Why Synchronoss Technologies (SNCR) Stock Is Climbing Today

NEW YORK (TheStreet) -- Shares of Synchronoss Technology Inc. (SNCR) are higher by 1.98% to $34.58 after the company announced it has purchased Voxmobili SA for $26 million in cash.

Synchronoss Technologies is a mobile cloud innovation and software-based activation provider for mobile carriers.

Voxmobile is the wholly owned subsidiary of OnMobile Global Ltd, and provides personal cloud solutions to many of the world's leading mobile operators.


Voxmobili's customers include AT&T (T), T-Mobile (TMUS), Vodafone (VOD), Artel, Everything Everywhere, France Telecom, and Orange (ORAN).

The deal will allow Synchronoss to boost its position as a leading provider of personal cloud solutions, the company said. When the acquisition is complete over 30 mobile operators across the globe will be using Synchronoss platforms.

Separately, TheStreet Ratings team rates SYNCHRONOSS TECHNOLOGIES as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate SYNCHRONOSS TECHNOLOGIES (SNCR) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. 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, solid stock price performance, reasonable valuation levels and compelling growth in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 8.2%. Since the same quarter one year prior, revenues rose by 25.8%. 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. Along with this, the company maintains a quick ratio of 3.17, which clearly demonstrates the ability to cover short-term cash needs.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
  • 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 1493.3% when compared to the same quarter one year prior, rising from $0.48 million to $7.58 million.
  • You can view the full analysis from the report here: SNCR Ratings Report
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