Synchronoss Profit Drops, But Tops Estimates; Stock Up - Update

(RTTNews) - Synchronoss Technologies Inc. (SNCR) Tuesday reported a decline in second-quarter profit, due mainly to stock-based compensation and other expenses, offsetting growth in revenues. However, excluding items, adjusted earnings improved and topped Wall Street estimates, as did revenues.

Moving forward, the company said prospects for the future appear bright. Shares of the company are up 6 percent in after-hours trade on the Nasdaq.

"Both our Activation Services and Cloud Services delivered a strong performance during the second quarter, leading to total revenue that exceeded our expectations," said CEO Stephen Waldis .

Synchronoss provides software-based activation and personal cloud solutions for connected devices.

The Bridgewater, New Jersey-based company posted quarterly net income to common stock of $3 million or $0.09 per share, down from $12 million or $0.31 per share last year.

Excluding items, adjusted earnings for the quarter were $12 million or $0.31 per share, compared with $11 million or $0.29 per share a year ago. Analysts polled by Thomson Reuters expected earnings of $0.29 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter improved to about $84 million, compared with $67 million in the prior year, and topped analysts' expectations of $83.06 million. "Our second quarter was highlighted by many successful deployments in our Personal Cloud Services offerings, and very encouraging initial subscriber adoption rates and customer forecasts for storage growth," said CEO Waldis.

Non-GAAP gross margin for the quarter slid to 60 percent from 62 percent a year ago. Total expenses for the quarter were higher at $78 million, compared with $52 million last year.

The company's stock closed Tuesday at $30.22, up 0.43%, on a volume of 0.29 million shares. In after hours, the stock gained $1.78 or 5.89%.