The company guided down a little bit, $13 million and change, causing the stock to get decapitated by 40%. This is the best job in the world.
Oh, both the CEO and CFO are stepping down — effective immediately. Talk about red flags. Both of those assholes said they were leaving to ‘pursue other interests.’ In all of my years doing this, I’ve never seen a CEO and CFO resign on the same day, effective immediately, just because they wanted to head out golfing. There is something horribly wrong here.
Synchronoss Tech CEO & CFO step down, co expects Q1 revenue to be $13-14 mln less than prior guidance (shares halted) (24.62)
The co announced that company founder and Chairman of the Board of Directors Stephen Waldis will return to the role of Chief Executive Officer, effective immediately. Ronald Hovsepian, who previously served as Chief Executive Officer, will be leaving to pursue other interests. Mr. Hovsepian will serve as a consultant to the company to ensure a seamless transition. Synchronoss also announced that Lawrence Irving has been named Chief Financial Officer. Mr. Irving served as CFO for Synchronoss from July 2001 until April 2014 and played a crucial role in the company’s development during that time. John Frederick, who served as Chief Financial Officer prior to Mr. Irving’s appointment, will be leaving to pursue other interests.
Based on preliminary financial information, Synchronoss expects total revenue for the first quarter of 2017 to be $13 million to $14 million less than the company’s previously announced guidance. Operating margins are expected to be 8% to 10%, which are less than previously announced guidance.
Prior Q1 guidance was for revs of $173-$178 mln (Current Capital IQ Consensus Estimate: $175.73 mln)
So what in the world is going on here?
On March 27th, 2017, Roddy Boyd from SIRF issued a report, warning investors of this eventuality.
Boyd seems to think there are accounting irregularities taking place.
The releasing of the 2016 10-K was hardly the first time Synchronoss’ investors have been force-fed some baffling disclosures about the cloud services unit’s economic health: Opaque transactions in the fourth quarter of 2015 as well as in the last moments of the third quarter of 2016 have made virtually no economic sense.
Synchronoss is an aggressive acquirer of other companies and business lines, and with the sales from these purchased businesses folded into its own totals, showing growth is easy.
Sounds like Worldcomm.
The stock is lower by 40%.
NOTE: According to recent filings, Colorado based Elk Creek Partners owns a chunk and is their largest reported holding.
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Wheee, golden parachutes before SHTF.
They could have left last month !
how can this be in the Sarbanes Oxley era though?