Why Shares of Synchronoss Technologies Were Suspended Today

What happened

Shares of Synchronoss Technologies (NASDAQ: SNCR) were suspended from trading on the Nasdaq on Monday due to the company's failure to satisfy the Nasdaq listing requirements. Synchronoss hasn't filed a quarterly or annual report with the SEC since February 2017 due to an ongoing financial restatement process. The stock will be quoted on the OTC markets under the same trading symbol during the suspension period. The stock dropped about 7% in pre-market trading.

So what

For Synchronoss investors, Monday's trading suspension is another chapter in a long ordeal that has mercilessly hammered the stock. The company's problems began in early 2017 with the acquisition of Intralinks. Here's the timeline:

Based on Friday's closing price of $7 per share, Synchronoss stock has shed 86% of its value since peaking in late 2016.

Now what

Synchronoss expects to complete the restatement process no later than June 30, about six weeks from today. While investors haven't seen proper financial statements from the company in over a year, Synchronoss CEO Glenn Lurie said in a May 9 press release that the company has about $300 million in cash, and that the audit isn't expected to impact its cash position.

When shares of Synchronoss finally start trading again following the conclusion of the audit, expect a wild ride as the market digests the results.

Timothy Green has no position in any of the stocks mentioned. The Motley Fool recommends Synchronoss Technologies. The Motley Fool has a disclosure policy.