Synchronoss Technologies, Inc. Announces Second Quarter 2009 Financial Results
For the second quarter of 2009,
Non-GAAP gross profit for the second 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."
“During the second quarter of 2009, our gross margin expanded by several
percentage points compared to last quarter, predominantly due to the mix
of transactions in the quarter," said
Other Second Quarter 2009 Business Highlights:
-
Business related to
AT&T represented 66% of total revenue in the second quarter, compared to 63% in the previous quarter and 67% in the year ago quarter. Business outside of theAT&T relationship represented approximately 34% of total revenue in the second quarter, compared to 37% in the previous quarter and 33% in the year ago quarter. - Announced the expansion of the Synchronoss ConvergenceNow® Plus+ platform to include an On-Device Activation Wizard™. The platform enhancements provide an automated, easy to use, wizard driven “grab-and-go” activation process. This allows consumers who purchase any type of emerging device the ability to complete the activation process and be on a wireless network in a matter of minutes.
-
Announced that
Synchronoss has partnered with Xandros, the leader in providing seamless Windows-Linux interoperability and open source netbook software solutions. Together, the companies offer the first single-source solution to automate the activation and provisioning of netbook devices on 3G and 4G wireless networks.
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 84333538. 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. | ||||||||
| BALANCE SHEETS | ||||||||
| (in thousands, except per share data) | ||||||||
| (Unaudited) | ||||||||
|
|
June 30, |
December 31, |
||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 73,200 | $ | 72,203 | ||||
| Marketable securities | 2,565 | 2,277 | ||||||
| Accounts receivable, net of allowance for doubtful accounts of $255 and $193 at June 30, 2009 and December 31, 2008, respectively | 27,200 | 25,296 | ||||||
| Prepaid expenses and other assets | 5,271 | 3,337 | ||||||
| Deferred tax assets | 1,051 | 1,065 | ||||||
| Total current assets | 109,287 | 104,178 | ||||||
| Marketable securities | 3,705 | 4,283 | ||||||
| Property and equipment, net | 24,956 | 17,280 | ||||||
| Goodwill | 6,652 | 6,862 | ||||||
| Intangible assets, net | 3,234 | 3,580 | ||||||
| Deferred tax assets | 8,476 | 8,505 | ||||||
| Other assets | 691 | 631 | ||||||
| Total assets | $ | 157,001 | $ | 145,319 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 6,616 | $ | 2,838 | ||||
| Accrued expenses | 3,142 | 8,640 | ||||||
| Lease Financing Obligation - Current | 268 | - | ||||||
| Deferred revenues | 2,870 | 1,452 | ||||||
| Total current liabilities | 12,896 | 12,930 | ||||||
| Lease Financing Obligation - Long Term | 8,766 | 6,685 | ||||||
| Other liabilities | 1,359 | 1,366 | ||||||
| Stockholders’ equity: | ||||||||
|
Preferred stock, $0.0001 par value; 10,000 shares authorized, 0 shares issued and outstanding at June 30, 2009 and December 31, 2008 |
— | — | ||||||
|
Common stock, $0.0001 par value; 100,000 shares authorized, 33,002 and 32,878 shares issued; 31,002 and 30,878 outstanding at June 30, 2009 and December 31, 2008, respectively |
3 | 3 | ||||||
| Treasury stock, at cost (2,000 shares at June 30, 2009 and December 31, 2008) | (23,713 | ) | (23,713 | ) | ||||
| Additional paid-in capital | 112,788 | 107,895 | ||||||
| Accumulated other comprehensive income (loss) | 153 | 66 | ||||||
| Retained earnings | 44,749 | 40,087 | ||||||
| Total stockholders’ equity | 133,980 | 124,338 | ||||||
| Total liabilities and stockholders’ equity | $ | 157,001 | $ | 145,319 | ||||
|
SYNCHRONOSS TECHNOLOGIES, INC. |
||||||||||||||||
| STATEMENT OF OPERATIONS | ||||||||||||||||
| (in thousands, except per share data) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
| Net revenues | $ | 30,554 | $ | 24,315 | $ | 60,107 | $ | 53,425 | ||||||||
| Costs and expenses: | ||||||||||||||||
| Cost of services (1)* | 15,190 | 11,865 | 30,389 | 25,272 | ||||||||||||
| Research and development (1) | 3,000 | 2,388 | 6,116 | 4,810 | ||||||||||||
| Selling, general and administrative (1) | 5,588 | 4,861 | 11,657 | 10,128 | ||||||||||||
| Depreciation and amortization | 2,270 | 1,480 | 4,110 | 2,945 | ||||||||||||
| Total costs and expenses | 26,048 | 20,594 | 52,272 | 43,155 | ||||||||||||
| Income from operations | 4,506 | 3,721 | 7,835 | 10,270 | ||||||||||||
| Interest and other income | 153 | 636 | 352 | 1,493 | ||||||||||||
| Interest expense | (245 | ) | (9 | ) | (296 | ) | (19 | ) | ||||||||
| Income before income tax expense | 4,414 | 4,348 | 7,891 | 11,744 | ||||||||||||
| Income tax expense | (1,857 | ) | (1,793 | ) | (3,229 | ) | (4,883 | ) | ||||||||
| Net income | $ | 2,557 | $ | 2,555 | $ | 4,662 | $ | 6,861 | ||||||||
| Net income per Common share: | ||||||||||||||||
| Basic | $ | 0.08 | $ | 0.08 | $ | 0.15 | $ | 0.21 | ||||||||
| Diluted | $ | 0.08 | $ | 0.08 | $ | 0.15 | $ | 0.21 | ||||||||
| Weighted-average common shares outstanding: | ||||||||||||||||
| Basic | 30,769 | 32,400 | 30,722 | 32,465 | ||||||||||||
| Diluted | 31,378 | 33,050 | 31,289 | 33,202 | ||||||||||||
| * Cost of services excludes depreciation which is shown separately. | ||||||||||||||||
| (1) Amounts include fair value stock-based compensation as follows: | ||||||||||||||||
| Cost of services | $ | 564 | $ | 322 | $ | 993 | $ | 624 | ||||||||
| Research and development | 211 | 211 | 334 | 341 | ||||||||||||
| Selling, general and administrative | 1,189 | 1,116 | 2,551 | 2,306 | ||||||||||||
| Total fair value stock-based compensation expense | $ | 1,964 | $ | 1,649 | $ | 3,878 | $ | 3,271 | ||||||||
|
SYNCHRONOSS TECHNOLOGIES, INC. |
||||||||||||
| Reconciliation of GAAP to Non-GAAP Financial Measures | ||||||||||||
| (in thousands, except per share data) | ||||||||||||
| (Unaudited) | ||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||
| June 30, | June 30, | |||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||
| Non-GAAP financial measures and reconciliation: | ||||||||||||
| GAAP income from operations | $ | 4,506 | $ | 3,721 | $ | 7,835 | $ | 10,270 | ||||
| Add: Fair value stock-based compensation | 1,964 | 1,649 | 3,878 | 3,271 | ||||||||
| Non-GAAP income from operations | $ | 6,470 | $ | 5,370 | $ | 11,713 | $ | 13,541 | ||||
| GAAP net income attributable to common stockholders | $ | 2,557 | $ | 2,555 | $ | 4,662 | $ | 6,861 | ||||
| Add: Fair value stock-based compensation, net of tax | 1,138 | 970 | 2,292 | 1,910 | ||||||||
| Non-GAAP net income | $ | 3,695 | $ | 3,525 | $ | 6,954 | $ | 8,771 | ||||
| Diluted non-GAAP net income per share | $ | 0.12 | $ | 0.11 | $ | 0.22 | $ | 0.26 | ||||
| Shares used in per share calculation | 31,378 | 33,050 | 31,289 | 33,202 | ||||||||
| SYNCHRONOSS TECHNOLOGIES, INC. | ||||||||
| STATEMENT OF CASH FLOWS | ||||||||
| (in thousands) | ||||||||
| (Unaudited) | ||||||||
| Six Months ended June 30, | ||||||||
| 2009 | 2008 | |||||||
| Operating activities: | ||||||||
| Net income | $ | 4,662 | $ | 6,861 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization expense | 4,110 | 2,944 | ||||||
| Deferred income taxes | 112 | (96 | ) | |||||
| Non-cash interest on leased facility | 226 | - | ||||||
| Stock-based compensation | 3,945 | 3,369 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable, net allowance for doubtful accounts | (1,905 | ) | 4,399 | |||||
| Prepaid expenses and other current assets | (1,711 | ) | (4,069 | ) | ||||
| Other assets | 150 | (65 | ) | |||||
| Accounts payable | 3,778 | (833 | ) | |||||
| Accrued expenses | (5,497 | ) | (2,611 | ) | ||||
| Tax benefit from stock option exercise | (215 | ) | (1,128 | ) | ||||
| Other liabilities | (77 | ) | 19 | |||||
| Deferred revenues | 1,418 | 670 | ||||||
| Net cash provided by operating activities | 8,996 | 9,460 | ||||||
| Investing activities: | ||||||||
| Purchases of fixed assets | (9,324 | ) | (1,805 | ) | ||||
| Purchases of marketable securities available for sale | (1,165 | ) | (2,755 | ) | ||||
| Sale of marketable securities available for sale | 1,542 | 1,780 | ||||||
| Net cash used in investing activities | (8,947 | ) | (2,780 | ) | ||||
| Financing activities: | ||||||||
| Proceeds from the exercise of stock options | 733 | 723 | ||||||
| Excess tax benefit from stock option exercise | 215 | 1,128 | ||||||
| Repurchase of common stock | - | (10,444 | ) | |||||
| Net cash provided by (used in) financing activities | 948 | (8,593 | ) | |||||
| Net increase (decrease) in cash and cash equivalents | 997 | (1,913 | ) | |||||
| Cash and cash equivalents at beginning of year | 72,203 | 92,756 | ||||||
| Cash and cash equivalents at end of period | $ | 73,200 | $ | 90,843 | ||||
Source:
Synchronoss Technologies, Inc.
Investor:
Tim Dolan,
617-956-6727
investor@synchronoss.com
or
Media:
Stacie
Hiras, 908-547-1260
stacie.hiras@synchronoss.com