IB Net Payout Yields Model

Nuance: The Never Ending Shift to Subscription Services

After another weak quarter, Nuance Communications (NASDAQ: NUAN  ) continues to hammer away on the current theme that the shift to on-demand and subscription services is hurting short-term revenues while increasing development costs. The shift is occurring due to customers moving toward cloud services and per use charges for health care and mobile transactions instead of one-time perpetual licenses. This move shifts revenue from up-front payments toward receiving the revenue over periods of two to three years.

The maker of voice-recognition software most fondly known for Siri used in Apple products continues to underwhelm investors expecting better results and a quicker shift.The stock continues to plow toward new lows even with an exciting sector of developments for voice-recognition and natural-language software in the medical field and enterprise virtual assistants. The disruptive shift toward on-demand and subscription services isn't new, having already hit software stocks such as Adobe Systems and Intuit (NASDAQ: INTU  ) .

Read the full article here.

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