Synchronoss Technologies(US:SNCR)2024-08-09 20:03Revenue Growth - Net revenues increased by $2.4 million to $43.5 million for the three months ended June 30, 2024, compared to the same period in 2023, primarily due to continued cloud subscriber growth [147]. - Net revenues increased by $3.4 million to $86.4 million for the six months ended June 30, 2024, compared to the same period in 2023, driven by cloud subscriber growth [153]. Cost Reductions - Cost of revenues decreased by $1.1 million to $10.4 million for the three months ended June 30, 2024, attributed to reduced employee costs from restructuring measures [148]. - Cost of revenues decreased by $1.8 million to $20.6 million for the six months ended June 30, 2024, primarily due to reduced employee costs from restructuring [154]. - Research and development expenses decreased by $1.4 million to $11.9 million for the three months ended June 30, 2024, due to restructuring and cost-saving initiatives [148]. - Research and development expenses decreased by $3.8 million to $22.2 million for the six months ended June 30, 2024, as a result of restructuring measures [155]. - Selling, general and administrative expenses decreased by $4.5 million to $12.8 million for the three months ended June 30, 2024, mainly from reduced employee costs and lower professional fees [149]. - Total costs and expenses decreased by $12.5 million to $77.6 million for the six months ended June 30, 2024, compared to the same period in 2023 [153]. Operational Performance - Income from operations increased by $15.9 million to $8.9 million for the six months ended June 30, 2024, compared to a loss of $7.0 million in the same period in 2023 [153]. Taxation - The effective tax rate was approximately 122.3% for the three months ended June 30, 2024, significantly higher than the U.S. federal statutory rate due to changes in the mix of pre-tax income and losses [152]. - Income tax expense rose to approximately $3.3 million for the six months ended June 30, 2024, from $0.8 million in the same period in 2023, with an effective tax rate of 45.4% [157]. - Unrecognized tax benefits associated with uncertain tax positions amounted to $4.4 million as of June 30, 2024 [169]. Cash Flow and Liquidity - Cash and cash equivalents balance was $23.6 million as of June 30, 2024, with principal sources of liquidity being cash provided by operations [158]. - Cash provided by operating activities was $11.8 million for the six months ended June 30, 2024, compared to $12.6 million for the same period in 2023 [163]. - Cash used in investing activities decreased to $7.5 million for the six months ended June 30, 2024, from $10.3 million in the same period in 2023 [163]. - Cash used in financing activities was $5.1 million for the six months ended June 30, 2024, compared to $4.9 million in the same period in 2023 [164]. - The company entered into a Credit Agreement establishing a senior secured term loan facility of up to $75.0 million, fully funded on the Effective Date [158]. Long-term Obligations - The company’s total long-term contractual obligations were approximately $308.0 million as of June 30, 2024 [168]. Interest Rate Sensitivity - A hypothetical 100 basis point movement in interest rates would affect interest income by approximately $0.2 million annually and interest expense on the debt by $0.8 million annually [179][180].