Synchronoss Technologies (NASDAQ:SNCR) stock popped 21.6% on Friday after the cloud-based enterprise computing and messaging specialist announced its common shares have been approved for listing on the Nasdaq, which means they'll resume trading on the widely followed index when the market opens on Monday, October 1, 2018.
For perspective, Synchronoss has traded on the OTC markets since mid-May, when its shares were suspended from trading on the Nasdaq following delays filing its quarterly reports that stemmed from a lengthy financial restatement process.
Synchronoss CEO Glenn Lurie stated:
This is a major milestone for Synchronoss. Meeting our SEC financial reporting obligations and Nasdaq listing requirements has been a top priority since I joined the company last November, and the lifting of the Nasdaq suspension achieves that objective. Our employees have worked tirelessly to meet these requirements, which places Synchronoss in a position to apply all of our attention to driving growth and shareholder value.
That's not to say Synchronoss hasn't made progress during its hiatus from the Nasdaq. Shares popped in August after it posted mixed second-quarter results relative to expectations -- revenue declined a steep 35%, to $76.7 million, but translated to a narrower-than-expected adjusted loss of $0.48 per share. Management also noted at the the time that their cloud-computing business has largely evolved away from a less lucrative, less predictable "freemium" model and toward a primarily subscription-based premium-service model.
But investors were most encouraged by Lurie's prediction last quarter that Synchronoss will return to sequential top-line growth in the second half of 2018, followed by positive free cash flow and continued improvements in bottom-line profitability.
Shareholders should get their next update on Synchronoss' efforts to that end when it releases third-quarter results in November. In the meantime, its return to the Nasdaq seems to indicate it continues to take steps in the right direction. So it's no surprise to see shares extending their recent gains in response.