Voice-based AI specialist Nuance Communications has issued its results for the first quarter of its fiscal 2021, a period ended December 31, 2020.
Revenues for the quarter came in at $345.8 million, compared to revenues of $361.5 million in Q1 of 2020. GAAP operating income dropped from $36.0 million in Q1 of 2020 to $31.5 million in the latest quarter.
Net income for the quarter came in at just under $14.9 million, compared to a net result of almost $48.7 million a year who, in the first quarter of fiscal 2020.
Despite those overall declines, Nuance CEO Mark Benjamin highlighted improvements in certain key areas in his commentary on the results.
“In Healthcare, we saw solid performance in our cloud-based offerings, growing cloud revenue 28% year-over-year,” he noted, adding that the ongoing transition of Nuance’s installed base to the company’s Dragon Medical One platform had helped to drive revenue increases from its Dragon Medical and DAX Cloud offerings.
Benjamin also highlighted Nuance’s success in enterprise security, thanks in part to its voice recognition technology. “Enterprise delivered another record revenue quarter, up slightly from its previous record in Q1’20, driven by particularly strong demand for our Security & Biometrics solutions,” he said.
Nuance’s corporate update arrived alongside its announcement that it has acquired Saykara, a startup focused on the development of a mobile-based AI assistant designed to help doctors with clinical documentation. Benjamin described Saykara as “a like-minded healthcare IT company that aligns well with our technology portfolio and growth strategy.”
Meanwhile, Nuance had previously entered into an agreement to sell its medical transcription “electronic healthcare record go-live” businesses, and expects the transaction to close in the second quarter of fiscal 2021.