Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. NEW YORK ( TheStreet) -- Synchronoss Technologies (Nasdaq: SNCR) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in net income, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
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- The revenue growth came in higher than the industry average of 11.0%. Since the same quarter one year prior, revenues rose by 32.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- SNCR's debt-to-equity ratio is very low at 0.02 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, SNCR has a quick ratio of 2.19, which demonstrates the ability of the company to cover short-term liquidity needs.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Software industry. The net income increased by 360.2% when compared to the same quarter one year prior, rising from $3.45 million to $15.87 million.
- Net operating cash flow has significantly increased by 161.79% to $55.28 million when compared to the same quarter last year. In addition, SYNCHRONOSS TECHNOLOGIES has also vastly surpassed the industry average cash flow growth rate of 0.15%.
- The gross profit margin for SYNCHRONOSS TECHNOLOGIES is rather high; currently it is at 58.39%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 16.32% trails the industry average.