So far, Synchronoss Technologies' (Nasdaq: SNCR ) ConvergenceNow system has activated more than 1.2 million Apple (Nasdaq: AAPL ) iPhones. That has certainly boosted growth for the upstart software company, and the success isn't going unnoticed. It's helped the company land some other big deals as well.
In its third quarter, Synchronoss posted an 82% increase in revenue to $34.5 million, while operating income increased 125% to $10.3 million. Cash flow from operations was about $11 million; the company now has roughly $82.8 million in cash and cash equivalents.
Since roughly 78% of Synchronoss' revenue currently comes from AT&T (NYSE: T ) , the company is aggressively diversifying its customer base. On the conference call, Synchronoss CEO Stephen Waldis talked about stronger business with Level 3 Communications (Nasdaq: LVLT ) . The company also sees greater potential with customers like Comcast (Nasdaq: CMCSA ) and even Vonage (NYSE: VG ) .
But perhaps the most important piece of news is that Synchronoss is close to signing a deal with a tier-1 mobile carrier, although the company did not provide a name. As the AT&T relationship shows, this could help continue Synchronoss's top-line momentum into 2008.
What's more, Synchronoss is moving its platform to the U.K., Germany, France, and Spain. I suspect that's mainly a move to handle Apple's international iPhone ambitions, which should be yet another growth booster. And with the holiday season coming up, iPhone sales will likely spike yet again.
Without a doubt, it's good to be Synchronoss. But its stock price has been quite volatile thus far, and there's no reason why that would change. After all, the company is in a dynamic space, and it's expanding its operations globally, which can be risky. If you're thinking of jumping into the fray, you might need to stomach some gyrations.
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