Synchronoss Technologies, Inc (SNCR) has reported 20.41 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $7.68 million, or $0.16 a share in the quarter, compared with $9.64 million, or $0.21 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $32.55 million, or $0.68 a share compared with $27.09 million or $0.58 a share, a year ago.
Revenue during the quarter grew 16.93 percent to $176.42 million from $150.87 million in the previous year period. Gross margin for the quarter contracted 173 basis points over the previous year period to 56.22 percent. Total expenses were 92.51 percent of quarterly revenues, up from 85.22 percent for the same period last year. That has resulted in a contraction of 729 basis points in operating margin to 7.49 percent.
Operating income for the quarter was $13.21 million, compared with $22.29 million in the previous year period.
However, the adjusted operating income for the quarter stood at $46.52 million compared to $43.23 million in the prior year period. At the same time, adjusted operating margin contracted 228 basis points in the quarter to 26.37 percent from 28.65 percent in the last year period.
“We are very proud of the Synchronoss team for delivering a strong third quarter with significant momentum around cloud and enterprise heading into year end and 2017,” said Stephen G. Waldis, Founder and Chief Executive Officer of Synchronoss. “Cloud was very strong this quarter with both new and existing customers, as solid subscriber growth and expanded cloud initiatives in our core customer base set the stage for the next chapter of growth at Synchronoss.”
Operating cash flow drops significantly
Synchronoss Technologies, Inc has generated cash of $56.48 million from operating activities during the nine month period, down 26.24 percent or $20.09 million, when compared with the last year period. The company has spent $80.48 million cash to meet investing activities during the nine month period as against cash outgo of $168.70 million in the last year period.
The company has spent $1.92 million cash to carry out financing activities during the nine month period as against cash outgo of $3.06 million in the last year period.
Cash and cash equivalents stood at $123.32 million as on Sep. 30, 2016, down 13.97 percent or $20.03 million from $143.35 million on Sep. 30, 2015.
Working capital declines
Synchronoss Technologies, Inc has witnessed a decline in the working capital over the last year. It stood at $250.72 million as at Sep. 30, 2016, down 24.88 percent or $83.05 million from $333.77 million on Sep. 30, 2015. Current ratio was at 2.62 as on Sep. 30, 2016, down from 5.73 on Sep. 30, 2015.
Days sales outstanding went up to 92 days for the quarter compared with 90 days for the same period last year.
At the same time, days payable outstanding went up to 29 days for the quarter from 25 for the same period last year.
Debt moves up
Synchronoss Technologies, Inc has witnessed an increase in total debt over the last one year. It stood at $277.02 million as on Sep. 30, 2016, up 13.59 percent or $33.13 million from $243.89 million on Sep. 30, 2015. Short-term debt stood at $38 million as on Sep. 30, 2016. Total debt was 24.63 percent of total assets as on Sep. 30, 2016, compared with 26.46 percent on Sep. 30, 2015. Debt to equity ratio was at 0.44 as on Sep. 30, 2016, up from 0.41 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 8.28 for the quarter from 15.40 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
