Nuance Communications, Inc. (NUAN) saw its loss widen to $33.81 million, or $0.12 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $7.05 million, or $0.02 a share. On the other hand, adjusted net income for the quarter stood at $92.77 million, or $0.32 a share compared with $86.38 million or $0.29 a share, a year ago.
Revenue during the quarter grew 4.35 percent to $499.57 million from $478.73 million in the previous year period. Gross margin for the quarter expanded 21 basis points over the previous year period to 57.28 percent. Total expenses were 93.69 percent of quarterly revenues, up from 93.13 percent for the same period last year. That has resulted in a contraction of 56 basis points in operating margin to 6.31 percent.
Operating income for the quarter was $31.53 million, compared with $32.90 million in the previous year period.
However, the adjusted operating income for the quarter stood at $156.54 million compared to $138.23 million in the prior year period. At the same time, adjusted operating margin improved 246 basis points in the quarter to 31.34 percent from 28.87 percent in the last year period.
Operating cash flow declines
Nuance Communications, Inc. has generated cash of $250.33 million from operating activities during the first half, down 16.85 percent or $50.73 million, when compared with the last year period.
The company has spent $175.97 million cash to meet investing activities during the first six months as against cash outgo of $59.71 million in the last year period.
Cash flow from financing activities was $70.87 million for the first six months as against cash outgo of $472.04 million in the last year period.
Cash and cash equivalents stood at $625.64 million as on Mar. 31, 2017, up 149.57 percent or $374.95 million from $250.69 million on Mar. 31, 2016.
Working capital turns positive
Working capital of Nuance Communications, Inc. has turned positive to $185.13 million on Mar. 31, 2017 from negative $4.54 million on Mar. 31, 2016. Current ratio was at 1.17 as on Mar. 31, 2017, up from 0.99 on Mar. 31, 2016.
Days sales outstanding went down to 68 days for the quarter compared with 70 days for the same period last year.
Debt moves up
Nuance Communications, Inc. has witnessed an increase in total debt over the last one year. It stood at $2,584.47 million as on Mar. 31, 2017, up 14.53 percent or $327.90 million from $2,256.57 million on Mar. 31, 2016. Total debt was 44 percent of total assets as on Mar. 31, 2017, compared with 42.93 percent on Mar. 31, 2016. Debt to equity ratio was at 1.33 as on Mar. 31, 2017, up from 1.26 as on Mar. 31, 2016.
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