cloudhosting14 wrote: As you would already know that managed hosting itself is another form of Cloud hosting in which the system administrations of servers is looked upon by the CPs. Similar is the case with managed multi Cloud hosting. You can very well understand how a big burden it would be to manage multi cloud servers for organization; this is why a service known as managed multi Cloud is provided to these users. This service ensures them the seam less running of their system administrative operations while organizations focus more on t...
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 third
quarter of 2012.
“The company’s solid execution during the third quarter led to revenue
and profitability that were consistent with our guidance,” said Stephen
G. Waldis, Founder and Chief Executive Officer of Synchronoss. “During
the third quarter, we focused on the development of our cloud platform
deployments with four of the largest mobile operators in the world. We
believe we are at the early stages of significant long-term growth
opportunities and are making great progress in establishing Synchronoss’
mobile content management cloud platform as the de facto standard for
Tier 1 carriers around the globe.”
On a GAAP basis, Synchronoss reported net revenues of $69.0 million,
representing an increase of 16% compared to the third quarter of 2011.
Gross profit was $39.8 million and income from operations was $11.2
million in the third quarter of 2012. Net income applicable to common
stock was $6.2 million, leading to diluted earnings per share of $0.16,
compared to $0.09 for the third quarter of 2011.
On a non-GAAP basis, Synchronoss reported net revenues, which adds back
the purchase accounting adjustment related to revenues for certain
acquisitions, of $69.2 million, an increase of 17% compared to the third
quarter of 2011. Gross profit for the third quarter of 2012 was $41.2
million, representing a gross margin of 60%. Income from operations was
$18.4 million in the third quarter of 2012, representing a
year-over-year increase of 40% and an operating margin of 27%. Net
income was $10.7 million in the third quarter of 2012, leading to
diluted earnings per share of $0.28, an increase of 22% compared to
$0.23 for the third quarter of 2011.
A reconciliation of GAAP to non-GAAP results has been provided in the
financial statement tables included in this press release, as well as
nine months year to date results. An explanation of these measures is
also included below under the heading "Non-GAAP Financial Measures."
“The combination of solid revenue growth and leverage in our business
led to 40% growth in non-GAAP operating income, along with a non-GAAP
operating margin of 27% that was at the highest level for the company in
the last 4 years,” said Lawrence R. Irving, Chief Financial Officer and
Treasurer. “As we look ahead, we are increasing investments in our
industry leading activation and cloud-based content management platforms
to support deployments and incremental opportunities with our major Tier
1 carrier customers. We believe there will be a significant payback on
our investments over the long-term as the fastest growing segment of our
business is expected to come from higher margin, cloud-based content
management services.”
Other Third Quarter and Recent Business Highlights:
Business outside of the AT&T relationship accounted for approximately
$37.2 million of non-GAAP revenue, representing approximately 54% of
total revenue. Verizon Wireless remained the largest contributor to
Synchronoss’ business outside of AT&T, representing over 10% of
Synchronoss’ revenue for the quarter. Business related to AT&T
accounted for approximately $32.0 million of non-GAAP revenue,
representing the other 46% of total revenue.
Non-GAAP cash flow provided by operations was $44.9 million for the
first nine months of 2012 representing an increase of 19%
year-over-year and the Company repurchased $13.9 million of common
stock for the same period.
Conference Call Details
In conjunction with this announcement, Synchronoss will host a
conference call on Monday, November 5, 2012, at 4:30 p.m. (ET) to
discuss the company's financial results. To access this call, dial
800-299-8538 (domestic) or 617-786-2902 (international). The pass code
for the call is 95394973. 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
is 72170879. 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, gross profit, operating income,
net income, effective tax rate, earnings per share and cash flows from
operating activities. 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
acquisitions, 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 (NASDAQ: SNCR) is the mobile innovation company
that provides software-based activation and mobile content management
solutions for connected devices across the globe. The company’s proven
and scalable technology solutions allow customers to connect,
synchronize and activate connected devices and services that empower
enterprises and consumers to live in a connected world. For more
information visit us at:
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, 2011 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.
SYNCHRONOSS TECHNOLOGIES, INC.
BALANCE SHEETS
(in thousands, except per share data)
(Unaudited)
September 30, 2012
December 31, 2011
ASSETS
Current assets:
Cash and cash equivalents
$
52,736
$
69,430
Marketable securities
65,260
51,504
Accounts receivable, net of allowance for doubtful accounts of
$285 and $356 at September 30, 2012 and December 31, 2011,
respectively
65,985
57,387
Prepaid expenses and other assets
15,022
16,061
Deferred tax assets
3,879
3,938
Total current assets
202,882
198,320
Marketable securities
14,599
31,642
Property and equipment, net
49,419
34,969
Goodwill
67,841
54,617
Intangible assets, net
73,770
63,969
Deferred tax assets
11,304
12,606
Other assets
2,118
2,495
Total assets
$
421,933
$
398,618
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
5,549
$
7,712
Accrued expenses
22,413
24,153
Deferred revenues
6,624
8,834
Contingent consideration obligation
3,594
4,735
Total current liabilities
38,180
45,434
Lease financing obligation - long term
9,257
9,241
Contingent consideration obligation - long-term
-
8,432
Other liabilities
856
948
Stockholders’ equity:
Preferred stock, $0.0001 par value; 10,000 shares authorized, 0
shares issued and outstanding at September 30, 2012 and
December 31, 2011
—
—
Common stock, $0.0001 par value; 100,000 shares authorized, 42,150
and 41,063 shares issued; 38,826 and 38,394 outstanding at
September 30, 2012 and December 31, 2011, respectively
4
4
Treasury stock, at cost (3,324 and 2,669 shares at September 30,
2012 and December 31, 2011, respectively)
(57,201
)
(43,712
)
Additional paid-in capital
336,098
307,586
Accumulated other comprehensive loss
(279
)
(699
)
Retained earnings
95,018
71,384
Total stockholders’ equity
373,640
334,563
Total liabilities and stockholders’ equity
$
421,933
$
398,618
SYNCHRONOSS TECHNOLOGIES, INC.
STATEMENT OF INCOME
(in thousands, except per share data)
(Unaudited)
Three Months Ended September 30,
Nine Months Ended September 30,
2012
2011
2012
2011
Net revenues
$
68,961
$
59,238
$
200,511
$
166,933
Costs and expenses:
Cost of services (2)(3)(4)*
29,136
27,781
84,388
78,270
Research and development (2)(3)(4)
12,645
10,879
38,091
31,037
Selling, general and administrative (2)(3)(4)
10,278
11,118
31,728
31,913
Net change in contingent consideration obligation
(327
)
480
(5,735
)
3,311
Depreciation and amortization
6,068
3,949
17,201
11,029
Total costs and expenses
57,800
54,207
165,673
155,560
Income from operations
11,161
5,031
34,838
11,373
Interest income
295
216
1,023
472
Interest expense
(222
)
(198
)
(702
)
(673
)
Other (expense) income (5)
(207
)
(27
)
586
140
Income before income tax expense
11,027
5,022
35,745
11,312
Income tax expense
(4,825
)
(1,447
)
(12,111
)
(4,394
)
Net income
$
6,202
$
3,575
$
23,634
$
6,918
Net income per common share:
Basic (1)
$
0.16
$
0.10
$
0.62
$
0.22
Diluted (1)
$
0.16
$
0.09
$
0.60
$
0.22
Weighted-average common shares outstanding:
Basic
38,107
37,573
38,219
37,285
Diluted
38,872
38,647
39,192
38,610
* Cost of services excludes depreciation which is shown separately.
(1) Adjustment to net income for equity mark-to-market on contingent
consideration obligation:
Net income
$
6,202
$
3,575
$
23,634
$
6,918
Income effect for equity mark-to-market on contingent consideration
obligation, net of tax
-
-
-
1,466
Net income applicable to shares of common stock for earnings per
share
$
6,202
$
3,575
$
23,634
$
8,384
(2) Amounts include fair value stock-based compensation as follows:
Cost of services
$
925
$
1,416
$
3,061
$
3,673
Research and development
1,201
1,146
3,856
2,931
Selling, general and administrative
2,511
3,326
7,470
8,511
Total fair value stock-based compensation expense
$
4,637
$
5,888
$
14,387
$
15,115
(3) Amounts include acquisition and restructuring costs as follows:
Cost of services
$
-
$
-
$
-
$
15
Research and development
-
4
209
253
Selling, general and administrative
-
59
424
342
Total acquisition and restructuring costs
$
-
$
63
$
633
$
610
(4) Amounts include fair value earn-out cash and stock compensation
as follows:
Cost of services
$
199
$
105
$
199
$
350
Research and development
353
326
469
759
Selling, general and administrative
183
435
319
2,145
Total fair value earn-out cash and stock compensation expense
$
735
$
866
$
987
$
3,254
(5) Amounts include Fx change of the contingent consideration
obligation as follows:
Other (expense) income
$
(32
)
$
-
$
82
$
-
SYNCHRONOSS TECHNOLOGIES, INC.
Reconciliation of GAAP to Non-GAAP Financial Measures
(in thousands, except per share data)
(Unaudited)
Three Months Ended September 30,
Nine Months Ended September 30,
2012
2011
2012
2011
Non-GAAP financial measures and reconciliation:
GAAP Revenue
$
68,961
$
59,238
$
200,511
$
166,933
Add: Deferred Revenue Write-Down
232
150
748
1,237
Non-GAAP Revenue
$
69,193
$
59,388
$
201,259
$
168,170
GAAP Revenue
$
68,961
$
59,238
$
200,511
$
166,933
Less: Cost of Services
29,136
27,781
84,388
78,270
GAAP Gross Margin
39,825
31,457
116,123
88,663
Add: Deferred revenue write-down
232
150
748
1,237
Add: Fair value stock-based compensation
925
1,416
3,061
3,673
Add: Acquisition and restructuring costs
-
-
-
15
Add: Deferred compensation expense - earn-out
199
105
199
350
Non-GAAP Gross Margin
$
41,181
$
33,128
$
120,131
$
93,938
Non-GAAP Gross Margin %
60
%
56
%
60
%
56
%
GAAP income from operations
$
11,161
$
5,031
$
34,838
$
11,373
Add: Deferred revenue write-down
232
150
748
1,237
Add: Fair value stock-based compensation
4,637
5,888
14,387
15,115
Add: Acquisition and restructuring costs
-
63
633
610
Add: Net change in contingent consideration obligation
(327
)
480
(5,735
)
3,311
Add: Deferred compensation expense - earn-out
735
866
987
3,254
Add: Amortization expense
1,955
660
5,250
1,980
Non-GAAP income from operations
$
18,393
$
13,138
$
51,108
$
36,880
GAAP net income attributable to common stockholders
$
6,202
$
3,575
$
23,634
$
6,918
Add: Deferred revenue write-down, net of tax
148
78
486
861
Add: Fair value stock-based compensation, net of tax
2,954
3,877
9,334
10,520
Add: Acquisition and restructuring costs, net of taxes
-
30
414
424
Add: Net change in contingent consideration obligation, net of Fx
change, net of tax
(295
)
265
(5,817
)
2,304
Add: Deferred compensation expense - earn-out, net of tax
476
544
641
2,264
Add: Amortization expense, net of tax
1,252
427
3,408
1,378
Non-GAAP net income
$
10,737
$
8,796
$
32,100
$
24,669
Diluted non-GAAP net income per share
$
0.28
$
0.23
$
0.82
$
0.64
Weighted shares outstanding - Diluted
38,872
38,647
39,192
38,610
SYNCHRONOSS TECHNOLOGIES, INC. STATEMENT OF CASH FLOWS (in
thousands) (Unaudited)
Nine Months Ended September 30,
2012
2011
Operating activities:
Net income
$
23,634
$
6,918
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization expense
17,199
11,029
Loss on disposal of asset
198
—
Amortization of bond premium
1,000
326
Deferred income taxes
32
(2,920
)
Non-cash interest on leased facility
690
688
Stock-based compensation
14,387
16,173
Changes in operating assets and liabilities:
Accounts receivable, net of allowance for doubtful accounts
(6,733
)
(10,291
)
Prepaid expenses and other current assets
7,022
3,376
Other assets
(122
)
(26
)
Accounts payable
(2,665
)
(698
)
Accrued expenses
(3,042
)
2,973
Contingent consideration obligation
(8,396
)
2,640
Excess tax benefit from the exercise of stock options
(6,592
)
(7,335
)
Other liabilities
(146
)
(281
)
Deferred revenues
(1,707
)
5,314
Net cash provided by operating activities
34,759
27,886
Investing activities:
Purchases of fixed assets
(25,377
)
(12,042
)
Purchases of marketable securities available-for-sale
(13,082
)
(35,757
)
Maturity of marketable securities available-for-sale
15,531
3,670
Business acquired, net of cash
(26,572
)
(7,913
)
Net cash used in investing activities
(49,500
)
(52,042
)
Financing activities:
Proceeds from the exercise of stock options
7,330
14,163
Payments on contingent consideration obligation
(2,268
)
(8,286
)
Excess tax benefit from the exercise of stock options
6,592
7,335
Repurchase of common stock
(13,898
)
(19,999
)
Proceeds from the sale of Treasury Stock in connection with an
employee stock purchase plan
612
—
Proceeds from capital obligations
38
—
Payments on capital obligations
(750
)
(721
)
Net cash used in financing activities
(2,344
)
(7,508
)
Effect of exchange rate changes on cash
391
(92
)
Net decrease in cash and cash equivalents
(16,694
)
(31,756
)
Cash and cash equivalents at beginning of year
69,430
180,367
Cash and cash equivalents at end of period
$
52,736
$
148,611
SYNCHRONOSS TECHNOLOGIES, INC. Reconciliation of GAAP
to Non-GAAP Cash Provided by Operating Activities (in
thousands) (Unaudited)
Nine Months Ended September 30,
2012
2011
Non-GAAP cash provided by operating activities and reconciliation:
Net cash provided by operating activities (GAAP)
$
34,759
$
27,886
Add: Tax benefits from stock options exercised
6,592
7,335
Add: Cash payments on settlement of Earn-out
3,533
2,578
Adjusted cash flow provided by operating activities (Non-GAAP)
“Cloud has everything to do with what has happened with Big Data,” explained Jason Deck, Director of Strategic Alliances at Logicworks, in this exclusive Q&A with Cloud Expo Conference Chair Jeremy Geelan. “Big Data doesn’t exist in its easily accessible way without cloud. From reduced...
You're getting pitched every day from your legacy enterprise software and hardware vendors about "cloud." They're doing an amazing job of convincing your CIO and CTO about what cloud is and how you should use it. The reality is they're defending their shrinking market share and keeping...
In an ideal developer/systems administrator’s world, most applications would deploy seamlessly to multiple platforms and scale elastically with minimal effort bringing the unprecedented agility of the cloud within immediate reach of developer teams and IT organizations.
OpenStack, a ...
Cloud computing must have been brushing up on its bedside manner.
HIPAA requirements now stipulate everyone in the health-care industry must begin migrating patient records and other data to cloud computing. By 2015, all medical professionals with access to patient records must utiliz...
“Open source has always provided a number of benefits, including easing adoption costs, propagating a better understanding of the technology, and allowing for faster evolution and commercialization of products and services based on it,” noted Terry Woloszyn, Founder & CEO, Leeward Secu...
SYS-CON Events announced today that OpenStack will exhibit at SYS-CON's 12th International Cloud Expo, which will take place on June 10–13, 2013, at the Javits Center in New York City, New York. OpenStack software controls large pools of compute, storage, and networking resources thro...
.gif)
“Cloud has everything to do with what has happened with Big Data,” explained Jason Deck, Director of Strategic Alliances at Logicworks, in this exclusive Q&A with Cloud Expo Conference Chair Jeremy Geelan. “Big Data doesn’t exist in its easily accessible way without cloud. From reduced...
You're getting pitched every day from your legacy enterprise software and hardware vendors about "cloud." They're doing an amazing job of convincing your CIO and CTO about what cloud is and how you should use it. The reality is they're defending their shrinking market share and keeping...
In an ideal developer/systems administrator’s world, most applications would deploy seamlessly to multiple platforms and scale elastically with minimal effort bringing the unprecedented agility of the cloud within immediate reach of developer teams and IT organizations.
OpenStack, a ...
Cloud computing must have been brushing up on its bedside manner.
HIPAA requirements now stipulate everyone in the health-care industry must begin migrating patient records and other data to cloud computing. By 2015, all medical professionals with access to patient records must utiliz...
“Open source has always provided a number of benefits, including easing adoption costs, propagating a better understanding of the technology, and allowing for faster evolution and commercialization of products and services based on it,” noted Terry Woloszyn, Founder & CEO, Leeward Secu...
SYS-CON Events announced today that OpenStack will exhibit at SYS-CON's 12th International Cloud Expo, which will take place on June 10–13, 2013, at the Javits Center in New York City, New York. OpenStack software controls large pools of compute, storage, and networking resources thro...
