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.
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:
- Jan. 19 2017: completes $821 million tender offer for Intralinks. As part of the deal, Intralinks CEO Ron Hovsepian becomes CEO of Synchronoss.
- April 27 2017: announces disastrous preliminary first-quarter results. Hovsepian and CFO John Frederick step down just a few months after taking the helm.
- May 15 2017: announces the delay of its first-quarter results due to the audit committee of the board of directors reviewing certain transactions.
- June 13 2017: discloses in an SEC filing that it will restate its financial statements for 2015 and 2016.
- July 6 2017: announces that it is considering strategic alternatives, with a full range of options, including a sale of the company, on the table.
- Oct. 18 2017: concludes the strategic alternative process with the sale of Intralinks for $1 billion.
- Nov. 20 2017: 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.
- May 9 2018: discloses that it would be unable to comply with the Nasdaq listing requirements by the May 10 deadline.
- May 14 2018: shares suspended from trading on the Nasdaq.
Based on Friday's closing price of $7 per share, Synchronoss stock has shed 86% of its value since peaking in late 2016.
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.