In the following video, Motley Fool senior technology analyst Eric Bleeker takes a look at the earnings report for Nuance Communications (NUAN +0.00%), which provides speech recognition applications, among other things, and is thought to be behind the voice recognition abilities of the iPhone's Siri. He notes how the company fell hard after releasing earnings, largely because it has committed a remarkably familiar earnings "crime" -- namely, contracting margins in the mobile space -- as net earnings trail behind revenue growth, spooking investors. Eric tells us why this is such a cause of investor concern, and what the silver lining might be.
Nuance Commits the Apple Earnings Crime
By Eric Bleeker – Feb 8, 2013 at 4:32PM
NASDAQ: NUAN
Nuance Communications
Nuance craters on news of contracting margins and net earnings not keeping up with revenue growth. Sound familiar?
About the Author
Eric Bleeker, CFA joined The Motley Fool at the height of the financial crisis in 2008. For the next four years he led the Fool's Tech & Telecom sector, both writing articles and providing feedback and ideas to writers. Today, Eric is the General Manager of Fool.com, but still enjoys writing a tech article or two from time to time. Follow @bleekertech