Synchronoss Changes CEOs Again & Gets 3rd CFO of 2017
Synchronoss' reboot is getting a reboot, as the former OSS company is parting ways with its CEO and CFO, replacing them with a couple of executives from the old days.
What's interesting is that the departing executives had just arrived. Ronald Hovespian took over as Synchronoss Technologies Inc. (Nasdaq: SNCR) CEO in January with the acquisition of Intralink Holdings Inc.; he's now out, with founder, chairman and former CEO Stephen G. Waldis coming back to take his place.
The CFO spot had just changed hands as well. Karen Rosenberger announced early this year that she would be leaving the company, and she stuck around long enough to help select John Frederick as her successor in February. But as of last Thursday, Frederick is out and is being replaced by Lawrence Irving, who was Synchronoss' CFO from 2001 to 2014.
Synchronoss' official word is that Hovespian and Frederick are leaving to pursue other interests.
The news, delivered on the afternoon of April 26, sent Synchronoss' stock plunging 46% to $13.29 the next day. The stock had rebounded by about 20% to $16 per share by the end of April 28.
It's not clear what's provoked such drastic changes. Synchronoss also announced last week that first-quarter revenues would fall $13 million or $14 million short of the predicted $173 million to $178 million, so that might have something to do with it.
What might be more pertinent is Synchronoss' overall situation, as the company is trying to remake itself as more of an enterprise player while still keeping a foot in service provider cloud services -- "Synchronoss 3.0," as company officials call it.
Back in the 2000s, Synchronoss was in the OSS space, with a portfolio that included the ActivationNow order management product. In recent years, it's concentrated more on mobile device activation, with Apple as a customer, as well as a white label cloud business, creating cloud services for carriers such as BT to offer under their own brand names.
Starting in 2015, Synchronoss decided to diversify, setting the goal of making enterprise sales account for 40% of revenues. Security was a big aspect of the enterprise offensive; in 2015, Synchronoss established a joint venture with Verizon for identity management technology, and in June 2016, Synchronoss went live with a security mobility platform.
The acquistion of Intralinks, which developed cloud-based platforms for inter-enterprise collaboration, was meant to be a key cog in that change. Upon announcing the $821 million cash deal to acquire Intralinks, Synchronoss also announced it was selling 70% of its device activation business to Sequential Technology for $146 million.
— Craig Matsumoto, Editor-in-Chief, Light Reading