Synacor loses ATT.net contract, keeps FY guidance anyway

Friday 12 July 2019 | 09:57 CET | News

AT&T has informed Synacor it intends to choose another provider of portal services for its ATT.net portal. Synacor said the winding down of the contract and consequent migration will take many months, subject to mutual agreements, but that it nevertheless keeping its second quarter and full year financial guidance unchanged. CEO Himesh Bhise said the company has other opportunities for high margin, recurring revenenues, including Zimbra Email & Collaboration and Cloud ID Ident and Access Management. “Going forward these create a software-oriented, higher overall margin profile for Synacor,” Bhise said. 

The ATT.net contract represented USD 9.3 million worth of the USD 20.7 million of revenues reported in the first quarter from Synacor’s Portal & Advertising segment. The segment recorded an adjusted EBITDA margin of 12.7 percent. The Software and Services segment reported USD 11.2 million of revenues with an adjusted EBITDA margin of 25 percent. As of 10 July, Synacor had a market capitalization of USD 60.5 million. At end March, its cash position amounted to USD 13.5 million, translating into an enterprise value of USD 47.0 million.

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Categories: Internet / IT
Companies: AT&T / Synacor
Countries: United States
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