Nuance Communications () early Tuesday reported fiscal Q3 earnings and sales that beat Wall Street’s view, but shares were down 1.4%.
The provider of speech recognition technology used in devices such as the Apple () iPhone reported earnings minus special items of 45 cents a share, up 29% from the year-ago quarter and above consensus estimates of 40 cents. It was its sixth quarter in a row of double-digit growth.
Non-GAAP revenue for the quarter ended June 30 rose 30% to $448.2 million, and includes $16.5 million in revenue lost to accounting treatment in conjunction with acquisitions. Analysts had expected non-GAAP revenue of $439.8 million, according to Thomson Reuters.
Nuance technology powers the Siri voice recognition feature in the iPhone. In its mobile and consumer segment, Nuance reported revenue of $132.4 million, up 42%. New customers signed in the quarter included HTC, Samsung, LG and Google’s () Motorola unit. New customers in the auto field included Nissan (), Toyota () and Volkswagen.
“We were pleased to see a strong performance in our mobile and consumer business, led by mobile phones, automobiles, televisions and other consumer electronics, as well as continued momentum in our health care business,” Tom Beaudoin, chief financial officer for Nuance, said in the company’s earnings release.
In its health care business, Nuance said revenue rose 32% to $184.5 million.
Nuance said customer interest in voice applications “is increasing rapidly.” New “virtual assistant capabilities” resulted in handset, TV and automobile bookings and design wins, it said.
Increased license fees for access to cloud-based services also drove revenue, said the company. It said this all offset lower revenue for its Dragon voice recognition software product ahead of last month’s launch of the new Dragon NaturallySpeaking 12
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