Before diving further into the report, here is some background on what the company does. As noted above, it develops a variety of voice recognition and language understanding products. It operates through four main segments, including Healthcare, Mobile, Enterprise, and Imaging. One of its key products is called Dragon Medical, which is a dictation software product that helps physicians easily capture and document patient data on several different devices. Dragon Medical is a significant source of recurring revenue for NUAN. The mobile segment provides virtual assistants and connected services built on voice recognition, text-to-speech, dialog, and text input technologies. It sells these products to device makers, mobile operators, and automotive manufacturers -- which has been a key growth area recently.
Circling back to NUAN's quarterly report, revenue actually did decline by 7.4% year/year. However, this past June, the company experienced a major cyber attack, which had a significant impact on its results. In fact, it estimates that the malware incident cost them approximately $53 million in revenue for the quarter. Excluding that incident, then NUAN's revenue would have been up 3% over last year. The malware attack also impacted non-GAAP EPS by ($0.11) and drove its operating margin down to (3.8)% from 9.0% in the year ago quarter.
That said, a few other key operating metrics do illustrate the momentum underlying its business. For instance, recurring revenue hit its target of 73%, driven by its growth businesses, including Dragon Medical, referenced above. On that note, its healthcare business had its strongest new new bookings quarter in its history. Furthermore, its total pipeline metric grew by $900 million, up 30% year-to-date.
NUAN also issued mixed guidance for both 1Q18 and FY18. For Q1, it provided downside EPS guidance of $0.19-$0.22 vs. the $0.25 consensus, but upside revenue guidance of $486-$500 million vs. the $485 million expectation. And for FY18, it guided for EPS of $1.06-$1.15 compared to the $1.11 expectation with revenue of $2.03-$2.08 billion, slightly above the $2.01 billion consensus.
During the earnings call last night, management discussed what it believes will be its main growth drivers in the coming year. In the healthcare segment, it continues to shift to the cloud with its Dragon Medical products, and, it recently launched new virtual assistant capabilities, improved its analytic capabilities, and, together with NVIDIA (NVDA), it just introduced the world's first open marketplace for AI algorithms in radiology. Additionally, in its mobile business, it is accelerating its automotive 200 product initiative, particularly focusing on the connected car, which it believes will be a very notable growth business. In fact, automotive-related products now account for 63% of revenue in this segment, growing at double digit rates. And lastly, in the Enterprise business, it continues the expansion to omni-channel engagement, adding new facial and behavioral capabilities to its voice biometrics portfolio.