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Synacor Reports Solid First Quarter Results

Further information on these and other factors that could affect the company's financial results is included in filings it makes with the Securities and Exchange Commission from time to time, including the section entitled "Risk Factors" in the company's most recent Form 10-K filed with the SEC on March 26, 2013. These documents are available on the SEC Filings section of the Investor Information section of the company's website at  http://investor.synacor.com/. All information provided in this release and in the attachments is available as of May 7, 2013, and Synacor undertakes no duty to update this information.

The Synacor logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=11609

 
Synacor, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
  As of As of
  December 31, March 31,
  2012 2013
Assets    
Current assets:    
 Cash and cash equivalents  $ 41,944  $ 40,156
 Accounts receivable, net  15,624  14,548
 Deferred income taxes  1,999  1,987
 Prepaid expenses and other current assets  1,831  2,140
 Total current assets  61,398  58,831
Property and equipment, net  11,043  11,083
Deferred income taxes, non-current  2,527  2,527
Other long-term assets  543  503
Goodwill  819  819
Total Assets  $ 76,330  $ 73,763
     
Liabilities and Stockholders' Equity    
Current liabilities:    
 Accounts payable  $ 14,204  $ 12,673
 Accrued expenses and other current liabilities  7,328  6,180
 Current portion of capital lease obligations  2,127  1,989
 Total current liabilities  23,659  20,842
Long-term portion of capital lease obligation  1,712  1,246
Other long-term liabilities  148  164
Total Liabilities  25,519  22,252
     
Stockholders' Equity:    
 Common stock  275  276
 Treasury stock  (569)  (569)
 Additional paid-in capital  99,449  100,115
 Accumulated deficit  (48,338)  (48,311)
 Accumulated other comprehensive income  (6)  --
Total stockholders' equity  50,811  51,511
Total liabilities and stockholders' equity  $ 76,330  $ 73,763
 
Synacor, Inc. 
Condensed Consolidated Statements of Operations
(In thousands except share and per share amounts)
(Unaudited)
     
  Three months ended
  March 31,
  2012 2013
     
Revenue  $ 30,670  $ 29,143
Costs and operating expenses:    
 Cost of revenue (1)  16,764  15,764
 Research and development (1)(2)  6,288  6,865
 Sales and marketing (2)  2,377  2,130
 General and administrative (1)(2)  2,840  3,144
 Depreciation  781  1,130
 Total costs and operating expenses  29,050  29,033
Income from operations  1,620  110
Other expense  --  (7)
Interest expense  (47)  (58)
Income before income taxes  1,573  45
Provision for income taxes  399  18
Net income  $ 1,174  $ 27
Net income per share:    
 Basic  $ 0.07  $ --
 Diluted  $ 0.04  $ --
Weighted average shares used to compute net income per share:    
 Basic  16,603,579  27,236,186
 Diluted  26,778,455  28,233,297
     
Notes:    
(1) Exclusive of depreciation shown separately.
(2) Includes stock-based compensation as follows:
  Three months ended
  March 31,
  2012 2013
 Research and development  $ 107  $ 261
 Sales and marketing  74  76
 General and administrative  377  225
   $ 558  $ 562
 
Synacor, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
     
  Three months ended
  March 31, 
  2012 2013
Cash Flows from Operating Activities:    
Net income  $ 1,174  $ 27
Adjustments to reconcile net income to net cash provided by (used in) operating activities:    
Depreciation   781  1,130
Stock-based compensation expense   558  562
Deferred income taxes  395  12
Change in assets and liabilities net of effect of acquisition:    
Accounts receivable, net   (781)  1,076
Prepaid expenses and other current assets   (534)  (309)
Other long-term assets   123  40
Accounts payable   236  (1,427)
Accrued expenses and other current liabilities   (1,232)  (1,873)
Other long-term liabilities   33  16
Net cash provided by (used in) operating activities   753  (746)
     
Cash Flows from Investing Activities:    
Purchases of property and equipment  (879)  (544)
Cash paid for business acquisition  (600)  --
Net cash used in investing activities   (1,479)  (544)
     
Cash Flows from Financing Activities:    
Repayment on bank financing   (125)  --
Repayments on capital lease obligations   (402)  (604)
Proceeds from exercise of common stock options   559  100
Proceeds from initial public offering  25,364  --
Initial public offering costs  (2,475)  --
Net cash provided by (used in) financing activities   22,921  (504)
Effect of exchange rate changes on cash and cash equivalents  --  6
Net Increase (Decrease) in Cash and Cash Equivalents  22,195  (1,788)
Cash and Cash Equivalents at beginning of period  10,925  41,944
Cash and Cash Equivalents at end of period  $ 33,120  $ 40,156
 
Synacor, Inc. Reconciliation of GAAP to Non-GAAP Measures (In thousands) (Unaudited)
     
The following table presents a reconciliation of net income to adjusted EBITDA for each of the periods indicated:
     
  Three months ended
  March 31,
  2012 2013
     
Reconciliation of Adjusted EBITDA:    
 Net income  $ 1,174  $ 27
 Provision for income taxes  399  18
 Interest expense  47  58
 Other expense   --  7
 Depreciation  781  1,130
 Stock-based compensation  558  562
 Adjusted EBITDA  $ 2,959  $ 1,802
 
Synacor, Inc.
Key Business Metrics
(Unaudited)
       
    Three months ended
    March 31, 
    2012 2013
       
Key Business Metrics:    
Unique Visitors (1)  21,293,075  20,260,966
Search Queries (2)  270,777,789  211,644,797
Advertising Impressions (3)  8,485,227,382  11,483,034,070
       
Notes:      
(1) Reflects the number of unique visitors to our customers' websites computed on an average monthly basis during the applicable period, as measured by comScore.
(2) Reflects the total number of search queries during the applicable period, as reported by Google.
(3) Reflects the total number of advertising impressions during the applicable period, as reported by DoubleClick and other partners.
CONTACT: Investor Contact:
         Denise Garcia, SVP
         ICR
         ir@synacor.com
         716-362-3309
         
         Press Contact:
         Meredith Roth, VP, Corporate Communications
         mroth@synacor.com
         646-380-5141

Synacor Logo

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