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Nuance Announces First Quarter Fiscal 2012 Results

Strength in Mobile & Consumer, Healthcare and Imaging Markets Fueled Growth in Revenue and Operating Cash Flow

BURLINGTON, Mass.--(BUSINESS WIRE)--Feb. 9, 2012-- Nuance Communications, Inc. (NASDAQ: NUAN) today announced financial results for its first quarter of fiscal 2012, ended December 31, 2011.

Nuance reported GAAP revenue of $360.6 million in the first quarter of fiscal 2012, an 18.7% increase over GAAP revenue of $303.8 million in the first quarter of fiscal 2011. Nuance reported non-GAAP revenue of $382.0 million, which includes $21.4 million in revenue lost to accounting treatment in conjunction with acquisitions. First quarter fiscal 2012 non-GAAP revenue grew 20.4% over non-GAAP revenue of $317.3 million in the same quarter last year.

In the first quarter of fiscal 2012, Nuance recognized GAAP net income of $9.3 million, or $0.03 per diluted share, compared with GAAP net loss of ($0.0) million, or ($0.00) per diluted share, in the first quarter of fiscal 2011. In the first quarter of fiscal 2012, Nuance reported non-GAAP net income of $108.5 million, or $0.34 per diluted share, compared to non-GAAP net income of $86.1 million, or $0.28 per diluted share, in the first quarter of fiscal 2011. Nuance’s first quarter fiscal 2012 non-GAAP operating margin was 32.5%, up from 30.5% in the first quarter of fiscal 2011. Nuance reported cash flow from operations of $89.5 million in the first quarter of fiscal 2012, compared to $63.3 million in the first quarter of fiscal 2011. Nuance ended the first quarter of fiscal 2012 with a balance of cash and marketable securities of $883.8 million.

Please refer to the “Discussion of Non-GAAP Financial Measures” and to the “GAAP to Non-GAAP Reconciliations,” included elsewhere in this release, for more information regarding the company’s use of non-GAAP measures.

In the first quarter, Nuance delivered 20% revenue growth and 41% operating cash flow growth, driven by strong performance in our healthcare, mobile and consumer, and imaging business lines. Customer interest in voice applications is increasing rapidly, driven in part by recently released virtual assistant capabilities and high-profile announcements at the recent Consumer Electronics Show. Across our business lines, customers are turning to Nuance for help building the next generation of conversational, natural-language voice applications. Recently, our relationships with mobile customers have become more comprehensive and complex, which has resulted in delayed revenues in some cases, due in part to revenues deferred until completion of certain deliverables and in part to longer negotiation cycles.

Highlights from the quarter include:

  • Healthcare – For Nuance’s healthcare solutions, first quarter non-GAAP revenue was $145.3 million, up 23.3%, as reported, from the same quarter last year. During the first quarter, new bookings included large eScription, Dragon Medical and radiology contracts. Key healthcare customers included Allscripts, Catholic Health Partners, Harris Regional, Iowa Health, Memorial Care, Norton, Providence Health, St. Francis and Valley Hospital.
  • Mobile & Consumer – For Nuance’s mobile and consumer solutions, first quarter non-GAAP revenue was $108.5 million, up 23.7%, as reported, from the same quarter last year. Key mobile customers, new bookings or design wins in the quarter included Bosch, Continental, Deutsche Telekom, ENSA, Ford, Fiat, Harman Becker, HTC, Intel, LGE, Marchex, MetroPCS, Microsoft, Mutare, Nintendo, NCR, Nokia, Optus, Panasonic, Research in Motion, Samsung, Swisscom, TCS, Telstra, Tom Tom and ZTE.
  • Enterprise – For Nuance’s enterprise solutions, first quarter non-GAAP revenue was $75.8 million, up 4.6%, as reported, from the same quarter last year. Key enterprise customers in the quarter included AT&T, Automotive Resources, BCBS Michigan, BSkyB, Computershare, Kaiser Permanente, Metro One, PayPal, Telecom Italia, Time-Warner Cable, Tropico and Verizon.
  • Imaging – For Nuance’s document imaging solutions, first quarter non-GAAP revenue was $52.4 million, up 33.3%, as reported, from the same quarter last year. Nuance achieved key first quarter bookings and design wins with Airbus, EPIQ, Ernst & Young, Franklin Templeton, Intuit, JP Morgan Chase, LA Department of Public Works, National Grid, Southampton University, Ventura County and Visioneer.

Conference Call and Prepared Remarks

Nuance is providing a copy of prepared remarks in combination with its press release. These remarks are offered to provide shareholders and analysts with additional time and detail for analyzing results in advance of the company’s quarterly conference call. The remarks will be available at http://www.nuance.com/earnings-results/ in conjunction with the press release.

As previously scheduled, the conference call will begin today, February 9, 2012 at 5:00 pm EST and will include only brief comments followed by questions and answers. The prepared remarks will not be read on the call. To access the live broadcast, please visit the Investor Relations section of Nuance’s Website at www.nuance.com. The call can also be heard by dialing (800) 230-1093 or (612) 332-0107 at least five minutes prior to the call and referencing conference code 235385. A replay will be available within 24 hours of the announcement by dialing (800) 475-6701 or (320) 365-3844 and using the access code 235385.

About Nuance Communications, Inc

Nuance Communications, Inc. (NASDAQ: NUAN) is a leading provider of voice and language solutions for businesses and consumers around the world. Its technologies, applications and services make the user experience more compelling by transforming the way people interact with devices and systems. Every day, millions of users and thousands of businesses experience Nuance’s proven applications. For more information, please visit www.nuance.com.

Trademark reference: Nuance, the Nuance logo, Dragon Medical and eScription are registered trademarks or trademarks of Nuance Communications, Inc. or its affiliates in the United States and/or other countries. All other trademarks referenced herein are the property of their respective owners.

Safe Harbor and Forward-Looking Statements

Statements in this document regarding continued growth in fiscal 2012 and Nuance managements’ future expectations, beliefs, goals, plans or prospects constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that are not statements of historical fact (including statements containing the words “believes,” “plans,” “anticipates,” “expects,” or “estimates” or similar expressions) should also be considered to be forward-looking statements. There are a number of important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including: fluctuations in demand for Nuance’s existing and future products; economic conditions in the United States and abroad; Nuance’s ability to control and successfully manage its expenses and cash position; the effects of competition, including pricing pressure; possible defects in Nuance’s products and technologies; the ability of Nuance to successfully integrate operations and employees of acquired businesses; the ability to realize anticipated synergies from acquired businesses; and the other factors described in Nuance’s annual report on Form 10-K for the fiscal year ended September 30, 2011 filed with the Securities and Exchange Commission. Nuance disclaims any obligation to update any forward-looking statements as a result of developments occurring after the date of this document.

The information included in this press release should not be viewed as a substitute for full GAAP financial statements.

Discussion of Non-GAAP Financial Measures

Management utilizes a number of different financial measures, both GAAP and non-GAAP, in analyzing and assessing the overall performance of the business, for making operating decisions and for forecasting and planning for future periods. Our annual financial plan is prepared both on a GAAP and non-GAAP basis, and the non-GAAP annual financial plan is approved by our board of directors. Continuous budgeting and forecasting for revenue and expenses are conducted on a consistent non-GAAP basis (in addition to GAAP) and actual results on a non-GAAP basis are assessed against the annual financial plan. The board of directors and management utilize these non-GAAP measures and results (in addition to the GAAP results) to determine our allocation of resources. In addition and as a consequence of the importance of these measures in managing the business, we use non-GAAP measures and results in the evaluation process to establish management’s compensation. For example, our annual bonus program payments are based upon the achievement of consolidated non-GAAP revenue and consolidated non-GAAP earnings per share financial targets. We consider the use of non-GAAP revenue helpful in understanding the performance of our business, as it excludes the purchase accounting impact on acquired deferred revenue and other acquisition-related adjustments to revenue. We also consider the use of non-GAAP earnings per share helpful in assessing the organic performance of the continuing operations of our business. By organic performance we mean performance as if we had owned an acquired business in the same period a year ago. By continuing operations we mean the ongoing results of the business excluding certain unplanned costs. While our management uses these non-GAAP financial measures as a tool to enhance their understanding of certain aspects of our financial performance, our management does not consider these measures to be a substitute for, or superior to, the information provided by GAAP revenue and earnings per share. Consistent with this approach, we believe that disclosing non-GAAP revenue and non-GAAP earnings per share to the readers of our financial statements provides such readers with useful supplemental data that, while not a substitute for GAAP revenue and earnings per share, allows for greater transparency in the review of our financial and operational performance. In assessing the overall health of the business during the three months ended December 31, 2011 and 2010, and, in particular, in evaluating our revenue and earnings per share, our management has either included or excluded items in six general categories, each of which are described below.

Acquisition-Related Revenue and Cost of Revenue.

The Company provides supplementary non-GAAP financial measures of revenue, which include revenue related to acquisitions, primarily from Equitrac, eCopy and Loquendo for the three months ended December 31, 2011, that would otherwise have been recognized but for the purchase accounting treatment of these transactions. Non-GAAP revenue also includes revenue that the Company would have otherwise recognized had the Company not acquired intellectual property and other assets from the same customer. Because GAAP accounting requires the elimination of this revenue, GAAP results alone do not fully capture all of the Company’s economic activities. These non-GAAP adjustments are intended to reflect the full amount of such revenue. The Company includes non-GAAP revenue and cost of revenue to allow for more complete comparisons to the financial results of historical operations, forward-looking guidance and the financial results of peer companies. The Company believes these adjustments are useful to management and investors as a measure of the ongoing performance of the business because, although we cannot be certain that customers will renew their contracts, the Company historically has experienced high renewal rates on maintenance and support agreements and other customer contracts. Additionally, although acquisition-related revenue adjustments are non-recurring with respect to past acquisitions, the Company generally will incur these adjustments in connection with any future acquisitions.

Acquisition-Related Costs, Net.

In recent years, the Company has completed a number of acquisitions, which result in operating expenses which would not otherwise have been incurred. The Company provides supplementary non-GAAP financial measures, which exclude certain transition, integration and other acquisition-related expense items resulting from acquisitions, to allow more accurate comparisons of the financial results to historical operations, forward-looking guidance and the financial results of less acquisitive peer companies. The Company considers these types of costs and adjustments, to a great extent, to be unpredictable and dependent on a significant number of factors that are outside of the control of the Company. Furthermore, the Company does not consider these acquisition-related costs and adjustments to be related to the organic continuing operations of the acquired businesses and are generally not relevant to assessing or estimating the long-term performance of the acquired assets. In addition, the size, complexity and/or volume of past acquisitions, which often drives the magnitude of acquisition-related costs, may not be indicative of the size, complexity and/or volume of future acquisitions. By excluding acquisition-related costs and adjustments from our non-GAAP measures, management is better able to evaluate the Company's ability to utilize its existing assets and estimate the long-term value that acquired assets will generate for the Company. The Company believes that providing a supplemental non-GAAP measure which excludes these items allows management and investors to consider the ongoing operations of the business both with, and without, such expenses.

These acquisition-related costs are included in the following categories: (i) transition and integration costs; (ii) professional service fees; and (iii) acquisition-related adjustments. Although these expenses are not recurring with respect to past acquisitions, the Company generally will incur these expenses in connection with any future acquisitions. These categories are further discussed as follows:

(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 third party costs related to the acquisition, and 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.

Amortization of Acquired Intangible Assets.

The Company excludes the amortization of acquired intangible assets from non-GAAP expense and income measures. These amounts are inconsistent in amount and frequency and are significantly impacted by the timing and size of acquisitions. Providing a supplemental measure which excludes these charges allows management and investors to evaluate results “as-if” the acquired intangible assets had been developed internally rather than acquired and, therefore, provides a supplemental measure of performance in which the Company’s acquired intellectual property is treated in a comparable manner to its internally developed intellectual property. Although the Company excludes amortization of acquired intangible assets from its non-GAAP expenses, the Company believes that it is important for investors to understand that such intangible assets contribute to revenue generation. Amortization of intangible assets that relate to past acquisitions will recur in future periods until such intangible assets have been fully amortized. Future acquisitions may result in the amortization of additional intangible assets.

Costs Associated with IP Collaboration Agreement.

In order to gain access to a third party's extensive speech recognition technology and natural language and semantic processing technology, Nuance has entered into three IP collaboration agreements, with terms ranging between five and six years. Depending on the agreement, some or all intellectual property derived from these collaborations will be jointly owned by the two parties. For the majority of the developed intellectual property, Nuance will have sole rights to commercialize such intellectual property for periods ranging between two to six years, depending on the agreement. For non-GAAP purposes, Nuance considers these long-term contracts and the resulting acquisitions of intellectual property from this third-party over the agreements’ terms to be an investing activity, outside of its normal, organic, continuing operating activities, and is therefore presenting this supplemental information to show the results excluding these expenses. Nuance does not exclude from its non-GAAP results the corresponding revenue, if any, generated from these collaboration efforts. Although the Company's bonus program and other performance-based incentives for executives are based on the non-GAAP results that exclude these costs, certain engineering senior management are responsible for execution and results of these collaboration agreements and have incentives based on those results.

Non-Cash Expenses.

The Company provides non-GAAP information relative to the following non-cash expenses: (i) stock-based compensation; (ii) certain accrued interest; and (iii) certain accrued income taxes. These items are further discussed as follows:

(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 Company’s 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 non-cash and the options and restricted awards granted are influenced by the Company’s stock price and other factors such as volatility that are beyond the Company’s 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.

Other Expenses.

The Company excludes certain other expenses that are the result of unplanned events to measure operating performance and current and future liquidity both with and without these expenses; and therefore, by providing this information, the Company believes management and the users of the financial statements are better able to understand the financial results of what the Company considers to be its organic, continuing operations. Included in these expenses are items such as restructuring charges, asset impairments and other charges (credits), net. These events are unplanned and arose outside of the ordinary course of continuing operations. These items also include adjustments from changes in fair value of share-based instruments relating to the issuance of our common stock with security price guarantees payable in cash.

The Company believes that providing the non-GAAP information to investors, in addition to the GAAP presentation, allows investors to view the financial results in the way management views the operating results. The Company further believes that providing this information allows investors to not only better understand the Company’s financial performance, but more importantly, to evaluate the efficacy of the methodology and information used by management to evaluate and measure such performance.

Financial Tables Follow

Nuance Communications, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
Unaudited
     
Three months ended
December 31,
2011 2010
 
Revenues:
Product and licensing $ 164,734 $ 133,856
Professional services and hosting 139,582 122,820
Maintenance and support   56,327     47,153  
Total revenues   360,643     303,829  
 
Cost of revenues:
Product and licensing 18,764 17,146
Professional services and hosting 90,154 78,212
Maintenance and support 11,020 8,273
Amortization of intangible assets   14,934     13,291  
Total cost of revenues   134,872     116,922  
 
Gross profit   225,771     186,907  
 
Operating expenses:
Research and development 52,054 41,381
Sales and marketing 90,397 78,344
General and administrative 31,315 31,182
Amortization of intangible assets 23,203 22,677
Acquisition-related costs, net 14,611 3,001
Restructuring and other charges, net   2,864     2,051  
Total operating expenses   214,444     178,636  
 
Income from operations 11,327 8,271
 
Other expense, net   (11,396 )   (2,259 )
 
(Loss) income before income taxes (69 ) 6,012
 
(Benefit) provision for income taxes   (9,409 )   6,021  
 
Net income (loss) $ 9,340   $ (9 )
 
Net income (loss) per share:
Basic $ 0.03   $ (0.00 )
Diluted $ 0.03   $ (0.00 )
 
Weighted average common shares outstanding:
Basic   304,011     298,633  
Diluted   320,536     298,633  
 
Nuance Communications, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
Unaudited
     
 
ASSETS December 31, 2011 September 30, 2011
 
Current assets:
Cash and cash equivalents $ 873,586 $ 447,224
Restricted cash - 6,799
Marketable securities 10,226 31,244
Accounts receivable, net 305,053 280,856
Prepaid expenses and other current assets   88,261   88,804
Total current assets 1,277,126 854,927
 
Land, building and equipment, net 97,760 78,218
Goodwill 2,398,972 2,347,880
Intangible assets, net 721,917 731,577
Other assets   112,321   82,691
Total assets $ 4,608,096 $ 4,095,293
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
Current liabilities:
Current portion of long-term debt and capital leases $ 6,549 $ 6,905
Redeemable convertible debentures 224,834 -
Contingent and deferred acquisition payments 13,182 23,783
Accounts payable and accrued expenses 235,121 258,777
Deferred revenue   193,332   185,605
Total current liabilities 673,018 475,070
 
Long-term portion of debt and capital leases 1,166,612 853,020
Deferred revenue, net of current portion 106,086 90,382
Other liabilities   196,331   183,450
Total liabilities   2,142,047   1,601,922
 
Equity component of currently redeemable convertible debentures   25,166   -
Stockholders' equity   2,440,883   2,493,371
 
Total liabilities and stockholders' equity $ 4,608,096 $ 4,095,293
 
Nuance Communications, Inc.
Consolidated Statements of Cash Flows
(in thousands)
Unaudited
  Three months ended
December 31,
2011   2010
 
Cash flows from operating activities:
Net income (loss) $ 9,340 $ (9 )
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization 45,835 42,517
Stock-based compensation 32,787 32,098
Non-cash interest expense 7,699 3,192
Deferred tax (benefit) provision (12,720 ) 104
Other 583 (20 )
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable (23,931 ) (13,273 )
Prepaid expenses and other assets 1,074 (4,996 )
Accounts payable 10,757 (1,530 )
Accrued expenses and other liabilities (6,852 ) (17,190 )
Deferred revenue   24,961     22,443  
Net cash provided by operating activities   89,533     63,336  
Cash flows from investing activities:
Capital expenditures (25,658 ) (8,893 )
Payments for business and technology acquisitions, net of cash acquired (111,785 ) (13,310 )
Purchases of marketable securities - (10,776 )
Proceeds from sales and maturities of marketable securities 20,759 6,650
Change in restricted cash balance   6,747     17,184  
Net cash used in investing activities   (109,937 )   (9,145 )
Cash flows from financing activities:
Payments of debt and capital leases (1,787 ) (2,069 )
Proceeds from issuance of convertible debt, net of issuance costs 676,622 -
Payments for repurchases of common stock (199,997 ) -
Proceeds from (payments for) settlement of share-based derivatives, net 348 (972 )
Payments of other long-term liabilities (2,649 ) (2,589 )
Excess tax benefits on employee equity awards - 3,662
Proceeds from issuance of common stock from employee stock plans 7,234 4,350
Cash used to net share settle employee equity awards   (33,001 )   (18,403 )
Net cash provided by (used in) financing activities   446,770     (16,021 )
Effects of exchange rate changes on cash and cash equivalents   (4 )   (411 )
Net increase in cash and cash equivalents 426,362 37,759
Cash and cash equivalents at beginning of period   447,224     516,630  
Cash and cash equivalents at end of period $ 873,586   $ 554,389  
 
Nuance Communications, Inc.
Supplemental Financial Information - GAAP to Non-GAAP Reconciliations
(in thousands, except per share amounts)
Unaudited
  Three months ended

December 31,

2011   2010
 
GAAP revenue $ 360,643 $ 303,829
Acquisition-related revenue adjustments: product and licensing 18,332 11,136
Acquisition-related revenue adjustments: professional services and hosting 952 1,239
Acquisition-related revenue adjustments: maintenance and support   2,122     1,058  
Non-GAAP revenue $ 382,049   $ 317,262  
 
GAAP cost of revenue $ 134,872 $ 116,922
Cost of revenue from amortization of intangible assets (14,934 ) (13,291 )
Cost of revenue adjustments: product and licensing (1,2) 2,228 2,448
Cost of revenue adjustments: professional services and hosting (1,2) (4,406 ) (5,515 )
Cost of revenue adjustments: maintenance and support (1,2)   (45 )   (390 )
Non-GAAP cost of revenue $ 117,715   $ 100,174  
 
GAAP gross profit $ 225,771 $ 186,907
Gross profit adjustments   38,563     30,181  
Non-GAAP gross profit $ 264,334   $ 217,088  
 
GAAP income from operations $ 11,327 $ 8,271
Gross profit adjustments 38,563 30,181
Research and development (1) 5,883 4,867
Sales and marketing (1) 11,817 10,310
General and administrative (1) 10,544 10,837
Amortization of intangible assets 23,203 22,677
Costs associated with IP collaboration agreements 5,250 4,625
Acquisition-related costs, net 14,611 3,001
Restructuring and other charges, net   2,864     2,051  
Non-GAAP income from operations $ 124,062   $ 96,820  
 
GAAP (benefit) provision for income taxes $ (9,409 ) $ 6,021
Non-cash taxes   15,709     (1,621 )
Non-GAAP provision for income taxes $ 6,300   $ 4,400  
 
GAAP net income (loss) $ 9,340 $ (9 )
Acquisition-related adjustment - revenue (2) 21,406 13,433
Acquisition-related adjustment - cost of revenue (2) (2,320 ) (2,627 )
Acquisition-related costs, net 14,611 3,001
Cost of revenue from amortization of intangible assets 14,934 13,291
Amortization of intangible assets 23,203 22,677
Non-cash stock-based compensation (1) 32,787 32,098
Non-cash interest expense, net 7,699 3,192
Non-cash income taxes (15,709 ) 1,621
Costs associated with IP collaboration agreements 5,250 4,625
Change in fair value of share-based instruments (5,520 ) (7,215 )
Restructuring and other charges, net   2,864     2,051  
Non-GAAP net income $ 108,545   $ 86,138  
 
Non-GAAP diluted net income per share $ 0.34   $ 0.28  
 
Diluted weighted average common shares outstanding   320,536     311,570  
 
Nuance Communications, Inc.
Supplemental Financial Information - GAAP to Non-GAAP Reconciliations, continued
(in thousands)
Unaudited
     
Three months ended

December 31,

2011 2010
 

(1) Non-Cash Stock-Based Compensation

Cost of product and licensing $ 92 $ 6
Cost of professional services and hosting 4,406 5,688
Cost of maintenance and support 45 390
Research and development 5,883 4,867
Sales and marketing 11,817 10,310
General and administrative   10,544     10,837  
Total $ 32,787   $ 32,098  
 

(2) Acquisition-Related Revenue and Cost of Revenue

Revenue $ 21,406 $ 13,433
Cost of product and licensing (2,320 ) (2,454 )
Cost of professional services and hosting   -     (173 )
Total $ 19,086   $ 10,806  
 
Nuance Communications, Inc.
Supplemental Financial Information – GAAP to Non-GAAP Reconciliations, continued
(in millions)
Unaudited
           
 

Healthcare

Q1 Q2 Q3 Q4 FY Q1
2011 2011 2011 2011 2011 2012
GAAP Revenue $ 117.4 $ 120.7 $ 135.4 $ 141.7 $ 515.2 $ 145.1
Adjustment $ 0.4 $ 0.3 $ 3.9 $ 7.0 $ 11.6 $ 0.2
Non-GAAP Revenue $ 117.8 $ 121.0 $ 139.3 $ 148.7 $ 526.8 $ 145.3
 

Mobile & Consumer

Q1 Q2 Q3 Q4 FY Q1
2011 2011 2011 2011 2011 2012
GAAP Revenue $ 86.1 $ 93.1 $ 91.6 $ 107.8 $ 378.7 $ 103.4
Adjustment $ 1.6 $ 0.6 $ 1.5 $ 10.9 $ 14.6 $ 5.1
Non-GAAP Revenue $ 87.7 $ 93.7 $ 93.1 $ 118.7 $ 393.3 $ 108.5
 

Enterprise

Q1 Q2 Q3 Q4 FY Q1
2011 2011 2011 2011 2011 2012
GAAP Revenue $ 71.1 $ 72.3 $ 68.5 $ 79.9 $ 291.8 $ 72.2
Adjustment $ 1.4 $ 1.7 $ 1.4 $ 0.1 $ 4.6 $ 3.6
Non-GAAP Revenue $ 72.5 $ 74.0 $ 69.9 $ 80.0 $ 296.4 $ 75.8
 

Imaging

Q1 Q2 Q3 Q4 FY Q1
2011 2011 2011 2011 2011 2012
GAAP Revenue $ 29.2 $ 32.8 $ 33.4 $ 37.6 $ 133.0 $ 39.9
Adjustment $ 10.0 $ 10.4 $ 9.4 $ 14.6 $ 44.4 $ 12.5
Non-GAAP Revenue $ 39.3 $ 43.2 $ 42.8 $ 52.1 $ 177.4 $ 52.4
 
 
 
Schedules may not add due to rounding.

Source: Nuance Communications, Inc.

For Investors
Nuance Communications, Inc.
Kevin Faulkner, 408-992-6100
kevin.faulkner@nuance.com
or
For Press and Investors
Nuance Communications, Inc.
Richard Mack, 781-565-5000
richard.mack@nuance.com

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