Microsoft Corporation purchased Nuance Corporation to increase its network infrastructure for the medical industry. Microsoft Corp. has been able to gain greater footing in both the facility and insurance industry by using Nuance’s widely used clinical dictation/interpretation capabilities.
Nuance Corporation’s growth is remarkable. Nuance Corporation went public in 2000 and purchased speech recognition technology made by Lernout Hauspie in 2001. Siri’s first appearance on iPhones was more than a decade back. The automation provided by Nuance powered Siri (Woods (2018). They are interested in artificial language processing and virtual assistants as well computational linguistics. This is especially true for the medical industry, but it also applies to other sectors.
Microsoft Corporation is the biggest supplier of software packages devices and systems worldwide. Microsoft Corporation is the largest supplier of software package devices and systems in the world. It creates its own hybrid portable computer brand, provides e-mail capability, sells digital gaming consoles, peripherals, as well as publishing electronic books.
Analysis of the financial statements for Nuance Corporation and Microsoft Corporation prior to purchase shows that Nuance corporation has seen a significant increase in revenue from 2018-2021. Microsoft Corporation sees a significant increase in revenue from fiscal years 2018-2022. Nuance Corporation has seen its revenue decline since 2018, which was when the company had moved from a deficit income level to one of surplus income. Microsoft Corporation saw its revenue rise in the four previous years.
An analysis of Microsoft’s balance sheets reveals an increase in long-term debt during the 2018 financial year. Also, the company has seen an impressive increase in shareholder capital. This shows that stock and debt are the main sources of capital for the corporation. Nuance corporation had its credit facilities decrease over the last four financial months. Similar to the previous year, shareholders’ equity decreased from 2018 until the purchase.