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 third quarter of 2012.
“The company’s solid execution during the third quarter led to revenue and profitability that were consistent with our guidance,” said Stephen G. Waldis, Founder and Chief Executive Officer of Synchronoss. “During the third quarter, we focused on the development of our cloud platform deployments with four of the largest mobile operators in the world. We believe we are at the early stages of significant long-term growth opportunities and are making great progress in establishing Synchronoss’ mobile content management cloud platform as the de facto standard for Tier 1 carriers around the globe.”
On a GAAP basis, Synchronoss reported net revenues of $69.0 million, representing an increase of 16% compared to the third quarter of 2011. Gross profit was $39.8 million and income from operations was $11.2 million in the third quarter of 2012. Net income applicable to common stock was $6.2 million, leading to diluted earnings per share of $0.16, compared to $0.09 for the third 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 $69.2 million, an increase of 17% compared to the third quarter of 2011. Gross profit for the third quarter of 2012 was $41.2 million, representing a gross margin of 60%. Income from operations was $18.4 million in the third quarter of 2012, representing a year-over-year increase of 40% and an operating margin of 27%. Net income was $10.7 million in the third quarter of 2012, leading to diluted earnings per share of $0.28, an increase of 22% compared to $0.23 for the third quarter of 2011.
A reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included in this press release, as well as nine months year to date results. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures."