Synchronoss Technologies Inc. (NASDAQ: SNCR), a global leader and
innovator in cloud, messaging, digital and IoT platforms and
products, today announced financial results for its second quarter
ended June 30, 2019.
Second quarter highlights:
- Revenue was $77.8 million, including 80.4 percent
recurring revenue, up 1.4 percent compared to $76.7 million in the
second quarter of 2018.
- GAAP net loss for the quarter was $25.0 million, or 61
cents per share, compared to $47.3 million or $1.20 per share in
the prior year’s second quarter.
- Non-GAAP net loss from continuing operations was $11.3
million or 28 cents per share, compared to $18.9 million or 48
cents per share in the prior year’s second quarter.
- Synchronoss delivered $8.7 million of adjusted EBITDA,
compared to break-even adjusted EBITDA in the second quarter of
2018. Adjusted EBITDA margin in the second quarter was 11.1 percent
compared to zero percent in last year’s second
quarter.
Glenn Lurie, president and chief executive officer, stated, “The
second quarter results demonstrate continued progress for
Synchronoss. We have now delivered four consecutive quarters of
positive adjusted EBITDA, combined with year over year growth in
both revenue and EBITDA, enabled by our ongoing focus on meeting
customer needs and cost containment. Revenue increased 1.4 percent
from the comparable quarter in 2018, and down compared to Q1 2019
as expected, due to seasonality, the large messaging license we
recorded during the first quarter, and other items. I’m very
pleased with our momentum on the new business development front, as
we expanded on our success in 2019 with a new deal for our
Out-Of-The-Box Experience (OOBE) platform with AT&T, one of the
leading global carriers; a new agreement with Wireless Advocates
and Telkom Indonesia for our DXP platform; new IoT partnerships
with Arrow Electronics and Tridium, and a Smart Buildings
deployments with Rackspace, in partnership with Microsoft and their
Azure Cloud Service. Between the deals we have announced in the
first quarter of 2019 and those that are in our pipeline and
expected to close in the second half, we believe we can deliver
accelerating revenue growth through the balance of 2019 and
continued improvement into 2020.”
Three Months Ended June 30, |
$000s |
|
2019 |
|
|
2018 |
|
% Change |
Revenues |
$ |
77,846 |
|
$ |
76,742 |
|
1.4 |
% |
Net Loss |
|
(25,030 |
) |
|
(47,265 |
) |
(47.0 |
%) |
Adjusted
EBITDA |
|
8,669 |
|
|
12 |
|
72,142 |
% |
Six Months Ended June 30, |
$000s |
|
2019 |
|
|
2018 |
|
% Change |
Revenues |
$ |
165,951 |
|
$ |
160,451 |
|
3.4 |
% |
Net Loss |
|
(52,617 |
) |
|
(87,310 |
) |
(39.7 |
%) |
Adjusted
EBITDA |
|
15,299 |
|
|
(10,773 |
) |
NM |
|
New customer agreements and partnerships that the company has
announced include:
- Synchronoss has announced a commercial agreement for its
Digital Experience Platform (DXP) with Wireless Advocates, a
leading provider of wireless products and services with more than
600 retail locations in the United States. Wireless Advocates is
utilizing every aspect of the Synchronoss DXP platform to optimize
their omnichannel sales environment, including Journey Creator,
Journey Publisher, Journey Integrator, and Data Analytics across
multiple sales channels and multiple paths.
- Telkom Indonesia has chosen the Synchronoss DXP platform to
transform its business processes and to enhance and unify its
customer relationship management interactions across all channels.
Telekom Indonesia will use DXP to improve its operational agility
and support the expansion of digital services that incorporate new
media, content and ecommerce offerings.
- We are partnering with Microsoft to deliver an industry-leading
Smart Buildings solution. Our first initiative is a live proof of
concept with global technology services provider Rackspace,
deploying a smart buildings service to monitor, control, and
optimize energy usage and reduce costs at Rackspace’s
one-million-square-foot San Antonio headquarters.
- Synchronoss also announced a partnership with Arrow
Electronics, a leading global value-added supply chain and
logistics partner to over 200,000 customers worldwide, in which the
Synchronoss Smart Buildings Platform will combine with Arrow’s
expertise in creating and configuring hardware-based in-building
management systems. This partnership will deliver a single,
integrated package which telecom operators, system integrators and
other service providers can offer to large multi-national companies
and organizations to remotely manage their premises’ on-site
automated features.
- Synchronoss is today announcing that it has signed a Developer
Agreement with Tridium, a subsidiary of Honeywell and one of the
global leaders in smart buildings, to integrate its flagship open
framework, Niagara, with the Synchronoss Smart Buildings Solutions
to provide data-rich insights for enterprise customers and bring
new digital solutions to Tridium's partners across the globe.
Synchronoss and Tridium will deliver a scalable solution that
provides complete visibility via a single pane-of-glass view into
building facility systems as well as the ability to act on
real-time alerts, resulting in increased efficiencies, cost savings
and security.
- Earlier this quarter, Synchronoss announced that AT&T will
expand how it uses the Synchronoss Out-of-the-Box-Experience (OOBE)
by integrating additional mobile offerings into its digital
customer onboarding process. This allows new and current AT&T
subscribers to effortlessly select value-added third-party products
and services offered by AT&T during their device upgrading or
activation process and enables frictionless personalized digital
journeys as well as the opportunity to drive net new revenue.
Other new business deals announced by Synchronoss in 2019
include:
- The company signed a substantial new customer for its white
label cloud platform, which is expected to launch in the third
quarter. Synchronoss expects to provide additional details on this
new cloud deal at that time.
- A partnership with Amazon, in which Synchronoss will become a
global service integrator of Amazon products with mobile operators
worldwide. As part of this agreement, the Synchronoss DXP platform
will be utilized to enable mobile network operators to offer Amazon
consumer services such as Amazon Prime, Prime Video, and Amazon
Music, and others directly to subscribers as part of their invoice.
Amazon and Synchronoss have identified the first six worldwide
mobile operators that will be launched under this partnership, and
during the quarter we initiated our first integration projects
using our DXP Platform. We plan to share more details as these
operators launch Amazon services through our efforts.
- The company joined Microsoft’s Internet of Things (IoT)
Accelerate Program and will develop and offer best-of-breed Smart
Buildings solutions for enterprises globally.
- The continued progress of the second phase of the company’s
advanced messaging platform in Japan.
- An agreement with Assurant, a leading provider of device
protection insurance, which will utilize the Synchronoss white
label cloud platform for its Pocket Geek solution which is offered
in their device protection bundles.
David Clark, chief financial officer, added, ”We continue to
deliver on our commitment to investors, and financial metrics
continue to improve materially for Synchronoss, as demonstrated by
the second quarter results. Adjusted EBITDA was $ 8.7 million, a
significant improvement from break-even adjusted EBITDA in last
year’s second quarter. This was in turn driven by a 15.4 percent
improvement in adjusted gross margins, and a 32 percent or $10.9
million reduction in selling, general, and administrative expense,
compared to last year’s second quarter. At quarter end, Synchronoss
had $78.9 million of cash, cash equivalents, and marketable
securities, giving the company ample liquidity to fund ongoing
operations and repay the remaining $47 million balance on its
convertible debt when it matures in August.”
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 included below under the
heading "Non-GAAP Financial Measures."
Conference Call DetailsSynchronoss will host a
conference call on Monday, August 5, 2019, at 5:00 p.m. (ET) to
discuss the company’s financial results. To access this call, dial
1-201-493-6784. Additionally, a live web cast of the conference
call will be available on the Investor Relations page on the
company’s web site at www.synchronoss.com.
Following the conference call, a replay will be available for a
limited time at 1-412-317-6671. The replay pass code is 13692691.
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 MeasuresSynchronoss 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 (loss), net income (loss), effective tax rate, earnings
(loss) 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 fair
value stock-based compensation expense, acquisition-related costs
which includes integration costs, restructuring and cease-use lease
expense, 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 transforms the way companies create new revenue,
reduce costs and delight their subscribers with cloud, messaging,
digital and IoT products, supporting hundreds of millions of
subscribers across the globe. Synchronoss’ secure, scalable and
groundbreaking new technologies, trusted partnerships, and talented
people change the way TMT customers grow their businesses. For more
information, visit us at www.synchronoss.com.
Forward-looking Statements
This press release includes statements concerning Synchronoss
and its future expectations, plans and prospects that constitute
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. For this purpose, any
statements contained herein that are not statements of historical
fact may be deemed to be forward-looking statements. Without
limiting the foregoing, the words “may,” “should,” “expects,”
“plans,” “anticipates,” “could,” “intends,” “believes,” “potential”
or “continue” or other similar expressions are intended to identify
forward-looking statements. Synchronoss has based these
forward-looking statements largely on its current expectations and
projections about future events and financial trends that it
believes may affect its business, financial condition and results
of operations. These forward-looking statements speak only as of
the date of this press release and are subject to a number of
risks, uncertainties and assumptions including, without limitation,
risks relating to the Company’s ability to sustain or increase
revenue from its larger customers and generate revenue from new
customers, the Company’s expectations regarding expenses and
revenue, the sufficiency of the Company’s cash resources and its
ability to satisfy or refinance its existing debt obligations, the
Company’s growth strategies, the anticipated trends and challenges
in the business and the market in which the Company operates, the
Company’s expectations regarding federal, state and foreign
regulatory requirements, the pending lawsuits against the Company
described in its most recent SEC filings, and other risks and
factors that are described in the “Risk Factors” and “Management’s
Discussion and Analysis of Financial Condition and Results of
Operations” sections of the Company’s Annual Report on Form 10-K
for the year ended December 31, 2018, which is on file with the SEC
and available on the SEC’s website at www.sec.gov. The company does
not undertake any obligation to update any forward-looking
statements contained in this press release as a result of new
information, future events or otherwise.
Contact:
Investors:Joe CrivelliVice President, Investor
Relations908-566-3131investor@synchronoss.com
Media:
CCgroupUS: Diane Rose, +1 727-238-7567 or International: Anais
Merlin, +44 20 3824
9219
synchronoss@ccgrouppr.com
SYNCHRONOSS
TECHNOLOGIES, INC.CONDENSED CONSOLIDATED
BALANCE SHEETS
(Unaudited) (In
thousands) |
|
June 30, 2019 |
|
December 31, 2018 |
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
34,229 |
|
|
$ |
103,771 |
|
Restricted cash |
|
381 |
|
|
6,089 |
|
Marketable securities, current |
|
44,259 |
|
|
28,230 |
|
Accounts receivable, net of allowances of $3,455 and $4,599 at June
30, 2019 and December 31, 2018, respectively |
|
99,928 |
|
|
102,798 |
|
Prepaid expenses |
|
28,460 |
|
|
45,058 |
|
Other current assets |
|
10,252 |
|
|
8,508 |
|
Total current assets |
|
217,509 |
|
|
294,454 |
|
Marketable securities, non-current |
|
67 |
|
|
6,658 |
|
Property and equipment, net |
|
44,164 |
|
|
67,937 |
|
Operating lease right-of-use assets |
|
63,416 |
|
|
— |
|
Goodwill |
|
224,335 |
|
|
224,899 |
|
Intangible assets, net |
|
86,649 |
|
|
98,706 |
|
Other assets |
|
7,764 |
|
|
8,982 |
|
Equity method investment |
|
— |
|
|
1,619 |
|
Total assets |
|
$ |
643,904 |
|
|
$ |
703,255 |
|
LIABILITIES AND STOCKHOLDERS’
EQUITY |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
|
$ |
18,458 |
|
|
$ |
13,576 |
|
Accrued expenses |
|
54,247 |
|
|
59,545 |
|
Deferred revenues, current |
|
59,574 |
|
|
57,101 |
|
Short-term convertible debt, net of debt issuance costs |
|
47,076 |
|
|
113,542 |
|
Total current liabilities |
|
179,355 |
|
|
243,764 |
|
Lease financing obligation |
|
— |
|
|
9,494 |
|
Operating lease liabilities, non-current |
|
65,141 |
|
|
— |
|
Deferred tax liabilities |
|
638 |
|
|
1,347 |
|
Deferred revenues, non-current |
|
44,128 |
|
|
59,841 |
|
Other non-current liabilities |
|
6,118 |
|
|
10,797 |
|
Redeemable noncontrolling interest |
|
12,500 |
|
|
12,500 |
|
Commitments and
contingencies |
|
|
|
|
Series A Convertible Participating Perpetual Preferred Stock,
$0.0001 par value; 10,000 shares authorized; 202 shares issued and
outstanding at June 30, 2019 |
|
184,668 |
|
|
176,603 |
|
Stockholders’ equity: |
|
|
|
|
Common stock, $0.0001 par value; 100,000 shares authorized, 51,578
and 49,836 shares issued; 44,416 and 42,674 outstanding at June 30,
2019 and December 31, 2018, respectively |
|
5 |
|
|
5 |
|
Treasury stock, at cost (7,162 and 7,162 shares at June 30, 2019
and December 31, 2018, respectively) |
|
(82,087 |
) |
|
(82,087 |
) |
Additional paid-in capital |
|
531,282 |
|
|
534,673 |
|
Accumulated other comprehensive loss |
|
(30,897 |
) |
|
(30,383 |
) |
Accumulated deficit |
|
(266,947 |
) |
|
(233,299 |
) |
Total stockholders’
equity |
|
151,356 |
|
|
188,909 |
|
Total liabilities and
stockholders’ equity |
|
$ |
643,904 |
|
|
$ |
703,255 |
|
SYNCHRONOSS
TECHNOLOGIES, INC.CONDENSED CONSOLIDATED
STATEMENTS OF
OPERATIONS(Unaudited)(In
thousands, except per share data)
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
Net revenues |
$ |
77,846 |
|
|
$ |
76,742 |
|
|
$ |
165,951 |
|
|
$ |
160,451 |
|
Costs and expenses: |
|
|
|
|
|
|
|
Cost of revenues |
33,403 |
|
|
39,525 |
|
|
72,356 |
|
|
84,074 |
|
Research and development |
19,026 |
|
|
20,200 |
|
|
38,707 |
|
|
41,105 |
|
Selling, general and administrative |
23,080 |
|
|
33,938 |
|
|
52,326 |
|
|
72,048 |
|
Net change in contingent consideration obligation |
— |
|
|
— |
|
|
— |
|
|
— |
|
Restructuring charges |
356 |
|
|
2,778 |
|
|
777 |
|
|
3,886 |
|
Depreciation and amortization |
20,269 |
|
|
23,401 |
|
|
40,412 |
|
|
46,672 |
|
Total costs and expenses |
96,134 |
|
|
119,842 |
|
|
204,578 |
|
|
247,785 |
|
Loss from continuing
operations |
(18,288 |
) |
|
(43,100 |
) |
|
(38,627 |
) |
|
(87,334 |
) |
Interest income |
299 |
|
|
3,763 |
|
|
488 |
|
|
7,315 |
|
Interest expense |
(463 |
) |
|
(1,318 |
) |
|
(1,048 |
) |
|
(2,565 |
) |
Gain on extinguishment of debt |
430 |
|
|
— |
|
|
817 |
|
|
— |
|
Other (expense) income, net |
(24 |
) |
|
(23 |
) |
|
439 |
|
|
4,259 |
|
Equity method investment loss |
(376 |
) |
|
(7 |
) |
|
(1,619 |
) |
|
(212 |
) |
Loss from continuing
operations, before taxes |
(18,422 |
) |
|
(40,685 |
) |
|
(39,550 |
) |
|
(78,537 |
) |
Benefit (provision) for income taxes |
1,844 |
|
|
(579 |
) |
|
3,235 |
|
|
(704 |
) |
Net loss |
(16,578 |
) |
|
(41,264 |
) |
|
(36,315 |
) |
|
(79,241 |
) |
Net (income) loss attributable to redeemable noncontrolling
interests |
(593 |
) |
|
1,259 |
|
|
(906 |
) |
|
2,544 |
|
Preferred stock dividend |
(7,859 |
) |
|
(7,260 |
) |
|
(15,396 |
) |
|
(10,613 |
) |
Net loss attributable to
Synchronoss |
$ |
(25,030 |
) |
|
$ |
(47,265 |
) |
|
$ |
(52,617 |
) |
|
$ |
(87,310 |
) |
|
|
|
|
|
|
|
|
Earnings per
share: |
|
|
|
|
|
|
|
Basic |
$ |
(0.61 |
) |
|
$ |
(1.20 |
) |
|
$ |
(1.30 |
) |
|
$ |
(2.14 |
) |
Diluted |
$ |
(0.61 |
) |
|
$ |
(1.20 |
) |
|
$ |
(1.30 |
) |
|
$ |
(2.14 |
) |
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding: |
|
|
|
|
|
|
|
Basic |
40,810 |
|
|
39,456 |
|
|
40,566 |
|
|
40,812 |
|
Diluted |
40,810 |
|
|
39,456 |
|
|
40,566 |
|
|
40,812 |
|
SYNCHRONOSS
TECHNOLOGIES, INC.CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (In thousands)
(Unaudited)
|
Six Months Ended June 30, |
|
2019 |
|
2018 |
Operating
activities: |
|
|
|
Net loss |
(36,315 |
) |
|
(79,241 |
) |
Adjustments to reconcile Net
Loss to net cash used in operating activities: |
|
|
|
Depreciation and amortization |
40,412 |
|
|
46,672 |
|
Change in fair value of financial instruments |
— |
|
|
(3,849 |
) |
Amortization of debt issuance costs |
237 |
|
|
706 |
|
(Gain) loss on extinguishment of debt |
(817 |
) |
|
— |
|
Accrued PIK interest |
— |
|
|
(7,037 |
) |
(Earnings) loss from equity method investments |
1,619 |
|
|
212 |
|
Amortization of bond premium |
(34 |
) |
|
44 |
|
Deferred income taxes |
(702 |
) |
|
(1,223 |
) |
Non-cash interest on leased facility |
— |
|
|
547 |
|
Stock-based compensation |
11,028 |
|
|
14,824 |
|
Changes in operating assets
and liabilities: |
|
|
|
Accounts receivable, net of allowance for doubtful accounts |
2,870 |
|
|
29,334 |
|
Prepaid expenses and other current assets |
17,635 |
|
|
(13,415 |
) |
Other assets |
2,042 |
|
|
1,260 |
|
Accounts payable |
5,151 |
|
|
8,109 |
|
Accrued expenses |
(9,569 |
) |
|
(24,685 |
) |
Other liabilities |
(1,826 |
) |
|
632 |
|
Lease obligation interest payment |
— |
|
|
(483 |
) |
Deferred revenues |
(13,167 |
) |
|
(43,788 |
) |
Net cash provided by (used
for) operating activities |
18,564 |
|
|
(71,381 |
) |
Investing
activities: |
|
|
|
Purchases of property and equipment |
(4,940 |
) |
|
(3,820 |
) |
Purchases of capitalized software |
(5,959 |
) |
|
(8,201 |
) |
Purchases of marketable securities available for sale |
(37,542 |
) |
|
(13,383 |
) |
Maturity of marketable securities available for sale |
28,191 |
|
|
1,970 |
|
Business acquired, net of cash |
— |
|
|
(9,798 |
) |
Net cash (used for) investing
activities |
(20,250 |
) |
|
(33,232 |
) |
Financing
activities: |
|
|
|
Extinguishment of outstanding Convertible Senior Notes |
(65,887 |
) |
|
— |
|
Proceeds from issuance of preferred stock |
— |
|
|
86,220 |
|
Preferred dividend payment |
(7,075 |
) |
|
— |
|
Payments for finance leases |
(612 |
) |
|
(718 |
) |
Net cash (used for) provided
by financing activities |
(73,574 |
) |
|
85,502 |
|
Effect of exchange rate changes on cash |
10 |
|
|
(749 |
) |
Net decrease in cash,
restricted cash and cash equivalents |
(75,250 |
) |
|
(19,860 |
) |
Cash, restricted cash
and cash equivalents, beginning of period |
109,860 |
|
|
246,125 |
|
Cash, restricted cash and cash equivalents, end of
period |
$ |
34,610 |
|
|
$ |
226,265 |
|
SYNCHRONOSS
TECHNOLOGIES, INC.RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES(In thousands, except
per share data)(Unaudited)
|
|
Three Months Ended Jun 30, |
|
Six Months Ended Jun 30, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Non-GAAP financial
measures and reconciliation: |
|
|
|
|
|
|
|
|
GAAP Revenue |
|
$ |
77,846 |
|
|
$ |
76,742 |
|
|
$ |
165,951 |
|
|
$ |
160,451 |
|
Less: Cost of revenues |
|
33,403 |
|
|
39,525 |
|
|
72,356 |
|
|
84,074 |
|
Gross
Profit |
|
44,443 |
|
|
37,217 |
|
|
93,595 |
|
|
76,377 |
|
Add /
(Less): |
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
657 |
|
|
1,300 |
|
|
1,343 |
|
|
2,412 |
|
Adjusted Gross
Profit |
|
$ |
45,100 |
|
|
$ |
38,517 |
|
|
$ |
94,938 |
|
|
$ |
78,789 |
|
Adjusted Gross
Margin |
|
57.9 |
% |
|
50.2 |
% |
|
57.2 |
% |
|
49.1 |
% |
|
|
|
|
|
|
|
|
|
GAAP loss from
continuing operations |
|
(18,288 |
) |
|
(43,100 |
) |
|
(38,627 |
) |
|
(87,334 |
) |
Add /
(Less): |
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
5,474 |
|
|
7,638 |
|
|
11,028 |
|
|
14,822 |
|
Acquisition costs |
|
(42 |
) |
|
(10 |
) |
|
(230 |
) |
|
111 |
|
Restructuring and cease-use lease expense |
|
474 |
|
|
2,778 |
|
|
1,214 |
|
|
3,886 |
|
Amortization expense |
|
7,123 |
|
|
8,396 |
|
|
13,252 |
|
|
16,650 |
|
One-Time Expenses due to Restatement, etc. |
|
782 |
|
|
9,305 |
|
|
1,502 |
|
|
15,970 |
|
Non-GAAP loss from
continuing operations |
|
$ |
(4,477 |
) |
|
$ |
(14,993 |
) |
|
$ |
(11,861 |
) |
|
$ |
(35,895 |
) |
|
|
|
|
|
|
|
|
|
GAAP Net loss
attributable to Synchronoss |
|
$ |
(25,030 |
) |
|
$ |
(47,265 |
) |
|
$ |
(52,617 |
) |
|
$ |
(87,310 |
) |
Add /
(Less): |
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
5,474 |
|
|
7,638 |
|
|
11,028 |
|
|
14,822 |
|
Acquisition costs |
|
(42 |
) |
|
(10 |
) |
|
(230 |
) |
|
111 |
|
Restructuring and cease-use lease expense |
|
474 |
|
|
2,778 |
|
|
1,214 |
|
|
3,886 |
|
Amortization expense |
|
7,123 |
|
|
8,396 |
|
|
13,252 |
|
|
16,650 |
|
Non-GAAP Expenses attributable to Non-Controlling Interest |
|
(39 |
) |
|
(373 |
) |
|
(76 |
) |
|
(746 |
) |
One-Time Expenses due to Restatement, etc. |
|
782 |
|
|
9,305 |
|
|
1,502 |
|
|
15,970 |
|
Income Tax Effect at Statutory Tax Rates |
|
— |
|
|
579 |
|
|
— |
|
|
(4,931 |
) |
Non-GAAP Net loss from
continuing operations attributable to Synchronoss |
|
$ |
(11,258 |
) |
|
$ |
(18,952 |
) |
|
$ |
(25,927 |
) |
|
$ |
(41,548 |
) |
|
|
|
|
|
|
|
|
|
Diluted Non-GAAP Net loss from
continuing operations per share |
|
$ |
(0.28 |
) |
|
$ |
(0.48 |
) |
|
$ |
(0.64 |
) |
|
$ |
(1.02 |
) |
|
|
|
|
|
|
|
|
|
Weighted shares outstanding -
Basic |
|
40,810 |
|
|
39,456 |
|
|
40,566 |
|
|
40,812 |
|
SYNCHRONOSS
TECHNOLOGIES, INC.RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES(In thousands, except
per share data)(Unaudited)
|
|
Three Months Ended |
|
Six Months Ended |
|
|
Jun 30, 2018 |
|
Sep 30, 2018 |
|
Dec 31, 2018 |
|
Mar 31, 2019 |
|
Jun 30, 2019 |
|
Jun 30, 2019 |
|
Jun 30, 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
attributable to Synchronoss |
|
$ |
(47,265 |
) |
|
$ |
(54,529 |
) |
|
$ |
(101,909 |
) |
|
$ |
(27,587 |
) |
|
$ |
(25,030 |
) |
|
$ |
(52,617 |
) |
|
$ |
(87,310 |
) |
Add /
(Less): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and cease-use lease expense |
|
2,778 |
|
|
4,539 |
|
|
3,950 |
|
|
740 |
|
|
474 |
|
|
1,214 |
|
|
3,886 |
|
Depreciation and amortization |
|
23,401 |
|
|
23,658 |
|
|
47,324 |
|
|
20,143 |
|
|
20,269 |
|
|
40,412 |
|
|
46,672 |
|
Interest income |
|
(3,763 |
) |
|
(203 |
) |
|
(252 |
) |
|
(189 |
) |
|
(299 |
) |
|
(488 |
) |
|
(7,315 |
) |
Interest Expense |
|
1,318 |
|
|
1,370 |
|
|
976 |
|
|
585 |
|
|
463 |
|
|
1,048 |
|
|
2,565 |
|
Gain on Extinguishment of debt |
|
— |
|
|
— |
|
|
(1,760 |
) |
|
(387 |
) |
|
(430 |
) |
|
(817 |
) |
|
— |
|
Other Income (expense), net |
|
23 |
|
|
13,439 |
|
|
65,737 |
|
|
(463 |
) |
|
24 |
|
|
(439 |
) |
|
(4,259 |
) |
Equity method investment income (loss), net |
|
7 |
|
|
(283 |
) |
|
28,671 |
|
|
1,243 |
|
|
376 |
|
|
1,619 |
|
|
212 |
|
Benefit for income taxes |
|
579 |
|
|
(2,308 |
) |
|
(16,290 |
) |
|
(1,391 |
) |
|
(1,844 |
) |
|
(3,235 |
) |
|
704 |
|
Net (loss) income attributable to noncontrolling interests |
|
(1,259 |
) |
|
422 |
|
|
(6,715 |
) |
|
313 |
|
|
593 |
|
|
906 |
|
|
(2,544 |
) |
Preferred dividend |
|
7,260 |
|
|
7,463 |
|
|
7,517 |
|
|
7,537 |
|
|
7,859 |
|
|
15,396 |
|
|
10,613 |
|
Stock-based compensation expense |
|
7,638 |
|
|
7,216 |
|
|
5,566 |
|
|
5,554 |
|
|
5,474 |
|
|
11,028 |
|
|
14,822 |
|
Acquisition costs |
|
(10 |
) |
|
38 |
|
|
109 |
|
|
(188 |
) |
|
(42 |
) |
|
(230 |
) |
|
111 |
|
One-Time Expenses due to Restatement, etc. |
|
9,305 |
|
|
3,638 |
|
|
800 |
|
|
720 |
|
|
782 |
|
|
1,502 |
|
|
15,970 |
|
Net income from discontinued operations, net of taxes |
|
— |
|
|
— |
|
|
(18,288 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Reclassification of expenses |
|
— |
|
|
4,900 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(4,900 |
) |
Adjusted EBITDA
(non-GAAP) |
|
$ |
12 |
|
|
$ |
9,360 |
|
|
$ |
15,436 |
|
|
$ |
6,630 |
|
|
$ |
8,669 |
|
|
$ |
15,299 |
|
|
$ |
(10,773 |
) |
|
|
Three Months Ended Jun 30, |
|
Six Months Ended Jun 30, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Net Cash (used in)
provided by operating activities |
|
$ |
24,248 |
|
|
$ |
(61,992 |
) |
|
$ |
18,564 |
|
|
$ |
(71,381 |
) |
Add /
(Less): |
|
|
|
|
|
|
|
|
Capitalized software |
|
(3,255 |
) |
|
(1,154 |
) |
|
(5,959 |
) |
|
(8,201 |
) |
Property and equipment |
|
(2,313 |
) |
|
(2,727 |
) |
|
(4,940 |
) |
|
(3,820 |
) |
Free
Cashflow |
|
$ |
18,680 |
|
|
$ |
(65,873 |
) |
|
$ |
7,665 |
|
|
$ |
(83,402 |
) |
Add: One-Time Expenses due to Restatement, etc. |
|
782 |
|
|
9,305 |
|
|
1,502 |
|
|
15,970 |
|
Adjusted Free
Cashflow |
|
$ |
19,462 |
|
|
$ |
(56,568 |
) |
|
$ |
9,167 |
|
|
$ |
(67,432 |
) |
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