Synchronoss Technologies Shares Popped: What You Need to Know

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Synchronoss Technologies (NAS: SNCR) have popped by as much as 20% this morning after the company reported third-quarter earnings last night.

So what: Third-quarter revenue put up a healthy 33% increase to $59.2 million, which gave way to non-GAAP earnings per share of $0.23. Both top- and bottom-line results handily bested the analysts' consensus estimates of $58.3 million in sales and $0.21 earnings per share.

Now what: As a provider of transaction management services to wireless carriers like Verizon (NYS: VZ) and AT&T (NYS: T) , the company has seen its demand picking up in response to mobile data adoption. The company's revenue is heavily concentrated between those two carriers, with AT&T representing roughly 50% of the quarter's revenue and Verizon putting up more than 10% itself. Things look rosy right now, but lacking a diversified customer base is a risk to be wary of.

Interested in more info on Synchronoss Technologies? Add it to your watchlist byclicking here.

At the time this article was published Fool contributorEvan Niuowns shares of AT&T, but he holds no other position in any company mentioned.Click hereto see his holdings and a short bio. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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