2021 Q1 Form 10-Q Financial Statement

#000113155421000023 Filed on May 10, 2021

View on sec.gov

Income Statement

Concept 2021 Q1 2020 Q1
Revenue $65.50M $77.12M
YoY Change -15.07% -12.47%
Cost Of Revenue $28.64M $35.47M
YoY Change -19.27% -9.05%
Gross Profit $36.86M $41.65M
YoY Change -11.5% -15.34%
Gross Profit Margin 56.28% 54.01%
Selling, General & Admin $17.93M $26.34M
YoY Change -31.95% -9.92%
% of Gross Profit 48.64% 63.25%
Research & Development $17.40M $19.79M
YoY Change -12.08% 0.54%
% of Gross Profit 47.19% 47.51%
Depreciation & Amortization $9.867M $11.36M
YoY Change -13.11% -43.62%
% of Gross Profit 26.77% 27.26%
Operating Expenses $35.33M $46.13M
YoY Change -23.43% -5.71%
Operating Profit -$9.043M -$17.29M
YoY Change -47.69% -15.01%
Interest Expense $95.00K $245.0K
YoY Change -61.22% -58.12%
% of Operating Profit
Other Income/Expense, Net -$3.396M $1.692M
YoY Change -300.71% 265.44%
Pretax Income -$12.53M -$15.78M
YoY Change -20.61% -25.3%
Income Tax -$200.0K -$12.40M
% Of Pretax Income
Net Earnings -$12.37M -$12.28M
YoY Change 0.73% -55.5%
Net Earnings / Revenue -18.88% -15.92%
Basic Earnings Per Share -$0.53 -$0.30
Diluted Earnings Per Share -$0.53 -$0.30
COMMON SHARES
Basic Shares Outstanding 42.74M shares 41.48M shares
Diluted Shares Outstanding 42.74M shares 41.48M shares

Balance Sheet

Concept 2021 Q1 2020 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $29.80M $30.90M
YoY Change -3.56% -71.51%
Cash & Equivalents $29.82M $30.91M
Short-Term Investments $0.00
Other Short-Term Assets $40.90M $43.90M
YoY Change -6.83% 337.03%
Inventory
Prepaid Expenses
Receivables $46.24M $60.82M
Other Receivables $0.00 $0.00
Total Short-Term Assets $116.9M $135.6M
YoY Change -13.81% -49.93%
LONG-TERM ASSETS
Property, Plant & Equipment $10.80M $22.16M
YoY Change -51.27% -57.49%
Goodwill $228.5M $219.8M
YoY Change 3.96% -1.58%
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $6.793M $7.779M
YoY Change -12.68% -22.31%
Total Long-Term Assets $348.2M $377.2M
YoY Change -7.67% -15.01%
TOTAL ASSETS
Total Short-Term Assets $116.9M $135.6M
Total Long-Term Assets $348.2M $377.2M
Total Assets $465.1M $512.8M
YoY Change -9.29% -28.24%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $16.91M $17.96M
YoY Change -5.84% -5.24%
Accrued Expenses $67.69M $65.46M
YoY Change 3.41% 23.79%
Deferred Revenue $32.36M $49.04M
YoY Change -34.02% -24.65%
Short-Term Debt $0.00 $0.00
YoY Change -100.0%
Long-Term Debt Due $10.00M $10.00M
YoY Change 0.0% -89.71%
Total Short-Term Liabilities $127.0M $142.5M
YoY Change -10.88% -39.15%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00
YoY Change
Other Long-Term Liabilities $4.897M $4.655M
YoY Change 5.2% -37.97%
Total Long-Term Liabilities $4.897M $4.655M
YoY Change 5.2% -37.97%
TOTAL LIABILITIES
Total Short-Term Liabilities $127.0M $142.5M
Total Long-Term Liabilities $4.897M $4.655M
Total Liabilities $131.8M $147.1M
YoY Change -10.37% -39.11%
SHAREHOLDERS EQUITY
Retained Earnings -$357.8M -$338.3M
YoY Change 5.75% 35.46%
Common Stock $491.3M $522.2M
YoY Change -5.91% -2.07%
Preferred Stock
YoY Change
Treasury Stock (at cost) $82.09M $82.09M
YoY Change 0.0% 0.0%
Treasury Stock Shares 7.162M shares 7.162M shares
Shareholders Equity $22.06M $64.91M
YoY Change
Total Liabilities & Shareholders Equity $465.1M $512.8M
YoY Change -9.29% -28.24%

Cashflow Statement

Concept 2021 Q1 2020 Q1
OPERATING ACTIVITIES
Net Income -$12.37M -$12.28M
YoY Change 0.73% -55.5%
Depreciation, Depletion And Amortization $9.867M $11.36M
YoY Change -13.11% -43.62%
Cash From Operating Activities $2.261M -$15.02M
YoY Change -115.06% 164.18%
INVESTING ACTIVITIES
Capital Expenditures $721.0K $249.0K
YoY Change 189.56% -90.52%
Acquisitions
YoY Change
Other Investing Activities $0.00 $1.900M
YoY Change -100.0% -87.25%
Cash From Investing Activities -$5.763M -$2.823M
YoY Change 104.14% -129.41%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $0.00 $9.996M
YoY Change -100.0% -142.61%
NET CHANGE
Cash From Operating Activities $2.261M -$15.02M
Cash From Investing Activities -$5.763M -$2.823M
Cash From Financing Activities $0.00 $9.996M
Net Change In Cash -$3.853M -$8.095M
YoY Change -52.4% -58.63%
FREE CASH FLOW
Cash From Operating Activities $2.261M -$15.02M
Capital Expenditures $721.0K $249.0K
Free Cash Flow $1.540M -$15.27M
YoY Change -110.09% 83.67%

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Description of Business <div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">General</span></div><div style="text-align:justify;text-indent:18pt"><span><br/></span></div><div style="margin-bottom:8pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Synchronoss Technologies, Inc. (“Synchronoss” or the “Company”) Digital, Cloud, Messaging and Total Network Management platforms help the world’s leading companies, including operators, original equipment manufacturers (“OEMs”), and Media and Technology providers to deliver continuously transformative customer experiences that create high value engagement and new monetization opportunities.</span></div><div style="margin-bottom:8pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company currently operates in and markets solutions and services directly through the Company’s sales organizations in North America, Europe and Asia-Pacific. The Company’s platforms give customers new opportunities in the Telecommunications, Media and Technology (“TMT”) space, taking advantage of the rapidly converging services, connected devices, networks and applications.</span></div><div style="margin-bottom:8pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company delivers platforms, products and solutions including: </span></div><div style="padding-left:54pt;text-align:justify;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.5pt">White Label Personal Cloud: Cloud sync, backup, storage, device set up, content transfer and content engagement for user generated content. </span></div><div style="padding-left:54pt;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.5pt">Messaging: </span><span style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">White label consumer email solutions. A</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">dvanced, multi-channel messaging peer-to-peer (“P2P”) communications and application-to-person (“A2P”) commerce solutions. </span></div><div style="padding-left:54pt;text-align:justify;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.5pt">Digital: Customer journey and workflow design, development, orchestration and experience management. </span></div><div style="padding-left:54pt;text-align:justify;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.5pt">Total Network Management (“TNM”)</span><span style="color:#008080;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">:</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> integrated application suite that designs, procures, manage</span><span style="color:#008080;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">s</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> and optimizes telecom network infrastructure. </span></div><div style="padding-left:54pt;text-align:justify"><span><br/></span></div><div style="margin-bottom:8pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Synchronoss Personal Cloud™ platform is a secure and highly scalable white label platform designed to store and sync subscriber’s personally created content seamlessly to and from current and new devices. This allows a carrier’s customers to protect, engage with and manage their personal content and gives the Company’s Operator customers the ability to increase average revenue per user (“ARPU”) through a new monthly recurring charge (“MRC”) and opportunities to mine valuable data that will give subscribers access to new, beneficial services. Additionally, the Company’s Personal Cloud Platform performs an expanding set of value-add services including facilitating an Operator’s initial device setup and enhancing visibility and control across disparate devices within subscribers’ smart homes. </span></div><div style="margin-bottom:8pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Synchronoss Messaging Platform powers hundreds of millions of subscribers’ mail boxes worldwide. The Company’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 (“RCS”). Additionally, the Company’s Advanced Messaging Product powers commerce and a robust ecosystem for Operators, brands and advertisers to execute Application to Person (“A2P”) commerce and data-rich dialogue with subscribers.</span></div><div style="margin-bottom:8pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Synchronoss Digital Platform is a suite of technology, tools and solutions that includes digital experience creation and management, automated provisioning, artificial intelligence and financial analytics that service a broad array of TMT markets. The products equip customers with a toolkit of capabilities where they can design, deploy and manage end user customer journeys and workflows easily and quickly from one central platform that also integrates across front end customer engagement channels as well as enterprise business systems (e.g. CRM, POS) allowing non-citizen developers to configure rather than code experiences. The platform sits between customer-facing touch points and a customer’s existing back-office systems to orchestrate data, workflows and processes into digital customer journeys that interface with end user channels creating user experiences that can be centrally managed and coordinated with less resources than is typical in a traditional IT environment.</span></div>The Synchronoss Total Network Management application suite provides Operators with the tools and software to design their physical network, streamline their infrastructure purchases, and comprehensive network expense optimization and management for leading top tier carriers around the globe.
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P3Y11M4D
CY2021Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Aggregate Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingAggregateIntrinsicValue
0 USD
CY2021Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber
1876000 shares
CY2021Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice
13.88
CY2021Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Weighted Average Remaining Contractual Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1
P3Y11M4D
CY2021Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Exercisable Aggregate Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableAggregateIntrinsicValue
0 USD
CY2021Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Intrinsic Value1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1
0 USD
CY2020Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Intrinsic Value1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1
0 USD
CY2021Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercises In Period Total Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue
0 USD
CY2020Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercises In Period Total Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue
0 USD
CY2021Q1 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
-200000 USD
CY2020Q1 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
-12400000 USD
CY2021Q1 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.013
CY2020Q1 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.788
CY2021Q1 us-gaap Income Loss From Continuing Operations Including Portion Attributable To Noncontrolling Interest
IncomeLossFromContinuingOperationsIncludingPortionAttributableToNoncontrollingInterest
-12366000 USD
CY2020Q1 us-gaap Income Loss From Continuing Operations Including Portion Attributable To Noncontrolling Interest
IncomeLossFromContinuingOperationsIncludingPortionAttributableToNoncontrollingInterest
-3350000 USD
CY2021Q1 us-gaap Net Income Loss Attributable To Noncontrolling Interest
NetIncomeLossAttributableToNoncontrollingInterest
-336000 USD
CY2020Q1 us-gaap Net Income Loss Attributable To Noncontrolling Interest
NetIncomeLossAttributableToNoncontrollingInterest
17000 USD
CY2021Q1 us-gaap Preferred Stock Dividends And Other Adjustments
PreferredStockDividendsAndOtherAdjustments
10530000 USD
CY2020Q1 us-gaap Preferred Stock Dividends And Other Adjustments
PreferredStockDividendsAndOtherAdjustments
8909000 USD
CY2021Q1 us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
-22560000 USD
CY2020Q1 us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
-12276000 USD
CY2021Q1 us-gaap Income Loss From Continuing Operations
IncomeLossFromContinuingOperations
-22560000 USD
CY2020Q1 us-gaap Income Loss From Continuing Operations
IncomeLossFromContinuingOperations
-12276000 USD
CY2021Q1 us-gaap Interest On Convertible Debt Net Of Tax
InterestOnConvertibleDebtNetOfTax
0 USD
CY2020Q1 us-gaap Interest On Convertible Debt Net Of Tax
InterestOnConvertibleDebtNetOfTax
0 USD
CY2021Q1 us-gaap Net Income Loss From Continuing Operations Available To Common Shareholders Diluted
NetIncomeLossFromContinuingOperationsAvailableToCommonShareholdersDiluted
-22560000 USD
CY2020Q1 us-gaap Net Income Loss From Continuing Operations Available To Common Shareholders Diluted
NetIncomeLossFromContinuingOperationsAvailableToCommonShareholdersDiluted
-12276000 USD
CY2021Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
42737000 shares
CY2020Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
41483000 shares
CY2021Q1 us-gaap Incremental Common Shares Attributable To Conversion Of Preferred Stock
IncrementalCommonSharesAttributableToConversionOfPreferredStock
0 shares
CY2020Q1 us-gaap Incremental Common Shares Attributable To Conversion Of Preferred Stock
IncrementalCommonSharesAttributableToConversionOfPreferredStock
0 shares
CY2021Q1 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
0 shares
CY2020Q1 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
0 shares
CY2021Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
42737000 shares
CY2020Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
41483000 shares
CY2021Q1 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
-0.53
CY2020Q1 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
-0.30
CY2021Q1 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-0.53
CY2020Q1 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-0.30
CY2021Q1 us-gaap Purchase Obligation Future Minimum Payments Remainder Of Fiscal Year
PurchaseObligationFutureMinimumPaymentsRemainderOfFiscalYear
9909000 USD
CY2021Q1 us-gaap Purchase Obligation Due In Next Twelve Months
PurchaseObligationDueInNextTwelveMonths
16317000 USD
CY2021Q1 us-gaap Purchase Obligation Due In Second Year
PurchaseObligationDueInSecondYear
13749000 USD
CY2021Q1 sncr Purchase Obligation To Be Paid After Year Two
PurchaseObligationToBePaidAfterYearTwo
21994000 USD
CY2021Q1 us-gaap Purchase Obligation
PurchaseObligation
61969000 USD
CY2021Q1 us-gaap Foreign Currency Transaction Gain Loss Before Tax
ForeignCurrencyTransactionGainLossBeforeTax
-3274000 USD
CY2020Q1 us-gaap Foreign Currency Transaction Gain Loss Before Tax
ForeignCurrencyTransactionGainLossBeforeTax
-212000 USD
CY2021Q1 us-gaap Gain Loss On Disposition Of Intangible Assets
GainLossOnDispositionOfIntangibleAssets
0 USD
CY2020Q1 us-gaap Gain Loss On Disposition Of Intangible Assets
GainLossOnDispositionOfIntangibleAssets
1843000 USD
CY2021Q1 sncr Other Sundry Nonoperating Income Expense Net
OtherSundryNonoperatingIncomeExpenseNet
-122000 USD
CY2020Q1 sncr Other Sundry Nonoperating Income Expense Net
OtherSundryNonoperatingIncomeExpenseNet
61000 USD
CY2021Q1 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
-3396000 USD
CY2020Q1 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
1692000 USD

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