Synacor, Inc. (SYNC)

[MiamiHurricane]

NIA has expanded its Synacor (SYNC) TV Everywhere traffic report from initially being SYNC's 15 largest clients with traffic over 100,000 unique visitors per month, to now include 10 additional SYNC TV Everywhere clients with traffic below 100,000 unique visitors per month but above 10,000 unique visitors per month according to compete.com estimates.

Of the 10 new entries to NIA's SYNC traffic report, 4 of them saw record traffic in May! All together, NIA's 10 new entries to its SYNC traffic report saw an average increase in monthly unique visitors so far in the 2Q of 11% over the 1Q! It is unbelievable that SYNC's 2Q revenues are projected to be flat from the 1Q. NIA is now more confident than ever that SYNC will shock Wall Street with blow out 2Q results that surpass Wall Street's highest expectations next month!

Atlantic Broadband 4Q11 Average Monthly Unique Visitors: 108,051
Atlantic Broadband 1Q12 Average Monthly Unique Visitors: 113,739 +5.3%
Atlantic Broadband 2Q12 (April and May) Average Monthly Unique Visitors: 144,084 +26.7%
Note: Atlantic Broadband saw record traffic in May.

GVTC 4Q11 Average Monthly Unique Visitors: 17,012
GVTC 1Q12 Average Monthly Unique Visitors: 15,230 -10.5%
GVTC 2Q12 (April and May) Average Monthly Unique Visitors: 17,962 +17.9%
Note: GVTC saw record traffic in May.

Hawaiian Tel 4Q11 Average Monthly Unique Visitors: 21,998
Hawaiian Tel 1Q12 Average Monthly Unique Visitors: 23,445 +6.6%
Hawaiian Tel 2Q12 (April and May) Average Monthly Unique Visitors: 27,617 +17.8%

Consolidated 4Q11 Average Monthly Unique Visitors: 58,811
Consolidated 1Q12 Average Monthly Unique Visitors: 57,623 -2%
Consolidated 2Q12 (April and May) Average Monthly Unique Visitors: 67,261 +16.7%

North State 4Q11 Average Monthly Unique Visitors: 22,625
North State 1Q12 Average Monthly Unique Visitors: 21,034 -7%
North State 2Q12 (April and May) Average Monthly Unique Visitors: 24,482 +16.4%
Note: North State saw record traffic in May.

Armstrong 4Q11 Average Monthly Unique Visitors: 194,694
Armstrong 1Q12 Average Monthly Unique Visitors: 211,131 +8.4%
Armstrong 2Q12 (April and May) Average Monthly Unique Visitors: 243,713 +15.4%
Note: Armstrong saw record traffic in May.

Knowlogy 4Q11 Average Monthly Unique Visitors: 110,010
Knowlogy 1Q12 Average Monthly Unique Visitors: 124,524 +13.2%
Knowlogy 2Q12 (April and May) Average Monthly Unique Visitors: 143,468 +15.2%

Broadstripe 4Q11 Average Monthly Unique Visitors: 8,041
Broadstripe 1Q12 Average Monthly Unique Visitors: 10,291 +28%
Broadstripe 2Q12 (April and May) Average Monthly Unique Visitors: 11,717 +13.9%

Windstream 4Q11 Average Monthly Unique Visitors: 1,104,588
Windstream 1Q12 Average Monthly Unique Visitors: 1,161,557 +5.2%
Windstream 2Q12 (April and May) Average Monthly Unique Visitors: 1,270,908 +9.4%
Note: Windstream saw record traffic in May.

CenturyLink 4Q11 Average Monthly Unique Visitors: 2,023,060
CenturyLink 1Q12 Average Monthly Unique Visitors: 2,184,539 +8%
CenturyLink 2Q12 (April and May) Average Monthly Unique Visitors: 2,371,559 +8.6%
Note: CenturyLink saw record traffic in May.

Blue Ridge 4Q11 Average Monthly Unique Visitors: 10,822
Blue Ridge 1Q12 Average Monthly Unique Visitors: 10,474 -3.2%
Blue Ridge 2Q12 (April and May) Average Monthly Unique Visitors: 11,363 +8.5%

Buckeye 4Q11 Average Monthly Unique Visitors: 36,207
Buckeye 1Q12 Average Monthly Unique Visitors: 33,720 -6.9%
Buckeye 2Q12 (April and May) Average Monthly Unique Visitors: 36,525 +8.3%

Hickory Tech 4Q11 Average Monthly Unique Visitors: 9,697
Hickory Tech 1Q12 Average Monthly Unique Visitors: 10,466 +7.9%
Hickory Tech 2Q12 (April and May) Average Monthly Unique Visitors: 11,282 +7.8%
Note: Hickory Tech saw record traffic in May.

WOW! 4Q11 Average Monthly Unique Visitors: 290,221
WOW! 1Q12 Average Monthly Unique Visitors: 267,431 -7.9%
WOW! 2Q12 (April and May) Average Monthly Unique Visitors: 286,248 +7%

Qwest (CenturyLink) 4Q11 Average Monthly Unique Visitors: 1,438,691
Qwest (CenturyLink) 1Q12 Average Monthly Unique Visitors: 1,537,892 +6.9%
Qwest (CenturyLink) 2Q12 (April and May) Average Monthly Unique Visitors: 1,643,112 +6.8%
Note: Qwest (CenturyLink) saw record traffic in May.

Mediacom 4Q11 Average Monthly Unique Visitors: 310,701
Mediacom 1Q12 Average Monthly Unique Visitors: 293,204 -5.6%
Mediacom 2Q12 (April and May) Average Monthly Unique Visitors: 310,336 +5.8%

TDS 4Q11 Average Monthly Unique Visitors: 332.758
TDS 1Q12 Average Monthly Unique Visitors: 338,397 +1.7%
TDS 2Q12 (April and May) Average Monthly Unique Visitors: 358,169 +5.8%
Note: TDS saw record traffic in May.

New Wave 4Q11 Average Monthly Unique Visitors: 20,153
New Wave 1Q12 Average Monthly Unique Visitors: 21,016 +4.3%
New Wave 2Q12 (April and May) Average Monthly Unique Visitors: 27,335 +4.7%
Note: New Wave saw record traffic in May.

Charter 4Q11 Average Monthly Unique Visitors: 4,913,908
Charter 1Q12 Average Monthly Unique Visitors: 4,711,762 -4.1%
Charter 2Q12 (April and May) Average Monthly Unique Visitors: 4,936,110 +4.8%

Bresnan 4Q11 Average Monthly Unique Visitors: 182,878
Bresnan 1Q12 Average Monthly Unique Visitors: 164,453 -10.1%
Bresnan 2Q12 (April and May) Average Monthly Unique Visitors: 165,191 +0.1%

Toshiba 4Q11 Average Monthly Unique Visitors: 1,447,306
Toshiba 1Q12 Average Monthly Unique Visitors: 1,824,512 +26.1%
Toshiba 2Q12 (April and May) Average Monthly Unique Visitors: 1,821,977 -0.1%

Hughes 4Q11 Average Monthly Unique Visitors: 405,357
Hughes 1Q12 Average Monthly Unique Visitors: 452,536 +11.6%
Hughes 2Q12 (April and May) Average Monthly Unique Visitors: 449,842 -0.6%

SuddenLink 4Q11 Average Monthly Unique Visitors: 373,480
SuddenLink 1Q12 Average Monthly Unique Visitors: 396,539 +6.2%
SuddenLink 2Q12 (April and May) Average Monthly Unique Visitors: 385,756 -2.7%

Midco 4Q11 Average Monthly Unique Visitors: 263,773
Midco 1Q12 Average Monthly Unique Visitors: 267,018 +1.2%
Midco 2Q12 (April and May) Average Monthly Unique Visitors: 259,783 -2.7%

SureWest 4Q11 Average Monthly Unique Visitors: 56,239
SureWest 1Q12 Average Monthly Unique Visitors: 58,083 +3.3%
SureWest 2Q12 (April and May) Average Monthly Unique Visitors: 54,573 -6%

Total 4Q11 Average Monthly Unique Visitors: 13,761,081
Total 1Q12 Average Monthly Unique Visitors: 14,310,616 +4%
Total 2Q12 (April and May) Average Monthly Unique Visitors: 15,080,373 +5.4%

NIA believes we could realitically see SYNC's 2Q revenues grow by 5.4% over 1Q revenues of $30.67 million to $32.33 million. This would represent year-over-year revenue growth of 66% and increase SYNC's trailing twelve month revenues from $103.04 million to $115.9 million.

With SYNC's closest comparison BCOV currently trading with a price/sales ratio of 6.12X, $115.9 million in trailing revenues X 6.12 would value SYNC at $709.31 million / 26.88 million shares outstanding = $26.39 per share in July.

BCOV's 2Q revenues are projected to be $19.76 million compared to year-ago revenues of $15.28 million for year-over-year revenue growth of 29%.

With SYNC's potential 2Q revenue growth rate of 66% more than double BCOV's projected 2Q growth rate of 29%, NIA believes SYNC deserves to at least trade for 10X sales. A valuation of 10X $115.9 million in trailing revenues would value SYNC at $1.159 billion / 26.88 million shares outstanding = $43.12 per share in July.

NIA isn't an analyst or investment advisor. Don't invest based onanything NIA says. NIA doesn't recommend for you to buy or sell anystocks. NIA never makes any financial projections or target prices.

Disclaimer: NIA currently owns 584,651 shares of SYNC. NIA initially purchased 350,000 shares at an average price of $8.53 per share. NIA has agreed to a 60 day holding period on its initial position of 350,000 shares but intends to sell these shares at some point in the future after the date of July 2nd, 2012. NIA has accumulated an additional 234,651 shares of SYNC after its suggestion of the company. NIA intends to sell these additional 234,651 shares in the future and can do so at any time. NIA reserves the right to add to its SYNC position at any time. (NIA was forced to reduce its SYNC position from its recent high due to its broker raising their margin requirements. NIA has never sold a single share of SYNC that it wasn't forced to.)

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