Syniverse Reports Q4 652749

Total revenues were $101.5M for Q4, an 18.2% increase compared to fourth quarter 2006

February 20, 2008

3 Min Read

TAMPA, Fla. -- Syniverse Holdings, Inc. (NYSE:SVR - News), a leading provider of technology and business solutions for the global telecommunications industry, today reported results for the fourth quarter 2007.

  • Total revenues were $101.5 million for fourth quarter 2007, an 18.2% increase compared to fourth quarter 2006. For full year 2007, total revenues were $377.5 million, a 12.0% increase compared to full year 2006.

  • Net revenues, which exclude off-network database queries or pass-through revenue, were $100.2 million for fourth quarter 2007, an 18.5% increase compared to fourth quarter 2006. For full year 2007, net revenues were $371.9 million, a 13.1% increase compared to full year 2006.

  • Net income was $16.6 million in fourth quarter 2007 and $52.4 million for the full year 2007. In fourth quarter 2006, net income was impacted by the reversal of a significant portion of the company’s net deferred tax asset valuation allowance, resulting in a significant one-time tax benefit, making direct comparisons to other periods less meaningful. Income before provision for income taxes was $25.1 million in fourth quarter 2007, an 89.4% increase compared to fourth quarter 2006. For full year 2007, income before provision for income taxes was $83.7 million, a 67.0% increase compared to full year 2006.

  • Cash net income, a non-GAAP financial measure, was $21.2 million for fourth quarter 2007, a 53.8% increase compared to fourth quarter 2006. For full year 2007, cash net income was $75.3 million, a 31.4% increase compared to full year 2006. Cash net income reflects the positive cash impact resulting from the significant difference in amortization of goodwill for financial reporting and tax purposes, and is determined by adding the cash savings arising from the tax deductible goodwill amortization to adjusted net income.

  • Cash net income per diluted share was $0.31 in fourth quarter 2007, a 55.0% increase compared to fourth quarter 2006. For full year 2007, cash net income per diluted share was $1.11, a 30.6% increase compared to full year 2006.

  • Adjusted EBITDA, a non-GAAP financial measure, was $43.4 million for fourth quarter 2007, a 39.3% increase compared to fourth quarter 2006. For full year 2007, Adjusted EBITDA was $155.9 million, a 22.1% increase compared to full year 2006.



“Syniverse reported a strong fourth quarter driven by a continuation of the same trends that we’ve seen throughout 2007, most notably continued strength in our messaging and mobile data services together with solid results in our roaming and clearing services,” said Tony Holcombe, President and CEO, Syniverse. “The acquisition of BSG Wireless in the quarter increases our global scale and adds critical financial settlement capabilities. Additionally, we expect to realize $12 million of annualized cost synergies as we integrate the two businesses over the next two years.”

Chief Financial Officer David Hitchcock agreed. “Syniverse posted strong financial results in the fourth quarter. Operating free cash flow exceeded $47 million in the quarter, and Syniverse generated over $97 million in operating free cash flow for the full year,” he said. “Net revenue was slightly above the preliminary range announced on January 15 due to the one time unexpected favorable resolution to a specific item.”

Syniverse Technologies LLC

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