Profile: Nuance Communications Inc (NUAN.O)
Nuance Communications, Inc., incorporated on October 14, 2005, is a provider of voice and language solutions for businesses and consumers globally. The Company's solutions are used in healthcare, mobile, consumer, enterprise customer service, and imaging markets. The Company offers accuracy, natural language understanding capability, domain knowledge and implementation capabilities. The Company's solutions are based on the Company's voice and language platform and are used by businesses for tasks and services, such as requesting information from a phone-based self-service solution, dictating medical records, searching the mobile Web by voice, entering a destination into a navigation system, or working with portable document format (PDF) documents. The Company offers its solutions to its customers in a range of ways, including through products, hosting, professional services and maintenance and support. The Company's product revenues include embedded original equipment manufacturers (OEM) royalties, traditional enterprise licensing, term-based enterprise licensing and consumer-based sales. The Company's hosting revenues are generated through on-demand service models, consisted of hosted transaction-based pricing arrangements, which have multi-year terms. On June 1, 2012, the Company acquired Vlingo Corporation. On April 26, 2012, the Company acquired Transcend Services, Inc. In October 2012, the Company acquired J.A. Thomas and Associates, Inc. In December 2012, the Company acquired Ditech Networks, Inc. Effective April 1, 2013, Carl Icahn acquired a 9.27% stake in the Company.
The Company operates in four segments: Healthcare, Mobile and Consumer, Enterprise, and Imaging. During the fiscal year ended September 30, 2012 (fiscal 2012), segment revenue as a percentage of total segment revenue for Healthcare, Mobile and Consumer, Enterprise and Imaging was 39% , 29% , 19% and 13% , respectively.
The Company provides dictation and transcription solutions and services, which capture the patient encounters with their physician. These hosted and on-premise solutions provide platforms to generate and distribute clinical documentation through the use of advanced dictation and transcription features, and allow the Company to deliver medical transcription solutions. In addition, the Company offers solutions that leverage the captured information, and streamlines Healthcare Information Management (HIM) processes to drive compliance and reimbursement. Through Clinical Documentation Improvement (CDI) programs, the Company assists in bridging the gap between physicians and coders. Its representative customers include Advocate, Banner Health, Cleveland Clinic, Department of Veterans Affairs, HCA, Leahy Clinic, Kaiser Permanente, Mayo Clinic, NHS, Providence Health & Services, Sharp, Steward Sutter Health, Tenet, UPMC, U.S. Army and Wellspan.
Mobile and Consumer
The Company helps consumers use the capabilities of their phones, cars, tablets, desktop and portable computers, personal navigation devices and other consumer electronics by enabling the use of voice commands, text-to-speech and text input solutions to control and interact with these devices, and to access a range of content and services available on the Internet. The Company's suite of Dragon general purpose desktop and portable computer dictation applications use speech to create documents, streamline repetitive and complex tasks, input data, complete forms and automate manual transcription processes. The Company's suite of mobile solutions and services provides a platform to build, implement and deploy custom solutions on a range of mobile devices and other consumer electronics.
The Company's portfolio of mobile and consumer solutions and services includes an integrated suite of voice control and text-to-speech solutions, dictation applications, predictive text technologies, mobile messaging services and emerging services, such as dictation, Web search and voicemail-to-text. The Company utilizes direct distribution, supplemented by partnerships with electronics suppliers and integrators, such as Clarion, Harman Kardon and Rovi. The Company's solutions are used by mobile phone, automotive, personal navigation device, computer, television and other consumer electronic manufacturers and their suppliers, including Amazon, Apple, Audi, BMW, Ford, Garmin, GM, HTC, Intel, LG Electronics, Mercedes Benz, Nintendo, Nokia, Panasonic, Samsung, Sharp, T-Mobile, TomTom and Toyota.
Telecommunications carriers, Web search companies and content providers are using the Company's mobile search and communication solutions to offer services to their subscribers and customers. The Company's embedded mobile solutions are sold to automobile and device manufacturers, generally on a royalty model priced per device sold, as well as on a volume of usage model and sometimes on a license model. The Company's connected mobile services are sold through telecommunications carriers, voicemail system providers, smartphone application developers or directly to consumers. As of September 30, 2012, the Company's mobile cloud services powered handsets, cars, televisions and other mobile devices in 34 languages. Representative connected services customers and partners include Cisco, Comcast, Esnatech, Mitel, Rogers, Siemens, Telefonica, Telstra, Time Warner Cable, TISA, T-Mobile and Vodafone. In addition, smartphone application stores include applications, which utilize the Company's technology, such as its Dragon Mobile Assistant, DragonDictation, DragonGo! and FlexT9, as well as third party applications including Amazon Price Check, Ask, Bon' App, Coupons.com, E*Trade, Grainger, Kraft, Merriam-Webster, On-Star, PlaySay, Recipe.com, Snapguide, Target, Vocre and Yellow Pages.
During fiscal 2012, the Company shipped a version of Dragon NaturallySpeaking for Windows and Dragon Dictate for Mac, which are available in eight languages. The Company's desktop and portable computer dictation solutions are sold under a traditional perpetual software license model. The Company utilizes a combination of its global reseller network and direct sales to distribute its desktop and portable computer dictation products. Resellers include retailers, such as Amazon, Best Buy and WalMart. Enterprise customers include organizations, such as law firms, insurance agencies and government agencies. Representative customers include ATF, Exxon, FBI, IBM, Texas Department of Family Protective Services and Zurich.
The Company delivers a portfolio of customer service business intelligence and authentication solutions, which is designed to help companies better support, understand and communicate with their customers. The Company's solutions include the use of technologies, such as speech recognition, natural language understanding, text-to-speech, biometric voice identification and analytics to automate caller identification and authorization, virtual assistants, call steering, completion of tasks, such as updates, purchases and information retrieval, and automated outbound notifications. The Company complements its solutions and products with a professional services organization, which supports customers and partners with business and systems consulting project management, user-interface design, voice science, application development and business performance optimization. In addition, the Company offers solutions, which can meet customer care needs through Websites and direct interaction with applications on cell phones, enabling customers to retrieves relevant information.
The Company's solutions are used by a range of enterprises in customer-service intensive sectors, including telecommunications, financial services, travel and entertainment, and government. The Company's enterprise solutions offerings include both a traditional software perpetual licensing model and an on-demand model and are priced by volume of usage. Representative customers include Bank of America, Barclays, Cigna, Citibank, Comcast, Deutsche Bank, Disney, FedEx, OnStar, PG&E, U.K.HM Revenue & Customs, USAA, US Airways, Telecom Italia, Telefonica, T-Mobile, Wells Fargo and Verizon.
The Company's imaging solutions offer optical character recognition technology to deliver document scanning and storage. The Company provides networked print management and comprehensive PDF applications designed for business users. In addition, the Company offers applications, which combine network scanning, network print management and PDF creation to enables distribution of documents to users' desktops or to enterprise applications. The Company's host of services includes software development toolkits for independent software vendors. The Company's imaging solutions are sold under a perpetual software license model, and some solutions are also offered as a hosted solution. The Company utilizes a combination of its global reseller network and direct sales to distribute its imaging products. The Company licenses its software to multifunction printer manufacturers, such as Brother, Canon, Dell, HP and Xerox, which bundle its solutions with multi-function devices, digital copiers, printers and scanners, on a royalty model, priced per unit sold. Representative customers include Aflac, Airbus, Amazon, Barclays, Blue Shield, Citibank, EMC, Ernst & Young, Eurostar, Franklin Templeton, Intuit, Johnson & Johnson, JP Morgan Chase, Nationwide, Norwegian Tax Authorities, Office Depot, Phillips, PricewaterhouseCoopers, UPS and US Department of Justice.
The Company competes with Adobe, M*Modal, Microsoft and Google.
Nuance Communications Inc
1 WAYSIDE ROAD
BURLINGTON MA 01803