Shares of Synchronoss Technologies (NASDAQ:SNCR) jumped on Friday following the company's second-quarter report. Synchronoss' quarter was mixed relative to analyst expectations, but a positive outlook for the second half and the appointment of a new CFO was enough to get the stock moving. Synchronoss shares were up 21.5% at market close.
Synchronoss reported second-quarter revenue of $76.7 million, down 35.5% year over year, and about $1.3 million below the average analyst estimate. The decline was largely due to the restatement of financial results from previous periods and the switch to the ASC 606 revenue standard.
Non-GAAP earnings per share came in at a loss of $0.48, down from a profit of $0.24 in the prior-year period, but $0.10 better than analysts were expecting. The big revenue decline coupled with a much smaller reduction in costs pushed down the bottom line.
Along with announcing its second-quarter results, the company disclosed that David Clark was being appointed CFO, effective immediately. Clark was previously the CFO of The Meet Group before joining Synchronoss recently as executive vice president of finance.
After all of the drama since the beginning of 2017, including a botched acquisition, disastrous quarterly results, the abrupt resignation of a newly appointed CEO, and the suspension of shares from trading on the Nasdaq, a return to normal may finally be in sight. The company expects revenue to grow sequentially in the second half, and free cash flow is expected to turn positive.
Since peaking in late 2016, shares of Synchronoss have lost about 90% of their value. With Friday's rally, the stock has clawed back a small portion of those losses. The company still has a lot of work left to do to fully right the ship.