Why Synchronoss Technologies Shares Got Crushed

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What: Shares of Synchronoss Technologies (NAS: SNCR) have gotten crushed today by as much as 27% after the company reported earnings along with concerns about its business with AT&T (NYS: T) .

So what: Adjusted revenue added up to $64.9 million, with earnings per share of $0.26. While those figures inched above expectations to register a small beat, the larger concern was slowing growth at Synchronoss' largest customer, AT&T.


Now what: Ma Bell comprised roughly 50% of the quarter's total revenue at $32.6 million, while rival carrier Verizon (NYS: VZ) was the second-largest customer at over 10% of sales. The AT&T business was sequentially flat compared to the fourth quarter, and the company expects AT&T sales to rise between 5% and 10% in 2012. That's lower than the low-double-digit growth it had previously predicted.

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 and Verizon Communications, but he holds no other position in any company mentioned.Click hereto see his holdings and a short bio. The Motley Fool has adisclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.

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