If you're one of the thousands of people who purchased Apple's
Late last week, Synchronoss reported its second-quarter results. Revenue spiked 80% to $31.3 million and net income was $5.4 million, or $0.16 per share. Primarily because of the ramp-up for the iPhone, Synchronoss' cash balance declined $600,000 to $77.6 million.
Over the years, Synchronoss has built a sophisticated platform that allows communications companies to automate the activation, upgrades, and renewals of services such as VoIP, wireless, video, and so on. The upshot is significant cost savings.
And there appears to be no letup in the growth. Synchronoss' guidance for the third quarter is for revenue of $32 million to $33.5 million, which represents a 69% to 77% year-over-year growth rate. As for the full year, the company upped its guidance to $118 million to $121 million in sales from $108 million to $112 million -- a growth rate increase of 63% to 67% over 2006.
With a multiple of about 10 times projected fiscal revenue, shares of Synchronoss are far from cheap. Yet as seen with other hyper-growth companies like Riverbed Technology
Keep in mind that Synchronoss has an opportunity to expand its business with its marquee customers like Clearwire
The shares of Synchronoss have been volatile lately, which is to be expected. So the stock is not for everyone. But for those Foolish investors looking for a play on the iPhone as well as a hyper-growth story, Synchronoss fits the bill.
For some more Foolishness:
- Don't Hang Up on the iPhone
- How to Spot the Next Hot IPO
- Another Path to Profit: Riding Apple's Coattails
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