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 first quarter of 2012.
“We are pleased with the company’s performance during the first quarter, which contributed to revenue coming in at the high end of our guidance, continued non-GAAP gross margin expansion and profitability exceeding our expectations,” said Stephen G. Waldis, Founder and Chief Executive Officer of Synchronoss.
Waldis added, “The success of our cloud-based mobility services strategy is evidenced by our expanded relationship with Verizon Wireless. We believe our multi-year agreement provides a solid opportunity for us to deploy the first ever comprehensive carrier based subscriber cloud platform designed to manage millions of devices for a unique and personalized experience. With both Verizion and Vodafone subscribers as anchor clients, we feel we are well positioned to drive our expanded roadmap over the coming years.”
For the first quarter of 2012, on a GAAP basis, Synchronoss reported net revenues of $64.6 million, representing an increase of 22% compared to the first quarter of 2011. Gross profit was $35.9 million and income from operations was $8.3 million in the first quarter of 2012. Net income applicable to common stock was $5.5 million, leading to diluted earnings per share of $0.14, compared to $0.04 for the first quarter of 2011.
On a non-GAAP basis, Synchronoss reported net revenues, which adds back the purchase accounting adjustment related to revenues for certain acquisitions, of $64.9 million, an increase of 22% compared to the first quarter of 2011. Gross profit for the first quarter of 2012 was $37.5 million, representing a gross margin of 58%. Income from operations was $15.3 million in the first quarter of 2012, representing a year-over-year increase of 27% and an operating margin of 24%. Net income was $10.1 million in the first quarter of 2012, leading to diluted earnings per share of $0.26, an increase of 30% compared to $0.20 for the first quarter of 2011.