Hackers hit Nuance again in 2017, while NotPetya cost $98 million in lost revenue
Nuance Communications, a major voice and language tool vendor, lost $98 million in revenue as a direct result of falling victim to the global NotPetya attack in June 2017, according to a recent Securities and Exchange Commission filing.
That number is projected to increase as they move into 2018 to enhance and upgrade its security.
But while the company was still working to dig out of the NotPetya incident, a hacker got into a single transcription platform and accessed the records of 45,000 individuals. Officials said they promptly shut down the platform, and the incident was contained to one platform.
[Also: Nuance still down after Petya cyberattack, offers customers alternative tools]
Officials notified customers using that platform and moved those customers to a separate eScription transcription platform. The company notified law enforcement and have been working with them on the investigation.
“Future cybersecurity or data privacy incidents could have a material adverse effect on our results of operations,” according to the filing.
Nuance had a tough 2017, as it was one of the victims claimed last June by NotPetya, a global wiper malware attack. The virus impacted the systems used by its healthcare customers, primarily the transcription services, as well as its imaging division systems used to receive and process orders, officials said.
[Also: Nuance earnings hurt by Petya cyberattack, some providers still offline]
According to officials, Nuance lost about $68 million in revenue, primarily in the healthcare sector “due to the service disruption and the reserves we established for customer refund credits related to the malware incident.”
The company also lost an additional $24 million in FY17 on remediation and restoration efforts, in addition to “incremental amortization expenses.” While the direct impact of NotPetya was remediated in FY17, officials said the virus continued to affect operations in the first quarter of FY18.
Specifically, NotPetya caused “a year-over-year decline in the annualized line run-rate in our on-demand healthcare solutions and in the estimated three-year value of on-demand contracts; a year-over-year decline in hosted revenue and an increase in restructuring and other charges.”
Nuance is not the only company experiencing major losses after NotPetya. FedEx, Merck and several U.S. health providers experienced permanent damage. And both FedEx and Merck officials have said that they expect revenue to be affected into the unforeseen future.
Twitter: @JessieFDavis
Email the writer: jessica.davis@himssmedia.com