Nuance Communications Inc. (NASDAQ:NUAN) just announced to kick off the new week that, “in less than one year since its introduction, the Artificial Intelligence (AI) Marketplace for Diagnostic Imaging, the first workflow-integrated marketplace, has mobilized a collaborative community of developers, researchers and technology leaders to build, test, validate and share algorithms for radiology.” Shares popped in response, but on a strong market tape – so, as we like to say, take it with a grain of salt. We like the company, but the news was probably secondary to the broad market context.
In any case, according to the release, the AI Marketplace now has more than 40 developers such as NVIDIA, Aidoc, Zebra Med, Aidence, Densitas, Massachusetts General Hospital (MGH), Brigham and Women’s Hospital (BWH), and their Center for Clinical Data Science (CCDS). Nuance also is working with standards bodies, such as the American College of Radiology (ACR), to establish and apply application program interface (API) connectivity standards for the consumption of AI within radiology workflow, as well as electronic health records (EHRs), picture archiving and communication systems (PACS) and registries.
Nuance Communications Inc. (NASDAQ:NUAN) trumpets itself as a company that provides voice recognition and natural language understanding solutions worldwide.
It operates through four segments: Healthcare, Mobile, Enterprise, and Imaging.
The Healthcare segment offers transcription solutions, which enable physicians to streamline clinical documentation with medical transcription platform; Dragon Medical, a dictation software that empowers physicians to capture and document patient care on various devices; clinical document improvement and coding solutions that ensure patient health information; diagnostic solutions that allow radiologists to document, collaborate, and share medical images and reports; and professional and personal productivity solutions to business users and consumers.
The Mobile segment provides virtual assistants and connected services built on voice recognition, text-to-speech, natural language understanding, dialog, and text input technologies to automotive manufacturers, consumer electronic companies, and mobile and cable operators.
The Enterprise segment offers On-Premise solutions and services, an automated customer service solution comprising speech recognition, voice biometrics, transcription, text-to-speech, and dialog and analytics products; and On-Demand multichannel cloud, a platform that offers enterprises the ability to implement automatic customer service.
The Imaging segment provides multi-function printer (MFP) Scan automation solutions to offer scanning and document management solutions; MFP Print automation solutions to deliver printing and document management solutions; and PDF and OCR software, a technology that enables the capture, creation, and management of document workflows.
The company has a strategic agreement with Partners HealthCare and SDL plc. The company was formerly known as ScanSoft, Inc. and changed its name to Nuance Communications, Inc. in October 2005. Nuance Communications, Inc. was founded in 1992 and is headquartered in Burlington, Massachusetts.
Tuck It In
As we discussed earlier, NUAN just announced traction for its Artificial Intelligence (AI) Marketplace for Diagnostic Imaging.
This news, while obviously helpful, figures into a tape that has been defined by some heavy action, with shares of NUAN dealing with some pressure, but coming back on the news to close the last five days more or less flat. NUAN shares have been relatively flat over the past month of action, with very little net movement during that period.
“Augmenting radiologists’ expertise with AI is not futuristic, foreboding, or frightening. It’s happening now and offers immediate and ongoing benefits. Just as the Apple iOS App Store changed how we used and viewed smartphones, the AI Marketplace can deliver a similar transformation to the quality of care,” said Karen Holzberger, vice president and general manager, Healthcare Diagnostics, Nuance. “With our deep understanding of radiologists’ needs and workflows and the scale of our existing solutions, we are uniquely positioned to help them lead the transformation of healthcare by leveraging the capabilities of AI. Now, with the ability to easily purchase and utilize AI algorithms directly within the solutions they use every day, radiologists can work smarter and more efficiently, focusing their time and expertise on more sophisticated activities and urgent cases, ultimately improving patient care, and saving more lives.”
Nuance Communications Inc. (NASDAQ:NUAN) generated sales of $532.9M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 6% on the top line.
In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($451.5M against $764.2M, respectively).