|
|
|
Company Links |
 |
|
|
|
|
|
|
|
Major Stock Holders
(Prior To
Offering) |
Name |
Class A |
|
ABS Ventures |
15.54% |
|
Ascent Venture Partners III, L.P. |
5.15% |
|
James M. McCormick |
19.88% |
|
Rosewood Capital |
10.57% |
|
Vertek Corporation |
8.20% |
|
|
|
|
Major Stock Holders
(After Offering) |
Name |
Common Stock |
Class A |
Class B |
Class C |
Class L |
ADS |
|
ABS Ventures |
0% |
12.26% |
0% |
0% |
0% |
0% |
|
Ascent Venture Partners III, L.P. |
0% |
4.06% |
0% |
0% |
0% |
0% |
|
James M. McCormick |
0% |
15.68% |
0% |
0% |
0% |
0% |
|
Rosewood Capital |
0% |
6.67% |
0% |
0% |
0% |
0% |
|
Vertek Corporation |
0% |
6.46% |
0% |
0% |
0% |
0% |
|
|
|
|
Business Environment |
|
|
|
The communications industry has undergone substantial regulatory, technological and competitive changes in recent years. Beginning with the court-ordered divestiture of the Bell Operating System in the 1980s and increasing with the implementation of the Telecommunications Act of 1996, government regulation has encouraged the proliferation of service providers and service delivery models. The opportunity created by opening the communications services market has encouraged new participants to enter and incumbent service providers to expand into new geographies and segments, thereby increasing overall competitive intensity.
As a result, communications service providers, or CSPs, are facing significant operational and business opportunities and challenges as they are increasingly required to interoperate and share network resources. In addition, technological developments have increased the range of communications standards and protocols. These changes are causing CSPs to integrate multiple and often incompatible and complex processes and systems that make it difficult to provide a seamless end-user experience. Transactions, such as provisioning new services and porting customers between CSPs, present significant technological and operational challenges. Many CSPs have responded by developing their own in-house processes and systems which are frequently manual, time-consuming, costly and inflexible.
|
|
|
|
Company Strategy |
|
|
|
The Company is a leading provider of e-commerce transaction management solutions to the communications services marketplace. |
|
|
|
Product/Services Portfolio |
|
|
|
The Company’s ActivationNow software platform addresses a service provider’s needs and requirements with a flexible design which can scale with their expanding business operations. The ActivationNow platform is engineered to meet volume, speed to market and service guarantees which are important differentiators of the Synchronoss transaction management solution. The ActivationNow platform is a fully hosted service delivered over the Internet or a dedicated communication channel. Each new customer addition comes with a fixed operation cost and with guaranteed service levels. In addition, ActivationNow provides complete work flow management, including exception handling.
The Company’s gateways, the service provisioning subsystems and second tier of the ActivationNow platform, provide the capability to fulfill multiple transactions. These gateways are the engines that support clients’ front-end portals, handling hundreds of thousands of transactions on a monthly basis. The Company’s gateways deliver flexible architecture, supporting seamless entry and rapid time to market for its CSP customers. In addition, these gateways contain business rules to interact with the CSPs’ back-office and third party trading partners.
The Company’s WorkFlow Manager provides a seamless interaction with all third party relationships, and enables CSPs to have a single transaction view, including all relevant data from third-party systems. The Workflow Manager is designed to ensure that each customer transaction is fulfilled accurately. By streamlining all procurement processes from pre-order through service activation and billing, the Company’s WorkFlow Manager reduces many costs and time impediments that often delay the process of delivering products and services to end-users.
|
|
|
Investment Analysis |
 |
|
|
Net revenues increased $27.0 million to $54.2 million for 2005 compared to $27.2 million for 2004.
Cost of service increased $12.5 million to $30.2 million for 2005 compared to $17.7 million for 2004.
Research and development expense increased $2.4 million to $5.7 million for 2005 compared to $3.3 million for 2004.
Depreciation and amortization expense increased $0.2 to $2.3 for 2005 compared to $2.1 million for 2004.
|
|
|
|
Income Data (Thousand $ Except EPS) |
| Year |
Revenues |
Costs |
Oper Income |
Taxes |
Net Income |
EPS |
| 2003
|
16,550 |
17,787 |
-1,237 |
0.00 |
-1,044 |
-0.11 |
| 2004
|
27,191 |
27,479 |
-288 |
0.00 |
-7 |
0.00 |
| 2005
|
54,218 |
45,743 |
8,475 |
3,829 |
12,429 |
0.57 |
| 2006
|
15,724 |
13,177 |
2,547 |
-1,089 |
1,529 |
0.07 |
| *As of period ended March 31, 2006
| |
|
|
Balance Sheet Data
(Thousand $) |
Year |
Cash |
Acct Recv. |
Inventory |
Total Cur Assets |
Total Cur Liability |
PPE |
Total Assets |
LT Debt |
SH Equity |
|
2004 |
3,404 |
7,245 |
0.00 |
12,541 |
4,464 |
4,098 |
22,784 |
0.00 |
-17,916 |
|
2005 |
8,786 |
13,092 |
0.00 |
31,243 |
9,469 |
4,207 |
40,208 |
0.00 |
-4,864 |
|
2006 |
7,293 |
15,238 |
0.00 |
32,271 |
8,083 |
4,917 |
41,311 |
0.00 |
-2,209 |
|
*As of period ended March 31, 2006
| |
|
|
| Cash
Flow Summary
(Thousand $) |
Year |
Net Cash-Ops |
Net Cash-Inv |
Net Cash-Fin |
Net Change |
|
2003 |
-57 |
-161 |
-663 |
-881 |
|
2004 |
-1,648 |
-1,836 |
1,958 |
-1,526 |
|
2005 |
8,025 |
-1,980 |
-663 |
5,382 |
|
2006 |
-1,020 |
-1,340 |
867 |
-1,493 |
|
*As of period ended March 31, 2006
| |
|
| |
|
| |
|
|
- Avoid 
- Value Gap 
- Long-Term Growth 
- Long-Term Value 