Nuance Communications Inc. (NUAN), a maker of speech-recognition software, tumbled the most in more than five years after first-quarter earnings and revenue trailed analysts’ estimates on deferred sales in its mobile segment.
Nuance dropped 13 percent to $26.50 at the close in New York for the biggest one-day percentage decline since Aug. 9, 2006. Yesterday the company reported earnings excluding some items of 34 cents a share. Analysts in a Bloomberg survey had estimated 36 cents.
The Burlington, Massachusetts-based company, which also provides technology for health-care companies, in December agreed to acquire Vlingo Inc. to gain a system that conducts Internet searches based on voice commands. The purchase is intended to help capture growing demand for voice-command technology, which is being driven by software such as Apple Inc. (AAPL)’s Siri for the iPhone, Nuance said.
“Clearly, the hype and excitement surrounding the iPhone 4S Siri launch was not matched by the fundamental output in the quarter,” Tom Roderick, a Chicago-based analyst with Stifel Nicolaus & Co., said in a research note. “Management’s tone indicated a level of confidence that the business will snap back in the coming quarters,” he said.