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Why Synchronoss Technologies Stock Lost 10% in January

By Demitri Kalogeropoulos - Feb 12, 2018 at 11:43AM

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Investors remained in the dark about the company's finances last month.

What happened 

Cloud-based services specialist Synchronoss Technologies (SNCR -0.86%) lost 10% last month, according to data provided by S&P Global Market Intelligence, to trail the broader market's 6% gain.

^SPX Chart

Data source: YCharts.com.

The decline added to brutal losses for shareholders as the stock is down by more than 80% since early 2015.

So what

Synchronoss failed to bring itself into filing compliance last month, and investors weren't pleased about the continued delay. The company has missed three separate quarterly filings and is still working on the restatement of results for the 2015 and 2016 fiscal years.

A server room filled with servers enclosed in glass cases..

Image source: Getty Images.

This disappointment was compounded by the fact that Synchronoss has abruptly lost several key executives, including its CEO and Chief Financial Officer.

Now what

In early February, Synchronoss announced that it received an extension from the Nasdaq exchange that means management has until May 10, 2018 to become current on all of its financial filings -- or risk delisting of the stock. Investors are due to receive an interim update sometime in March, at which time new CEO Glenn Lurie plans to outline his growth plans. In the meantime, the uncertainty surrounding Synchronoss' finances, its management team, and its operating trends, is likely to keep weighing on this troubled stock. 

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Synchronoss Technologies, Inc. Stock Quote
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