Synchronoss Technologies, Inc.
(NASDAQ: SNCR), the world’s leading provider of transaction management, cloud enablement and connectivity services for connected devices, today announced financial results for the fourth quarter and full year of 2011.
“The fourth quarter was highlighted by revenue and profitability that exceeded our expectations, and it was a strong finish to a record year for Synchronoss,” said Stephen G. Waldis, Founder and Chief Executive Officer of Synchronoss. “We experienced strong transaction volumes related to smartphones and connected devices which led to increased automation rates and much stronger than expected profitability. The fourth quarter provided evidence of the operating leverage created by our connect-synch-activate strategy, and we believe it positions us well to scale our business model as we focus on expanding our on-device presence to hundreds of millions of connected devices in the years ahead.”
For the fourth quarter of 2011, Synchronoss reported net revenues of $62.2 million on a GAAP basis, representing an increase of 26% compared to the fourth quarter of 2010. Gross profit was $33.8 million and income from operations was $7.0 million in the fourth quarter of 2011. GAAP net income applicable to common stock was $8.2 million, leading to GAAP diluted earnings per share of $0.21, compared to a GAAP net loss per share of ($0.09) for the fourth quarter of 2010.
Synchronoss reported non-GAAP net revenues, which adds back the purchase accounting adjustment related to FusionOne’s revenues, of $62.3 million, an increase of 22% compared to the fourth quarter of 2010. Non-GAAP gross profit for the fourth quarter of 2011 was $35.4 million, representing a gross margin of 56.8%. Non-GAAP income from operations was $15.9 million in the fourth quarter of 2011, representing a year-over-year increase of 38% and an operating margin of 25.5%. Non-GAAP net income was $13.3 million in the fourth quarter of 2011, leading to diluted earnings per share of $0.34, an increase compared to $0.21 for the fourth quarter of 2010. Non-GAAP diluted earnings per share for the fourth quarter of 2011 was $0.11 above the high end of company guidance, with $0.06 due to a lower than expected tax rate and $0.05 driven by the combination of higher revenue, higher automation rates and prudent expense management.