Synchronoss Technologies Inc (SNCR)

[bowonwing]

Synchronoss Technologies, Inc. Announces 1st Q 2009 Financial Results @$13.31
First quarter revenue was $29.6 million and non-GAAP diluted EPS was $0.11
ConvergenceNow® Plus+ continues to gain traction as two major Smartphone manufacturers enter agreements with Synchronoss
Relationships outside of AT&T increased to 37% of total revenue
On Wednesday May 6, 2009, 4:01 pm EDT

Related: Synchronoss Technologies, Inc.
BRIDGEWATER, N.J.--(BUSINESS WIRE)--Synchronoss Technologies, Inc. (NASDAQ: SNCR - News), the leading global provider of on-demand transaction management software platforms today announced its financial results for the first quarter 2009.

Stephen G. Waldis, President and Chief Executive Officer of Synchronoss, said, “We were pleased with the company’s performance in the first quarter. The significant amount of activity on-boarding new programs and customers onto our platform enabled Synchronoss to deliver solid first quarter results that were consistent with our expectations.”

Waldis added, “We are excited with the growing traction of our ConvergenceNow® Plus+ solution, which is designed specifically to support embedded communication devices such as smartphones, mobile internet devices, laptops and wirelessly enabled consumer electronics such as digital cameras and global positioning systems. Two of the world’s leading smartphone handset providers have agreed to use ConvergenceNow® Plus+, and we believe Synchronoss is uniquely positioned to capture the large and growing emerging device market opportunity.”

For the first quarter of 2009, Synchronoss reported net revenue of $29.6 million, an increase compared to $29.1 million in the first quarter of 2008. Gross profit, including the impact of fair value stock-based compensation expense, was $14.4 million in the first quarter of 2009. Income from operations, in accordance with generally accepted accounting principles ("GAAP"), was $3.3 million, including $1.9 million of fair value stock-based compensation expense. Based on an effective tax rate of 39.4% in the first quarter of 2009, GAAP net income was $2.1 million and GAAP diluted earnings per share was $0.07, compared to $0.13 in the first quarter of 2008.

Non-GAAP gross profit for the first quarter of 2009 was $14.8 million, representing a non-GAAP gross margin of 50%. Non-GAAP income from operations, which excludes fair value stock-based compensation expense, was $5.2 million in the first quarter of 2009, representing a non-GAAP operating margin of 18%. Non-GAAP net income in the first quarter was $3.3 million, leading to non-GAAP diluted earnings per share of $0.11, compared to $0.16 in the first quarter of 2008.

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 had cash, cash equivalents, and marketable securities of $74.4 million at March 31, 2009, a decrease of $4.4 million compared to the end of the previous quarter. The company’s positive operating profitability in the first quarter was outweighed by $5.6 million in capital expenditures, including the opening of a new global research & development center and data facility in Bethlehem, PA, in addition to quarter-to-quarter fluctuations in working capital accounts.

“We continue to monitor our overall expenses carefully in order to drive profitability in an environment when many of our customers are facing increasing economic pressures in their business," said Lawrence R. Irving, Chief Financial Officer and Treasurer. "We continue to be pleased with the progress of the growth initiatives in which we are continuing to invest. We have begun the on-boarding process for new transactions and channels at AT&T, in addition to early stage efforts related to a growing number of opportunities with our CSP, VoIP and emerging device customers. We believe our efforts will position Synchronoss to enhance its long-term revenue growth and profitability.”

Other First Quarter Business Highlights

Business related to AT&T represented 63% of total revenue in the first quarter, compared to 64% in the previous quarter and 72% in the year ago quarter. Business outside of the AT&T relationship represented approximately 37% of total revenue in the first quarter, compared to 36% in the previous quarter and 28% in the year ago quarter.
Brightpoint entered into an agreement whereby it will act as an Online Master Dealer for T-Mobile USA. Under the terms of the agreement, Brightpoint will enable its approved customers the ability to offer and sell wireless services from T-Mobile via its end-to-end integrated online activation solution. Brightpoint is utilizing Synchronoss’ ConvergenceNow® Plus+ platform as part of this solution to provide online activation of T-Mobile wireless services.
Announced that Synchronoss’ ConvergenceNow® Plus+ platform enables the end-to-end customer management for AT&T’s CruiseCastSM Mobile TV Service. From purchase and activation to account changes, ConvergenceNow® Plus+ consolidates the orchestration and customer-care operations while providing customers with a superior and seamless experience. AT&T CruiseCast service will offer a robust lineup of 42 entertainment channels, 22 satellite TV and 20 radio channels at launch. The AT&T CruiseCast service enables families, commuters and mobile professionals to watch the same type of television experience in the rear seat entertainment systems of their vehicles that they now have in their homes.

[bowonwing]

SNCR reported Q4 revenue of $31.2 million and non-GAAP profits of 12 cents a share, ahead of the Street at $30.5 million and 10 cents.

[bowonwing]

OT: The U.S. Govenment "Bailout." Barrons 3/16/09 page 14:
"A number of big banks, including GS and DB, were paid roughly $50B from the U.S. bailout of AIG last fall, the WSJ reported. The news came as lawmakers sought names of firms that received money from AIG."

San Francisco Chronicle 3/4/09 pageC2:
Est. cost of "the government's [U.S. taxpayers] package of bank bailouts, loans and economic stimulus plans" "$3 TRILLION."
(S&L crisis 1986-95: $256B)

Did they get billions without giving anything in exchange?

By definition: a Bailout does not require "anything in exchange."
"Bailout- of pertaining to, or consisting of means for relieving an emergency situation." Random House Dictionary. The "thing in exchange" is the so called relief of "the emergency situation." (In fact "the bailout" is the greatest grab of U.S. Taxpayer money in the history of the U.S.)

The "bailout" was an "Emergency rescue plan," proposed by Fed Chairman Ben Bernanke and then-Treasury Secretary Henry Paulson [originally for $700B, which has become about $3T+ in 2009) in 2008. The governments [U.S. taxpayer] initiative was to pump liquidity into the markets and to encourage consumer and business lending [to John Q. Public]. But this is not what has happened.

Read: "Getting off Track: How Government Actions and Interventions Caused, Prolonged, and Worsened the Financial Crisis" by John B. Taylor, a senior fellow at the Hoover Institution (Conservation Think Tank at Stanford University), who was a Treasury undersecretary in Bush's first administration.
Read: "The Creature from Jekyll Island- A Second Look at the Federal Reserve" by G. Edward Griffin, to learn about the Federal Reserve and its history, a must read to understand this.

Final question: Why does not the U.S. Treasury issue it's own money, (instead of the Federal Reserve, which is actually owned by the banks themselves) and what would the effect of that be on the banks and the public of the U.S.?

P.S. Bernanke is on 60 Minutes tonight, 3/15/09.

[bowonwing]

Synchronoss Technologies Inc. said Thursday its fourth-quarter profit declined sharply as sales dropped due mainly to a loss of revenue from its deal with AT&T Inc. to help support Apple's iPhone.
Related Quotes
Symbol Price Change
SNCR 10.20 -0.92
The company provides transaction management software for communications companies.
Synchronoss earned $2.7 million, or 9 cents per share, down 60 percent from a profit of $6.6 million, or 20 cents per share, in the same period a year earlier. Adjusted earnings were 12 cents per share in the latest quarter.
Revenue fell 14 percent to $31.2 million from $36.4 million.
Analysts, on average, were expecting a profit of 10 cents per share on sales of $30.5 million, according to a poll by Thomson Reuters.
"We were pleased with the company's strong profitability in the fourth quarter, and we will continue to manage the business with tight cost controls," said Lawrence R. Irving, chief financial officer and treasurer, in a statement.
Synchronoss, whose largest customer is AT&T, said it recently signed a new three-year deal with the company. AT&T represented 64 percent of the quarter's revenue.
For the full year, the company earned $11.9 million, or 37 cents per share, down from a profit of $23.8 million, or 71 cents per share, a year earlier.
Revenue dropped to $111 million from $123.5 million.

[bowonwing]

2/19/09 by lbcamera. Several elements are quite different then they were in the past. Some of the text below I am copying from the transcript,and I will post my comments after each entry.
PROS
1. In respect to AT&T the new contract they
have is with AT&T Corporate which encompasses a lot more " products" then
the contract with AT&T mobility.
2. the agreement provides them with greater visibility into their long-term cost structure with volume discounts as they scale through higher levels beyond today’s current volumes and higher and more robust guaranteed service levels as compared to our prior agreement. So the
volumes will be higher.
COMMENT:
How much higher? That they do not tell us.
More volume more transactions. But they state higher than todays volumes. I wonder what the volume numbers were 2 years ago.
3."We have higher guaranteed material minimums that we have not had in our prior agreement. And finally, our related aspect is that we believe our new agreement has natural incentives in place which will allow AT&T to expand Synchronoss platform across new channels throughout the new AT&T."
COMMENT:Higher Miniminums again we don't know how much higher.
4. "Synchronoss is now managing a segment of transactions specific to local number porting for the 3G iPhone on behalf of AT&T independent of that which channel the iPhone is purchased through."
COMMENT: Yes they are now doing the activation for 3G Iphone but only in specific local areas so they are not activating all the 3G Phones. So we don't know how many areas or local porting numbers they are handeling at this point.
It could be 3 or 40.
ConvergenceNow Plus platform is focused on supporting and enabling different types of wireless enabled consumer devices to be activated and supported on multiple networks.
In extends our platform into account and lifecycle management expanding the types of transactions our platform can match such as credit card transactions, inventory management of emerging devices, trouble ticketing on devices and product catalog capabilities for emerging devices to mention a few. All of these are obviously in addition to the core activation related services that we automate for all of our customers.
COMMENT:
ConvergenceNow Plus platform is definitely
a plus (no pun intended) My interpertation of this is that Sncr will take on the responsibility of handeling the entire
product line that AT&T has to offer.
All phones,navagation devices,paid radio
and video services as AT&T has announced
that they are teaming up with RaySat to CruiseCast in vehicle entertainment and the partnership extends through Avis Budget Group. They will be in direct
competition with Sirus who is on the verge of bankrupcy. Certainly opens the door for the Convergence platform to handle many more products other than phone & cable activations. This is where I believe
is the biggest news of all. They have expanded their services way beyond what they were doing 2 years ago!
After the debacle with the failed attempt
when the 3G Iphones came out if anyone remembers it was a nightmare for the activation process. So AT&T in there
not so good wisdom decided at that time to
eliminate Sncr and do it themselves.
I guess they learned a hard lesson by doing
that so now SNCR is back in.
Question from an analysts:
Tom Roderick - Thomas Weisel
Okay, last question from me, maybe you could just provide a little bit of an update from non-traditional transaction types and update on the retailer big box opportunities that you had talked a bit about last year? And then you also mentioned Dell Computer, which seems to be a little bit out of the norm of traditionally what you have done, so can you provide an update in terms of the strategy, getting away from some of the carriers-centric deliveries there?
Steve Waldis
So, it’s a big part of our ConvergenceNow Plus initiative and essentially the, let me start by answering the Dell question, the Dell is to our relationship with Brightpoint and through Brightpoint they use our technology and platform as they go into pick back and shift opportunities for Nokia’s and Dell and which there maybe hot air cards being shifted out with the actual computers.
I think the opportunities that Synchronoss sees going forward and why we’re excited about our first appointment with CruiseCast is there is big push in the industry today to get devices onto the networks that the large carriers that are offering today and I think it is a big growth opportunity as wireless saturation happens here in the U.S. the way for wireless carriers to grow is to offer ways to allow other devices are called the non-traditional devices to be activated in the networks.
Panasonic devices for example, cell phones, cameras, navigation devices and so Synchronoss sees a great opportunity to play in that field and that we can be a great enabler of those devices and titles into the various different networks and that existed both not for just wireless but even for high speed data or IP type services and so that’s the growth area that we believe to our partnerships to Brightpoint as well as directly with consumer OEM manufacturers or devices manufacturers like CruiseCast that will want to contract us to have us managed that subscriber process from start to finish.
COMMENT:
This is all wonderful news and it opens
up many new doors for SNCR. They are not limited to one or two services they can manage. Since they did a great job with the roll out of the first Iphone
Which was the biggest roll out of a phone ever in modern history they have proven
what they can do. This was even more apparent when the 3G was rolled out
eliminating Sncr and was a total failure.
Ok now for the CONS:
1. I believe that the new contract with
AT&T corporate will only tie Sncr into
a more dependent situation that they are in now. Currently AT&T represents 66% of
Sncr's revenue I think this number will
be greater in the quarters going forward.
Not good to have all your eggs in one basket as we all know.
2. With the current state of the economy
and the unemployment level reaching historical levels and the slow down of consumer spending I don't think 2009 will
be a year that the average consumer will
be looking to spend money on what I call
ammenities like the latest and greatest
cell phone,navagation system,laptop etc..
Sncr is not the only company faced with this dilema. If the economy was not in the condition it is currently based on all that I read and heard on the conference call I believe Sncr's stock price would be considerably higher. 2009 will be tough for everyone.Once the economy stablizes
whenever that may be, look for Sncr to make new highs if they stay on track with the plan!
Best to all LB

[bowonwing]

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.

[bowonwing]

SNCR @ $9.19; p.o. $15.50; "bear trap."
http://stockcharts.com/charts/gallery.html?SNCR

[bowonwing]

Online activations: http://www.gearlog.com/2008/12/att_offering_home_iphone_activ.php

[bowonwing]

Brightpoint will use Synchronoss's ConvergenceNow(r) software platform as part of this solution to provide online activation of AT&T wireless services.

Brightpoint Enters Into Online Activation Master Dealer Agreement With AT&T
Thursday October 9, 8:30 am ET

PLAINFIELD, Ind., Oct. 9, 2008 (GLOBE NEWSWIRE) -- Brightpoint, Inc. (``Brightpoint') (NasdaqGS:CELL - News) today announced that its subsidiary Brightpoint Activation Services LLC (``Brightpoint') has entered into an agreement whereby Brightpoint will act as an Online Master Dealer for AT&T. Under the terms of the agreement, Brightpoint will enable its approved customers the ability to offer and sell wireless services from AT&T via its end-to-end integrated online activation solution.

Brightpoint will use Synchronoss's ConvergenceNow(r) (NasdaqGM:SNCR - News) software platform as part of this solution to provide online activation of AT&T wireless services. The Nokia USA site will be one of the first clients to utilize the program with AT&T.

``Brightpoint has developed a world class online activation service program for our customers,' said J. Mark Howell, President of Brightpoint Americas. ``The ability to provide AT&T wireless services is a very significant addition to our online program.'

IMO this is huge for SNCR. Any comments- anyone?

[bowonwing]

Gardy & Notis, LLP Files Securities Fraud Class Action Against Synchronoss Technologies, Inc.

Synchronoss Technologies, Inc. announced that Gardy & Notis, LLP filed a securities fraud class action lawsuit on behalf of all investors who purchased or otherwise acquired the Company securities for a class period between February 4, 2008 and June 9, 2008, inclusive. The lawsuit is pending in the United States District Court for the District of New Jersey.

[bowonwing]

p&f chart $21.00 bullish p.o. http://stockcharts.com/charts/gallery.html?SNCR

[bowonwing]

OK surf, thanks for letting me know. GLTU.

[bowonwing]

SNCR Q2-2008 Institutional Ownership (partial listing): (source: Nasdaq.com)
Total Shares Out Standing (millions): 31
Market Capitalization ($ millions): $415
Institutional Ownership: 64.1%
Price (as of 8/13/2008) 13.22
Ownership Analysis # Of Holders Shares
Total Shares Held: 129 20,103,450
New Positions: 23 2,164,419
Increased Positions: 56 9,189,357
Decreased Positions: 64 10,601,382
Holders With Activity: 120 19,790,739
Sold Out Positions: 39 5,251,766

Owner Name
Select a name below for more information. Date Shares Held Change
(Shares) % Change
(Shares) Value
($1000)
FMR LLC 6/30/2008 3,478,016 1,657,956 91.09% $45,979
ADAGE CAPITAL PARTNE... 6/30/2008 2,246,371 1,570,900 232.56% $29,697
WELLS FARGO & CO/MN 6/30/2008 1,988,805 1,305,105 190.89% $26,292
ALGER FRED MANAGEMEN... 6/30/2008 1,387,064 (194,792) (12.31%) $18,337
INDEPENDENCE INVESTM... 6/30/2008 1,015,540 1,015,540 New $13,425
JMP ASSET MANAGEMENT... 6/30/2008 1,000,000 806,826 417.67% $13,220
J P MORGAN CHASE & C... 6/30/2008 870,925 (18,075) (2.03%) $11,514
BROWN INVESTMENT ADV... 6/30/2008 743,454 253,459 51.73% $9,828
BARCLAYS GLOBAL INVE... 6/30/2008 693,960 119,369 20.77% $9,174
VANGUARD GROUP INC 6/30/2008 677,414 8,806 1.32% $8,955
STATE STREET CORP 6/30/2008 426,397 179,795 72.91% $5,637
LEHMAN BROTHERS HOLD... 6/30/2008 342,848 (156,756) (31.38%) $4,532
BANK OF NEW YORK MEL... 6/30/2008 306,139 224,369 274.39% $4,000
MAZAMA CAPITAL MANAG... 6/30/2008 299,850 299,850 New $3,964
CAISSE DE DEPOT ET P... 6/30/2008 278,160 183,160 192.80% $3,677
MONT PELERIN CAPITAL... 6/30/2008 264,697 (115,296) (30.34%) $3,499
DEUTSCHE BANK AG\ 6/30/2008 234,905 182,229 345.94% $3,105
TRADITION CAPITAL MA... 6/30/2008 226,395 226,395 New $2,993
CALIFORNIA PUBLIC EM... 6/30/2008 223,600 60,000 36.67% $2,956
NORTHERN TRUST CORP 6/30/2008 222,768 (25,962) (10.44%) $2,945
GLOBEFLEX CAPITAL L ... 6/30/2008 211,954 3,300 1.58% $2,802
MORGAN STANLEY 3/31/2008 185,238 (87,031) (31.97%) $2,449
NEW YORK STATE COMMO... 3/31/2008 180,200 175,200 >1,000.00% $2,382
UBS OCONNOR LLC 6/30/2008 168,885 (81,115) (32.45%) $2,233
DIMENSIONAL FUND ADV... 6/30/2008 158,227 (500) (0.32%) $2,092
OPPENHEIMER FUNDS IN... 3/31/2008 157,580 (474,449) (75.07%) $2,083
TIAA CREF INVESTMENT... 6/30/2008 138,532 15,657 12.74% $1,831
CAMELOT MANAGEMENT C... 6/30/2008 136,400 73,900 118.24% $1,803
DELAWARE MANAGEMENT ... 6/30/2008 129,900 (664,700) (83.65%) $1,717
BOGLE INVESTMENT MAN... 3/31/2008 117,380 (33,000) (21.94%) $1,552
CAXTON ASSOCIATES LL... 6/30/2008 101,982 101,982 New $1,348
GOLDMAN SACHS GROUP ... 6/30/2008 94,918 (372,613) (79.70%) $1,255
MASON STREET ADVISOR... 6/30/2008 80,000 (431,090) (84.35%) $1,058
NATIONWIDE FUND ADVI... 3/31/2008 75,280 22,980 43.94% $995
GALLEON MANAGEMENT L... 3/31/2008 75,050 75,050 New $992
PEAK6 INVESTMENTS, L... 6/30/2008 66,709 66,709 New $882
GSA CAPITAL PARTNERS... 3/31/2008 63,924 52,775 473.36% $845
BLACKTHORN INVESTMEN... 6/30/2008 60,000 60,000 New $793
HIGHBRIDGE CAPITAL M... 6/30/2008 59,788 59,788 New $790
ZEBRA CAPITAL MANAGE... 6/30/2008 57,469 57,469 New $760
BLACKROCK INVESTMENT... 6/30/2008 48,590 (7,910) (14.00%) $642
CREDIT SUISSE 3/31/2008 45,150 45,000 >1,000.00% $597
DEERE & CO 6/30/2008 41,745 14,742 54.59% $552
GRANAHAN INVESTMENT ... 6/30/2008 38,600 38,600 New $510
AMERICAN INTERNATION... 3/31/2008 37,904 (1,077) (2.76%) $501

[bowonwing]

Synchronoss 2Q earnings cut in half vs. year ago- AP
Tuesday August 5, 7:47 pm ET
Synchronoss second quarter earnings cut in half due to drop-off in iPhone-related revenue

WASHINGTON (AP) -- Synchronoss Technologies Inc. reported that its second-quarter earnings were cut in half due to a loss of revenue from its deal with AT&T Inc. to help support the Apple Inc. iPhone.
ADVERTISEMENT

Shares in Synchronoss fell $1.35, or 11 percent, to $11 in after-hours trading after rising 18 cents, or 1.5 percent, to $12.35 in regular session dealings Tuesday.

Synchronoss, which provides on-demand transaction management software to communications companies, reported net income of $2.6 million, or 8 cents per share, for the three months ended June 30. That's down sharply from $5.4 million, or 16 cents a share, in the same period a year earlier.

Excluding one-time items, the Bridgewater, N.J., company reported earnings of $3.5 million, or 11 cents per share, for the latest quarter, down from $5.8 million, or 17 cents per share, a year earlier.

Revenue fell 22 percent to $24.3 million from $31.3 million a year earlier.

Wall Street on average had expected Synchronoss to report earnings of 9 cents per share on $24.6 million in revenue for the second quarter, according to a survey of analysts by Thomson Financial. Analyst estimates typically exclude one-time gains and charges.

Synchronoss Chief Executive Stephen Waldis said that despite the loss of i-Phone-related revenue from AT&T, which provides wireless services for the popular Internet-enabled phone, the company expects to expand its relationship with AT&T and with other service providers.

[bowonwing]

Apple abandons a requirement that iphones be activated in the store. Could that mean they go back to Sncr for activation? Short answer: probably not, but ... ??

from Eric Savitz's 7-10-08 SeekingAlpha blog:

Kainer "doesn't anticipate a reversal of the new (Apple) plan." "But he writes that 'neither do we dismiss the possibility' that SNCR could yet play a role here."
SNCR price target: $11.

"Now, I should note here that Kainer wrote all this in the context of a research note on Synchronoss Technologies (SNCR), which the first time around had a deal to provide activation services for AT&T for the phone. He thinks Apple and AT&T could have created a much faster process - and saved themselves over $10 per activation - by using SNCR’s services again. He doesn’t anticipate a reversal of the new plan, and in fact today cut his target price on SNCR shares to $11 from $16. But he writes that “neither do we dismiss the possibility” that SNCR could yet play a role here.

“We believe Synchronoss’ role in driving customer satisfaction by engineering and automating an elegant iPhone activation process will be irrefutable when comparing the 6/29/07 and 7/11/08 customer experiences," he concludes."

So I guess the answer is a big MAYBE. Time will tell.
GLTA

[bowonwing]

It ran up the last time before earnings and then the bad news and it crashed. (from lb camera on Yahoo SNCR mb, 7-15-08).

My thoughts are still to be careful until
they have at least 3 solid quarters behind them before I personally would revisit the stock. We already know that there will be
very little if any revenue from the Iphone
that could have spilled over from the last quarter into this quarter. Now that AT&T and Apple are doing their own activations for the Iphone we can assume that Sncr no longer has any part of this deal. With all of that said I believe earnings will meet and guidance will remain the same for the year. I can't see them pulling any surprises out of their hats. Sprint still slow to ramp up, Time Warner will have Verizon to contend with in a few months as Verizon TV enters the NYC area shortly and will continue to expand throughout the country giving
Time Warner a run for it's money.

Sncr needs new contracts and some substantial revenue from Europe otherwise you will see this stock possibly stay in this trading range or dare I say trade several dollars lower.

Best to All that are still long
LB

[surf1944]

Synchronoss Technologies, Inc. Announces Date of Second-Quarter 2008 Financial Results Release
Monday July 14, 10:37 am ET

BRIDGEWATER, N.J.--(BUSINESS WIRE)--Synchronoss Technologies, Inc. (Nasdaq: SNCR - News), the premier provider of on-demand transaction management software to Tier One communications service providers, today announced it will report its second-quarter 2008 financial results after U.S. financial markets close on Tuesday, August 5, 2008.

In conjunction with this announcement, Synchronoss will host a conference call on August 5, 2008, at 4:30 p.m. (EDT) to discuss the company’s financial results. To access this call, dial 866-383-8009 (domestic) or 617-597-5342 (international). The pass code for the call is 98705042. 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 49624343. 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.

[surf1944]

Synchronoss Technologies, Inc. Q1 2008 Earnings Call Transcript:

http://seekingalpha.com/article/76837-synchronoss-technologies-inc-q1-2008-earnings-call-transcript?source=yahoo

[surf1944]

Synchronoss Actionable Call Alert Redux:

http://seekingalpha.com/article/76543-synchronoss-actionable-call-alert-redux?source=yahoo

[surf1944]

Synchronoss Collapses - Buy Opportunity?

http://seekingalpha.com/article/76094-synchronoss-collapses-buy-opportunity?source=yahoo

[surf1944]

Synchronoss: Turning Out to Be a Rotten Apple

About a year ago, all we heard about was the iPhone. Please no hate mail, as I do love Apple (AAPL) as a company. The only problem was that the market completely overshot the mark on this wonderful device. The thought that it would be beautiful, be able to wash your car and cost next to nothing was a little absurd. This product has revolutionized some things and I think the story is still alive and well at Apple, but I am unsure about some other companies.

Synchronoss Technologies (SNCR) shot up out of nowhere when it signed its deal to work with Apple on the iPhone. SNCR produces software that allows users to activate their phones through automation, saving time and money so a person does not have to perform the task. The company was formed by a couple of individuals who left AT&T (T), building a customer base around the people they used to work with. This is an important piece of the puzzle, as management relies heavily on its relationship with AT&T, and without this work it might not have a company.

The first quarter earnings miss is going to be a painful one as early indicators show the stock is down over 30% in after hours trading. This is another example of being priced for perfection. SNCR tried to cover the miss as it stated it would start a $25 million buyback, but this is far too little after lowering guidance.

This lowered guidance was in a quarter where the CEO himself stated that the company had more non-AT&T wins with added revenues than ever before. He also stated that the lower guidance was caused by a decrease in revenue from the iPhone. This either means that Apple's anticipated 3G phone will no longer be associated with SNCR stock or that it has decreased what it will pay for SNCR's service, and we all know how wonderful Steve Jobs is at increasing his own margins at the expense of others.

Right now, there is a huge sign to sell as there will be massive panic over the fact that SNCR may not be included in the new iPhone 3G application. If this is so, it could completely destroy the company's top and bottom line. And even if SNCR is included, how many people are going to pirate their phones to new carriers overseas and beyond? There is no doubt that the iPhone is and will be a success for years to come, but what if the phones will no longer be set up through SNCR and will be done over the internet through a cheaper source? Either way, this is terrible news.

If you were long the stock I'm sorry and if you were short then congrats. The company probably won't be destroyed by this as AT&T has many products associated with SNCR, but revenues from AT&T decreased from 76% last year to 72% this year. The company is trying to make this look like a win, when really it may be getting more revenue from elsewhere because it is losing its base.

If we look at the financials, the stock earned 13 cents a share as opposed to 12 last year, which is barely enough growth to represent the current PE of 40. Revenue increased 36% but costs increased 42%. Earnings were destroyed by poor margins and cost control.

Based on the way the year has started, it could very easily post earnings of around $.82 a share, which would place the stock's earnings growth at 15% year over year. If this is the case, the stock should trade for a PE of roughly 20 and give a year end stock price of $16 per share. Looking at the chart I'm guessing we will see the stock crush any kind of prior positive trend, and on huge volume. I would not expect this stock to do much over the next 12 months.
http://seekingalpha.com/article/76071-synchronoss-turning-out-to-be-a-rotten-apple?source=yahoo

[bowonwing]

Good point, the insider selling of SNCR has been steady and relentless. I guess they knew something we all know now after earnings.
Thanks for adding as assistant, Surf.

[surf1944]

I would tend to agree that SNCR may trend down below $10 in the coming weeks. I don't currently own any stock, but have watched it this past year and believe once it weathers the current bad news it can have a nice rebound into the EOY. Another issue for SNCR will be all the insider selling prior to this drop, I added links to the iBOX to show the selling.

surf

[bowonwing]

Hey Surf, nice job on SNCR board! Pz add me as assistant, if you want.
I got into SNCR @ $15 back in March, 2007, 1500 shares in regular account, still holding them. Also had 1300 in retirement account (no taxes at sale), but sold to soon on the run up to $40+, still, make some nice cash on the sale in 2007.
The lesson for me here- the RED FLAG- was so much concentration of revenue with ATT, about 73%! Shoot.
Some people on the Yahoo mb think SCNR could get to $8.00, and will be dead money into 2009.
Any comments on future price action?

Cheers, Bow.

[surf1944]

May 6, 2008, 5:56 pm
Synchronoss Shares Collapse On Rocky Outlook As Unlocked Apple iPhones Takes A Toll
Posted by Eric Savitz

Snychronoss Technologies (SNCR) shares have dropped nearly in half in after hours trading on a disappointing outlook for 2008.

For Q1, the company posted revenue of $29.1 million, below Street expectations of $31.2 million. Non-GAAP profits of 16 cents were in line with the consensus.

In a statement, CEO Stephen Waldis says the company has “materially lowered” its growth expectations for 2008 “due in part to reduced revenues associated with the iPhone, which masks the underlying growth and momentum of the rest of our business.” The company provides AT&T with transaction management services, including the registration of new Apple (AAPL) iPhone users.

As Silicon Alley Investor notes, the company on its post-earnings conference call said it is seeing lower-than-expected activations of iPhones as more of them are being unlocked and used on non-AT&T networks. Here’s what Waldis said on the call:

We cannot share the specifics due to NDA obligations, but the gap between the number of iPhones expected to be sold and the actual number that we are activating continues to be significant, and we expect this trend to continue. As a reminder, Synchronoss is not paid on the number of iPhones that are sold, but rather the number that we activate. And as a result, we are materially adjusting our expectations as it relates to revenue related to the iPhone during 2008. To put these factors into perspective, we currently expect our related transaction revenue from the iPhone to decline by approximately $30 million in 2008 compared to 2007.

The company says investments in the near-term to support the launch of service with a number of new strategic customers will have an adverse impact on gross margins. “We view 2008 as a transition year and expect to improve gross and operating margins in 2009 as new transactions ramp and we gain leverage on our investments,” CFO Lawrence Irving said in a statement.

Irving added that the company does not expect most of the impact from its new customers until 2009 and beyond.

The company also announced a $25 million buyback plan.

In after hours trading, SNCR is down $10.75, or 47%, to $12.15.

[surf1944]

Synchronoss to buy back $25 million of its shares
Tuesday May 6, 6:09 pm ET
Synchronoss to repurchase $25 million in stock, but shares fall after hours

BRIDGEWATER, N.J. (AP) -- Synchronoss Technologies Inc., which makes software for communication service providers, said Tuesday its board approved a plan to buy back $25 million in stock.

As of Feb. 15, the company had about 32.7 million outstanding shares, according to a regulatory filing.

Separately, Synchronoss reported its first-quarter results and said it "materially" lowered its 2008 growth expectations as it expects its largest customer to contribute less to total sales.

Shares tumbled $10.08, or 44 percent, to $12.82 in after-hours electronic trading. The stock earlier closed down 5 cents at $22.90. Shares have traded in a 52-week range of $15.15 to $48.03.