It expects ATT to contribute less to total sales. They already contributed less in last Q.. This reaction is what I call misunderstanding management. CEO did a bad job explaining the facts... I'm a buyer tomorrow...
"The gap between the number of iPhones expected to be sold and the actual number that we are activating continues to be significant, and we expect this trend to continue," Synchronoss Chief Executive Stephen Waldis said on a conference call to discuss his company's results.
Waldis noted Synchronoss does not get paid when iPhones are sold, then "unlocked," and subsequently activated with another cellular service provider.
On the conference call, the company forecast earnings of 10 cents to 11 cents a share, excluding items, on revenue of $24 million to $25 million for the second quarter.
Analysts, on average, were expecting earnings of 19 cents a share, before special items, on revenue of $35.2 million, according to Reuters Estimates.
The CEO did a VERY bad job explaining what is happening. All he basically said is that he can't say anything about anything due to confidentially contracts with customers. The lack of explanation is probaby responsible for over half of the after-hours share price drop. The press release left everyone confused and the CC didn't improve the situation much.
I never knew about this stock until it got slammed ah. I bought a bunch ah and will be back for more in the morning. This stock has been oversold and will be some easy money on the rebound over the next few days. Especially if the company starts that buyback immediately we can see a quick $5 increase to $18. GLTA.