Synchronoss Technologies, Inc. Announces First Quarter 2009 Financial Results
Waldis added, “We are excited with the growing traction of our
ConvergenceNow® Plus+ solution, which is designed
specifically to support embedded communication devices such as
smartphones, mobile internet devices, laptops and wirelessly enabled
consumer electronics such as digital cameras and global positioning
systems. Two of the world’s leading smartphone handset providers have
agreed to use ConvergenceNow® Plus+, and we believe
For the first quarter of 2009,
Non-GAAP gross profit for the first quarter of 2009 was
A reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures."
“We continue to monitor our overall expenses carefully in order to drive
profitability in an environment when many of our customers are facing
increasing economic pressures in their business," said Lawrence R.
Irving, Chief Financial Officer and Treasurer. "We continue to be
pleased with the progress of the growth initiatives in which we are
continuing to invest. We have begun the on-boarding process for new
transactions and channels at
Other First Quarter Business Highlights
-
Business related to
AT&T represented 63% of total revenue in the first quarter, compared to 64% in the previous quarter and 72% in the year ago quarter. Business outside of theAT&T relationship represented approximately 37% of total revenue in the first quarter, compared to 36% in the previous quarter and 28% in the year ago quarter. -
Brightpoint entered into an agreement whereby it will act as an Online Master Dealer forT-Mobile USA . Under the terms of the agreement,Brightpoint will enable its approved customers the ability to offer and sell wireless services fromT-Mobile via its end-to-end integrated online activation solution.Brightpoint is utilizing Synchronoss’ ConvergenceNow® Plus+ platform as part of this solution to provide online activation ofT-Mobile wireless services. - Announced that Synchronoss’ ConvergenceNow® Plus+ platform enables the end-to-end customer management for AT&T’s CruiseCastSM Mobile TV Service. From purchase and activation to account changes, ConvergenceNow® Plus+ consolidates the orchestration and customer-care operations while providing customers with a superior and seamless experience. AT&T CruiseCast service will offer a robust lineup of 42 entertainment channels, 22 satellite TV and 20 radio channels at launch. The AT&T CruiseCast service enables families, commuters and mobile professionals to watch the same type of television experience in the rear seat entertainment systems of their vehicles that they now have in their homes.
Conference Call Details
In conjunction with this announcement,
Following the conference call, a replay will be available at 888-286-8010 (domestic) or 617-801-6888 (international). The replay pass code is 97325160. An archived web cast of this conference call will also be available on the “Investor Relations” page of the company’s website, www.synchronoss.com.
Non-GAAP Financial Measures
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures as detailed above. As previously mentioned, a reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included in this press release.
About
Forward-looking Statements
This document may include certain "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements include, but are not limited to, plans,
objectives, expectations and intentions and other statements contained
in this press release that are not historical facts and statements
identified by words such as "expects," "anticipates," "intends,"
"plans," "believes," "seeks," "estimates," “outlook” or words of similar
meanings. These statements are based on our current beliefs or
expectations and are inherently subject to various risks and
uncertainties, including those set forth under the caption "Risk
Factors" in Synchronoss’ Annual Report on Form 10-K for the year ended
The
| SYNCHRONOSS TECHNOLOGIES, INC. | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (Unaudited) | ||||||||
| (in thousands, except per share data) | ||||||||
| March 31, | December 31, | |||||||
| 2009 | 2008 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 68,042 | $ | 72,203 | ||||
| Marketable securities | 2,186 | 2,277 | ||||||
| Accounts receivable, net of allowance for doubtful accounts of $218 and $193 at March 31, 2009 and December 31, 2008, respectively | 28,240 | 25,296 | ||||||
| Prepaid expenses and other assets | 3,469 | 3,337 | ||||||
| Deferred tax assets | 1,061 | 1,065 | ||||||
| Total current assets | 102,998 | 104,178 | ||||||
| Marketable securities | 4,151 | 4,283 | ||||||
| Property and equipment, net | 23,280 | 17,280 | ||||||
| Goodwill | 6,652 | 6,862 | ||||||
| Intangible assets, net | 3,487 | 3,580 | ||||||
| Deferred tax assets | 8,468 | 8,505 | ||||||
| Other assets | 629 | 631 | ||||||
| Total assets | $ | 149,665 | $ | 145,319 | ||||
| Liabilities and stockholders' equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,621 | $ | 2,838 | ||||
| Accrued expenses | 7,121 | 8,640 | ||||||
| Lease financing obligations | 268 | - | ||||||
| Deferred revenues | 2,343 | 1,452 | ||||||
| Total current liabilities | 11,353 | 12,930 | ||||||
| Long term lease financing obligations | 8,540 | 6,685 | ||||||
| Other liabilities | 1,379 | 1,366 | ||||||
| Stockholders’ equity: | ||||||||
| Preferred stock, $0.0001 par value; 10,000 shares authorized, 0 shares issued and outstanding at March 31, 2009 and December 31, 2008 | - | - | ||||||
| Common stock, $0.0001 par value; 100,000 shares authorized, 32,882 and 32,878 shares issued; 30,882 and 30,878 outstanding at March 31, 2009 and December 31, 2008, respectively | 3 | 3 | ||||||
| Treasury stock, at cost (2,000 shares at March 31, 2009 and December 31, 2008) | (23,713 | ) | (23,713 | ) | ||||
| Additional paid-in capital | 109,864 | 107,895 | ||||||
| Accumulated other comprehensive income | 47 | 66 | ||||||
| Retained earnings | 42,192 | 40,087 | ||||||
| Total stockholders’ equity | 128,393 | 124,338 | ||||||
| Total liabilities and stockholders’ equity | $ | 149,665 | $ | 145,319 | ||||
|
SYNCHRONOSS TECHNOLOGIES, INC. |
||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| (Unaudited) | ||||||||
| (in thousands, except per share data) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2009 | 2008 | |||||||
| Net revenues | $ | 29,553 | $ | 29,110 | ||||
| Costs and expenses: | ||||||||
| Cost of services (1) | 15,199 | 13,407 | ||||||
| Research and development (1) | 3,116 | 2,422 | ||||||
| Selling, general and administrative (1) | 6,069 | 5,267 | ||||||
| Depreciation and amortization | 1,840 | 1,465 | ||||||
| Total costs and expenses | 26,224 | 22,561 | ||||||
| Income from operations | 3,329 | 6,549 | ||||||
| Interest and other income | 199 | 857 | ||||||
| Interest expense | (51 | ) | (10 | ) | ||||
| Income before income tax expense | 3,477 | 7,396 | ||||||
| Income tax expense | (1,372 | ) | (3,090 | ) | ||||
| Net income | $ | 2,105 | $ | 4,306 | ||||
| Net income per common share: | ||||||||
| Basic | $ | 0.07 | $ | 0.13 | ||||
| Diluted | $ | 0.07 | $ | 0.13 | ||||
| Weighted-average common shares outstanding: | ||||||||
| Basic | 30,696 | 32,528 | ||||||
| Diluted | 31,088 | 33,407 | ||||||
| (1) Amounts include fair value stock-based compensation as follows: | ||||||||
| Cost of services | $ | 429 | $ | 302 | ||||
| Research and development | 123 | 130 | ||||||
| Selling, general and administrative | 1,362 | 1,190 | ||||||
| Total fair value stock-based compensation expense | $ | 1,914 | $ | 1,622 | ||||
|
SYNCHRONOSS TECHNOLOGIES, INC. |
||||||
| Reconciliation of GAAP to Non-GAAP Financial Measures | ||||||
| (Unaudited) | ||||||
| (in thousands, except per share data) | ||||||
| Three Months Ended March 31, | ||||||
| 2009 | 2008 | |||||
| Non-GAAP financial measures and reconciliation: | ||||||
| GAAP income from operations | $ | 3,329 | $ | 6,549 | ||
| Add: Fair value stock-based compensation | 1,914 | 1,622 | ||||
| Non-GAAP income from operations | $ | 5,243 | $ | 8,171 | ||
| GAAP net income attributable to common stockholders | $ | 2,105 | $ | 4,306 | ||
| Add: Fair value stock-based compensation, net of tax | 1,160 | 943 | ||||
| Non-GAAP net income | $ | 3,265 | $ | 5,249 | ||
| Diluted non-GAAP net income per share | $ | 0.11 | $ | 0.16 | ||
| Shares used in per share calculation | 31,088 | 33,407 | ||||
| SYNCHRONOSS TECHNOLOGIES, INC. | ||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (Unaudited) | ||||||||
| (in thousands) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2009 | 2008 | |||||||
| Operating activities: | ||||||||
| Net income | $ | 2,105 | $ | 4,306 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization expense | 1,840 | 1,465 | ||||||
| Deferred income taxes | 40 | (406 | ) | |||||
| Stock-based compensation | 1,955 | 1,671 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable, net allowance for doubtful accounts | (2,944 | ) | 1,479 | |||||
| Prepaid expenses and other current assets | (131 | ) | 2 | |||||
| Other assets | 305 | (34 | ) | |||||
| Accounts payable | (1,217 | ) | (1,079 | ) | ||||
| Accrued expenses | (1,518 | ) | (2,385 | ) | ||||
| Tax benefit from stock option exercise | - | (698 | ) | |||||
| Other liabilities | 60 | 10 | ||||||
| Deferred revenues | 891 | 888 | ||||||
| Net cash provided by operating activities | 1,386 | 5,219 | ||||||
| Investing activities: | ||||||||
| Purchases of fixed assets | (5,638 | ) | (308 | ) | ||||
| Purchases of marketable securities available for sale | (288 | ) | (490 | ) | ||||
| Sale of marketable securities available for sale | 365 | 1,780 | ||||||
| Net cash (used in) provided by investing activities | (5,561 | ) | 982 | |||||
| Financing activities: | ||||||||
| Proceeds from the exercise of stock options | 14 | 536 | ||||||
| Excess tax benefit from stock option exercise | - | 698 | ||||||
| Net cash provided by financing activities | 14 | 1,234 | ||||||
| Net (decrease) increase in cash and cash equivalents | (4,161 | ) | 7,435 | |||||
| Cash and cash equivalents at beginning of year | 72,203 | 92,756 | ||||||
| Cash and cash equivalents at end of period | $ | 68,042 | $ | 100,191 | ||||
Source:
Synchronoss Technologies, Inc.
Investor:
Tim Dolan,
617-956-6727
investor@synchronoss.com
or
Media:
Stacie
Hiras, 908-547-1260
stacie.hiras@synchronoss.com