Latest Update on Hot Stock: Synchronoss Technologies, Inc. (NASDAQ-SNCR)

On Friday, Synchronoss Technologies, Inc. (NASDAQ-SNCR) negotiated 329,238 shares against it an average volume of 322,174 shares. The stock concluded the recent trade at $6.60 with upbeat/downbeat trend move of -0.30%. The company has got a 52-week exceptional price of $8.49 and reached a 52-week lowest of the share price at $3.90. The daily trading range was observed between a day’s low price of $6.44 to a day’s high price of $6.65.

Synchronoss Technologies Inc. (SNCR) recently reported financial results for fourth quarter and full year ended December 31, 2018.

Fourth quarter highlights include:

  • Revenue was $82.1M, including 83 percent recurring revenue.
  • GAAP net loss for the quarter was $101.9M, or $2.56 per share, which included $109.1M of pretax non-cash asset impairments.
  • Synchronoss delivered $15.4M of adjusted EBITDA, up 64.9 percent from $9.4M in the third quarter. Adjusted EBITDA margin in the fourth quarter reached 18.8 percent, up 67.3 percent from 11.2 percent in the third quarter.
  • Cash flow provided by operations during the quarter was $29.3M.

This announcement builds on several important consumer contracts and joint ventures that the company won earlier in the quarter, including:

  • A deal and joint venture with Rackspace, which will utilize the DXP platform to enhance its internal operational efficiencies and journeys, as well as resell the entire Synchronoss DXP platform and product suite to its global consumer portfolio.
  • The renewal of its contract to power the BT Cloud. BT has been a Synchronoss cloud services and storage partner since 2015, and the contract renewal signifies a deepening relationship between Synchronoss and BT.
  • The continued expansion and development of our advanced messaging initiative with the 3 major Japanese mobile operators.

 Full year financial highlights include:

  • Synchronoss delivered $325.8M of revenue for the year. In addition, Synchronoss successfully migrated to over 79 percent recurring revenue in 2018, from 75 percent in 2017.
  • GAAP net loss for the year was $243.7M, or $6.05 per share, which included $127.3M of pretax non-cash asset impairments.
  • Adjusted EBITDA for the full year was $14.0M.
  • Synchronoss generated $24.8M of adjusted EBITDA in the second half of the year, after adjusting for $4.9M of first quarter expenses that were recognized in the third quarter.
  • Synchronoss achieved $20M of annualized cost savings in 2018 with another $25M annualized run rate predictable to be realized in 2019.
  • Synchronoss stepped down over 50% of its convertible debt and paid its third and fourth-quarter quarter dividend on its convertible preferred stock in cash instead of additional shares.

Return on assets ratio of the Company was -28.60% and return on equity ratio was -93.40% while its return on investment ratio was -46.40%. The stock price switched up 11.72% 20-Days Simple Moving Average added 12.57% from 50-Days Simple Moving Average and rose 4.91% from 200 Days Simple Moving Average.

Leave a Reply

Your email address will not be published. Required fields are marked *