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CORRECTED-UPDATE 2-Nuance first quarter misses expectations; shares down
February 9, 2012 / 9:16 PM / in 6 years

CORRECTED-UPDATE 2-Nuance first quarter misses expectations; shares down

* Q1 adj EPS $0.34 vs est $0.36

* Q1 revenue $360.6 mln vs est $391.6 mln

* Sees Q2 adj EPS $0.36-0.40 vs est $0.38

* Sees Q2 adj rev $395-$415 mln vs est $404.5 mln

* Shares down 10 pct after the bell

Feb 9 (Reuters) - Nuance Communications Inc posted quarterly results that missed estimates for the first time in four quarters as the speech recognition software maker took longer to recognize revenue from some contracts.

Shares of the company, whose technology is used by the Siri application in Apple Inc’s iPhone 4S, fell 10 percent to $27.30 in trading after the bell.

For the first quarter, revenue fell short of expectations by more than $30 million and the company blamed longer sales cycles for the miss.

“Our relationships with mobile customers have become more comprehensive and complex, which has resulted in delayed revenues in some cases,” Nuance said in a statement.

Sales at both its mobile and consumer business and the healthcare solutions segment, which provides dictation and transcription solutions, rose a little over 23 percent.

Total adjusted revenue rose 18.7 percent to $360.6 million, while analysts were looking for $391.6 million.

First-quarter net income rose to $9.3 million, or 3 cents a share, compared with break-even results in the year-ago period.

Adjusted earnings came in at 34 cents a share.

Analysts had expected earnings of 36 cents a share, excluding items.

Nuance, which went on an acquisition spree last year, buying rivals Vlingo and Swype among others, competes with products from Microsoft Corp and Google, among others.

Its shares touched a fresh life high of $31.15 in regular trade, before closing up 4 percent on Thursday on the Nasdaq.

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