Nuance Posts Fiscal 2Q Profit Of $7.1 Million

BURLINGTON, Mass. (AP) — Speech and imaging software maker Nuance Communications Inc. posted a fiscal second-quarter profit Monday, reversing a year-earlier loss as revenue grew and costs declined.

For the three months ended March 31, the company earned $7.1 million, or 3 cents per share, up from a loss of $26.8 million, or 13 cents per share, in the year-earlier period.

Excluding items such as the amortization of intangible assets, the company earned 24 cents per share in the latest quarter.

Revenue rose 13 percent to $229.1 million from $203.3 million. Adjusted revenue, which excludes acquisition-related adjustments, was $238.9 million in the latest quarter.

Analysts, on average, were expecting a profit of 22 cents per share on sales of $243.7 million, according to a poll by Thomson Reuters. Analysts typically exclude one-time items from their estimates.

"Despite the challenging environment for capital and consumer spending, Nuance made significant progress in operating margins and the growth of recurring revenue streams," said Paul Ricci, chairman and chief executive, in a statement. "Strong expense controls, which we expect to continue for the remainder of the fiscal year, enabled us to exceed profit expectations."

Shares climbed 6 cents to $13.14 in after-hours trading. The stock had closed down 26 cents at $13.08.