based compensation was more or less significant as a portion of overall compensation than in the current period. The Company evaluates performance both with and without these measures because compensation expense related to stock-based compensation is typically non-cash and the options and restricted awards granted are influenced by the Companys stock price and other factors such as volatility that are beyond the Companys control. The expense related to stock-based awards is generally not controllable in the short-term and can vary significantly based on the timing, size and nature of awards granted. As such, the Company does not include such charges in operating plans. Stock-based compensation will continue in future periods. | ||
(ii and iii) Certain accrued interest and income taxes. The Company also excludes certain accrued interest and certain accrued income taxes because the Company believes that excluding these non-cash expenses provides senior management, as well as other users of the financial statements, with a valuable perspective on the cash-based performance and health of the business, including the current near-term projected liquidity. These non-cash expenses will continue in future periods. |
99.1 | Press Release dated August 9, 2011 by Nuance Communications, Inc. |
|||
99.2 | Supplemental Financial Information |
NUANCE COMMUNICATIONS, INC. |
||||
Date: August 9, 2011 | By: | /s/ Thomas Beaudoin | ||
Thomas Beaudoin | ||||
Chief Financial Officer |
99.1 | Press Release dated August 9, 2011 by Nuance Communications, Inc. |
|||
99.2 | Supplemental Financial Information |
![]() |
News Release From Nuance Communications |
|
For Immediate Release | ||
Contacts: | ||
For Investors Kevin Faulkner Nuance Communications, Inc. Tel: 408-992-6100 Email: kevin.faulkner@nuance.com |
For Press and Investors Richard Mack Nuance Communications, Inc. Tel: 781-565-5000 Email: richard.mack@nuance.com |
| Healthcare For Nuances healthcare solutions, third quarter non-GAAP revenue was $139.3 million, up 21.9%, as reported, from the same quarter last year. During the third quarter, new bookings included large eScription, Dragon Medical and radiology contracts. Key healthcare customers included 3M, Carolinas, Catholic Health Partners, CHS, Dolbey, Health Region West, Medquist, Premier, Sutter Health, University of Pittsburgh Medical Center, WinScribe and Yale. | ||
| Mobile & Consumer For Nuances mobile & consumer solutions, third quarter non-GAAP revenue was $93.1 million, up 28.9%, as reported, from the same quarter last year. Key mobile customers, new bookings or design wins in the quarter included Amazon, BMW, Coupons.com, eBay, Ford, GM, Harman Becker, HTC, Huawei, Hyundai, Landrover, Lenovo, Mobis, Motorola, Pantech, SK Telecom, T-Mobile, Telstra, Time Warner Cable, Vodafone and Volvo. | ||
| Enterprise For Nuances enterprise solutions, third quarter non-GAAP revenue was $69.9 million, down 1.7%, as reported, from the same quarter last year. Key enterprise customers in the quarter included Axa, Barclaycard, Cigna Healthcare, Citigroup, Farmers Insurance, HP, IBM, Kaiser Permanente, Lenovo, Michigan BCBS, PayPal, Suntrust Bank, USAA and US Airways. | ||
| Imaging For Nuances document imaging solutions, third quarter non-GAAP revenue was $42.8 million, up 19.6%, as reported, from the same quarter last year. Key third quarter imaging customers included Canon, HP, Konica Minolta, Kroger, Marathon Oil, Ricoh and Xerox. |
- 2 -
- 3 -
- 4 -
- 5 -
- 6 -
Three months ended | Nine months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Revenues: |
||||||||||||||||
Product and licensing |
$ | 152,745 | $ | 108,840 | $ | 428,181 | $ | 335,228 | ||||||||
Professional services and hosting |
125,347 | 117,875 | 377,078 | 337,798 | ||||||||||||
Maintenance and support |
50,817 | 46,488 | 146,441 | 136,159 | ||||||||||||
Total revenues |
328,909 | 273,203 | 951,700 | 809,185 | ||||||||||||
Cost of revenues: |
||||||||||||||||
Product and licensing |
15,820 | 10,901 | 47,950 | 34,194 | ||||||||||||
Professional services and hosting |
83,301 | 71,353 | 248,003 | 206,349 | ||||||||||||
Maintenance and support |
8,836 | 7,631 | 26,645 | 23,335 | ||||||||||||
Amortization of intangible assets |
13,087 | 11,893 | 40,541 | 35,095 | ||||||||||||
Total cost of revenues |
121,044 | 101,778 | 363,139 | 298,973 | ||||||||||||
Gross profit |
207,865 | 171,425 | 588,561 | 510,212 | ||||||||||||
Operating expenses: |
||||||||||||||||
Research and development |
42,245 | 38,916 | 129,898 | 113,797 | ||||||||||||
Sales and marketing |
73,336 | 67,219 | 225,817 | 196,680 | ||||||||||||
General and administrative |
35,901 | 29,887 | 104,271 | 88,643 | ||||||||||||
Amortization of intangible assets |
20,972 | 21,459 | 65,221 | 65,786 | ||||||||||||
Acquisition-related costs, net |
8,595 | 6,125 | 13,910 | 26,892 | ||||||||||||
Restructuring and other charges, net |
864 | 3,257 | 5,343 | 16,244 | ||||||||||||
Total operating expenses |
181,913 | 166,863 | 544,460 | 508,042 | ||||||||||||
Income from operations |
25,952 | 4,562 | 44,101 | 2,170 | ||||||||||||
Other expense, net |
(7,721 | ) | (4,261 | ) | (15,736 | ) | (18,915 | ) | ||||||||
Income (loss) before income taxes |
18,231 | 301 | 28,365 | (16,745 | ) | |||||||||||
(Benefit) provision for income taxes |
(23,390 | ) | 1,831 | (14,982 | ) | 4,459 | ||||||||||
Net income (loss) |
$ | 41,621 | $ | (1,530 | ) | $ | 43,347 | $ | (21,204 | ) | ||||||
Net income (loss) per share: |
||||||||||||||||
Basic |
$ | 0.14 | $ | (0.01 | ) | $ | 0.14 | $ | (0.07 | ) | ||||||
Diluted |
$ | 0.13 | $ | (0.01 | ) | $ | 0.14 | $ | (0.07 | ) | ||||||
Weighted average common shares outstanding: |
||||||||||||||||
Basic |
303,100 | 291,610 | 300,846 | 285,202 | ||||||||||||
Diluted |
317,803 | 291,610 | 314,791 | 285,202 | ||||||||||||
- 7 -
June 30, 2011 | September 30, 2010 | |||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 446,981 | $ | 516,630 | ||||
Restricted cash |
7,212 | 24,503 | ||||||
Marketable securities |
36,617 | 5,044 | ||||||
Accounts receivable, net |
247,972 | 217,587 | ||||||
Acquired unbilled accounts receivable |
914 | 7,412 | ||||||
Prepaid expenses and other current assets |
79,339 | 70,466 | ||||||
Total current assets |
819,035 | 841,642 | ||||||
Land, building and equipment, net |
79,623 | 62,083 | ||||||
Marketable securities |
| 28,322 | ||||||
Goodwill |
2,318,555 | 2,077,943 | ||||||
Intangible assets, net |
757,599 | 685,865 | ||||||
Other assets |
75,375 | 73,844 | ||||||
Total assets |
$ | 4,050,187 | $ | 3,769,699 | ||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Current liabilities: |
||||||||
Current portion of long-term debt and capital leases |
$ | 6,909 | $ | 7,764 | ||||
Contingent and deferred acquisition payments |
34,712 | 2,131 | ||||||
Accounts payable and accrued expenses |
239,867 | 230,237 | ||||||
Deferred and unearned revenue |
183,455 | 142,340 | ||||||
Total current liabilities |
464,943 | 382,472 | ||||||
Long-term portion of debt and capital leases |
852,444 | 851,014 | ||||||
Long-term deferred revenue |
81,502 | 76,598 | ||||||
Other long term liabilities |
188,514 | 162,419 | ||||||
Total liabilities |
1,587,403 | 1,472,503 | ||||||
Stockholders equity |
2,462,784 | 2,297,196 | ||||||
Total liabilities and stockholders equity |
$ | 4,050,187 | $ | 3,769,699 | ||||
- 8 -
Three months ended | Nine months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Cash flows from operating activities: |
||||||||||||||||
Net income (loss) |
$ | 41,621 | $ | (1,530 | ) | $ | 43,347 | $ | (21,204 | ) | ||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
||||||||||||||||
Depreciation and amortization |
40,996 | 38,761 | 125,719 | 116,738 | ||||||||||||
Stock-based compensation |
33,788 | 28,094 | 109,505 | 72,868 | ||||||||||||
Non-cash interest expense |
3,155 | 3,222 | 9,524 | 9,746 | ||||||||||||
Non-cash restructuring and other expense |
| | | 6,833 | ||||||||||||
Deferred tax provision |
(36,291 | ) | (1,210 | ) | (35,727 | ) | (2,321 | ) | ||||||||
Other |
3,559 | 1,005 | 4,259 | 1,671 | ||||||||||||
Changes in operating assets and liabilities, net of effects from acquisitions: |
||||||||||||||||
Accounts receivable |
(1,160 | ) | (4,482 | ) | (3,679 | ) | (13,023 | ) | ||||||||
Prepaid expenses and other assets |
(5,899 | ) | (1,150 | ) | (17,095 | ) | (4,869 | ) | ||||||||
Accounts payable |
(8,553 | ) | (1,711 | ) | (9,999 | ) | (3,960 | ) | ||||||||
Accrued expenses and other liabilities |
21,085 | 2,532 | (9,950 | ) | (7,825 | ) | ||||||||||
Deferred revenue |
7,758 | 587 | 43,603 | 30,044 | ||||||||||||
Net cash provided by operating activities |
100,059 | 64,118 | 259,507 | 184,698 | ||||||||||||
Cash flows from investing activities: |
||||||||||||||||
Capital expenditures |
(7,703 | ) | (8,434 | ) | (24,267 | ) | (16,284 | ) | ||||||||
Payments for acquisitions, net of cash acquired |
(302,491 | ) | 3,470 | (319,299 | ) | (155,882 | ) | |||||||||
Payments for acquired technology |
| (7,500 | ) | (715 | ) | (14,850 | ) | |||||||||
Payments for equity investments |
| | | (14,970 | ) | |||||||||||
Purchases of marketable securities |
| | (10,776 | ) | | |||||||||||
Proceeds from sales of marketable securities |
| | 6,650 | | ||||||||||||
Change in restricted cash balance |
| (22,070 | ) | 17,184 | (22,070 | ) | ||||||||||
Net cash used in investing activities |
(310,194 | ) | (34,534 | ) | (331,223 | ) | (224,056 | ) | ||||||||
Cash flows from financing activities: |
||||||||||||||||
Payments of debt and capital leases |
(1,773 | ) | (2,312 | ) | (5,864 | ) | (6,376 | ) | ||||||||
Payments of other long-term liabilities |
(2,520 | ) | (2,501 | ) | (7,794 | ) | (7,319 | ) | ||||||||
Proceeds on settlement of share-based derivatives, net |
10,042 | 2,607 | 9,414 | 6,391 | ||||||||||||
Excess tax benefits on employee equity awards |
4,200 | | 8,220 | | ||||||||||||
Proceeds from issuance of common stock, net of issuance costs |
| 12,350 | | 12,350 | ||||||||||||
Proceeds from issuance of common stock from employee stock plans |
7,101 | 4,009 | 21,712 | 22,832 | ||||||||||||
Cash used to net share settle employee equity awards |
(3,601 | ) | (8,256 | ) | (30,027 | ) | (18,040 | ) | ||||||||
Net cash provided by (used in) financing activities |
13,449 | 5,897 | (4,339 | ) | 9,838 | |||||||||||
Effects of exchange rate changes on cash and cash equivalents |
1,955 | (5,211 | ) | 6,406 | (5,444 | ) | ||||||||||
Net (decrease) increase in cash and cash equivalents |
(194,731 | ) | 30,270 | (69,649 | ) | (34,964 | ) | |||||||||
Cash and cash equivalents at beginning of period |
641,712 | 461,804 | 516,630 | 527,038 | ||||||||||||
Cash and cash equivalents at end of period |
$ | 446,981 | $ | 492,074 | $ | 446,981 | $ | 492,074 | ||||||||
- 9 -
Three months ended | Nine months ended | |||||||||||||||
June 30 , | June 30 , | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
GAAP revenue |
$ | 328,909 | $ | 273,203 | $ | 951,700 | $ | 809,185 | ||||||||
Acquisition-related revenue adjustments: product and licensing |
9,562 | 12,922 | 31,821 | 44,726 | ||||||||||||
Acquisition-related revenue adjustments: professional
services and hosting |
5,197 | 6,359 | 7,585 | 9,632 | ||||||||||||
Acquisition-related revenue adjustments: maintenance and
support |
1,463 | 900 | 3,297 | 7,269 | ||||||||||||
Non-GAAP revenue |
$ | 345,131 | $ | 293,384 | $ | 994,403 | $ | 870,812 | ||||||||
GAAP cost of revenue |
$ | 121,044 | $ | 101,778 | $ | 363,139 | $ | 298,973 | ||||||||
Cost of revenue from amortization of intangible assets |
(13,087 | ) | (11,893 | ) | (40,541 | ) | (35,095 | ) | ||||||||
Cost of revenue adjustments: product and licensing (1,2) |
2,038 | 2,794 | 6,807 | 8,920 | ||||||||||||
Cost of revenue adjustments: professional services and
hosting (1,2) |
(5,197 | ) | (2,181 | ) | (19,564 | ) | (7,085 | ) | ||||||||
Cost of revenue adjustments: maintenance and support (1,2) |
(518 | ) | (165 | ) | (1,545 | ) | (582 | ) | ||||||||
Non-GAAP cost of revenue |
$ | 104,280 | $ | 90,333 | $ | 308,296 | $ | 265,131 | ||||||||
GAAP gross profit |
$ | 207,865 | $ | 171,425 | $ | 588,561 | $ | 510,212 | ||||||||
Gross profit adjustments |
32,986 | 31,626 | 97,546 | 95,469 | ||||||||||||
Non-GAAP gross profit |
$ | 240,851 | $ | 203,051 | $ | 686,107 | $ | 605,681 | ||||||||
GAAP income from operations |
$ | 25,952 | $ | 4,562 | $ | 44,101 | $ | 2,170 | ||||||||
Gross profit adjustments |
32,986 | 31,626 | 97,546 | 95,469 | ||||||||||||
Research and development (1) |
5,280 | 2,282 | 18,188 | 6,731 | ||||||||||||
Sales and marketing (1) |
10,341 | 12,516 | 32,748 | 29,813 | ||||||||||||
General and administrative (1) |
11,883 | 10,512 | 36,481 | 27,544 | ||||||||||||
Amortization of intangible assets |
20,972 | 21,459 | 65,221 | 65,786 | ||||||||||||
Costs associated with IP collaboration agreements |
5,250 | 4,208 | 14,500 | 12,208 | ||||||||||||
Acquisition-related costs, net |
8,595 | 6,125 | 13,910 | 26,892 | ||||||||||||
Restructuring and other charges, net |
864 | 3,257 | 5,343 | 16,244 | ||||||||||||
Non-GAAP income from operations |
$ | 122,123 | $ | 96,547 | $ | 328,038 | $ | 282,857 | ||||||||
GAAP provision for income taxes |
$ | (23,390 | ) | $ | 1,831 | $ | (14,982 | ) | $ | 4,459 | ||||||
Non-cash taxes |
29,390 | 3,471 | 28,781 | 6,772 | ||||||||||||
Non-GAAP provision for income taxes |
$ | 6,000 | $ | 5,302 | $ | 13,799 | $ | 11,231 | ||||||||
GAAP net income (loss) |
$ | 41,621 | $ | (1,530 | ) | $ | 43,347 | $ | (21,204 | ) | ||||||
Acquisition-related adjustment revenue (2) |
16,222 | 20,181 | 42,703 | 61,627 | ||||||||||||
Acquisition-related adjustment cost of revenue (2) |
(2,607 | ) | (3,232 | ) | (7,786 | ) | (10,033 | ) | ||||||||
Acquisition-related costs, net |
8,595 | 6,125 | 13,910 | 26,892 | ||||||||||||
Cost of revenue from amortization of intangible assets |
13,087 | 11,893 | 40,541 | 35,095 | ||||||||||||
Amortization of intangible assets |
20,972 | 21,459 | 65,221 | 65,786 | ||||||||||||
Non-cash stock-based compensation (1) |
33,788 | 28,094 | 109,505 | 72,868 | ||||||||||||
Non-cash interest expense, net |
3,155 | 3,222 | 9,524 | 9,746 | ||||||||||||
Non-cash income taxes |
(29,390 | ) | (3,471 | ) | (28,781 | ) | (6,772 | ) | ||||||||
Costs associated with IP collaboration agreements |
5,250 | 4,208 | 14,500 | 12,208 | ||||||||||||
Change in fair value of share-based instruments |
(395 | ) | 1,044 | (10,844 | ) | (3,663 | ) | |||||||||
Restructuring and other charges, net |
864 | 3,257 | 5,343 | 16,244 | ||||||||||||
Non-GAAP net income |
$ | 111,162 | $ | 91,250 | $ | 297,183 | $ | 258,794 | ||||||||
Non-GAAP diluted net income per share |
$ | 0.35 | $ | 0.30 | $ | 0.94 | $ | 0.86 | ||||||||
Diluted weighted average common shares outstanding |
317,803 | 305,427 | 314,791 | 300,511 | ||||||||||||
- 10 -
Three months ended | Nine months ended | |||||||||||||||
June 30 , | June 30 , | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(1) Non-Cash Stock-Based Compensation |
||||||||||||||||
Cost of product and licensing |
$ | 2 | $ | 7 | $ | 29 | $ | 25 | ||||||||
Cost of professional services and hosting |
5,764 | 2,612 | 20,514 | 8,173 | ||||||||||||
Cost of maintenance and support |
518 | 165 | 1,545 | 582 | ||||||||||||
Research and development |
5,280 | 2,282 | 18,188 | 6,731 | ||||||||||||
Sales and marketing |
10,341 | 12,516 | 32,748 | 29,813 | ||||||||||||
General and administrative |
11,883 | 10,512 | 36,481 | 27,544 | ||||||||||||
Total |
$ | 33,788 | $ | 28,094 | $ | 109,505 | $ | 72,868 | ||||||||
(2) Acquisition-Related Revenue and Cost of Revenue |
||||||||||||||||
Revenue |
$ | 16,222 | $ | 20,181 | $ | 42,703 | $ | 61,627 | ||||||||
Cost of product and licensing |
(2,040 | ) | $ | (2,801 | ) | (6,836 | ) | (8,945 | ) | |||||||
Cost of professional services and hosting |
(567 | ) | (431 | ) | (950 | ) | (1,088 | ) | ||||||||
Cost of maintenance and support |
| | | | ||||||||||||
Total |
$ | 13,615 | $ | 16,949 | $ | 34,917 | $ | 51,594 | ||||||||
Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | |||||||||||||||||||||||||
Healthcare | 2010 | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | ||||||||||||||||||||||||
GAAP Revenue |
$ | 105.5 | $ | 105.8 | $ | 113.5 | $ | 119.8 | $ | 444.6 | $ | 117.4 | $ | 120.7 | $ | 135.4 | ||||||||||||||||
Adjustment |
$ | 1.3 | $ | 1.1 | $ | 0.8 | $ | 1.5 | $ | 4.7 | $ | 0.4 | $ | 0.3 | $ | 3.9 | ||||||||||||||||
Non-GAAP Revenue |
$ | 106.8 | $ | 106.9 | $ | 114.3 | $ | 121.3 | $ | 449.3 | $ | 117.8 | $ | 121.0 | $ | 139.3 | ||||||||||||||||
Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | |||||||||||||||||||||||||
Mobile & Consumer | 2010 | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | ||||||||||||||||||||||||
GAAP Revenue |
$ | 64.1 | $ | 77.8 | $ | 66.3 | $ | 89.2 | $ | 297.3 | $ | 86.1 | $ | 93.1 | $ | 91.6 | ||||||||||||||||
Adjustment |
$ | 2.3 | $ | 2.9 | $ | 5.9 | $ | 1.0 | $ | 12.1 | $ | 1.6 | $ | 0.6 | $ | 1.5 | ||||||||||||||||
Non-GAAP Revenue |
$ | 66.4 | $ | 80.7 | $ | 72.2 | $ | 90.2 | $ | 309.4 | $ | 87.7 | $ | 93.7 | $ | 93.1 | ||||||||||||||||
Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | |||||||||||||||||||||||||
Enterprise | 2010 | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | ||||||||||||||||||||||||
GAAP Revenue |
$ | 75.4 | $ | 70.9 | $ | 71.0 | $ | 76.6 | $ | 293.9 | $ | 71.1 | $ | 72.3 | $ | 68.5 | ||||||||||||||||
Adjustment |
$ | 0.3 | $ | 0.4 | $ | 0.1 | $ | 1.4 | $ | 2.2 | $ | 1.4 | $ | 1.7 | $ | 1.4 | ||||||||||||||||
Non-GAAP Revenue |
$ | 75.7 | $ | 71.3 | $ | 71.1 | $ | 78.0 | $ | 296.1 | $ | 72.5 | $ | 74.0 | $ | 69.9 | ||||||||||||||||
Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | |||||||||||||||||||||||||
Imaging Revenue | 2010 | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | ||||||||||||||||||||||||
GAAP Revenue |
$ | 18.0 | $ | 18.5 | $ | 22.4 | $ | 24.2 | $ | 83.1 | $ | 29.2 | $ | 32.8 | $ | 33.4 | ||||||||||||||||
Adjustment |
$ | 17.7 | $ | 15.4 | $ | 13.4 | $ | 11.2 | $ | 57.7 | $ | 10.0 | $ | 10.4 | $ | 9.4 | ||||||||||||||||
Non-GAAP Revenue |
$ | 35.7 | $ | 33.9 | $ | 35.8 | $ | 35.4 | $ | 140.8 | $ | 39.3 | $ | 43.2 | $ | 42.8 | ||||||||||||||||
- 11 -
- 1 -
Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | |||||||||||||||||||||||||
2010 | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | |||||||||||||||||||||||||
Healthcare |
$ | 106.8 | $ | 106.9 | $ | 114.3 | $ | 121.3 | $ | 449.3 | $ | 117.8 | $ | 121.0 | $ | 139.3 | ||||||||||||||||
Yr/Yr Organic Growth* |
6 | % | 13 | % | 17 | % | 16 | % | 13 | % | 3 | % | 6 | % | 12 | % | ||||||||||||||||
Mobile & Consumer |
$ | 66.4 | $ | 80.7 | $ | 72.2 | $ | 90.2 | $ | 309.4 | $ | 87.7 | $ | 93.7 | $ | 93.1 | ||||||||||||||||
Yr/Yr Organic Growth* |
15 | % | 29 | % | 14 | % | 30 | % | 22 | % | 20 | % | 17 | % | 31 | % | ||||||||||||||||
Enterprise |
$ | 75.7 | $ | 71.3 | $ | 71.1 | $ | 78.0 | $ | 296.1 | $ | 72.5 | $ | 74.0 | $ | 69.9 | ||||||||||||||||
Yr/Yr Organic Growth* |
12 | % | (6 | )% | (13 | )% | (7 | )% | (4 | )% | (8 | )% | (0 | )% | (5 | )% | ||||||||||||||||
Imaging |
$ | 35.7 | $ | 33.9 | $ | 35.8 | $ | 35.4 | $ | 140.8 | $ | 39.3 | $ | 43.2 | $ | 42.8 | ||||||||||||||||
Yr/Yr Organic Growth* |
7 | % | 9 | % | 5 | % | (9 | )% | 2 | % | 7 | % | 25 | % | 16 | % | ||||||||||||||||
Total revenue |
$ | 284.6 | $ | 292.8 | $ | 293.4 | $ | 324.9 | $ | 1,195.7 | $ | 317.3 | $ | 332.0 | $ | 345.1 | ||||||||||||||||
Yr/Yr Organic Growth* |
10 | % | 11 | % | 6 | % | 9 | % | 9 | % | 5 | % | 10 | % | 13 | % |
* | Organic growth is calculated by comparing Nuances reported non-GAAP revenue to revenue in the same period in the prior year. For purposes of this calculation, revenue is adjusted to include revenue from companies acquired by Nuance, as if we had owned the acquired business in all periods presented. |
Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | |||||||||||||||||||||||||
2010 | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | |||||||||||||||||||||||||
Product and Licensing |
$ | 130.2 | $ | 128.0 | $ | 121.8 | $ | 150.6 | $ | 530.7 | $ | 145.0 | $ | 152.7 | $ | 162.3 | ||||||||||||||||
% of Revenue |
46 | % | 44 | % | 42 | % | 46 | % | 44 | % | 46 | % | 46 | % | 47 | % | ||||||||||||||||
Professional Services and
Hosting |
$ | 104.5 | $ | 118.6 | $ | 124.2 | $ | 127.6 | $ | 474.9 | $ | 124.1 | $ | 130.1 | $ | 130.5 | ||||||||||||||||
% of Revenue |
37 | % | 41 | % | 42 | % | 39 | % | 40 | % | 39 | % | 39 | % | 38 | % | ||||||||||||||||
Maintenance and Support |
$ | 49.9 | $ | 46.2 | $ | 47.4 | $ | 46.7 | $ | 190.1 | $ | 48.2 | $ | 49.2 | $ | 52.3 | ||||||||||||||||
% of Revenue |
18 | % | 16 | % | 16 | % | 14 | % | 16 | % | 15 | % | 15 | % | 15 | % | ||||||||||||||||
Total revenue |
$ | 284.6 | $ | 292.8 | $ | 293.4 | $ | 324.9 | $ | 1,195.7 | $ | 317.3 | $ | 332.0 | $ | 345.1 | ||||||||||||||||
- 2 -
- 3 -
Q1 10 | Q2 10 | Q3 10 | Q4 10 | Q1 11 | Q2 11 | Q3 11 | ||||||||||||||||||||||
DSO |
74 | 71 | 71 | 63 | 70 | 65 | 68 |
- 4 -
- 5 -
- 6 -
- 7 -
- 8 -
- 9 -
Three months ended | Nine months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Revenues: |
||||||||||||||||
Product and licensing |
$ | 152,745 | $ | 108,840 | $ | 428,181 | $ | 335,228 | ||||||||
Professional services and hosting |
125,347 | 117,875 | 377,078 | 337,798 | ||||||||||||
Maintenance and support |
50,817 | 46,488 | 146,441 | 136,159 | ||||||||||||
Total revenues |
328,909 | 273,203 | 951,700 | 809,185 | ||||||||||||
Cost of revenues: |
||||||||||||||||
Product and licensing |
15,820 | 10,901 | 47,950 | 34,194 | ||||||||||||
Professional services and hosting |
83,301 | 71,353 | 248,003 | 206,349 | ||||||||||||
Maintenance and support |
8,836 | 7,631 | 26,645 | 23,335 | ||||||||||||
Amortization of intangible assets |
13,087 | 11,893 | 40,541 | 35,095 | ||||||||||||
Total cost of revenues |
121,044 | 101,778 | 363,139 | 298,973 | ||||||||||||
Gross profit |
207,865 | 171,425 | 588,561 | 510,212 | ||||||||||||
Operating expenses: |
||||||||||||||||
Research and development |
42,245 | 38,916 | 129,898 | 113,797 | ||||||||||||
Sales and marketing |
73,336 | 67,219 | 225,817 | 196,680 | ||||||||||||
General and administrative |
35,901 | 29,887 | 104,271 | 88,643 | ||||||||||||
Amortization of intangible assets |
20,972 | 21,459 | 65,221 | 65,786 | ||||||||||||
Acquisition-related costs, net |
8,595 | 6,125 | 13,910 | 26,892 | ||||||||||||
Restructuring and other charges, net |
864 | 3,257 | 5,343 | 16,244 | ||||||||||||
Total operating expenses |
181,913 | 166,863 | 544,460 | 508,042 | ||||||||||||
Income from operations |
25,952 | 4,562 | 44,101 | 2,170 | ||||||||||||
Other expense, net |
(7,721 | ) | (4,261 | ) | (15,736 | ) | (18,915 | ) | ||||||||
Income (loss) before income taxes |
18,231 | 301 | 28,365 | (16,745 | ) | |||||||||||
(Benefit) provision for income taxes |
(23,390 | ) | 1,831 | (14,982 | ) | 4,459 | ||||||||||
Net income (loss) |
$ | 41,621 | $ | (1,530 | ) | $ | 43,347 | $ | (21,204 | ) | ||||||
Net income (loss) per share: |
||||||||||||||||
Basic |
$ | 0.14 | $ | (0.01 | ) | $ | 0.14 | $ | (0.07 | ) | ||||||
Diluted |
$ | 0.13 | $ | (0.01 | ) | $ | 0.14 | $ | (0.07 | ) | ||||||
Weighted average common shares outstanding: |
||||||||||||||||
Basic |
303,100 | 291,610 | 300,846 | 285,202 | ||||||||||||
Diluted |
317,802 | 291,610 | 314,791 | 285,202 | ||||||||||||
June 30, 2011 | September 30, 2010 | |||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 446,981 | $ | 516,630 | ||||
Restricted cash |
7,212 | 24,503 | ||||||
Marketable securities |
36,617 | 5,044 | ||||||
Accounts receivable, net |
247,972 | 217,587 | ||||||
Acquired unbilled accounts receivable |
914 | 7,412 | ||||||
Prepaid expenses and other current assets |
79,339 | 70,466 | ||||||
Total current assets |
819,035 | 841,642 | ||||||
Land, building and equipment, net |
79,623 | 62,083 | ||||||
Marketable securities |
| 28,322 | ||||||
Goodwill |
2,318,555 | 2,077,943 | ||||||
Intangible assets, net |
757,599 | 685,865 | ||||||
Other assets |
75,375 | 73,844 | ||||||
Total assets |
$ | 4,050,187 | $ | 3,769,699 | ||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Current liabilities: |
||||||||
Current portion of long-term debt and capital leases |
$ | 6,909 | $ | 7,764 | ||||
Contingent and deferred acquisition payments |
34,712 | 2,131 | ||||||
Accounts payable and accrued expenses |
239,867 | 230,237 | ||||||
Deferred and unearned revenue |
183,455 | 142,340 | ||||||
Total current liabilities |
464,943 | 382,472 | ||||||
Long-term portion of debt and capital leases |
852,444 | 851,014 | ||||||
Long-term deferred revenue |
81,502 | 76,598 | ||||||
Other long term liabilities |
188,514 | 162,419 | ||||||
Total liabilities |
1,587,403 | 1,472,503 | ||||||
Stockholders equity |
2,462,784 | 2,297,196 | ||||||
Total liabilities and stockholders equity |
$ | 4,050,187 | $ | 3,769,699 | ||||
Three months ended | Nine months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Cash flows from operating activities: |
||||||||||||||||
Net income (loss) |
$ | 41,621 | $ | (1,530 | ) | $ | 43,347 | $ | (21,204 | ) | ||||||
Adjustments to reconcile net income (loss) to net cash
provided by operating activities: |
||||||||||||||||
Depreciation and amortization |
40,996 | 38,761 | 125,719 | 116,738 | ||||||||||||
Stock-based compensation |
33,788 | 28,094 | 109,505 | 72,868 | ||||||||||||
Non-cash interest expense |
3,155 | 3,222 | 9,524 | 9,746 | ||||||||||||
Non-cash restructuring and other expense |
| | | 6,833 | ||||||||||||
Deferred tax provision |
(36,291 | ) | (1,210 | ) | (35,727 | ) | (2,321 | ) | ||||||||
Other |
3,559 | 1,005 | 4,259 | 1,671 | ||||||||||||
Changes in operating assets and liabilities, net of effects
from acquisitions: |
||||||||||||||||
Accounts receivable |
(1,160 | ) | (4,482 | ) | (3,679 | ) | (13,023 | ) | ||||||||
Prepaid expenses and other assets |
(5,899 | ) | (1,150 | ) | (17,095 | ) | (4,869 | ) | ||||||||
Accounts payable |
(8,553 | ) | (1,711 | ) | (9,999 | ) | (3,960 | ) | ||||||||
Accrued expenses and other liabilities |
21,085 | 2,532 | (9,950 | ) | (7,825 | ) | ||||||||||
Deferred revenue |
7,758 | 587 | 43,603 | 30,044 | ||||||||||||
Net cash provided by operating activities |
100,059 | 64,118 | 259,507 | 184,698 | ||||||||||||
Cash flows from investing activities: |
||||||||||||||||
Capital expenditures |
(7,703 | ) | (8,434 | ) | (24,267 | ) | (16,284 | ) | ||||||||
Payments for acquisitions, net of cash acquired |
(302,491 | ) | 3,470 | (319,299 | ) | (155,882 | ) | |||||||||
Payments for acquired technology |
| (7,500 | ) | (715 | ) | (14,850 | ) | |||||||||
Payments for equity investments |
| | | (14,970 | ) | |||||||||||
Purchases of marketable securities |
| | (10,776 | ) | | |||||||||||
Proceeds from sales of marketable securities |
| | 6,650 | | ||||||||||||
Change in restricted cash balance |
| (22,070 | ) | 17,184 | (22,070 | ) | ||||||||||
Net cash used in investing activities |
(310,194 | ) | (34,534 | ) | (331,223 | ) | (224,056 | ) | ||||||||
Cash flows from financing activities: |
||||||||||||||||
Payments of debt and capital leases |
(1,773 | ) | (2,312 | ) | (5,864 | ) | (6,376 | ) | ||||||||
Payments of other long-term liabilities |
(2,520 | ) | (2,501 | ) | (7,794 | ) | (7,319 | ) | ||||||||
Proceeds on settlement of share-based derivatives, net |
10,042 | 2,607 | 9,414 | 6,391 | ||||||||||||
Excess tax benefits on employee equity awards |
4,200 | | 8,220 | | ||||||||||||
Proceeds from issuance of common stock, net of issuance costs |
| 12,350 | | 12,350 | ||||||||||||
Proceeds from issuance of common stock from employee stock
plans |
7,101 | 4,009 | 21,712 | 22,832 | ||||||||||||
Cash used to net share settle employee equity awards |
(3,601 | ) | (8,256 | ) | (30,027 | ) | (18,040 | ) | ||||||||
Net cash provided by (used in) financing activities |
13,449 | 5,897 | (4,339 | ) | 9,838 | |||||||||||
Effects of exchange rate changes on cash and cash equivalents |
1,955 | (5,211 | ) | 6,406 | (5,444 | ) | ||||||||||
Net (decrease) increase in cash and cash equivalents |
(194,731 | ) | 30,270 | (69,649 | ) | (34,964 | ) | |||||||||
Cash and cash equivalents at beginning of period |
641,712 | 461,804 | 516,630 | 527,038 | ||||||||||||
Cash and cash equivalents at end of period |
$ | 446,981 | $ | 492,074 | $ | 446,981 | $ | 492,074 | ||||||||
Three months ended | Nine months ended | |||||||||||||||
June 30 , | June 30 , | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
GAAP revenue |
$ | 328,909 | $ | 273,203 | $ | 951,700 | $ | 809,185 | ||||||||
Acquisition-related revenue adjustments: product and licensing |
9,562 | 12,922 | 31,821 | 44,726 | ||||||||||||
Acquisition-related revenue adjustments: professional services
and hosting |
5,197 | 6,359 | 7,585 | 9,632 | ||||||||||||
Acquisition-related revenue adjustments: maintenance and support |
1,463 | 900 | 3,297 | 7,269 | ||||||||||||
Non-GAAP revenue |
$ | 345,131 | $ | 293,384 | $ | 994,403 | $ | 870,812 | ||||||||
GAAP cost of revenue |
$ | 121,044 | $ | 101,778 | $ | 363,139 | $ | 298,973 | ||||||||
Cost of revenue from amortization of intangible assets |
(13,087 | ) | (11,893 | ) | (40,541 | ) | (35,095 | ) | ||||||||
Cost of revenue adjustments: product and licensing (1,2) |
2,038 | 2,794 | 6,807 | 8,920 | ||||||||||||
Cost of revenue adjustments: professional services and hosting
(1,2) |
(5,197 | ) | (2,181 | ) | (19,564 | ) | (7,086 | ) | ||||||||
Cost of revenue adjustments: maintenance and support (1,2) |
(518 | ) | (165 | ) | (1,545 | ) | (582 | ) | ||||||||
Non-GAAP cost of revenue |
$ | 104,280 | $ | 90,333 | $ | 308,296 | $ | 265,130 | ||||||||
GAAP gross profit |
$ | 207,865 | $ | 171,425 | $ | 588,561 | $ | 510,212 | ||||||||
Gross profit adjustments |
32,986 | 31,626 | 97,546 | 95,470 | ||||||||||||
Non-GAAP gross profit |
$ | 240,851 | $ | 203,051 | $ | 686,107 | $ | 605,682 | ||||||||
GAAP income from operations |
$ | 25,952 | $ | 4,562 | $ | 44,101 | $ | 2,170 | ||||||||
Gross profit adjustments |
32,986 | 31,626 | 97,546 | 95,470 | ||||||||||||
Research and development (1) |
5,280 | 2,282 | 18,188 | 6,731 | ||||||||||||
Sales and marketing (1) |
10,341 | 12,516 | 32,748 | 29,813 | ||||||||||||
General and administrative (1) |
11,883 | 10,512 | 36,481 | 27,544 | ||||||||||||
Amortization of intangible assets |
20,972 | 21,459 | 65,221 | 65,786 | ||||||||||||
Costs associated with IP collaboration agreements |
5,250 | 4,208 | 14,500 | 12,208 | ||||||||||||
Acquisition-related costs, net |
8,595 | 6,125 | 13,910 | 26,892 | ||||||||||||
Restructuring and other charges, net |
864 | 3,257 | 5,343 | 16,244 | ||||||||||||
Non-GAAP income from operations |
$ | 122,123 | $ | 96,547 | $ | 328,038 | $ | 282,858 | ||||||||
GAAP (benefit) provision for income taxes |
$ | (23,390 | ) | $ | 1,831 | $ | (14,982 | ) | $ | 4,459 | ||||||
Non-cash taxes |
29,390 | 3,471 | 28,781 | 6,772 | ||||||||||||
Non-GAAP provision for income taxes |
$ | 6,000 | $ | 5,302 | $ | 13,799 | $ | 11,231 | ||||||||
GAAP net income (loss) |
$ | 41,621 | $ | (1,530 | ) | $ | 43,347 | $ | (21,204 | ) | ||||||
Acquisition-related adjustment revenue (2) |
16,222 | 20,181 | 42,703 | 61,627 | ||||||||||||
Acquisition-related adjustment cost of revenue (2) |
(2,607 | ) | (3,232 | ) | (7,786 | ) | (10,032 | ) | ||||||||
Acquisition-related costs, net |
8,595 | 6,125 | 13,910 | 26,892 | ||||||||||||
Cost of revenue from amortization of intangible assets |
13,087 | 11,893 | 40,541 | 35,095 | ||||||||||||
Amortization of intangible assets |
20,972 | 21,459 | 65,221 | 65,786 | ||||||||||||
Non-cash stock-based compensation (1) |
33,788 | 28,094 | 109,505 | 72,868 | ||||||||||||
Non-cash interest expense, net |
3,155 | 3,222 | 9,524 | 9,746 | ||||||||||||
Non-cash income taxes |
(29,390 | ) | (3,471 | ) | (28,781 | ) | (6,772 | ) | ||||||||
Costs associated with IP collaboration agreements |
5,250 | 4,208 | 14,500 | 12,208 | ||||||||||||
Change in fair value of share-based instruments |
(395 | ) | 1,044 | (10,844 | ) | (3,663 | ) | |||||||||
Restructuring and other charges, net |
864 | 3,257 | 5,343 | 16,244 | ||||||||||||
Non-GAAP net income |
$ | 111,162 | $ | 91,250 | $ | 297,183 | $ | 258,795 | ||||||||
Non-GAAP diluted net income per share |
$ | 0.35 | $ | 0.30 | $ | 0.94 | $ | 0.86 | ||||||||
Diluted weighted average common shares outstanding |
317,802 | 305,427 | 314,791 | 300,511 | ||||||||||||
Three months ended | Nine months ended | |||||||||||||||
June 30 , | June 30 , | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(1) Non-Cash Stock-Based Compensation |
||||||||||||||||
Cost of product and licensing |
$ | 2 | $ | 7 | $ | 29 | $ | 25 | ||||||||
Cost of professional services and hosting |
5,764 | 2,612 | 20,514 | 8,173 | ||||||||||||
Cost of maintenance and support |
518 | 165 | 1,545 | 582 | ||||||||||||
Research and development |
5,280 | 2,282 | 18,188 | 6,731 | ||||||||||||
Sales and marketing |
10,341 | 12,516 | 32,748 | 29,813 | ||||||||||||
General and administrative |
11,883 | 10,512 | 36,481 | 27,544 | ||||||||||||
Total |
$ | 33,788 | $ | 28,094 | $ | 109,505 | $ | 72,868 | ||||||||
(2) Acquisition-Related Revenue and Cost of Revenue |
||||||||||||||||
Revenue |
$ | 16,222 | $ | 20,181 | $ | 42,703 | $ | 61,627 | ||||||||
Cost of product and licensing |
(2,040 | ) | $ | (2,801 | ) | (6,836 | ) | (8,945 | ) | |||||||
Cost of professional services and hosting |
(567 | ) | (431 | ) | (950 | ) | (1,087 | ) | ||||||||
Cost of maintenance and support |
| | | | ||||||||||||
Total |
$ | 13,615 | $ | 16,949 | $ | 34,917 | $ | 51,595 | ||||||||
Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | |||||||||||||||||||||||||
Healthcare | 2010 | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | ||||||||||||||||||||||||
GAAP Revenue |
$ | 105.5 | $ | 105.8 | $ | 113.5 | $ | 119.8 | $ | 444.6 | $ | 117.4 | $ | 120.7 | $ | 135.4 | ||||||||||||||||
Adjustment |
$ | 1.3 | $ | 1.1 | $ | 0.8 | $ | 1.5 | $ | 4.7 | $ | 0.4 | $ | 0.3 | $ | 3.9 | ||||||||||||||||
Non-GAAP Revenue |
$ | 106.8 | $ | 106.9 | $ | 114.3 | $ | 121.3 | $ | 449.3 | $ | 117.8 | $ | 121.0 | $ | 139.3 | ||||||||||||||||
Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | |||||||||||||||||||||||||
Mobile & Consumer | 2010 | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | ||||||||||||||||||||||||
GAAP Revenue |
$ | 64.1 | $ | 77.8 | $ | 66.3 | $ | 89.2 | $ | 297.3 | $ | 86.1 | $ | 93.1 | $ | 91.6 | ||||||||||||||||
Adjustment |
$ | 2.3 | $ | 2.9 | $ | 5.9 | $ | 1.0 | $ | 12.1 | $ | 1.6 | $ | 0.6 | $ | 1.5 | ||||||||||||||||
Non-GAAP Revenue |
$ | 66.4 | $ | 80.7 | $ | 72.2 | $ | 90.2 | $ | 309.4 | $ | 87.7 | $ | 93.7 | $ | 93.1 | ||||||||||||||||
Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | |||||||||||||||||||||||||
Enterprise | 2010 | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | ||||||||||||||||||||||||
GAAP Revenue |
$ | 75.4 | $ | 70.9 | $ | 71.0 | $ | 76.6 | $ | 293.9 | $ | 71.1 | $ | 72.3 | $ | 68.5 | ||||||||||||||||
Adjustment |
$ | 0.3 | $ | 0.4 | $ | 0.1 | $ | 1.4 | $ | 2.2 | $ | 1.4 | $ | 1.7 | $ | 1.4 | ||||||||||||||||
Non-GAAP Revenue |
$ | 75.7 | $ | 71.3 | $ | 71.1 | $ | 78.0 | $ | 296.1 | $ | 72.5 | $ | 74.0 | $ | 69.9 | ||||||||||||||||
Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | |||||||||||||||||||||||||
Imaging Revenue | 2010 | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | ||||||||||||||||||||||||
GAAP Revenue |
$ | 18.0 | $ | 18.5 | $ | 22.4 | $ | 24.2 | $ | 83.1 | $ | 29.2 | $ | 32.8 | $ | 33.4 | ||||||||||||||||
Adjustment |
$ | 17.7 | $ | 15.4 | $ | 13.4 | $ | 11.2 | $ | 57.7 | $ | 10.0 | $ | 10.4 | $ | 9.4 | ||||||||||||||||
Non-GAAP Revenue |
$ | 35.7 | $ | 33.9 | $ | 35.8 | $ | 35.4 | $ | 140.8 | $ | 39.3 | $ | 43.2 | $ | 42.8 | ||||||||||||||||
Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | |||||||||||||||||||||||||
Total Revenue | 2010 | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | ||||||||||||||||||||||||
GAAP Revenue |
$ | 263.0 | $ | 273.0 | $ | 273.2 | $ | 309.8 | $ | 1,118.9 | $ | 303.8 | $ | 319.0 | $ | 328.9 | ||||||||||||||||
Adjustment |
$ | 21.6 | $ | 19.8 | $ | 20.2 | $ | 15.1 | $ | 76.7 | $ | 13.4 | $ | 13.0 | $ | 16.2 | ||||||||||||||||
Non-GAAP Revenue |
$ | 284.6 | $ | 292.8 | $ | 293.4 | $ | 324.9 | $ | 1,195.7 | $ | 317.3 | $ | 332.0 | $ | 345.1 | ||||||||||||||||
Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | |||||||||||||||||||||||||
Healthcare | 2010 | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | ||||||||||||||||||||||||
GAAP Revenue |
$ | 105.5 | $ | 105.8 | $ | 113.5 | $ | 119.8 | $ | 444.6 | $ | 117.4 | $ | 120.7 | $ | 135.4 | ||||||||||||||||
Adjustment |
$ | 1.3 | $ | 1.1 | $ | 0.8 | $ | 1.5 | $ | 4.7 | $ | 0.4 | $ | 0.3 | $ | 3.9 | ||||||||||||||||
Non-GAAP Revenue |
$ | 106.8 | $ | 106.9 | $ | 114.3 | $ | 121.3 | $ | 449.3 | $ | 117.8 | $ | 121.0 | $ | 139.3 | ||||||||||||||||
Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | |||||||||||||||||||||||||
Mobile & Consumer | 2010 | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | ||||||||||||||||||||||||
GAAP Revenue |
$ | 64.1 | $ | 77.8 | $ | 66.3 | $ | 89.2 | $ | 297.3 | $ | 86.1 | $ | 93.1 | $ | 91.6 | ||||||||||||||||
Adjustment |
$ | 2.3 | $ | 2.9 | $ | 5.9 | $ | 1.0 | $ | 12.1 | $ | 1.6 | $ | 0.6 | $ | 1.5 | ||||||||||||||||
Non-GAAP Revenue |
$ | 66.4 | $ | 80.7 | $ | 72.2 | $ | 90.2 | $ | 309.4 | $ | 87.7 | $ | 93.7 | $ | 93.1 | ||||||||||||||||
Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | |||||||||||||||||||||||||
Enterprise | 2010 | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | ||||||||||||||||||||||||
GAAP Revenue |
$ | 75.4 | $ | 70.9 | $ | 71.0 | $ | 76.6 | $ | 293.9 | $ | 71.1 | $ | 72.3 | $ | 68.5 | ||||||||||||||||
Adjustment |
$ | 0.3 | $ | 0.4 | $ | 0.1 | $ | 1.4 | $ | 2.2 | $ | 1.4 | $ | 1.7 | $ | 1.4 | ||||||||||||||||
Non-GAAP Revenue |
$ | 75.7 | $ | 71.3 | $ | 71.1 | $ | 78.0 | $ | 296.1 | $ | 72.5 | $ | 74.0 | $ | 69.9 | ||||||||||||||||
Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | |||||||||||||||||||||||||
Imaging Revenue | 2010 | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | ||||||||||||||||||||||||
GAAP Revenue |
$ | 18.0 | $ | 18.5 | $ | 22.4 | $ | 24.2 | $ | 83.1 | $ | 29.2 | $ | 32.8 | $ | 33.4 | ||||||||||||||||
Adjustment |
$ | 17.7 | $ | 15.4 | $ | 13.4 | $ | 11.2 | $ | 57.7 | $ | 10.0 | $ | 10.4 | $ | 9.4 | ||||||||||||||||
Non-GAAP Revenue |
$ | 35.7 | $ | 33.9 | $ | 35.8 | $ | 35.4 | $ | 140.8 | $ | 39.3 | $ | 43.2 | $ | 42.8 | ||||||||||||||||
Product and Licensing | Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | ||||||||||||||||||||||||
Revenue | 2010 | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | ||||||||||||||||||||||||
GAAP Revenue |
$ | 113.2 | $ | 113.2 | $ | 108.8 | $ | 138.2 | $ | 473.5 | $ | 133.8 | $ | 141.6 | $ | 152.7 | ||||||||||||||||
Adjustment |
$ | 17.0 | $ | 14.8 | $ | 13.0 | $ | 12.4 | $ | 57.2 | $ | 11.1 | $ | 11.1 | $ | 9.6 | ||||||||||||||||
Non-GAAP Revenue |
$ | 130.2 | $ | 128.0 | $ | 121.8 | $ | 150.6 | $ | 530.7 | $ | 145.0 | $ | 152.7 | $ | 162.3 | ||||||||||||||||
Professional Services | Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | ||||||||||||||||||||||||
and On-Demand Revenue | 2010 | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | ||||||||||||||||||||||||
GAAP Revenue |
$ | 103.7 | $ | 116.2 | $ | 117.9 | $ | 125.8 | $ | 463.6 | $ | 122.8 | $ | 128.9 | $ | 125.3 | ||||||||||||||||
Adjustment |
$ | 0.8 | $ | 2.4 | $ | 6.3 | $ | 1.8 | $ | 11.3 | $ | 1.2 | $ | 1.1 | $ | 5.2 | ||||||||||||||||
Non-GAAP Revenue |
$ | 104.5 | $ | 118.6 | $ | 124.2 | $ | 127.6 | $ | 474.9 | $ | 124.1 | $ | 130.1 | $ | 130.5 | ||||||||||||||||
Maintenance and Support | Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | ||||||||||||||||||||||||
Revenue | 2010 | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | ||||||||||||||||||||||||
GAAP Revenue |
$ | 46.1 | $ | 43.6 | $ | 46.5 | $ | 45.8 | $ | 181.9 | $ | 47.2 | $ | 48.5 | $ | 50.8 | ||||||||||||||||
Adjustment |
$ | 3.8 | $ | 2.6 | $ | 0.9 | $ | 0.9 | $ | 8.2 | $ | 1.1 | $ | 0.8 | $ | 1.5 | ||||||||||||||||
Non-GAAP Revenue |
$ | 49.9 | $ | 46.2 | $ | 47.4 | $ | 46.7 | $ | 190.1 | $ | 48.2 | $ | 49.2 | $ | 52.3 | ||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | ||||||||||||||||||||||
2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | ||||||||||||||||||||||
Enterprise
Professional
Services Backlog
Hours (in
thousands) |
250.2 | 266.8 | 312.0 | 328.2 | 335.2 | 333.2 | 316.2 | |||||||||||||||||||||
Estimated Future
Value of
Unimplemented
Nuance Enterprise
On-Demand Contracts
(in millions) |
41.8 | 45.0 | 47.1 | 50.4 | 31.2 | 27.8 | 17.0 | |||||||||||||||||||||
Annualized Line
Run-Rate in
Nuances Healthcare
On-Demand Business
(in billions) |
3.003 | 3.137 | 3.295 | 3.349 | 3.554 | 3.650 | 3.706 | |||||||||||||||||||||
Estimated 3-year
Value of Total
On-Demand Contracts
(in millions) |
968.6 | 1,025.0 | 1,083.1 | 1,143.2 | 1,174.4 | 1,225.5 | 1,312.4 |
Three months ended | ||||||||
September 30, 2011 | ||||||||
Low | High | |||||||
GAAP revenue |
$ | 355,300 | $ | 370,300 | ||||
Acquisition-related adjustment revenue |
24,700 | 24,700 | ||||||
Non-GAAP revenue |
$ | 380,000 | $ | 395,000 | ||||
GAAP net loss per share |
$ | (0.07 | ) | $ | (0.04 | ) | ||
Acquisition-related adjustment revenue |
0.08 | 0.08 | ||||||
Acquisition-related adjustment cost of revenue |
(0.01 | ) | (0.01 | ) | ||||
Acquisition-related costs, net |
0.03 | 0.03 | ||||||
Cost of revenue from amortization of intangible assets |
0.04 | 0.04 | ||||||
Amortization of intangible assets |
0.07 | 0.07 | ||||||
Non-cash stock-based compensation |
0.12 | 0.12 | ||||||
Non-cash interest expense |
0.01 | 0.01 | ||||||
Non-cash income taxes |
0.06 | 0.06 | ||||||
Costs associated with IP collaboration agreements |
0.02 | 0.02 | ||||||
Restructuring and other charges, net |
0.03 | 0.03 | ||||||
Non-GAAP net income per share |
$ | 0.38 | $ | 0.41 | ||||
Shares used in computing GAAP and non-GAAP net income per share: |
||||||||
Weighted average common shares: basic |
306,500 | 306,500 | ||||||
Weighted average common shares: diluted |
321,000 | 321,000 | ||||||
Twelve months ended | ||||||||
September 30, 2011 | ||||||||
Low | High | |||||||
GAAP revenue |
$ | 1,306,905 | $ | 1,321,905 | ||||
Acquisition-related adjustment revenue |
67,500 | 67,500 | ||||||
Non-GAAP revenue |
$ | 1,374,405 | $ | 1,389,405 | ||||
GAAP net income per share |
$ | 0.07 | $ | 0.10 | ||||
Acquisition-related adjustment revenue |
0.21 | 0.21 | ||||||
Acquisition-related adjustment cost of revenue |
(0.03 | ) | (0.03 | ) | ||||
Acquisition-related costs, net |
0.08 | 0.08 | ||||||
Cost of revenue from amortization of intangible assets |
0.17 | 0.17 | ||||||
Amortization of intangible assets |
0.28 | 0.28 | ||||||
Non-cash stock-based compensation |
0.46 | 0.46 | ||||||
Non-cash interest expense |
0.04 | 0.04 | ||||||
Non-cash income taxes |
(0.03 | ) | (0.03 | ) | ||||
Costs associated with IP collaboration agreements |
0.06 | 0.06 | ||||||
Change in fair value of share-based instruments |
(0.03 | ) | (0.03 | ) | ||||
Restructuring and other charges, net |
0.05 | 0.05 | ||||||
Non-GAAP net income per share |
$ | 1.33 | $ | 1.36 | ||||
Shares used in computing GAAP and non-GAAP net income per share: |
||||||||
Weighted average common shares: basic |
302,000 | 302,000 | ||||||
Weighted average common shares: diluted |
316,500 | 316,500 | ||||||