DOW JONES NEWSWIRES 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
