Non-GAAP total revenue of $55.4 million increases 49% year-over-year
Non-GAAP operating income of $11.7 million increases 43% year-over-year
Non-GAAP EPS of $0.21 increases 40% year-over-year
BRIDGEWATER, N.J.–(CRWENEWSWIRE)– Synchronoss Technologies, Inc. (NASDAQ:SNCR), the world�s leading provider of transaction management, cloud enablement and connectivity services for connected devices, today announced financial results for the second quarter of 2011.
�We are very pleased with the company�s performance in the second quarter, which led to revenue and profitability that were above the high-end of our guidance,� said Stephen G. Waldis, President and Chief Executive Officer of Synchronoss. �We are making excellent progress with the expansion of our relationships with tier one service providers. We have expanded our AT&T relationship with the addition of a meaningful new channel. We also moved to the second phase of our platform deployment with Vodafone and advanced our work on the deployment of additional ConvergenceNow� Plus+ capabilities with Verizon that are scheduled for the second half of 2011.�
Waldis added, �Synchronoss is benefitting from the investments made in our highly differentiated ConvergenceNow Plus platform. We believe our growing ability to deeply embed Synchronoss directly on devices that take advantage of the new cloud-based capabilities will add significant value to our customers and provide our company with a growing number of significant long-term growth opportunities.�
For the second quarter of 2011, Synchronoss reported generally accepted accounting principles (”GAAP”) net revenues of $54.8 million, an increase of 47% compared to the second quarter of 2010. Gross profit was $28.9 million in the second quarter of 2011. Income from operations, determined in accordance with GAAP, was $4.6 million. GAAP net income applicable to common stockholders was $3.2 million and GAAP diluted earnings per share were $0.06, compared to $0.09 for the second quarter of 2010.
Synchronoss reported non-GAAP net revenues, which adds back the purchase accounting adjustment related to FusionOne�s revenues, of $55.4 million, an increase of 49% compared to the second quarter of 2010. Non-GAAP gross profit for the second quarter of 2011 was $30.8 million, representing a non-GAAP gross margin of 56%. Non-GAAP income from operations was $11.7 million in the second quarter of 2011, representing a year-over-year increase of 43% and a non-GAAP operating margin of 21%. Non-GAAP net income, which takes into account adjustments to non-GAAP income from operations, was $8.0 million in the second quarter of 2011, leading to non-GAAP diluted earnings per share of $0.21, an increase of 40% compared with $0.15 for the second quarter of 2010.
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.”
�Synchronoss� ability to balance investing for growth with driving efficiencies is evidenced by our strong non-GAAP operating income margin and growth for both the second quarter and first half of 2011,� said Lawrence R. Irving, Chief Financial Officer and Treasurer. �As we look to the second half of 2011, we will continue to invest in areas that support the strong growth of our business and new customer initiatives such as the AT&T channel which is expected to launch late in the third quarter. We will continue to target strong profitability margins, and we expect to gain leverage from our investments as volumes scale and automation rates improve as new ConvergenceNow� deployments ramp.�
Other Second Quarter and Recent Business Highlights:
Business related to AT&T accounted for approximately $27.6 million of non-GAAP revenue, representing 50% of total non-GAAP revenue. Business outside of the AT&T relationship accounted for approximately $27.8 million of non-GAAP revenue or a record level of 50% of total non-GAAP revenue for the quarter. Verizon was the largest contributor to Synchronoss� business outside of AT&T, representing over 10% of the Company�s revenue for the quarter.
Conference Call Details
In conjunction with this announcement, Synchronoss will host a conference call on Monday, August 1, 2011, at 4:30 p.m. (ET) to discuss the company’s financial results. To access this call, dial 866-314-4865 (domestic) or 617-213-8050 (international). The pass code for the call is 33953317. Additionally, a live web cast of the conference call will be available on the �Investor Relations� page on the company�s web site, www.synchronoss.com.
Following the conference call, a replay will be available at 888-286-8010 (domestic) or 617-801-6888 (international). The replay pass code is 32736547. An archived web cast of this conference call will also be available on the �Investor Relations� page of the company�s web site, www.synchronoss.com.
Non-GAAP Financial Measures
Synchronoss has provided in this release selected financial information that has not been prepared in accordance with GAAP. This information includes historical non-GAAP revenues, operating income, net income, effective tax rate, and earnings per share. Synchronoss uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating Synchronoss� ongoing operational performance. Synchronoss believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends, and in comparing its financial results with other companies in Synchronoss� industry, many of which present similar non-GAAP financial measures to investors. As noted, the non-GAAP financial results discussed above add back the deferred revenue write-down associated with FusionOne acquisition, fair value stock-based compensation expense, acquisition-related costs, changes in the contingent consideration obligation, deferred compensation expense related to earn outs and amortization of intangibles associated with acquisitions.
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 Synchronoss Technologies, Inc.
Synchronoss Technologies is the world�s leading provider of transaction management, cloud enablement and connectivity services for connected devices. The company�s technology platforms ensure a simple and seamless on-demand channel for service providers and their customers. For more information visit us at:
Web: www.synchronoss.com
Blog: http://blog.synchronoss.com
Twitter: http://twitter.com/synchronoss
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 December 31, 2010 and other documents filed with the U.S. Securities and Exchange Commission. Actual results may differ materially from these expectations due to changes in global political, economic, business, competitive, market and regulatory factors. Synchronoss does not undertake any obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise.
The Synchronoss logo, Synchronoss, ConvergenceNow, InterconnectNow, ConvergenceNow Plus+ and SmartMobility are trademarks of Synchronoss Technologies, Inc. All other trademarks are property of their respective owners.
Source: Synchronoss Technologies, Inc.
Contact:
Investor:
Tim Dolan, 617-956-6727
investor@synchronoss.com
or
Media:
Stacie Hiras, 908-547-1260
Stacie.hiras@synchronoss.com
THIS IS NOT A RECOMMENDATION TO BUY OR SELL ANY SECURITY!
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