Synchronoss Technologies, Inc. (SNCR) has reported a 360.99 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $24.29 million, or $0.55 a share in the quarter, compared with $5.27 million, or $0.12 a share for the same period last year. On the other hand, Non-GAAP Net income from continuing operations attributable to Synchronoss for the quarter stood at $11.02 million, or $0.24 a share compared with $19.95 million or $0.43 a share, a year ago.
Revenue during the quarter went up marginally by 0.42 percent to $121.72 million from $121.21 million in the previous year period. Gross margin for the quarter contracted 370 basis points over the previous year period to 58.75 percent. Operating margin for the quarter stood at negative 24.94 percent as compared to a positive 1.28 percent for the previous year period.
Operating loss for the quarter was $30.36 million, compared with an operating income of $1.55 million in the previous year period.
However, the adjusted operating income for the quarter stood at $13.08 million compared to $29.94 million in the prior year period. At the same time, adjusted operating margin contracted 1395 basis points in the quarter to 10.75 percent from 24.70 percent in the last year period.
"Synchronoss has transformed its strategy with the Intralinks acquisition and divestiture of its traditional activation business as the company now looks to expand the scale and scope of its enterprise and cloud initiatives to drive the new SNCR 3.0 vision, said Ronald Hovsepian, Chief Executive Officer of Synchronoss.” “The Synchronoss team is laying the foundation for the next chapter of growth,” said Ronald Hovsepian, Chief Executive Officer of Synchronoss.
Operating cash flow improves marginally
Synchronoss Technologies, Inc. has generated cash of $142.50 million from operating activities during the year, up 1.92 percent or $2.68 million, when compared with the last year.
The company has spent $99.38 million cash to meet investing activities during the year as against cash outgo of $226.11 million in the last year.
The company has spent $8.98 million cash to carry out financing activities during the year as against cash outgo of $1.69 million in the last year period.
Cash and cash equivalents stood at $181.02 million as on Dec. 31, 2016, up 22.61 percent or $33.38 million from $147.63 million on Dec. 31, 2015.
Working capital drops significantly
Synchronoss Technologies, Inc. has witnessed a decline in the working capital over the last year. It stood at $212.64 million as at Dec. 31, 2016, down 34.93 percent or $114.13 million from $326.76 million on Dec. 31, 2015. Current ratio was at 2.40 as on Dec. 31, 2016, down from 5.08 on Dec. 31, 2015.
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