Technology

Malware Bug to Infect Nuance’s Q3 Results

The company says the "NotPetya" malware attack caused a loss of healthcare transcription revenues and left it unable to fulfill customer orders.
Matthew HellerJuly 21, 2017

Nuance Communications, a voice transcription service for health care providers, said Friday it expects its third- and fourth-quarter results to be impacted by a malware program that hit businesses around the world last month.

Nuance was one of the many corporate victims of the “NotPetya” malware, which demanded a payment to unlock files it had scrambled on infected systems. Some researchers believe it was actually a “wiper” intended just to destroy data.

In a news release Friday, Burlington, Mass.-based Nuance said it “continues to make progress in restoring its operations across the business. Since detecting the issue, the company has been remediating affected systems, enhancing the security of its networks and restoring functionality to customers.”

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According to the company, the malware infection caused a loss of healthcare transcription revenues in the final week of the third quarter and left Nuance unable to fulfill orders for imaging products during the same period.

As a result, Nuance expects third-quarter GAAP revenues to be between $485.0 million and $489.0 million and non-GAAP revenues to be between $494.0 million and $498.0 million. It is also projecting a loss in GAAP earnings per share of between $0.09 and $0.11 and a loss in non-GAAP earnings per share of between $0.26 and $0.28.

Had the malware incident not occurred, third-quarter GAAP revenues on a pro forma basis would have been between $500.0 million and $504.0 million and non-GAAP revenues on a pro forma basis would have been between $509.0 million and $513.0 million.

The GAAP loss would have been between $0.05 and $0.07 and the non-GAAP loss would have between $0.29 and $0.31.

“Despite the effects of the malware incident, net new bookings in the quarter were strong, up year-over-year, between 20.0% and 25.0%,” Nuance said.

The company also expects a material effect on financial results for the fourth quarter. “The impact will be primarily related to Nuance’s HIM transcription business as the company continues to reactivate customers during the quarter,” it explained.