Synchronoss Technologies Inc. (SNCR) first-quarter earnings
soared as the software provider's revenue continued to
strengthen.
Shares still slid 22% to $22.21 after the company lowered its
full-year projections for revenue generated from AT&T Inc. (T),
a major customer.
In a conference call with analysts Monday, the company unveiled
details about its new customer-care channel with AT&T.
Synchronoss plans to deploy the technology of recently acquired
SpeechCycle Inc. within its new AT&T care channel this year,
noting it would allow both Synchronoss and AT&T to achieve its
targeted automotation rates more quickly than originally
anticipated.
"Specifically, our goal is to drive high automation and a
superior customer experience into what traditionally has been a
very manual-intensive channel," said Chairman and Chief Executive
Stephen G. Waldis in a conference call with analysts.
However, the company said near-term AT&T revenue will be
hurt because the time period for high-priced, manually intensive
transactions will be consolidated.
Synchronoss said it now expects revenue from AT&T to grow
between 5% and 10% for the year, down from its initial expectation
of low double-digit growth. In the latest quarter, revenue from
AT&T accounted for about 50% of total revenue.
The company maintained its full-year projections, saying it
expects a higher mix of revenue to come from customers outside of
AT&T. Synchronoss now expects revenue from non-AT&T
customers to grow 40% for the year, up from its prior view of
growth in the mid-30% range.
Synchronoss provides on-demand transaction, content and
connectivity management solutions. It has reported stronger results
lately due to growing business partnerships with large
telecommunicatinos companies, like AT&T, and increased adoption
of its ConvergenceNow Plus platform software, which helps activate
and synchronize devices.
For the second quarter, Synchronoss sees adjusted revenue
between $65 million and $68 million and adjusted earnings of 26
cents to 27 cents a share. Analysts polled by Thomson Reuters were
expecting 26 cents and $69 million, respectively.
Synchronoss reported a profit of $5.5 million, or 14 cents a
share, up from $139,000, or 4 cents a share, a year earlier.
Excluding stock-based compensation, acquisition-related costs and
other items, earnings rose to 26 cents a share from 20 cents.
Revenue rose 22% to $64.6 million. Including a deferred revenue
write-down associated with an acquisition, revenue rose 22% to
$64.9 million.
In February, the company had projected earnings between 24 cents
and 25 cents and adjusted revenue between $63 million and $65
million.
-By Nathalie Tadena, Dow Jones Newswires; 212-416-3287; nathalie.tadena@dowjones.com