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.
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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.
