2019 Q2 Form 10-Q Financial Statement

#000113155419000067 Filed on August 06, 2019

View on sec.gov

Income Statement

Concept 2019 Q2 2018 Q2 2018 Q1
Revenue $77.85M $76.74M $83.71M
YoY Change 1.44% -35.51% -2.77%
Cost Of Revenue $33.40M $39.50M $44.50M
YoY Change -15.44% -17.36% -3.47%
Gross Profit $44.44M $37.20M $39.20M
YoY Change 19.47% -47.78% -2.1%
Gross Profit Margin 57.09% 48.47% 46.83%
Selling, General & Admin $23.08M $33.94M $38.11M
YoY Change -31.99% 15.62% -1.82%
% of Gross Profit 51.93% 91.23% 97.22%
Research & Development $19.03M $20.20M $20.91M
YoY Change -5.81% -2.97% -17.98%
% of Gross Profit 42.81% 54.3% 53.33%
Depreciation & Amortization $20.27M $23.40M $23.27M
YoY Change -13.38% -0.64% -3.39%
% of Gross Profit 45.61% 62.91% 59.36%
Operating Expenses $42.11M $54.14M $59.02M
YoY Change -22.22% 7.9% -8.22%
Operating Profit -$18.29M -$43.10M -$44.23M
YoY Change -57.57% 384.6% -13.85%
Interest Expense $463.0K $1.318M $1.247M
YoY Change -64.87% -88.87% -88.25%
% of Operating Profit
Other Income/Expense, Net -$24.00K -$23.00K $4.282M
YoY Change 4.35% -98.52% 2.29%
Pretax Income -$18.42M -$40.69M -$37.85M
YoY Change -54.72% 113.74% -30.13%
Income Tax -$1.844M $579.0K $125.0K
% Of Pretax Income
Net Earnings -$25.03M -$47.27M -$40.05M
YoY Change -47.04% 77.9% -31.78%
Net Earnings / Revenue -32.15% -61.59% -47.84%
Basic Earnings Per Share -$0.61 -$1.20 -$0.95
Diluted Earnings Per Share -$0.61 -$1.20 -$0.95
COMMON SHARES
Basic Shares Outstanding 40.81M shares 39.46M shares 42.18M shares
Diluted Shares Outstanding 40.81M shares 39.46M shares 42.18M shares

Balance Sheet

Concept 2019 Q2 2018 Q2 2018 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $78.49M $228.2M $312.5M
YoY Change -65.61% 2.01% 35.22%
Cash & Equivalents $34.23M $222.8M $310.4M
Short-Term Investments $44.26M $5.400M $2.000M
Other Short-Term Assets $10.25M $60.90M $36.10M
YoY Change -83.17% -47.86% -74.49%
Inventory
Prepaid Expenses $28.46M
Receivables $99.93M $51.44M $42.03M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $217.5M $340.5M $390.6M
YoY Change -36.12% -23.96% -16.04%
LONG-TERM ASSETS
Property, Plant & Equipment $44.16M $89.31M $99.70M
YoY Change -50.55% -34.64% -32.23%
Goodwill $224.3M $233.3M $240.0M
YoY Change -3.84% 0.59% 6.7%
Intangibles
YoY Change
Long-Term Investments $0.00 $30.41M $30.42M
YoY Change -100.0% -30.92% -31.49%
Other Assets $7.764M $13.09M $5.130M
YoY Change -40.69% 43.88% -68.61%
Total Long-Term Assets $426.4M $587.6M $592.3M
YoY Change -27.44% -63.04% -62.58%
TOTAL ASSETS
Total Short-Term Assets $217.5M $340.5M $390.6M
Total Long-Term Assets $426.4M $587.6M $592.3M
Total Assets $643.9M $928.1M $982.9M
YoY Change -30.62% -54.45% -52.01%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $18.46M $13.92M $14.52M
YoY Change 32.56% 54.8% -45.64%
Accrued Expenses $54.25M $54.54M $64.66M
YoY Change -0.54% -10.78% 17.15%
Deferred Revenue $59.57M
YoY Change
Short-Term Debt $47.08M $0.00 $0.00
YoY Change -100.0% -100.0%
Long-Term Debt Due $47.08M
YoY Change
Total Short-Term Liabilities $179.4M $99.86M $113.9M
YoY Change 79.62% -91.09% -51.54%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $238.7M $238.9M
YoY Change -100.0% -0.08% -72.69%
Other Long-Term Liabilities $6.118M $15.39M $6.255M
YoY Change -60.25% 73.49% -26.55%
Total Long-Term Liabilities $6.118M $15.39M $6.255M
YoY Change -60.25% 73.49% -99.29%
TOTAL LIABILITIES
Total Short-Term Liabilities $179.4M $99.86M $113.9M
Total Long-Term Liabilities $6.118M $15.39M $6.255M
Total Liabilities $185.5M $115.2M $120.2M
YoY Change 60.94% -89.8% -89.25%
SHAREHOLDERS EQUITY
Retained Earnings -$266.9M -$102.5M -$54.61M
YoY Change 160.55% -634.71% -219.42%
Common Stock $531.3M $554.2M $615.5M
YoY Change -4.14% -5.85% 5.33%
Preferred Stock
YoY Change
Treasury Stock (at cost) $82.09M $82.08M $150.4M
YoY Change 0.0% -22.26% 42.46%
Treasury Stock Shares 7.162M shares 7.162M shares 11.05M shares
Shareholders Equity $151.4M $340.7M $390.8M
YoY Change
Total Liabilities & Shareholders Equity $643.9M $928.1M $982.9M
YoY Change -30.62% -54.45% -52.01%

Cashflow Statement

Concept 2019 Q2 2018 Q2 2018 Q1
OPERATING ACTIVITIES
Net Income -$25.03M -$47.27M -$40.05M
YoY Change -47.04% 77.9% -31.78%
Depreciation, Depletion And Amortization $20.27M $23.40M $23.27M
YoY Change -13.38% -0.64% -3.39%
Cash From Operating Activities $24.30M -$62.00M -$9.389M
YoY Change -139.19% 705.19% -25.48%
INVESTING ACTIVITIES
Capital Expenditures -$5.600M -$3.900M $1.093M
YoY Change 43.59% 457.14% -75.17%
Acquisitions $0.00
YoY Change -100.0%
Other Investing Activities -$24.30M -$16.00M -$5.200M
YoY Change 51.88% 135.29% -99.35%
Cash From Investing Activities -$29.90M -$19.80M -$13.37M
YoY Change 51.01% 160.53% -98.34%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -50.10M -600.0K $86.11M
YoY Change 8250.0% -79.31% -89.87%
NET CHANGE
Cash From Operating Activities 24.30M -62.00M -$9.389M
Cash From Investing Activities -29.90M -19.80M -$13.37M
Cash From Financing Activities -50.10M -600.0K $86.11M
Net Change In Cash -55.70M -82.40M $65.61M
YoY Change -32.4% 352.75% 123.75%
FREE CASH FLOW
Cash From Operating Activities $24.30M -$62.00M -$9.389M
Capital Expenditures -$5.600M -$3.900M $1.093M
Free Cash Flow $29.90M -$58.10M -$10.48M
YoY Change -151.46% 730.0% -38.34%

Facts In Submission

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us-gaap Comprehensive Income Net Of Tax Including Portion Attributable To Noncontrolling Interest
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us-gaap Comprehensive Income Net Of Tax Including Portion Attributable To Noncontrolling Interest
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CY2018Q1 us-gaap Convertible Preferred Stock Shares Issued Upon Conversion
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us-gaap Costs And Expenses
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us-gaap Cost Of Services Excluding Depreciation Depletion And Amortization
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CY2019Q2 us-gaap Costs And Expenses
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us-gaap Costs And Expenses
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us-gaap Cost Of Services Excluding Depreciation Depletion And Amortization
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84074000 USD
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14900000 USD
CY2019Q2 us-gaap Debt Securities Available For Sale Unrealized Loss Position
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200000 USD
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23401000 USD
us-gaap Depreciation Depletion And Amortization
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us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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10000 USD
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0.082
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41800000 USD
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P2Y2M12D
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us-gaap Fair Value Adjustment Of Warrants
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0 USD
us-gaap Fair Value Adjustment Of Warrants
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0 USD
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86649000 USD
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us-gaap Foreign Currency Transaction Gain Loss Before Tax
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us-gaap Foreign Currency Transaction Gain Loss Before Tax
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0 USD
us-gaap Gains Losses On Extinguishment Of Debt
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0 USD
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430000 USD
us-gaap Gains Losses On Extinguishment Of Debt
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817000 USD
CY2018Q4 us-gaap Goodwill
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CY2018Q2 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
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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 Equity Method Investments
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us-gaap Income Loss From Equity Method Investments
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us-gaap Income Loss From Equity Method Investments Net Of Dividends Or Distributions
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CY2018Q2 us-gaap Income Tax Expense Benefit
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us-gaap Income Tax Expense Benefit
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us-gaap Income Tax Expense Benefit
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us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
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us-gaap Income Tax Expense Benefit
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5151000 USD
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us-gaap Increase Decrease In Contract With Customer Liability
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632000 USD
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0 shares
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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0 shares
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0 shares
us-gaap Incremental Common Shares Attributable To Conversion Of Preferred Stock
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0 shares
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0 shares
us-gaap Incremental Common Shares Attributable To Conversion Of Preferred Stock
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0 shares
us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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0 shares
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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 Other
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us-gaap Minority Interest Change In Redemption Value
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us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
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3000 USD
us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Net Of Tax
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us-gaap Other Nonoperating Income Expense
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us-gaap Payments For Software
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us-gaap Payments For Software
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us-gaap Payments Of Dividends Preferred Stock And Preference Stock
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us-gaap Payments Of Dividends Preferred Stock And Preference Stock
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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;">1. Description of Business</font><font style="font-family:inherit;font-size:10pt;font-weight:bold;"> </font></div><div style="line-height:120%;text-align:justify;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;">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%;padding-bottom:10px;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;) Digital, Cloud, Messaging and IoT platforms help the world&#8217;s leading companies, including operators, original equipment manufacturers (&#8220;OEMs&#8221;), and Media and Technology providers to deliver continuously transformative customer experiences that create high value engagement and new monetization opportunities. </font></div><div style="line-height:120%;padding-bottom:10px;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company currently operates in and markets solutions and services directly through the Company&#8217;s sales organizations in North America, Europe and Asia-Pacific. The Company&#8217;s platforms give customers new opportunities in the Telecommunications, Media and Technology (&#8220;TMT&#8221;) space, taking advantage of the rapidly converging services, connected devices, networks and applications. </font></div><div style="line-height:120%;padding-bottom:10px;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company delivers platforms, products and solutions including: </font></div><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:48px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Digital experience management (Platform as a Service) - including digital journey creation, and journey design products that use analytics that power digital advisor products for IT and Business Channel Owners </font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:48px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Cloud sync, backup, storage, device set up, content transfer and content engagement for user generated content </font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:48px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Advanced, multi-channel messaging peer-to-peer (&#8220;P2P&#8221;) communications and application-to-person (&#8220;A2P&#8221;) commerce solutions </font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:48px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">IoT management technology for Smart Cities, Smart Buildings, Automotive and more </font></div></td></tr></table><div style="line-height:120%;text-align:justify;padding-left:72px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:10px;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Synchronoss Digital Experience Platform (&#8220;DXP&#8221;) is a purpose-built experience management toolset that sits between the customers&#8217; end-user facing applications and their existing back end systems, enabling the authoring and management of customer journeys in a cloud-native no/low-code environment. This platform uses products such as Journey Creator, Journey Advisor, CX Baseline and Digital Coach to create a wide variety of insight-driven customer experiences across existing channels (digital and analogue) including creating the ability to pause and resume continuous, intelligent experiences in an omni-channel environment. DXP can be operated by IT professionals and &#8220;citizen&#8221; developers (business analysts, etc.) enabling the Company&#8217;s customers to bring more compelling and complex experiences to market in less time with fewer and more diverse resources in a real-time, collaborative environment. </font></div><div style="line-height:120%;padding-bottom:10px;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Synchronoss Personal Cloud Platform&#8482; is a secure and highly scalable white label platform designed to store and sync subscriber&#8217;s personally created content seamlessly to and from current and new devices. This allows a carrier&#8217;s customers to protect, engage with and manage their personal content and gives the Company&#8217;s Operator customers the ability to increase average revenue per user (&#8220;ARPU&#8221;) through a new monthly recurring charge (&#8220;MRC&#8221;) and opportunities to mine valuable data that will give subscribers access to new, beneficial services. Additionally, the Company&#8217;s Personal Cloud Platform performs an expanding set of value-add services including facilitating an Operator&#8217;s initial device setup and enhancing visibility and control across disparate devices within subscribers&#8217; smart homes. </font></div><div style="line-height:120%;padding-bottom:10px;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Synchronoss Messaging Platform powers hundreds of millions of subscribers&#8217; mail boxes worldwide. The Company&#8217;s Advanced Messaging Product is a powerful, secure and intelligent white label messaging platform that expands capabilities for Operators and TMT companies to offer P2P messaging via Rich Communications Services (&#8220;RCS&#8221;). Additionally, the Company&#8217;s Advanced Messaging Product powers commerce and a robust ecosystem for Operators, brands and advertisers to execute Application to Person (&#8220;A2P&#8221;) commerce and data-rich dialogue with subscribers.</font></div><div style="line-height:120%;padding-bottom:10px;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Synchronoss IoT Platform creates an easy to use environment and extensible ecosystem making the management of disparate devices, sensors, data pools and networks easier to manage by IoT administrators and drives the propagation of new IoT applications and monetization models for TMT companies. The Company&#8217;s IoT platform utilizes Synchronoss platforms (DXP, Cloud, Messaging), products and solutions to make IoT more accessible and actionable for Smart Building facility managers, Smart City planners, Automotive OEMs and TMT ecosystem players.</font></div></div>

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