May 8, 2012
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Synchronoss Technologies (Nasdaq: SNCR ) have gotten crushed today by as much as 27% after the company reported earnings along with concerns about its business with AT&T (NYSE: T ) .
So what: Adjusted revenue added up to $64.9 million, with earnings per share of $0.26. While those figures inched above expectations to register a small beat, the larger concern was slowing growth at Synchronoss' largest customer, AT&T.
Now what: Ma Bell comprised roughly 50% of the quarter's total revenue at $32.6 million, while rival carrier Verizon (NYSE: VZ ) was the second-largest customer at over 10% of sales. The AT&T business was sequentially flat compared to the fourth quarter, and the company expects AT&T sales to rise between 5% and 10% in 2012. That's lower than the low-double-digit growth it had previously predicted.
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