IT firm Nuance Communications' fourth quarter and yearly earnings reports show 12 percent growth over the fiscal year, though losses in the fourth quarter and low projections for the upcoming quarter caused shares to tumble more than 18 percent in yesterday's trading.
Following the earnings reports, Nuance officials announced a projected net income between $1.05 and $1.15 per share and revenue between $2.03 billion and $2.09 billion in FY 2014. Analysts had been expecting projected earnings of $1.41 per share on revenue of $2.08 billion, according to a report in The Street.
Nuance officials blamed the lower projections on the company's move from up-front licenses to subscription-based sales, according to the report.
"We are embracing this transition despite its effect on near-term revenues because our customers are demanding it and because we value the recurring nature, predictability and longevity of these revenue streams," said CEO Paul Ricci, according to the report.
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