“Snychronoss Technologies (SNCR) shares have dropped nearly in half in after hours trading on a disappointing outlook for 2008,” Eric Savitz reports for Barron’s. “For Q1, the company posted revenue of $29.1 million, below Street expectations of $31.2 million. Non-GAAP profits of 16 cents were in line with the consensus.”
Savitz reports, “In a statement, CEO Stephen Waldis says the company has ‘materially lowered’ its growth expectations for 2008 ‘due in part to reduced revenues associated with the iPhone, which masks the underlying growth and momentum of the rest of our business.’ The company provides AT&T with transaction management services, including the registration of new Apple iPhone users.”
“As Silicon Alley Investor notes, the company on its post-earnings conference call said it is seeing lower-than-expected activations of iPhones as more of them are being unlocked and used on non-AT&T networks,” Savitz reports.
Full article here.