Nuance Communications Inc. (NASDAQ:NUAN) stock fell 0.16% (As on Feb 8, 11:47:46 AM UTC-4, Source: Google Finance) after the company beaten the earnings estimates for the first quarter of FY 22. The company posted Non-GAAP operating income of $38.6 million, compared to $91.4 million in the same period last year. The company has delivered Non-GAAP operating margin of 12.0%, compared to 26.4% in the same period last year. The company has reported Non-GAAP net income of $26.4 million, compared to $62.5 million in the same period last year. The company has generated Operating cash flows from continuing operations of $13.9 million, compared to $54.6 million in the same period last year. In Healthcare, the company saw strong cloud revenue and ARR growth, in particular from the Dragon Medical and DAX solutions where cloud revenue grew 29% year-over-year. Overall Healthcare revenue grew 1% year-over-year in Q1, as cloud growth more than offset the planned wind-down of a non-strategic government Coding contract. In Enterprise, the company remained encouraged by the demand for the Security & Biometrics and Digital Engagement cloud solutions. The total Enterprise revenue declined 16% year-over-year as the company accelerated the transition from an on-premise license model to a recurring, cloud-based model

NUAN in the first quarter of FY 22 has reported the adjusted earnings per share of 8 cents, beating the analysts’ estimates for the adjusted earnings per share of 0 cents. The company had reported the adjusted revenue of $321.45 billion in the first quarter of FY 22, compared to $345.8 million in the same period last year.

Meanwhile, On April 11, 2021, Nuance entered into an Agreement and Plan of Merger with Microsoft Corporation. Subject to the terms and conditions of the Merger Agreement, Microsoft, through a wholly-owned subsidiary, has agreed to acquire all of the outstanding shares of Nuance common stock for $56.00 per share in an all-cash transaction. As a result of the Merger, Nuance will cease to be a publicly traded company. The acquisition has been approved by Nuance’s shareholders, and the company expects it to close by the end of the first calendar quarter of 2022, subject to the satisfaction of certain regulatory approvals and other customary closing conditions.

In addition, on March 1, 2021, the company has completed the sale of the medical transcription and electronic healthcare record implementation businesses. Accordingly, for all periods presented, the businesses’ results of operations have been included within discontinued operations in the condensed consolidated financial statements.