November 24, 2014 / 10:28 PM / 3 years ago

UPDATE 1-Nuance profit tops estimates as healthcare sales rise

(Adds details on healthcare sales, analyst quote)

Nov 24 (Reuters) - Voice recognition software maker Nuance Communications Inc reported a better-than-expected quarterly adjusted profit, helped by strong demand from healthcare clients.

Nuance shares rose up nearly 4 percent in extended trading.

The company, whose software runs the Siri feature on Apple Inc’s iPhones, said revenue from its healthcare business rose 7 percent and accounted for 47 percent of total revenue in the fourth quarter.

Total revenue rose 6.4 percent to $502.3 million in the quarter ended Sept. 30.

“The economic improvement, the affordable healthcare act are the two main drivers for the increased usage of their healthcare services,” Avondale Partners LLC John Bright said.

The company sells voice-assisted documentation software to healthcare companies and its clients include Avera Health, BayCare, Cambridge Trusts and Cleveland Clinic among others.

Excluding items, Nuance earned 33 cents per share in the quarter, beating analysts’ average expectations of profit of 30 cents per share, according to Thomson Reuters I/B/E/S.

The company’s net loss fell to $1.5 million, including a $21 million income tax provision benefit, from $32.3 million a year earlier.

Nuance broke even on a per share basis in the latest quarter.

The company’s shares were trading up 3.7 percent at $15.88 in trading after the bell on Monday. They closed at $15.31 on the Nasdaq. (Reporting by Anannya Pramanick in Bangalore; Editing by Savio D’Souza)

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