2018 Q2 Form 10-Q Financial Statement

#000113155418000060 Filed on August 09, 2018

View on sec.gov

Income Statement

Concept 2018 Q2 2017 Q2
Revenue $76.74M $119.0M
YoY Change -35.51% -1.74%
Cost Of Revenue $39.50M $47.80M
YoY Change -17.36% -0.83%
Gross Profit $37.20M $71.24M
YoY Change -47.78% -2.31%
Gross Profit Margin 48.47% 59.87%
Selling, General & Admin $33.94M $29.35M
YoY Change 15.62% -1.76%
% of Gross Profit 91.23% 41.21%
Research & Development $20.20M $20.82M
YoY Change -2.97% -25.77%
% of Gross Profit 54.3% 29.23%
Depreciation & Amortization $23.40M $23.55M
YoY Change -0.64% -2.25%
% of Gross Profit 62.91% 33.06%
Operating Expenses $54.14M $50.17M
YoY Change 7.9% -13.39%
Operating Profit -$43.10M -$8.894M
YoY Change 384.6% -33.37%
Interest Expense $1.318M $11.84M
YoY Change -88.87% 545.8%
% of Operating Profit
Other Income/Expense, Net -$23.00K -$1.556M
YoY Change -98.52% -332.93%
Pretax Income -$40.69M -$19.04M
YoY Change 113.74% 36.72%
Income Tax $579.0K $3.573M
% Of Pretax Income
Net Earnings -$47.27M -$26.57M
YoY Change 77.9% -439.22%
Net Earnings / Revenue -61.59% -22.33%
Basic Earnings Per Share -$1.20 -$0.60
Diluted Earnings Per Share -$1.20 -$0.60
COMMON SHARES
Basic Shares Outstanding 39.46M shares 44.62M shares
Diluted Shares Outstanding 39.46M shares 44.62M shares

Balance Sheet

Concept 2018 Q2 2017 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $228.2M $223.7M
YoY Change 2.01% 29.08%
Cash & Equivalents $222.8M $216.6M
Short-Term Investments $5.400M $7.200M
Other Short-Term Assets $60.90M $116.8M
YoY Change -47.86% 134.07%
Inventory
Prepaid Expenses
Receivables $51.44M $107.3M
Other Receivables $0.00 $0.00
Total Short-Term Assets $340.5M $447.8M
YoY Change -23.96% 30.13%
LONG-TERM ASSETS
Property, Plant & Equipment $89.31M $136.6M
YoY Change -34.64% -19.86%
Goodwill $233.3M $231.9M
YoY Change 0.59% -1.72%
Intangibles
YoY Change
Long-Term Investments $30.41M $44.02M
YoY Change -30.92% 216.71%
Other Assets $13.09M $9.098M
YoY Change 43.88% -12.27%
Total Long-Term Assets $587.6M $1.590B
YoY Change -63.04% 131.8%
TOTAL ASSETS
Total Short-Term Assets $340.5M $447.8M
Total Long-Term Assets $587.6M $1.590B
Total Assets $928.1M $2.037B
YoY Change -54.45% 97.84%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $13.92M $8.995M
YoY Change 54.8% -74.41%
Accrued Expenses $54.54M $61.13M
YoY Change -10.78% -9.6%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $877.0M
YoY Change -100.0% 1766.05%
Long-Term Debt Due $877.0M
YoY Change 1765.96%
Total Short-Term Liabilities $99.86M $1.121B
YoY Change -91.09% 469.77%
LONG-TERM LIABILITIES
Long-Term Debt $238.7M $238.9M
YoY Change -0.08% -0.13%
Other Long-Term Liabilities $15.39M $8.871M
YoY Change 73.49% 6.57%
Total Long-Term Liabilities $15.39M $8.871M
YoY Change 73.49% 6.57%
TOTAL LIABILITIES
Total Short-Term Liabilities $99.86M $1.121B
Total Long-Term Liabilities $15.39M $8.871M
Total Liabilities $115.2M $1.129B
YoY Change -89.8% 450.96%
SHAREHOLDERS EQUITY
Retained Earnings -$102.5M $19.16M
YoY Change -634.71% -75.99%
Common Stock $554.2M $588.6M
YoY Change -5.85% 9.42%
Preferred Stock
YoY Change
Treasury Stock (at cost) $82.08M $105.6M
YoY Change -22.26% 7.2%
Treasury Stock Shares 7.162M shares 5.059M shares
Shareholders Equity $340.7M $474.0M
YoY Change
Total Liabilities & Shareholders Equity $928.1M $2.037B
YoY Change -54.45% 97.84%

Cashflow Statement

Concept 2018 Q2 2017 Q2
OPERATING ACTIVITIES
Net Income -$47.27M -$26.57M
YoY Change 77.9% -439.22%
Depreciation, Depletion And Amortization $23.40M $23.55M
YoY Change -0.64% -2.25%
Cash From Operating Activities -$62.00M -$7.700M
YoY Change 705.19% -125.93%
INVESTING ACTIVITIES
Capital Expenditures -$3.900M -$700.0K
YoY Change 457.14% -93.86%
Acquisitions
YoY Change
Other Investing Activities -$16.00M -$6.800M
YoY Change 135.29% -236.0%
Cash From Investing Activities -$19.80M -$7.600M
YoY Change 160.53% 20.63%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -600.0K -2.900M
YoY Change -79.31% -88.16%
NET CHANGE
Cash From Operating Activities -62.00M -7.700M
Cash From Investing Activities -19.80M -7.600M
Cash From Financing Activities -600.0K -2.900M
Net Change In Cash -82.40M -18.20M
YoY Change 352.75% 1554.55%
FREE CASH FLOW
Cash From Operating Activities -$62.00M -$7.700M
Capital Expenditures -$3.900M -$700.0K
Free Cash Flow -$58.10M -$7.000M
YoY Change 730.0% -117.03%

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2550000 USD
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us-gaap Effective Income Tax Rate Reconciliation Change In Enacted Tax Rate
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P2Y6M15D
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us-gaap Employee Service Share Based Compensation Tax Benefit From Compensation Expense
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us-gaap Employee Service Share Based Compensation Tax Benefit From Compensation Expense
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CY2018Q2 us-gaap Equity Method Investment Summarized Financial Information Current Liabilities
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CY2017Q4 us-gaap Equity Method Investment Summarized Financial Information Liabilities
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118000 USD
CY2018Q2 us-gaap Equity Method Investment Summarized Financial Information Liabilities
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CY2017Q4 us-gaap Equity Method Investments
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us-gaap Fair Value Adjustment Of Warrants
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4947000 USD
us-gaap Gain Loss On Disposition Of Assets
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us-gaap Income Loss From Continuing Operations
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us-gaap Income Loss From Continuing Operations
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us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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us-gaap Income Loss From Continuing Operations Including Portion Attributable To Noncontrolling Interest
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us-gaap Income Loss From Continuing Operations Including Portion Attributable To Noncontrolling Interest
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us-gaap Income Loss From Discontinued Operations Net Of Tax
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0 USD
us-gaap Income Loss From Discontinued Operations Net Of Tax
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us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic Share
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us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic Share
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0.00
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us-gaap Income Loss From Discontinued Operations Net Of Tax Per Diluted Share
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us-gaap Income Loss From Discontinued Operations Net Of Tax Per Diluted Share
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0.00
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us-gaap Income Loss From Equity Method Investments
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us-gaap Income Loss From Equity Method Investments
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981000 USD
us-gaap Income Loss From Equity Method Investments Net Of Dividends Or Distributions
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us-gaap Income Tax Expense Benefit
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us-gaap Income Tax Expense Benefit
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579000 USD
us-gaap Income Tax Expense Benefit
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704000 USD
us-gaap Income Tax Expense Benefit
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700000 USD
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8109000 USD
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us-gaap Increase Decrease In Accrued Liabilities
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us-gaap Increase Decrease In Accrued Liabilities
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us-gaap Increase Decrease In Deferred Revenue
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14539000 USD
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14869000 USD
us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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13415000 USD
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us-gaap Incremental Common Shares Attributable To Conversion Of Debt Securities
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0 shares
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0 shares
us-gaap Incremental Common Shares Attributable To Conversion Of Debt Securities
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CY2017Q2 us-gaap Incremental Common Shares Attributable To Conversion Of Preferred Stock
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us-gaap Incremental Common Shares Attributable To Conversion Of Preferred Stock
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0 shares
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us-gaap Incremental Common Shares Attributable To Conversion Of Preferred Stock
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0 shares
CY2017Q2 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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0 shares
us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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0 shares
CY2018Q2 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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0 shares
us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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us-gaap Interest Expense
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us-gaap Interest Expense
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547000 USD
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us-gaap Interest Expense Other
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658000 USD
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230000 USD
us-gaap Interest Expense Other
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us-gaap Interest On Convertible Debt Net Of Tax
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300000 USD
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us-gaap Investment Income Interest
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us-gaap Net Income Loss
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CY2017Q2 us-gaap Net Income Loss Attributable To Noncontrolling Interest
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us-gaap Net Income Loss Attributable To Noncontrolling Interest
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us-gaap Net Income Loss From Continuing Operations Available To Common Shareholders Diluted
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us-gaap Net Income Loss From Continuing Operations Available To Common Shareholders Diluted
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us-gaap Noncash Or Part Noncash Acquisition Noncash Financial Or Equity Instrument Consideration Shares Issued1
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us-gaap Operating Income Loss
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us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Adjustment Net Of Tax Portion Attributable To Parent
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12724000 USD
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us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Adjustment Net Of Tax Portion Attributable To Parent
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CY2017Q2 us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
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us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
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10000 USD
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18000 USD
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0 USD
us-gaap Payments To Acquire Property Plant And Equipment
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5235000 USD
us-gaap Payments To Acquire Property Plant And Equipment
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3820000 USD
CY2018Q1 us-gaap Preferred Stock Dividend Rate Percentage
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0 USD
us-gaap Preferred Stock Dividends And Other Adjustments
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0 USD
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7260000 USD
us-gaap Preferred Stock Dividends And Other Adjustments
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10613000 USD
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0 USD
us-gaap Preferred Stock Dividends Income Statement Impact
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0 USD
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7260000 USD
us-gaap Preferred Stock Dividends Income Statement Impact
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10613000 USD
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CY2018Q2 us-gaap Preferred Stock Shares Issued
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CY2017Q4 us-gaap Preferred Stock Shares Outstanding
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0 shares
CY2017Q4 us-gaap Preferred Stock Shares Outstanding
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0 shares
CY2018Q2 us-gaap Preferred Stock Shares Outstanding
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188000 shares
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13500000 USD
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0 USD
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900000000 USD
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0 USD
us-gaap Proceeds From Issuance Of Redeemable Preferred Stock
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0 USD
us-gaap Proceeds From Issuance Of Redeemable Preferred Stock
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86220000 USD
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2460000 USD
us-gaap Proceeds From Issuance Of Shares Under Incentive And Share Based Compensation Plans Including Stock Options
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Description of Business</font></div><div style="line-height:120%;text-align:justify;text-indent:24px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">General</font></div><div style="line-height:120%;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Synchronoss Technologies, Inc. (&#8220;Synchronoss&#8221; or the &#8220;Company&#8221;) is a global software and services company that provides essential technologies for the mobile transformation of business. The Company&#8217;s portfolio, which is targeted at the Consumer and Enterprise markets, contains offerings such as personal cloud, secure-mobility, identity management and scalable messaging platforms, products and solutions. These essential technologies create a better way of delivering the transformative mobile experiences that service providers and enterprises need to help them stay ahead of the curve in competition, innovation, productivity, growth and operational efficiency.</font></div><div style="line-height:120%;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Synchronoss&#8217; products and platforms are designed to be carrier-grade, flexible and scalable, enabling multiple converged communication services to be managed across a range of distribution channels including e-commerce, m-commerce, telesales, customer stores, indirect and other retail outlets. This business model allows the Company to meet the rapidly changing converged services and connected devices offered by their customers. Synchronoss&#8217; products, platforms and solutions enable its enterprise and service provider customers to acquire, retain and service subscribers and employees quickly, reliably and cost-effectively with white label and custom-branded solutions. Synchronoss customers can simplify the processes associated with managing the customer experience for procuring, activating, connecting, backing-up, synchronizing and sharing/collaboration with connected devices and contents from these devices and associated services. The extensibility, scalability, reliability and relevance of the Company&#8217;s platforms enable new revenue streams and retention opportunities for their customers through new subscriber acquisitions, sale of new devices, accessories and new value-added service offerings in the Cloud. By using the Company&#8217;s technologies, Synchronoss customers can optimize their cost of operations while enhancing their customer experience.</font></div><div style="line-height:120%;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company currently operates in and markets their solutions and services directly through their sales organizations in the United States, Canada and Latin America (collectively, the &#8220;Americas&#8221;); Europe, Middle East and Africa (collectively, &#8220;EMEA&#8221;); and Australia, Japan, Southeast Asia and China (collectively, &#8220;APAC&#8221;). Synchronoss delivers essential technologies for mobile transformation to two primary types of customers: service provider and enterprise customers in regulated verticals and use cases.</font></div><div style="line-height:120%;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Service Providers, Retailers, OEMs, Re-sellers and Service Integrators</font></div><div style="line-height:120%;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company&#8217;s products and platforms provide end-to-end seamless integration between customer-facing channels/applications, communication services, or devices and &#8220;back-office&#8221; infrastructure-related systems and processes. Synchronoss&#8217; customers rely on these solutions and technology to automate the process of activation and content and settings management for their subscribers&#8217; devices while delivering additional communication services. Synchronoss&#8217; portfolio includes: cloud-based sync, backup, storage and content engagement capabilities, broadband connectivity solutions, analytics, white label messaging, identity/access management that enable communications service providers (&#8220;CSPs&#8221;), cable operators/multi-services operators (&#8220;MSOs&#8221;) and original equipment manufacturers (&#8220;OEMs&#8221;) with embedded connectivity (e.g. smartphones, laptops, tablets and mobile internet devices (&#8220;MIDs&#8221;) such as automobiles, wearables for personal health and wellness, and connected homes), multi-channel retailers, as well as other customers to accelerate and monetize value-add services for secure and broadband networks and connected devices.</font></div></div>

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