November 2, 2009 / 11:48 PM / 9 years ago

UPDATE 2-Synchronoss Q3 profit in-line, ups FY view, shares rise

* Q3 adj EPS $0.14 in line with est

* Q3 rev $33.1 mln vs est $32 mln

* Raises FY 2009 shr, rev est

* Sees Q4 adj. EPS $0.17 - $0.19 vs est $0.16

* Sees Q4 rev $34 mln - $34.8 million, mln vs est $33.1 mln

* Shares rise as much as 7 pct (Adds outlook, details from conference call)

BANGALORE, Nov 2 (Reuters) - Communication software maker Synchronoss Technologies Inc SNCR.O posted quarterly earnings that met market expectations, helped by strong demand at its largest customer, AT&T Inc (T.N) and forecast a strong finish to the year, sending its shares up 7 percent.

“We were planning to on board another channel with AT&T during the fourth quarter time frame,” said Chief Executive Stephen Waldis on a call with analysts.

The new channel relates to AT&T’s electronic device E-store, through which AT&T sells network equipment including modems and adapters, Waldis added.

Synchronoss’ software and services are used by communications service providers to manage service activation and customer transactions, and its customers include Cablevision Systems Corp CVC.N and Time Warner Cable TWX.N besides AT&T.

The Bridgewater, New Jersey-based company also raised its full year 2009 earnings and revenue outlook. [ID:nWNAB8640]

Shares of the company rose as much as 7 percent to $12.40 in trading after the bell. They closed at $11.60 Monday in regular trade on Nasdaq.

The company said it expects to benefit from its tax planning efforts and aims to lower its fourth-quarter tax rate to 24 percent to 25 percent, down from 39.9 percent in the third-quarter. [ID:nWNAB8515]

Net income for the third quarter was $3.1 million, or 10 cents a share, compared with $2.3 million, or 7 cents a share, a year ago. Revenue rose 26 percent, while revenue from AT&T grew 27 percent in the quarter. (Reporting by Saqib Iqbal Ahmed in Bangalore; Editing by Anne Pallivathuckal and Savio D’Souza)

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