Why Shares of Synchronoss Technologies Tumbled Today
What happened
Shares of Synchronoss Technologies (NASDAQ: SNCR) slumped on Thursday. There was no company-specific news driving the decline. The latest development was on Nov. 20, when Synchronoss received a letter from Nasdaq threatening suspension and delisting unless it requests a hearing, which the company said in a press release that it intended to do.
Synchronoss hasn't reported quarterly results since February of this year. The stock was down about 13% at market close.
So what
The delisting notice on Nov. 20 marked the latest chapter in an ongoing saga for Synchronoss. Here's a timeline of what has happened with the company since the beginning of the year:
- Jan. 19: completes $821 million tender offer for Intralinks. As part of the deal, Intralinks CEO Ron Hovsepian becomes CEO of Synchronoss.
- April 27: announces disastrous preliminary first-quarter results. Hovsepian and CFO John Frederick step down just a few months after taking the helm.
- May 15: announces the delay of its first-quarter results due to the audit committee of the board of directors reviewing certain transactions.
- June 13: discloses in an SEC filing that it will restate its financial statements for 2015 and 2016.
- July 6: announces that it is considering strategic alternatives, will a full range of options, including a sale of the company, on the table.
- Oct. 18: concludes the strategic alternative process with the sale of Intralinks for $1 billion.
- Nov. 20: discloses the Nasdaq letter threatening suspension and delisting, and says it intends to request a hearing, which would trigger a 15 day stay on any action.
The stock has plunged this year as the result of these developments, and it's been volatile over the past few months. Today's slump is more of the same for Synchronoss investors.
Now what
Synchronoss will need to present a plan to regain compliance soon in order to avoid delisting. Investors are waiting on three separate quarterly reports, and the company is still working to restate its results for 2015 and 2016.
Until these issues are resolved, expect the stock to continue to swing up and down.
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Timothy Green has no position in any of the stocks mentioned. The Motley Fool recommends Synchronoss Technologies. The Motley Fool has a disclosure policy.