Synchronoss Technologies, Inc. (NASDAQ: SNCR)
A smaller yet competitive company in the cloud space arena had some positive news late Thursday that impacted their share price on trading in the Friday regular session.
The company’s name is Synchronoss Technologies, and they announced some positive news regarding financing that will help them stay competitive in a very competitive area.
The field is so competitive that investors and Traders on Wall Street have basically written the company off by selling short nearly 30% of the shares outstanding float. This High short interest is usually a bit by the smarter money that the company will do poorly in the future and the share price will go much lower.
It is also an interesting phenomenon that some companies with high short interest can also see their share price rise dramatically if those shares get called in and need to be brought back by those short sellers.
The announcement stated that they had closed a previously announced sale of $185 million worth of newly created preferred stock to affiliates of Siris Capital Group. Shares closed up 21% or up $1.57 at $9.05 after heavy trading in the NASDAQ Stock Exchange.
The Daily Chart
On the chart you will see the grey oval area where the share price gapped up on Friday’s training session. You can also see a yellow oval area above that. That area and yellow is the 200 day moving average. Once a stock has made a move out of a region or zone as many call it, shares have typically drifted toward that 200-day moving average to see how it reacts at that level.
Glenn Lurie, President and Chief Executive Officer of Synchronoss had this to say today:
“We are excited to close on the investment from Siris and view this as another positive step forward for Synchronoss The additional capital from this transaction further strengthens the Company’s balance sheet and financial flexibility as we execute against our product and growth strategies. Synchronoss is delivering those next-generation cloud, messaging and digital products that companies in the technology-media-telecom (TMT) sector rely on in order to differentiate and successfully compete in the world of burgeoning data usage growth in IoT and overall customer experience. We remain optimistic about the future given our world class customer base, long-term customer relationships, and strong financial profile.”
Frank Baker, a Co-Founder and Managing Partner of Siris added,
“We believe that Synchronoss represents an attractive opportunity to build meaningful shareholder value. I look forward to joining the company’s board of directors to collaborate with the management team and partner together to help the company realize its significant potential.” Baker added, “The on-going digital transformation in the TMT sector requires partners with experience in delivering seamless, self-service solutions at scale to their many end-users and enterprise customers. Synchronoss has a long-term track record of delivering solutions which engage and delight users throughout the constantly changing customer journey.”
Synchronoss Technologies, Inc. provides cloud solutions and software-based activation for connected devices worldwide. The company’s products and services include cloud-based sync, backup, storage and content engagement capabilities, broadband connectivity solutions, analytics, white label messaging, and identity/access management that enable communications service providers, cable operators/multi-services operators, original equipment manufacturers with embedded connectivity, and multi-channel retailers, as well as other customers to accelerate and monetize value-add services for secure and broadband networks and connected devices.
It also provides Synchronoss Enterprise solutions, such as secure mobility management, data and analytics, and identity and access management solutions for the financial, telecommunications, healthcare, life sciences, and government sectors; and Synchronoss Personal Cloud platform that delivers an operator-branded experience for subscribers to backup, restore, synchronize, and share their personal content across smartphones, tablets, computers, and other connected devices.
In addition, the company offers software as a service for the organizations to securely manage, control, track, search, exchange, and collaborate on sensitive information inside and outside the firewall. Its products and platforms are designed to enable multiple converged communication services to manage across a range of distribution channels, such as e-commerce, m-commerce, telesales, customer stores, indirect, and other retail outlets.
The company markets and sells its services through direct sales force and strategic partners. Synchronoss Technologies, Inc. was founded in 2000 and is headquartered in Bridgewater, New Jersey.-YahooFinance