Synchronoss Technologies Inc (SNCR)

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Synchronoss Technologies reports sharp drop in 3rd-qtr earnings on lower revenue from AT&T

Wednesday November 5, 2008.
BRIDGEWATER, N.J. (AP) -- Synchronoss Technologies Inc., a transaction management software supplier for communications companies, said third-quarter profit fell more than 70 percent on declining revenue related to major customer AT&T Inc.

The company's earnings dropped sharply to $2.3 million, or 7 cents per share, from $8 million, or 24 cents per share, in the same quarter last year. Revenue fell to $26.3 million from $34.5 million.

Excluding one-time items, the company said it would have earned 11 cents per share, compared with 26 cents in the same quarter last year.

Analysts polled by Thomson Reuters expected 10 cents, on average, and revenue of $26.8 million. Analysts typically exclude one-time charges and gains.

Synchronoss said business related to Dallas-based AT&T, the exclusive U.S. carrier of Apple Inc.'s iPhone, represented 66 percent of revenue in the third quarter, down from 67 percent in the second quarter and 78 percent in the year-ago quarter.

Shares fell 65 cents, or 7.9 percent, to close at $7.61.