2019 Q4 Form 10-Q Financial Statement

#000113155419000078 Filed on November 05, 2019

View on sec.gov

Income Statement

Concept 2019 Q4 2019 Q3 2019 Q2
Revenue $90.59M $52.21M $77.85M
YoY Change 10.34% -37.31% 1.44%
Cost Of Revenue $42.40M $35.60M $33.40M
YoY Change 36.77% -18.53% -15.44%
Gross Profit $48.10M $16.61M $44.44M
YoY Change -5.87% -58.06% 19.47%
Gross Profit Margin 53.1% 31.81% 57.09%
Selling, General & Admin $29.90M $30.54M $23.08M
YoY Change 31.72% 11.77% -31.99%
% of Gross Profit 62.16% 183.86% 51.93%
Research & Development $18.30M $18.58M $19.03M
YoY Change -5.67% -0.58% -5.81%
% of Gross Profit 38.05% 111.84% 42.81%
Depreciation & Amortization $18.10M $18.51M $20.27M
YoY Change -32.46% -21.77% -13.38%
% of Gross Profit 37.63% 111.44% 45.61%
Operating Expenses $66.40M $49.11M $42.11M
YoY Change -25.81% 6.75% -22.22%
Operating Profit -$18.19M -$50.97M -$18.29M
YoY Change -57.01% 47.19% -57.57%
Interest Expense $400.0K $203.0K $463.0K
YoY Change -101.36% -85.18% -64.87%
% of Operating Profit
Other Income/Expense, Net $7.400M -$422.0K -$24.00K
YoY Change -111.26% -96.86% 4.35%
Pretax Income -$10.40M -$51.36M -$18.42M
YoY Change -92.34% 4.93% -54.72%
Income Tax -$4.400M $9.849M -$1.844M
% Of Pretax Income
Net Earnings -$14.68M -$69.43M -$25.03M
YoY Change -85.6% 27.33% -47.04%
Net Earnings / Revenue -16.2% -132.99% -32.15%
Basic Earnings Per Share -$0.36 -$1.70 -$0.61
Diluted Earnings Per Share -$0.36 -$1.70 -$0.61
COMMON SHARES
Basic Shares Outstanding 45.06M shares 40.91M shares 40.81M shares
Diluted Shares Outstanding 40.91M shares 40.81M shares

Balance Sheet

Concept 2019 Q4 2019 Q3 2019 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $39.00M $20.09M $78.49M
YoY Change -70.45% -91.24% -65.61%
Cash & Equivalents $38.99M $19.19M $34.23M
Short-Term Investments $11.00K $897.0K $44.26M
Other Short-Term Assets $4.792M $4.934M $10.25M
YoY Change -43.68% -65.04% -83.17%
Inventory
Prepaid Expenses $33.23M $17.10M $28.46M
Receivables $65.86M $73.57M $99.93M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $142.9M $115.7M $217.5M
YoY Change -51.47% -66.7% -36.12%
LONG-TERM ASSETS
Property, Plant & Equipment $26.53M $35.63M $44.16M
YoY Change -60.96% -55.75% -50.55%
Goodwill $223.0M $220.4M $224.3M
YoY Change -0.86% -6.02% -3.84%
Intangibles
YoY Change
Long-Term Investments $0.00 $0.00 $0.00
YoY Change -100.0% -100.0% -100.0%
Other Assets $8.054M $7.769M $7.764M
YoY Change -10.33% -13.1% -40.69%
Total Long-Term Assets $389.1M $400.2M $426.4M
YoY Change -4.81% -26.81% -27.44%
TOTAL ASSETS
Total Short-Term Assets $142.9M $115.7M $217.5M
Total Long-Term Assets $389.1M $400.2M $426.4M
Total Assets $532.0M $516.0M $643.9M
YoY Change -24.35% -42.31% -30.62%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $21.55M $15.50M $18.46M
YoY Change 58.74% 8.36% 32.56%
Accrued Expenses $65.99M $54.22M $54.25M
YoY Change 10.82% 0.79% -0.54%
Deferred Revenue $65.86M $53.79M $59.57M
YoY Change 15.34% -0.48%
Short-Term Debt $0.00 $0.00 $47.08M
YoY Change -100.0% -100.0%
Long-Term Debt Due $0.00 $0.00 $47.08M
YoY Change -100.0% -100.0%
Total Short-Term Liabilities $153.4M $123.5M $179.4M
YoY Change -37.07% -64.8% 79.62%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change -100.0%
Other Long-Term Liabilities $4.589M $4.624M $6.118M
YoY Change -57.5% -59.18% -60.25%
Total Long-Term Liabilities $4.589M $4.624M $6.118M
YoY Change -57.5% -59.18% -60.25%
TOTAL LIABILITIES
Total Short-Term Liabilities $153.4M $123.5M $179.4M
Total Long-Term Liabilities $4.589M $4.624M $6.118M
Total Liabilities $158.0M $128.1M $185.5M
YoY Change -37.94% -64.63% 60.94%
SHAREHOLDERS EQUITY
Retained Earnings -$334.3M -$328.2M -$266.9M
YoY Change 43.3% 109.06% 160.55%
Common Stock $525.7M $528.7M $531.3M
YoY Change -1.67% -5.78% -4.14%
Preferred Stock
YoY Change
Treasury Stock (at cost) $82.09M $82.09M $82.09M
YoY Change 0.0% 0.0% 0.0%
Treasury Stock Shares 7.162M shares 7.162M shares 7.162M shares
Shareholders Equity $76.08M $84.59M $151.4M
YoY Change
Total Liabilities & Shareholders Equity $532.0M $516.0M $643.9M
YoY Change -24.35% -42.31% -30.62%

Cashflow Statement

Concept 2019 Q4 2019 Q3 2019 Q2
OPERATING ACTIVITIES
Net Income -$14.68M -$69.43M -$25.03M
YoY Change -85.6% 27.33% -47.04%
Depreciation, Depletion And Amortization $18.10M $18.51M $20.27M
YoY Change -32.46% -21.77% -13.38%
Cash From Operating Activities $20.80M -$6.800M $24.30M
YoY Change -29.01% -163.55% -139.19%
INVESTING ACTIVITIES
Capital Expenditures -$4.800M -$5.500M -$5.600M
YoY Change -25.0% -27.63% 43.59%
Acquisitions
YoY Change
Other Investing Activities $6.500M $43.50M -$24.30M
YoY Change -134.57% -3446.15% 51.88%
Cash From Investing Activities $1.700M $38.00M -$29.90M
YoY Change -106.72% -531.82% 51.01%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -300.0K -47.40M -50.10M
YoY Change -99.75% 15700.0% 8250.0%
NET CHANGE
Cash From Operating Activities 20.80M -6.800M 24.30M
Cash From Investing Activities 1.700M 38.00M -29.90M
Cash From Financing Activities -300.0K -47.40M -50.10M
Net Change In Cash 22.20M -16.20M -55.70M
YoY Change -118.96% -1112.5% -32.4%
FREE CASH FLOW
Cash From Operating Activities $20.80M -$6.800M $24.30M
Capital Expenditures -$4.800M -$5.500M -$5.600M
Free Cash Flow $25.60M -$1.300M $29.90M
YoY Change -28.29% -107.1% -151.46%

Facts In Submission

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185069000 USD
CY2018Q4 us-gaap Contract With Customer Liability Current
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57101000 USD
CY2019Q3 us-gaap Contract With Customer Liability Current
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53789000 USD
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CY2019Q3 us-gaap Contract With Customer Liability Noncurrent
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34018000 USD
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214204000 USD
CY2018Q1 us-gaap Convertible Preferred Stock Shares Issued Upon Conversion
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519000 USD
us-gaap Cost Method Investments Realized Gain Loss
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519000 USD
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us-gaap Cost Method Investments Realized Gain Loss
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CY2018Q3 us-gaap Cost Of Services Excluding Depreciation Depletion And Amortization
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43714000 USD
us-gaap Cost Of Services Excluding Depreciation Depletion And Amortization
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127788000 USD
CY2019Q3 us-gaap Cost Of Services Excluding Depreciation Depletion And Amortization
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35602000 USD
us-gaap Cost Of Services Excluding Depreciation Depletion And Amortization
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107958000 USD
CY2018Q3 us-gaap Costs And Expenses
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us-gaap Costs And Expenses
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365700000 USD
CY2019Q3 us-gaap Costs And Expenses
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103182000 USD
us-gaap Costs And Expenses
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307760000 USD
CY2018Q1 us-gaap Cumulative Effect Of New Accounting Principle In Period Of Adoption
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CY2018Q3 us-gaap Cumulative Effect Of New Accounting Principle In Period Of Adoption
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17000 USD
CY2018Q4 us-gaap Debt Instrument Carrying Amount
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CY2019Q3 us-gaap Debt Instrument Carrying Amount
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0 USD
CY2018Q4 us-gaap Debt Securities Available For Sale Unrealized Loss Position
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14900000 USD
CY2019Q3 us-gaap Debt Securities Available For Sale Unrealized Loss Position
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0 USD
CY2018Q4 us-gaap Deferred Finance Costs Net
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us-gaap Deferred Income Tax Expense Benefit
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1347000 USD
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1270000 USD
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23658000 USD
us-gaap Depreciation Depletion And Amortization
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70330000 USD
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18508000 USD
us-gaap Depreciation Depletion And Amortization
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58920000 USD
us-gaap Dividends
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us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
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us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
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783000 USD
us-gaap Effective Income Tax Rate Continuing Operations
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P2Y2M12D
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1402000 USD
us-gaap Employee Service Share Based Compensation Tax Benefit From Compensation Expense
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862000 USD
us-gaap Employee Service Share Based Compensation Tax Benefit From Compensation Expense
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2700000 USD
CY2018Q4 us-gaap Equity Fair Value Disclosure
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12500000 USD
CY2019Q3 us-gaap Equity Fair Value Disclosure
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12500000 USD
CY2018Q4 us-gaap Equity Method Investments
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1619000 USD
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CY2018Q3 us-gaap Fair Value Adjustment Of Warrants
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0 USD
us-gaap Fair Value Adjustment Of Warrants
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CY2019Q3 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
CY2018Q3 us-gaap Financing Receivables Impaired Troubled Debt Restructuring Write Down
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18225000 USD
us-gaap Financing Receivables Impaired Troubled Debt Restructuring Write Down
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18225000 USD
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0 USD
us-gaap Financing Receivables Impaired Troubled Debt Restructuring Write Down
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0 USD
CY2018Q4 us-gaap Finite Lived Intangible Assets Net
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CY2019Q3 us-gaap Finite Lived Intangible Assets Net
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CY2018Q3 us-gaap Foreign Currency Transaction Gain Loss Before Tax
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38000 USD
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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us-gaap Gain Loss On Disposition Of Assets
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-277000 USD
us-gaap Gain Loss On Disposition Of Assets
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CY2018Q3 us-gaap Gain Loss Related To Litigation Settlement
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4495000 USD
us-gaap Gain Loss Related To Litigation Settlement
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4495000 USD
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0 USD
us-gaap Gain Loss Related To Litigation Settlement
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0 USD
CY2018Q3 us-gaap Gains Losses On Extinguishment Of Debt
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0 USD
us-gaap Gains Losses On Extinguishment Of Debt
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0 USD
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5000 USD
us-gaap Gains Losses On Extinguishment Of Debt
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822000 USD
CY2018Q4 us-gaap Goodwill
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CY2019Q3 us-gaap Goodwill
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CY2018Q3 us-gaap Income Loss From Continuing Operations
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us-gaap Income Loss From Continuing Operations
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CY2019Q3 us-gaap Income Loss From Continuing Operations
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us-gaap Income Loss From Continuing Operations
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CY2018Q3 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 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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CY2018Q3 us-gaap Income Loss From Continuing Operations Per Basic Share
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us-gaap Income Loss From Continuing Operations Per Basic Share
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us-gaap Income Loss From Continuing Operations Per Basic Share
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us-gaap Income Loss From Continuing Operations Per Diluted Share
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us-gaap Income Loss From Continuing Operations Per Diluted Share
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CY2018Q3 us-gaap Income Loss From Equity Method Investments
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us-gaap Income Loss From Equity Method Investments
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71000 USD
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0 USD
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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71000 USD
us-gaap Income Loss From Equity Method Investments Net Of Dividends Or Distributions
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CY2018Q3 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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CY2019Q3 us-gaap Income Tax Expense Benefit
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us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
6614000 USD
us-gaap Income Tax Expense Benefit
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6600000 USD
us-gaap Increase Decrease In Accounts Payable
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8195000 USD
us-gaap Increase Decrease In Accounts Payable
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2615000 USD
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us-gaap Increase Decrease In Contract With Customer Liability
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us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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12844000 USD
us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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CY2018Q3 us-gaap Incremental Common Shares Attributable To Conversion Of Debt Securities
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0 shares
us-gaap Incremental Common Shares Attributable To Conversion Of Debt Securities
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0 shares
CY2019Q3 us-gaap Incremental Common Shares Attributable To Conversion Of Debt Securities
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0 shares
us-gaap Incremental Common Shares Attributable To Conversion Of Debt Securities
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0 shares
CY2018Q3 us-gaap Incremental Common Shares Attributable To Conversion Of Preferred Stock
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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
CY2018Q3 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
CY2019Q3 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
CY2018Q3 us-gaap Interest Expense
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CY2019Q3 us-gaap Interest Expense
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us-gaap Interest Expense
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1251000 USD
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0 USD
us-gaap Interest Expense Lessee Assets Under Capital Lease
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0 USD
CY2018Q3 us-gaap Interest Expense Other
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345000 USD
us-gaap Interest Expense Other
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667000 USD
CY2019Q3 us-gaap Interest Expense Other
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101000 USD
us-gaap Interest Expense Other
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615000 USD
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0 USD
us-gaap Interest On Convertible Debt Net Of Tax
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0 USD
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0 USD
us-gaap Interest On Convertible Debt Net Of Tax
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0 USD
CY2018Q3 us-gaap Investment Income Interest
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us-gaap Investment Income Interest
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7518000 USD
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228000 USD
us-gaap Investment Income Interest
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us-gaap Lease Cost
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CY2019Q3 us-gaap Lessee Operating Lease Liability Payments Due
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CY2019Q3 us-gaap Lessee Operating Lease Liability Payments Due After Year Five
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CY2019Q3 us-gaap Lessee Operating Lease Liability Payments Due Year Two
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24915000 USD
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CY2019Q3 us-gaap Liabilities And Stockholders Equity
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us-gaap Litigation Settlement Expense
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CY2019Q3 us-gaap Long Term Debt
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CY2019Q3 us-gaap Long Term Debt Current
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0 USD
CY2018Q4 us-gaap Marketable Securities
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CY2019Q3 us-gaap Marketable Securities
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897000 USD
us-gaap Marketable Securities Realized Gain Loss
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422000 USD
us-gaap Minority Interest Change In Redemption Value
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10659000 USD
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25000 USD
us-gaap Minority Interest Change In Redemption Value
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931000 USD
us-gaap Net Cash Provided By Used In Financing Activities
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us-gaap Net Cash Provided By Used In Financing Activities
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us-gaap Net Cash Provided By Used In Investing Activities
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us-gaap Net Cash Provided By Used In Investing Activities
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17725000 USD
us-gaap Net Cash Provided By Used In Operating Activities
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us-gaap Net Cash Provided By Used In Operating Activities
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11839000 USD
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us-gaap Net Income Loss
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CY2019Q3 us-gaap Net Income Loss
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us-gaap Net Income Loss
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CY2018Q3 us-gaap Net Income Loss Attributable To Noncontrolling Interest
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422000 USD
us-gaap Net Income Loss Attributable To Noncontrolling Interest
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25000 USD
us-gaap Net Income Loss Attributable To Noncontrolling Interest
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us-gaap Operating Income Loss
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CY2019Q3 us-gaap Operating Income Loss
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us-gaap Operating Income Loss
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CY2019Q3 us-gaap Operating Lease Cost
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3202000 USD
us-gaap Operating Lease Cost
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9960000 USD
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us-gaap Operating Lease Impairment Loss
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6268000 USD
us-gaap Operating Lease Impairment Loss
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6300000 USD
CY2019Q3 us-gaap Operating Lease Liability
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CY2019Q3 us-gaap Operating Lease Liability Current
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8090000 USD
CY2019Q3 us-gaap Operating Lease Liability Noncurrent
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us-gaap Operating Lease Payments
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CY2019Q3 us-gaap Operating Lease Right Of Use Asset
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CY2019Q3 us-gaap Operating Lease Weighted Average Remaining Lease Term1
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P7Y9M22D
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CY2019Q3 us-gaap Other Assets Current
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CY2019Q3 us-gaap Other Assets Noncurrent
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us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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us-gaap Other Comprehensive Income Loss Net Of Tax
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us-gaap Other Comprehensive Income Loss Net Of Tax
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CY2018Q3 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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CY2019Q3 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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CY2018Q3 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Net Of Tax
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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 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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