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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