UPDATE 2-Synchronoss Q4 beats, Q1 EPS view misses

* Q4 adj EPS $0.20 vs est $0.18

* Q4 rev $35.6 mln vs est $34.4 mln

* Sees Q1 adj. EPS $0.11-$0.12 vs est $0.13
(Recasts; Adds outlook, details from conference call)

BANGALORE, Feb 4 (BestGrowthStock) – Communication software maker
Synchronoss Technologies Inc (SNCR.O: ) posted quarterly results
that beat market expectations, helped by strong demand at its
largest customer AT&T (T.N: ), but forecast lower-than-expected
first-quarter earnings.

Shares of the company fell 5 percent in after-market trade.

Synchronoss forecast first-quarter adjusted earnings of 11
cents to 12 cents a share, on revenue of $34.2 million to $34.8
million.

Analysts on average were looking for earnings of 13 cents a
share, on revenue of $32.98 million, according to Thomson
Reuters I/B/E/S.

The company, however, said its momentum in the connected
devices market is strong, and much of this momentum is expected
to impact results towards end of 2010 and beyond.

In January, Synchronoss said it will be enabling online
activations for Dell’s connected devices portfolio, opening up
a growth opportunity.

The announcement reflects the emerging wireless device
original equipment manufacturer (OEM) opportunity for
Synchronoss.

The company posted a fourth-quarter profit (Read more your timing to make a profit.) of $4.5 million,
or 14 cents a share, compared with $2.7 million, or 9 cents a
share, last year.

Synchronoss, whose software and services are used by
communications service providers to manage service activation
and customer transactions, saw revenue rise 14 percent to $35.6
million.

Revenue from AT&T rose about 14 percent to $22.8 million
and represented 64 percent of total revenue, the company said.

Excluding special items, the company earned 20 cents a
share.

Analysts on average, were looking for earnings of 18 cents
a share, on revenue of $34.4 million, according to Thomson
Reuters I/B/E/S.

The company also said it expects adjusted gross margins to
be consistently in the low-50 percent range in the near term.

Shares of Synchronoss, which have risen 49 percent over the
last six months, were trading at $15.60 in after-market trade.
They closed at $16.49 Thursday on Nasdaq.

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(Reporting by Saqib Iqbal Ahmed in Bangalore; Editing by
Jarshad Kakkrakandy and Unnikrishnan Nair)

UPDATE 2-Synchronoss Q4 beats, Q1 EPS view misses