Synchronoss Technologies, Inc. Announces Second Quarter 2012 Financial Results
4:05 PM ET 8/1/12 | BusinessWire
--Non-GAAP operating income of $17.4 million increases 49% year-over-year and represents 26% non-GAAP operating margin
--Non-GAAP EPS of $0.29 increases 38% year-over-year
Synchronoss Technologies, Inc. (NASDAQ: SNCR), the mobile innovation company that provides activation and content management solutions for mobile devices, today announced financial results for the second quarter of 2012.
"Synchronoss executed at a high level during the second quarter, achieving non-GAAP revenue and profitability that were in the upper half or above the high-end of our guidance," said Stephen G. Waldis, Founder and Chief Executive Officer of Synchronoss.
Waldis added, "We believe it is increasingly clear that consumers will look to carriers for cloud-based content management solutions that can and will co-exist with those of major operating systems vendors. Synchronoss is becoming entrenched as a key enabler of carriers' cloud strategies, evidenced by an additional major expansion of our relationship with Verizon and our agreement to deploy cloud-based content management services at a new Tier 1 European carrier. At the same time, we recently had another significant expansion of our relationship with Vodafone related to our enterprise activation platform.
For the second quarter of 2012, on a GAAP basis, Synchronoss reported net revenues of $67.0 million, representing an increase of 22% compared to the second quarter of 2011. Gross profit was $40.4 million and income from operations was $15.4 million in the second quarter of 2012. Net income applicable to common stock was $11.9 million, leading to diluted earnings per share of $0.31, compared to $0.06 for the second quarter of 2011.
On a non-GAAP basis, for the second quarter of 2012, Synchronoss reported net revenues, which adds back the purchase accounting adjustment related to revenues for certain acquisitions, of $67.2 million, an increase of 21% compared to the second quarter of 2011. Gross profit was $41.4 million, representing a gross margin of 62%. Income from operations was $17.5 million, representing a year-over-year increase of 49% and an operating margin of 26%. Net income was $11.2 million, leading to diluted earnings per share of $0.29, an increase of 38% compared to $0.21 for the second quarter of 2011.
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."
Lawrence R. Irving, Chief Financial Officer and Treasurer, said "In addition to growth at AT&T, Synchronoss was able to execute on its plan to diversify its revenue, with non-AT&T revenue representing a clear majority of our business for the first time in our history. Much of this growth in non-AT&T revenue is being driven by the increasing adoption of our cloud-based content management services by global service providers, which also helped to drive our non-GAAP gross margin to the highest level since Synchronoss has been a public company. In addition to expanding our addressable market opportunity, we believe the continued expansion of our cloud-based platform is further improving the long-term operating leverage inherent in our business model."
Other Second Quarter 2012 and Recent Business Highlights:
-- Business outside of the AT&T relationship accounted for approximately $37.3 million of non-GAAP revenue, representing approximately 56% of total revenue. Verizon Wireless remained the largest contributor to Synchronoss' business outside of AT&T, representing over 10% of Synchronoss' revenue for the quarter. Business related to AT&T accounted for approximately $29.9 million of non-GAAP revenue, representing the other 44% of total revenue.
-- On May 7, 2012, Synchronoss acquired privately-held SpeechCycle, Inc., a speech-enabled customer self-service company,
-- On May 8, 2012, Synchronoss' board of directors authorized a stock repurchase program under which the company may repurchase up to $25 million of its common stock.
Conference Call Details
In conjunction with this announcement, Synchronoss will host a conference call on Wednesday, August 1, 2012, at 4:30 p.m. (ET) to discuss the company's financial results. To access this call, dial 866-804-6927 (domestic) or 857-350-1673 (international). The pass code for the call is 14549848. 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 93509571. 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 Measures
Synchronoss 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, net income, effective tax rate, earnings 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 the deferred revenue write-down associated with acquisitions, fair value stock-based compensation expense, acquisition-related costs, changes in the contingent consideration obligation, 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 Technologies (NASDAQ: SNCR) is the mobile innovation company that provides activation and content management solutions for mobile devices across the globe. For more information visit us at:
This document may include certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts and statements identified by words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "outlook" or words of similar meanings. These statements are based on our current beliefs or expectations and are inherently subject to various risks and uncertainties, including those set forth under the caption "Risk Factors" in Synchronoss' Annual Report on Form 10-K for the year ended December 31, 2011 and other documents filed with the U.S. Securities and Exchange Commission. Actual results may differ materially from these expectations due to changes in global political, economic, business, competitive, market and regulatory factors. Synchronoss does not undertake any obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise.
The Synchronoss logo, Synchronoss, ConvergenceNow, InterconnectNow, ConvergenceNow Plus+ and SmartMobility are trademarks of Synchronoss Technologies, Inc. All other trademarks are property of their respective owners.
View data SYNCHRONOSS TECHNOLOGIES, INC. BALANCE SHEETS (in thousands, except per share data) (Unaudited) June 30, 2012 December 31, 2011 ------------------------- ----------------------- ASSETS Current assets: Cash and cash equivalents $ 35,081 $ 69,430 Marketable securities 65,175 51,504 Accounts receivable, net of allowance for doubtful accounts of $371 61,417 57,387 and $356 at June 30, 2012 and December 31, 2011, respectively Prepaid expenses and other assets 17,472 16,061 Deferred tax assets 3,895 3,938 -------------- -------------- Total current assets 183,040 198,320 Marketable securities 22,789 31,642 Property and equipment, net 49,539 34,969 Goodwill 66,646 54,617 Intangible assets, net 76,722 63,969 Deferred tax assets 11,654 12,606 Other assets 2,334 2,495 -------------- -------------- Total assets $ 412,724 $ 398,618 ==== ============== ===== ============== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 3,698 $ 7,712 Accrued expenses 19,857 24,153 Deferred revenues 7,773 8,834 Contingent consideration obligation 2,097 4,735 -------------- -------------- Total current liabilities 33,425 45,434 Lease financing obligation - long term 9,254 9,241 Contingent consideration obligation - long-term 1,403 8,432 Other liabilities 1,044 948 Stockholders' equity: -- -- Preferred stock, $0.0001 par value; 10,000 shares authorized, 0 shares issued and outstanding at June 30, 2012 and December 31, 2011 4 4 Common stock, $0.0001 par value; 100,000 shares authorized, 41,933 and 41,063 shares issued; 39,054 and 38,394 outstanding at June 30, 2012 and December 31, 2011, respectively Treasury stock, at cost (2,879 and 2,669 shares at June 30, 2012 and (47,485 ) (43,712 ) December 31, 2011, respectively) Additional paid-in capital 327,113 307,586 Accumulated other comprehensive loss (850 ) (699 ) Retained earnings 88,816 71,384 -------------- -------------- Total stockholders' equity 367,598 334,563 -------------- -------------- Total liabilities and stockholders' equity $ 412,724 $ 398,618 ==== ============== ===== ==============
SYNCHRONOSS TECHNOLOGIES, INC. BALANCE SHEETS (in thousands, except per share data) (Unaudited) June 30, 2012 December 31, 2011 ------------------------- ----------------------- ASSETS Current assets: Cash and cash equivalents $ 35,081 $ 69,430 Marketable securities 65,175 51,504 Accounts receivable, net of allowance for doubtful accounts of $371 61,417 57,387 and $356 at June 30, 2012 and December 31, 2011, respectively Prepaid expenses and other assets 17,472 16,061 Deferred tax assets 3,895 3,938 -------------- -------------- Total current assets 183,040 198,320 Marketable securities 22,789 31,642 Property and equipment, net 49,539 34,969 Goodwill 66,646 54,617 Intangible assets, net 76,722 63,969 Deferred tax assets 11,654 12,606 Other assets 2,334 2,495 -------------- -------------- Total assets $ 412,724 $ 398,618 ==== ============== ===== ============== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 3,698 $ 7,712 Accrued expenses 19,857 24,153 Deferred revenues 7,773 8,834 Contingent consideration obligation 2,097 4,735 -------------- -------------- Total current liabilities 33,425 45,434 Lease financing obligation - long term 9,254 9,241 Contingent consideration obligation - long-term 1,403 8,432 Other liabilities 1,044 948 Stockholders' equity: -- -- Preferred stock, $0.0001 par value; 10,000 shares authorized, 0 shares issued and outstanding at June 30, 2012 and December 31, 2011 4 4 Common stock, $0.0001 par value; 100,000 shares authorized, 41,933 and 41,063 shares issued; 39,054 and 38,394 outstanding at June 30, 2012 and December 31, 2011, respectively Treasury stock, at cost (2,879 and 2,669 shares at June 30, 2012 and (47,485 ) (43,712 ) December 31, 2011, respectively) Additional paid-in capital 327,113 307,586 Accumulated other comprehensive loss (850 ) (699 ) Retained earnings 88,816 71,384 -------------- -------------- Total stockholders' equity 367,598 334,563 -------------- -------------- Total liabilities and stockholders' equity $ 412,724 $ 398,618 ==== ============== ===== ==============
View data SYNCHRONOSS TECHNOLOGIES, INC. STATEMENT OF INCOME (in thousands, except per share data) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, -------------------------------- ---------------------------------- 2012 2011 2012 2011 ------ ------ ------- ------- Net revenues $ 66,990 $ 54,817 $ 131,550 $ 107,695 Costs and expenses: Cost of services (2)(3)(4)* 26,631 25,878 55,252 50,489 Research and development (2)(3)(4) 12,570 10,055 25,446 20,158 Selling, general and administrative (2)(3)(4) 11,060 10,648 21,450 20,795 Net change in contingent consideration obligation (4,628 ) (85 ) (5,408 ) 2,831 Depreciation and amortization 5,962 3,722 11,133 7,080 ------ ------ ------- ------- Total costs and expenses 51,595 50,218 107,873 101,353 ------ ------ ------- ------- Income from operations 15,395 4,599 23,677 6,342 Interest income 330 137 728 256 Interest expense (241 ) (238 ) (480 ) (475 ) Other income (5) 779 176 793 167 ------ ------ ------- ------- Income before income tax expense 16,263 4,674 24,718 6,290 Income tax expense (4,314 ) (1,470 ) (7,286 ) (2,947 ) ------ --- ------ --- ------- --- ------- --- Net income $ 11,949 $ 3,204 $ 17,432 $ 3,343 === ====== === ====== === ======= === ======= Net income per common share: Basic (1) $ 0.31 $ 0.07 $ 0.46 $ 0.13 === ====== === ====== === ======= === ======= Diluted (1) $ 0.31 $ 0.06 $ 0.45 $ 0.12 === ====== === ====== === ======= === ======= Weighted-average common shares outstanding: Basic 38,353 37,541 38,207 37,144 ====== ====== ======= ======= Diluted 39,075 38,827 39,123 38,508 ====== ====== ======= ======= * Cost of services excludes depreciation which is shown separately. (1) Adjustment to net income for equity mark-to-market on contingent consideration obligation: Net income $ 11,949 $ 3,204 $ 17,432 $ 3,343 Income effect for equity mark-to-market on contingent consideration - (681 ) - 1,466 obligation, net of tax ------ ------ --- ------- ------- Net income applicable to shares of common stock for earnings per $ 11,949 $ 2,523 $ 17,432 $ 4,809 share === ====== === === ====== === === ======= === === ======= === (2) Amounts include fair value stock-based compensation as follows: Cost of services $ 891 $ 1,125 $ 2,136 $ 2,257 Research and development 1,227 953 2,655 1,785 Selling, general and administrative 2,421 2,589 4,959 5,185 ------ ------ ------- ------- Total fair value stock-based compensation expense $ 4,539 $ 4,667 $ 9,750 $ 9,227 === ====== === ====== === ======= === ======= (3) Amounts include acquisition and restructuring costs as follows: Cost of services $ - $ 15 $ - $ 15 Research and development 208 143 209 249 Selling, general and administrative 159 95 424 283 ------ ------ ------- ------- Total acquisition and restructuring costs $ 367 $ 253 $ 633 $ 547 === ====== === ====== === ======= === ======= (4) Amounts include fair value earn-out cash and stock compensation as follows: Cost of services $ - $ 121 $ - $ 245 Research and development (98 ) (33 ) 116 433 Selling, general and administrative (116 ) 975 136 1,710 ------ --- ------ ------- ------- Total fair value earn-out cash and stock compensation expense $ (214 ) $ 1,063 $ 252 $ 2,388 === ====== === === ====== === ======= === ======= (5) Amounts include Fx change of the contingent consideration obligation as follows: Other income $ 347 $ - $ 114 $ - SYNCHRONOSS TECHNOLOGIES, INC. Reconciliation of GAAP to Non-GAAP Financial Measures (in thousands, except per share data) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, -------------------------------- ---------------------------------- 2012 2011 2012 2011 ------ ------ ------- ------- Non-GAAP financial measures and reconciliation: GAAP Revenue $ 66,990 $ 54,817 $ 131,550 $ 107,695 Add: Deferred Revenue Write-Down 170 554 516 1,087 ------ ------ ------- ------- Non-GAAP Revenue $ 67,160 $ 55,371 $ 132,066 $ 108,782 === ====== === ====== === ======= === ======= GAAP Revenue $ 66,990 $ 54,817 $ 131,550 $ 107,695 Less: Cost of Services 26,631 25,878 55,252 50,489 ------ ------ ------- ------- GAAP Gross Margin 40,359 28,939 76,298 57,206 Add: Deferred revenue write-down 170 554 516 1,087 Add: Fair value stock-based compensation 891 1,125 2,136 2,257 Add: Acquisition and restructuring costs - 15 - 15 Add: Deferred compensation expense - earn-out - 121 - 245 ------ ------ ------- ------- Non-GAAP Gross Margin $ 41,420 $ 30,754 $ 78,950 $ 60,810 === ====== === ====== === ======= === ======= Non-GAAP Gross Margin % 62 % 56 % 60 % 56 % GAAP income from operations $ 15,395 $ 4,599 $ 23,677 $ 6,342 Add: Deferred revenue write-down 170 554 516 1,087 Add: Fair value stock-based compensation 4,539 4,667 9,750 9,227 Add: Acquisition and restructuring costs 367 253 633 547 Add: Net change in contingent consideration obligation (4,628 ) (85 ) (5,408 ) 2,831 Add: Deferred compensation expense - earn-out (214 ) 1,063 252 2,388 Add: Amortization expense 1,820 660 3,295 1,320 ------ ------ ------- ------- Non-GAAP income from operations $ 17,449 $ 11,711 $ 32,715 $ 23,742 === ====== === ====== === ======= === ======= GAAP net income attributable to common stockholders $ 11,949 $ 3,204 $ 17,432 $ 3,343 Add: Deferred revenue write-down, net of tax 115 384 338 783 Add: Fair value stock-based compensation, net of tax 3,029 3,227 6,380 6,643 Add: Acquisition and restructuring costs, net of taxes 243 174 414 394 Add: Net change in contingent consideration obligation, net of Fx (5,170 ) (145 ) (5,522 ) 2,039 change, net of tax Add: Deferred compensation expense - earn-out, net of tax (135 ) 727 165 1,720 Add: Amortization expense, net of tax 1,207 457 2,156 951 ------ ------ ------- ------- Non-GAAP net income $ 11,238 $ 8,028 $ 21,363 $ 15,873 === ====== === ====== === ======= === ======= Diluted non-GAAP net income per share $ 0.29 $ 0.21 $ 0.55 $ 0.41 === ====== === ====== === ======= === ======= Weighted shares outstanding - Diluted 39,075 38,827 39,123 38,508 ====== ====== ======= =======
SYNCHRONOSS TECHNOLOGIES, INC. STATEMENT OF INCOME (in thousands, except per share data) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, -------------------------------- ---------------------------------- 2012 2011 2012 2011 ------ ------ ------- ------- Net revenues $ 66,990 $ 54,817 $ 131,550 $ 107,695 Costs and expenses: Cost of services (2)(3)(4)* 26,631 25,878 55,252 50,489 Research and development (2)(3)(4) 12,570 10,055 25,446 20,158 Selling, general and administrative (2)(3)(4) 11,060 10,648 21,450 20,795 Net change in contingent consideration obligation (4,628 ) (85 ) (5,408 ) 2,831 Depreciation and amortization 5,962 3,722 11,133 7,080 ------ ------ ------- ------- Total costs and expenses 51,595 50,218 107,873 101,353 ------ ------ ------- ------- Income from operations 15,395 4,599 23,677 6,342 Interest income 330 137 728 256 Interest expense (241 ) (238 ) (480 ) (475 ) Other income (5) 779 176 793 167 ------ ------ ------- ------- Income before income tax expense 16,263 4,674 24,718 6,290 Income tax expense (4,314 ) (1,470 ) (7,286 ) (2,947 ) ------ --- ------ --- ------- --- ------- --- Net income $ 11,949 $ 3,204 $ 17,432 $ 3,343 === ====== === ====== === ======= === ======= Net income per common share: Basic (1) $ 0.31 $ 0.07 $ 0.46 $ 0.13 === ====== === ====== === ======= === ======= Diluted (1) $ 0.31 $ 0.06 $ 0.45 $ 0.12 === ====== === ====== === ======= === ======= Weighted-average common shares outstanding: Basic 38,353 37,541 38,207 37,144 ====== ====== ======= ======= Diluted 39,075 38,827 39,123 38,508 ====== ====== ======= ======= * Cost of services excludes depreciation which is shown separately. (1) Adjustment to net income for equity mark-to-market on contingent consideration obligation: Net income $ 11,949 $ 3,204 $ 17,432 $ 3,343 Income effect for equity mark-to-market on contingent consideration - (681 ) - 1,466 obligation, net of tax ------ ------ --- ------- ------- Net income applicable to shares of common stock for earnings per $ 11,949 $ 2,523 $ 17,432 $ 4,809 share === ====== === === ====== === === ======= === === ======= === (2) Amounts include fair value stock-based compensation as follows: Cost of services $ 891 $ 1,125 $ 2,136 $ 2,257 Research and development 1,227 953 2,655 1,785 Selling, general and administrative 2,421 2,589 4,959 5,185 ------ ------ ------- ------- Total fair value stock-based compensation expense $ 4,539 $ 4,667 $ 9,750 $ 9,227 === ====== === ====== === ======= === ======= (3) Amounts include acquisition and restructuring costs as follows: Cost of services $ - $ 15 $ - $ 15 Research and development 208 143 209 249 Selling, general and administrative 159 95 424 283 ------ ------ ------- ------- Total acquisition and restructuring costs $ 367 $ 253 $ 633 $ 547 === ====== === ====== === ======= === ======= (4) Amounts include fair value earn-out cash and stock compensation as follows: Cost of services $ - $ 121 $ - $ 245 Research and development (98 ) (33 ) 116 433 Selling, general and administrative (116 ) 975 136 1,710 ------ --- ------ ------- ------- Total fair value earn-out cash and stock compensation expense $ (214 ) $ 1,063 $ 252 $ 2,388 === ====== === === ====== === ======= === ======= (5) Amounts include Fx change of the contingent consideration obligation as follows: Other income $ 347 $ - $ 114 $ - SYNCHRONOSS TECHNOLOGIES, INC. Reconciliation of GAAP to Non-GAAP Financial Measures (in thousands, except per share data) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, -------------------------------- ---------------------------------- 2012 2011 2012 2011 ------ ------ ------- ------- Non-GAAP financial measures and reconciliation: GAAP Revenue $ 66,990 $ 54,817 $ 131,550 $ 107,695 Add: Deferred Revenue Write-Down 170 554 516 1,087 ------ ------ ------- ------- Non-GAAP Revenue $ 67,160 $ 55,371 $ 132,066 $ 108,782 === ====== === ====== === ======= === ======= GAAP Revenue $ 66,990 $ 54,817 $ 131,550 $ 107,695 Less: Cost of Services 26,631 25,878 55,252 50,489 ------ ------ ------- ------- GAAP Gross Margin 40,359 28,939 76,298 57,206 Add: Deferred revenue write-down 170 554 516 1,087 Add: Fair value stock-based compensation 891 1,125 2,136 2,257 Add: Acquisition and restructuring costs - 15 - 15 Add: Deferred compensation expense - earn-out - 121 - 245 ------ ------ ------- ------- Non-GAAP Gross Margin $ 41,420 $ 30,754 $ 78,950 $ 60,810 === ====== === ====== === ======= === ======= Non-GAAP Gross Margin % 62 % 56 % 60 % 56 % GAAP income from operations $ 15,395 $ 4,599 $ 23,677 $ 6,342 Add: Deferred revenue write-down 170 554 516 1,087 Add: Fair value stock-based compensation 4,539 4,667 9,750 9,227 Add: Acquisition and restructuring costs 367 253 633 547 Add: Net change in contingent consideration obligation (4,628 ) (85 ) (5,408 ) 2,831 Add: Deferred compensation expense - earn-out (214 ) 1,063 252 2,388 Add: Amortization expense 1,820 660 3,295 1,320 ------ ------ ------- ------- Non-GAAP income from operations $ 17,449 $ 11,711 $ 32,715 $ 23,742 === ====== === ====== === ======= === ======= GAAP net income attributable to common stockholders $ 11,949 $ 3,204 $ 17,432 $ 3,343 Add: Deferred revenue write-down, net of tax 115 384 338 783 Add: Fair value stock-based compensation, net of tax 3,029 3,227 6,380 6,643 Add: Acquisition and restructuring costs, net of taxes 243 174 414 394 Add: Net change in contingent consideration obligation, net of Fx (5,170 ) (145 ) (5,522 ) 2,039 change, net of tax Add: Deferred compensation expense - earn-out, net of tax (135 ) 727 165 1,720 Add: Amortization expense, net of tax 1,207 457 2,156 951 ------ ------ ------- ------- Non-GAAP net income $ 11,238 $ 8,028 $ 21,363 $ 15,873 === ====== === ====== === ======= === ======= Diluted non-GAAP net income per share $ 0.29 $ 0.21 $ 0.55 $ 0.41 === ====== === ====== === ======= === ======= Weighted shares outstanding - Diluted 39,075 38,827 39,123 38,508 ====== ====== ======= =======
View data SYNCHRONOSS TECHNOLOGIES, INC. STATEMENT OF CASH FLOWS (in thousands) (Unaudited) Six Months Ended June 30, --------------------------------------------- 2012 2011 ------- -------------- Operating activities: Net income $ 17,432 $ 3,343 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization expense 11,133 7,080 Loss on disposal of asset 214 -- Amortization of bond premium 665 134 Deferred income taxes 438 (1,575 ) Non-cash interest on leased facility 460 458 Stock-based compensation 9,750 10,053 Changes in operating assets and liabilities: Accounts receivable, net of allowance for doubtful accounts (2,165 ) (11,570 ) Prepaid expenses and other current assets 2,844 (675 ) Other assets (170 ) (68 ) Accounts payable (4,517 ) 965 Accrued expenses (5,658 ) (1,022 ) Contingent consideration obligation (8,803 ) 1,942 Excess tax benefit from the exercise of stock options (4,864 ) (6,080 ) Other liabilities 82 (42 ) Deferred revenues (558 ) 9,685 ------- ---- -------------- Net cash provided by operating activities 16,283 12,628 Investing activities: Purchases of fixed assets (21,863 ) (7,356 ) Purchases of marketable securities available-for-sale (13,013 ) (27,052 ) Maturity of marketable securities available-for-sale 7,603 1,934 Business acquired, net of cash (26,467 ) (7,823 ) ------- ---- -------------- ---- Net cash used in investing activities (53,740 ) (40,297 ) Financing activities: Proceeds from the exercise of stock options 4,912 11,027 Payments on contingent consideration obligation (2,268 ) (8,286 ) Excess tax benefit from the exercise of stock options 4,864 6,080 Repurchase of common stock (3,773 ) (7,796 ) Payments on capital obligations (480 ) (496 ) ------- ---- -------------- ---- Net cash provided by financing activities 3,255 529 Effect of exchange rate changes on cash (147 ) 181 ------- ---- -------------- Net decrease in cash and cash equivalents (34,349 ) (26,959 ) Cash and cash equivalents at beginning of year 69,430 180,367 ------- -------------- Cash and cash equivalents at end of period $ 35,081 $ 153,408 ==== ======= ==== ============== SYNCHRONOSS TECHNOLOGIES, INC. Reconciliation of GAAP to Non-GAAP Cash Provided by Operating Activities (in thousands) (Unaudited) Six Months Ended June 30, --------------------------------------------- 2012 2011 ------- -------------- Non-GAAP cash provided by operating activities and reconciliation: Net cash provided by operating activities (GAAP) $ 16,283 $ 12,628 Add: Tax benefits from stock options exercised 4,864 6,080 Add: Cash payments on settlement of Earn-out 3,533 2,383 ------- -------------- Adjusted cash flow provided by operating activities (Non-GAAP) $ 24,680 $ 21,091 ==== ======= ==== ==============
SYNCHRONOSS TECHNOLOGIES, INC. STATEMENT OF CASH FLOWS (in thousands) (Unaudited) Six Months Ended June 30, --------------------------------------------- 2012 2011 ------- -------------- Operating activities: Net income $ 17,432 $ 3,343 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization expense 11,133 7,080 Loss on disposal of asset 214 -- Amortization of bond premium 665 134 Deferred income taxes 438 (1,575 ) Non-cash interest on leased facility 460 458 Stock-based compensation 9,750 10,053 Changes in operating assets and liabilities: Accounts receivable, net of allowance for doubtful accounts (2,165 ) (11,570 ) Prepaid expenses and other current assets 2,844 (675 ) Other assets (170 ) (68 ) Accounts payable (4,517 ) 965 Accrued expenses (5,658 ) (1,022 ) Contingent consideration obligation (8,803 ) 1,942 Excess tax benefit from the exercise of stock options (4,864 ) (6,080 ) Other liabilities 82 (42 ) Deferred revenues (558 ) 9,685 ------- ---- -------------- Net cash provided by operating activities 16,283 12,628 Investing activities: Purchases of fixed assets (21,863 ) (7,356 ) Purchases of marketable securities available-for-sale (13,013 ) (27,052 ) Maturity of marketable securities available-for-sale 7,603 1,934 Business acquired, net of cash (26,467 ) (7,823 ) ------- ---- -------------- ---- Net cash used in investing activities (53,740 ) (40,297 ) Financing activities: Proceeds from the exercise of stock options 4,912 11,027 Payments on contingent consideration obligation (2,268 ) (8,286 ) Excess tax benefit from the exercise of stock options 4,864 6,080 Repurchase of common stock (3,773 ) (7,796 ) Payments on capital obligations (480 ) (496 ) ------- ---- -------------- ---- Net cash provided by financing activities 3,255 529 Effect of exchange rate changes on cash (147 ) 181 ------- ---- -------------- Net decrease in cash and cash equivalents (34,349 ) (26,959 ) Cash and cash equivalents at beginning of year 69,430 180,367 ------- -------------- Cash and cash equivalents at end of period $ 35,081 $ 153,408 ==== ======= ==== ============== SYNCHRONOSS TECHNOLOGIES, INC. Reconciliation of GAAP to Non-GAAP Cash Provided by Operating Activities (in thousands) (Unaudited) Six Months Ended June 30, --------------------------------------------- 2012 2011 ------- -------------- Non-GAAP cash provided by operating activities and reconciliation: Net cash provided by operating activities (GAAP) $ 16,283 $ 12,628 Add: Tax benefits from stock options exercised 4,864 6,080 Add: Cash payments on settlement of Earn-out 3,533 2,383 ------- -------------- Adjusted cash flow provided by operating activities (Non-GAAP) $ 24,680 $ 21,091 ==== ======= ==== ==============
SOURCE: Synchronoss Technologies, Inc.
Synchronoss Technologies, Inc. Investor: Brian Denyeau, 646-277-1251 investor@synchronoss.com or Media: Stacie Hiras, 908-547-1260 Stacie.hiras@synchronoss.com
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