Summary of Quarterly Results of Operations (Unaudited)

12 Months Ended

Dec. 31, 2017

Quarterly Financial Information Disclosure [Abstract]

Summary of Quarterly Results of Operations (Unaudited)

Quarterly results of operations for the year ended December 31, 2017 were as follows:



	Quarter Ended
	March 31,			June 30,			September 30,			December 31,
2017	(In thousands, except per share data)
Net revenues	$	86,097		$	118,990		$	91,015		$	106,259
Gross profit⁽¹⁾	40,042			71,235			45,439			64,192
Loss from continuing operations	(51,347		)	(8,894		)	(36,139		)	(33,222		)
Net (loss) income	(61,586		)	(29,383		)	(36,364		)	8,604
Net (loss) income attributable to Synchronoss ⁽²⁾	(58,697		)	(26,568		)	(35,088		)	10,915

Basic:
Continuing operations⁽³⁾	$	(0.96	)	$	(0.44	)	$	(0.98	)	$	(1.75	)
Discontinued operations⁽³⁾	(0.37		)	(0.16		)	0.20			1.99
	$	(1.33	)	$	(0.60	)	$	(0.78	)	$	0.24
Diluted:
Continuing operations⁽³⁾	$	(0.96	)	$	(0.44	)	$	(0.98	)	$	(1.75	)
Discontinued operations⁽³⁾	(0.37		)	(0.16		)	0.20			1.99
	$	(1.33	)	$	(0.60	)	$	(0.78	)	$	0.24

The following tables includes unaudited financial data for the fiscal year quarters in 2016 and 2015, which have been adjusted for discontinued operations:



	Quarter Ended
(Restated)	March 31,			June 30,			September 30,			December 31,
2016	(In thousands, except per share data)
Net revenues	$	78,246		$	121,101		$	119,936		$	107,011
Gross profit⁽¹⁾	32,095			72,921			70,798			55,796
Loss from continuing operations	(45,343		)	(13,348		)	(12,226		)	(51,687		)
Net (loss) income	(32,336		)	4,692			(785		)	25,120
Net (loss) income attributable to Synchronoss ⁽²⁾	(29,329		)	7,832			2,562			30,829

Basic:
Continuing operations⁽³⁾	$	(0.65	)	$	(0.26	)	$	(0.15	)	$	(0.74	)
Discontinued operations⁽³⁾	(0.03		)	0.44			0.21			1.45
	$	(0.68	)	$	0.18		$	0.06		$	0.71
Diluted:
Continuing operations⁽³⁾	$	(0.65	)	$	(0.26	)	$	(0.15	)	$	(0.74	)
Discontinued operations⁽³⁾	(0.03		)	0.44			0.21			1.45
	$	(0.68	)	$	0.18		$	0.06		$	0.71



	Quarter Ended
(Restated)	March 31,		June 30,			September 30,			December 31,
2015	(In thousands, except per share data)
Net revenues	$	109,641	$	87,710		$	88,747		$	86,463
Gross profit⁽¹⁾	76,739		51,765			48,482			40,765
Net income (loss) from continuing operations	18,267		(7,328		)	(15,955		)	(32,097		)
Net income (loss)	19,738		7,409			(8,858		)	(15,804		)
Net income (loss) attributable to Synchronoss ⁽²⁾	19,738		7,409			(8,858		)	(15,176		)

Basic:
Continuing operations⁽³⁾	$	0.33	$	(0.39	)	$	(0.24	)	$	(0.57	)
Discontinued operations⁽³⁾	0.15		0.56			0.03			0.22
	$	0.48	$	0.17		$	(0.21	)	$	(0.35	)
Diluted:
Continuing operations⁽³⁾	$	0.30	$	(0.39	)	$	(0.24	)	$	(0.57	)
Discontinued operations⁽³⁾	0.13		0.56			0.03			0.22
	$	0.43	$	0.17		$	(0.21	)	$	(0.35	)

__________________________________________________________


⁽¹⁾	Gross profit is defined as net revenues less cost of services and excludes depreciation and amortization expense.


⁽²⁾	Net loss for the quarter ended March 31, 2016 included a $0.7 million income tax expense adjustment related to the elimination of the additional paid-in-capital (“APIC”) Pool as a result of the adoption of ASU 2016-09.


⁽³⁾	Per common share amounts for the quarters and full year have been calculated separately. Accordingly, quarterly amounts do not add to the annual amount because of differences in the number of weighted-average common shares outstanding during each period which results principally from the effect of issuing shares of the Company’s common stock and options throughout the year.

As discussed in the “Explanatory Note Regarding Restatement” in Part I, Item 1 of this this Annual Report on Form 10-K (“Form 10-K”) , this footnote discloses the nature of the restatement matters and adjustments and shows the impact of the restatement matters on revenues, expenses, income, assets, liabilities, equity, and the cumulative effects of these adjustments on the Consolidated Statement of Operations and Consolidated Balance Sheets for 2016 and 2015. In addition, this footnote shows the effects of the adjustment to opening retained earnings as of January 1, 2015, which adjustment reflects the impact of the restatement on periods prior to 2015.

Quarterly Financial Information (Unaudited) - Balance Sheets

The net effect of the restatement on the Company’s previously reported consolidated financial statements, as of the quarters ended March 31, June 30 and September 30, 2016 and 2015 (unaudited), are included in this Note 19 - Summary of Quarterly Results of Operations (Unaudited). Form 10-Q’s for the quarters ended March 31, 2017, June 30, 2017, and September 30, 2017 will be filed with the SEC concurrently with this Form 10-K.

The following table presents the Consolidated Balance Sheet (unaudited) as previously reported, restatement adjustments and the Consolidated Balance Sheet (unaudited) as adjusted at September 30, 2016:



(Unaudited)			Adjustments
	As Previously Reported**		Revenue - Hosting			Revenue - Evidence of Arrangement and Other Revenue			Acquisitions & Divestiture			Capitalized Software and Other			Income Taxes			As Adjusted
ASSETS
Current assets:
Cash and cash equivalents	$	123,319	$	—		$	—		$	—		$	(12,975	)	$	—		$	110,344
Restricted cash	—		—			—			—			12,975			—			12,975
Marketable securities	16,973		—			—			—			—			—			16,973
Accounts receivable, net	208,607		(155		)	(60,711		)	—			8,486			—			156,227
Prepaid expenses and other current assets	45,972		—			—			862			(143		)	649			47,340
Assets of discontinued operations, current	10,970		—			—			—			(9,338		)	—			1,632
Total current assets	405,841		(155		)	(60,711		)	862			(995		)	649			345,491
Marketable securities	3,968		—			—			—			—			—			3,968
Property and equipment, net	168,083		—			—			—			3,465			—			171,548
Goodwill	275,914		—			—			(54,903		)	16,490			(3,896		)	233,605
Intangible assets, net	215,666		—			—			(20,941		)	(8,560		)	—			186,165
Deferred tax assets	1,904		—			—			—			—			40,296			42,200
Other assets	9,920		—			—			(1,315		)	1,451			—			10,056
Assets of discontinued operations, non-current	43,433		—			—			—			(17,655		)	—			25,778
Total Assets	$	1,124,729	$	(155	)	$	(60,711	)	$	(76,297	)	$	(5,804	)	$	37,049		$	1,018,811

^** Certain amounts reflected in this column have been adjusted for retrospective application of discontinued operations.



				Adjustments
	As Previously Reported (Adjusted)			Revenue - Hosting			Revenue - Evidence of Arrangement and Other Revenue			Acquisitions & Divestiture			Capitalized Software and Other			Income Taxes			As Adjusted
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	28,724		$	—		$	—		$	—		$	—		$	—		$	28,724
Accrued expenses	54,066			—			5,229			441			300			(1,505		)	58,531
Deferred revenues	26,106			22,288			1,628			(4,345		)	2			—			45,679
Contingent consideration obligation	8,229			—			—			(4,824		)	—			—			3,405
Short-term debt	38,000			—			—			—			—			—			38,000
Total current liabilities	155,125			22,288			6,857			(8,728		)	302			(1,505		)	174,339
Lease financing obligation - long term	13,082			—			—			43			—			—			13,125
Convertible debt	225,938			—			—			—			—			—			225,938
Deferred tax liability	26,397			—			—			—			—			(16,380		)	10,017
Deferred revenues	—			41,934			17,274			—			—			—			59,208
Other liabilities	20,399			—			(16,691		)	—			1,569			2,731			8,008
Commitments and contingencies
Redeemable noncontrolling interests	52,616			—			—			(28,898		)	1,562			—			25,280
Stockholder's equity
Common stock	3			—			—			—			—			—			3
Treasury stock	(95,183		)	—			—			—			(1,584		)	—			(96,767		)
Additional paid-in capital	561,992			—			—			(7,667		)	(6,702		)	—			547,623
Accumulated other comprehensive loss	(31,788		)	—			639			—			295			107			(30,747		)
Retained earnings	196,148			(64,377		)	(68,790		)	(31,047		)	(1,246		)	52,096			82,784
Total stockholders' equity	631,172			(64,377		)	(68,151		)	(38,714		)	(9,237		)	52,203			502,896
Total liabilities & stockholders' equity	$	1,124,729		$	(155	)	$	(60,711	)	$	(76,297	)	$	(5,804	)	$	37,049		$	1,018,811

The following table presents the Consolidated Balance Sheet (unaudited) as previously reported, restatement adjustments and the Consolidated Balance Sheet (unaudited) as adjusted at June 30, 2016:



(Unaudited)			Adjustments
	As Previously Reported**		Revenue - Hosting			Revenue - Evidence of Arrangement and Other Revenue			Acquisitions & Divestiture			Capitalized Software and Other			Income Taxes			As Adjusted
ASSETS
Current assets:
Cash and cash equivalents	$	111,028	$	—		$	—		$	—		$	(21,042	)	$	—		$	89,986
Restricted cash	—		—			—			—			21,042			—			21,042
Marketable securities	62,274		—			—			—			—			—			62,274
Accounts receivable, net	154,061		(174		)	(41,754		)	—			8,110			—			120,243
Prepaid expenses and other current assets	47,677		—			—			724			(142		)	649			48,908
Assets of discontinued operations, current	10,595		—			—			—			(8,963		)	—			1,632
Total current assets	385,635		(174		)	(41,754		)	724			(995		)	649			344,085
Marketable securities	13,949		—			—			—			—			—			13,949
Property and equipment, net	167,135		—			—			—			3,372			—			170,507
Goodwill	278,315		—			—			(54,901		)	16,488			(3,896		)	236,006
Intangible assets, net	222,045		—			—			(22,052		)	(5,602		)	—			194,391
Deferred tax assets	1,902		—			—			—			—			32,862			34,764
Other assets	10,050		—			—			(1,289		)	1,610			—			10,371
Assets of discontinued operations, non-current	44,001		—			—			—			(17,815		)	—			26,186
Total Assets	$	1,123,032	$	(174	)	$	(41,754	)	$	(77,518	)	$	(2,942	)	$	29,615		$	1,030,259

^** Certain amounts reflected in this column have been adjusted for retrospective application of discontinued operations.



				Adjustments
	As Previously Reported (Adjusted)			Revenue - Hosting			Revenue - Evidence of Arrangement and Other Revenue			Acquisitions & Divestiture			Capitalized Software and Other			Income Taxes			As Adjusted
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	35,150		$	—		$	—		$	—		$	—		$	—		$	35,150
Accrued expenses	52,534			—			16,005			285			300			(1,505		)	67,619
Deferred revenues	28,009			15,494			1,890			(3,251		)	2			—			42,144
Contingent consideration obligation	7,657			—			—			(2,903		)	—			—			4,754
Short-term debt	47,000			—			—			—			—			—			47,000
Total current liabilities	170,350			15,494			17,895			(5,869		)	302			(1,505		)	196,667
Lease financing obligation - long term	13,623			—			—			45			—			—			13,668
Convertible debt	225,585			—			—			—			—			—			225,585
Deferred tax liability	29,716			—			—			—			—			(16,380		)	13,336
Deferred revenues	—			42,266			19,241			—			—			—			61,507
Other liabilities	22,545			—			(18,585		)	—			1,633			2,731			8,324
Commitments and contingencies
Redeemable noncontrolling interests	55,459			—			—			(28,982		)	(1,197		)	—			25,280
Stockholder's equity
Common stock	4			—			—			—			—			—			4
Treasury stock	(95,812		)	—			—			—			(2,676		)	—			(98,488		)
Additional paid-in capital	547,970			—			—			(7,667		)	45			—			540,348
Accumulated other comprehensive loss	(34,880		)	—			670			—			295			107			(33,808		)
Retained earnings	188,472			(57,934		)	(60,975		)	(35,045		)	(1,344		)	44,662			77,836
Total stockholders' equity	605,754			(57,934		)	(60,305		)	(42,712		)	(3,680		)	44,769			485,892
Total liabilities & stockholders' equity	$	1,123,032		$	(174	)	$	(41,754	)	$	(77,518	)	$	(2,942	)	$	29,615		$	1,030,259

The following table presents the Consolidated Balance Sheet (unaudited) as previously reported, restatement adjustments and the Consolidated Balance Sheet (unaudited) as adjusted at March 31, 2016:



(Unaudited)			Adjustments
	As Previously Reported**		Revenue - Hosting			Revenue - Evidence of Arrangement and Other Revenue			Acquisitions & Divestiture			Capitalized Software and Other			Income Taxes			As Adjusted
ASSETS
Current assets:
Cash and cash equivalents	$	113,084	$	—		$	—		$	—		$	(26,302	)	$	—		$	86,782
Restricted cash	—		—			—			—			26,302			—			26,302
Marketable securities	63,713		—			—			—			—			—			63,713
Accounts receivable, net	150,790		(42		)	(42,041		)	—			7,659			—			116,366
Prepaid expenses and other current assets	53,236		—			—			420			(817		)	649			53,488
Assets of discontinued operations, current	9,503		—			—			—			(8,415		)	—			1,088
Total current assets	390,326		(42		)	(42,041		)	420			(1,573		)	649			347,739
Marketable securities	17,934		—			—			—			—			—			17,934
Property and equipment, net	162,040		—			—			—			3,580			—			165,620
Goodwill	271,666		—			—			(55,637		)	16,488			(3,896		)	228,621
Intangible assets, net	230,986		—			—			(23,163		)	(3,462		)	—			204,361
Deferred tax assets	5,176		—			—			—			—			25,257			30,433
Other assets	10,867		—			—			(420		)	1,768			—			12,215
Assets of discontinued operations, non-current	44,568		—			—			—			(17,974		)	—			26,594
Total Assets	$	1,133,563	$	(42	)	$	(42,041	)	$	(78,800	)	$	(1,173	)	$	22,010		$	1,033,517

^** Certain amounts reflected in this column have been adjusted for retrospective application of discontinued operations.



				Adjustments
	As Previously Reported (Adjusted)			Revenue - Hosting			Revenue - Evidence of Arrangement and Other Revenue			Acquisitions & Divestiture			Capitalized Software and Other			Income Taxes			As Adjusted
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	33,171		$	—		$	—		$	—		$	—		$	—		$	33,171
Accrued expenses	48,695			—			29,763			(11		)	299			(1,504		)	77,242
Deferred revenues	32,113			8,860			1,378			(3,777		)	75			—			38,649
Contingent consideration obligation	1,271			—			—			373			—			—			1,644
Short-term debt	50,000			—			—			—			—			—			50,000
Total current liabilities	165,250			8,860			31,141			(3,415		)	374			(1,504		)	200,706
Lease financing obligation - long term	14,047			—			—			47			—			—			14,094
Convertible debt	225,231			—			—			—			—			—			225,231
Deferred tax liability	23,096			—			—			—			—			(16,380		)	6,716
Deferred revenues	—			36,039			6,646			—			—			—			42,685
Other liabilities	19,900			—			(4,114		)	—			1,696			2,731			20,213
Commitments and contingencies
Redeemable noncontrolling interests	58,323			—			—			(29,066		)	(3,977		)	—			25,280
Stockholder's equity
Common stock	4			—			—			—			—			—			4
Treasury stock	(72,368		)	—			—			—			(2,676		)	—			(75,044		)
Additional paid-in capital	535,945			—			—			(7,667		)	7,248			—			535,526
Accumulated other comprehensive loss	(29,254		)	—			562			—			294			107			(28,291		)
Retained earnings	193,389			(44,941		)	(76,276		)	(38,699		)	(4,132		)	37,056			66,397
Total stockholders' equity	627,716			(44,941		)	(75,714		)	(46,366		)	734			37,163			498,592
Total liabilities & stockholders' equity	$	1,133,563		$	(42	)	$	(42,041	)	$	(78,800	)	$	(1,173	)	$	22,010		$	1,033,517

Quarterly Financial Information (Unaudited) - Income Statements

The net effect of the restatement on the Company’s previously reported consolidated financial statements for the quarters ended March 31, June 30 and September 30, 2016 and 2015 (unaudited), are included in this Note 19 - Summary of Quarterly Results of Operations (Unaudited). Form 10-Q’s for the quarters ended March 31, 2017, June 30, 2017, and September 30, 2017 will be filed with the SEC concurrently with this Form 10-K.

The following table presents the Consolidated Statement of Operations (unaudited) as previously reported, restatement adjustments and the Consolidated Statement of Operations (unaudited) as adjusted for the three months ended December 31, 2016:



(Unaudited)				Adjustments
	As Previously Reported**			Revenue - Hosting			Revenue - Evidence of Arrangement and Other Revenue			Acquisitions & Divestiture			Capitalized Software and Other			Income Taxes			As Adjusted
Net revenues	$	121,796		$	(22,331	)	$	18,958		$	(11,412	)	$	—		$	—		$	107,011
Costs and expenses:
Cost of services	50,210			—			—			64			941			—			51,215
Research and development	28,273			—			—			—			1,316			—			29,589
Selling, general and administrative	43,297			—			(1,752		)	(75		)	137			—			41,607
Net change in contingent consideration obligation	3,631			—			—			(4,203		)	—			—			(572		)
Restructuring charges	1,360			—			—			—			—			—			1,360
Depreciation and amortization	25,302			—			—			(1,119		)	11,316			—			35,499
Total costs and expenses	152,073			—			(1,752		)	(5,333		)	13,710			—			158,698
Loss from continuing operations	(30,277		)	(22,331		)	20,710			(6,079		)	(13,710		)	—			(51,687		)
Interest income	936			—			—			(340		)	(181		)	—			415
Interest expense	(2,007		)	—			—			374			200			(975		)	(2,408		)
Other expense, net	2,049			—			(69		)	(830		)	(264		)	—			886
Loss from continuing operations, before taxes	(29,299		)	(22,331		)	20,641			(6,875		)	(13,955		)	(975		)	(52,794		)
Benefit for income taxes	7,176			—			—			—			—			7,284			14,460
Net loss from continuing operations	(22,123		)	(22,331		)	20,641			(6,875		)	(13,955		)	6,309			(38,334		)
Net income from discontinued operations, net of tax	43,668			—			5,329			18,116			—			(3,659		)	63,454
Net loss	21,545			(22,331		)	25,970			11,241			(13,955		)	2,650			25,120
Net loss attributable to redeemable noncontrolling interests	(2,760		)	—			—			—			(2,949		)	—			(5,709		)
Net loss attributable to Synchronoss	$	24,305		$	(22,331	)	$	25,970		$	11,241		$	(11,006	)	$	2,650		$	30,829

Basic:
Continuing operations	$	(0.44	)																$	(0.74	)
Discontinued operations	0.99																		1.45
	$	0.55																	$	0.71
Diluted:
Continuing operations	$	(0.44	)																$	(0.74	)
Discontinued operations	0.99																		1.45
	$	0.55																	$	0.71
Weighted-average common shares outstanding:
Basic	43,814																		43,814
Diluted	43,814																		43,814


*	Cost of services excludes depreciation and amortization which is shown separately.


**	Certain amounts reflected in this column have been adjusted for retrospective application of discontinued operations.


†	See Note 3 - Summary of Significant Accounting Policies.

for the three months ended September 30, 2016:



(Unaudited)				Adjustments
	As Previously Reported**			Revenue - Hosting			Revenue - Evidence of Arrangement and Other Revenue			Acquisitions & Divestiture			Capitalized Software and Other			Income Taxes		As Adjusted
Net revenues	$	132,480		$	(6,440	)	$	(7,648	)	$	1,544		$	—		$	—	$	119,936
Costs and expenses:
Cost of services	49,073			—			—			65			—			—		49,138
Research and development	28,141			—			—			—			2,889			—		31,030
Selling, general and administrative	30,934			2			(2,246		)	156			(19		)	—		28,827
Net change in contingent consideration obligation	572			—			—			(1,921		)	—			—		(1,349		)
Restructuring charges	924			—			—			—			—			—		924
Depreciation and amortization	24,692			—			—			(1,111		)	11			—		23,592
Total costs and expenses	134,336			2			(2,246		)	(2,811		)	2,881			—		132,162
Loss from continuing operations	(1,856		)	(6,442		)	(5,402		)	4,355			(2,881		)	—		(12,226		)
Interest income	271			—			—			—			—			—		271
Interest expense	(1,596		)	—			—			—			—			—		(1,596		)
Other expense, net	(167		)	—			16			—			—			—		(151		)
Loss from continuing operations, before taxes	(3,348		)	(6,442		)	(5,386		)	4,355			(2,881		)	—		(13,702		)
Benefit for income taxes	(1,621		)	—			—			—			—			5,231		3,610
Net loss from continuing operations	(4,969		)	(6,442		)	(5,386		)	4,355			(2,881		)	5,231		(10,092		)
Net income from discontinued operations, net of tax	9,802			—			(2,427		)	(272		)	(1		)	2,205		9,307
Net loss	4,833			(6,442		)	(7,813		)	4,083			(2,882		)	7,436		(785		)
Net loss attributable to redeemable noncontrolling interests	(2,843		)	—			—			—			(504		)	—		(3,347		)
Net loss attributable to Synchronoss	$	7,676		$	(6,442	)	$	(7,813	)	$	4,083		$	(2,378	)	$	7,436	$	2,562

Basic:
Continuing operations	$	(0.05	)															$	(0.15	)
Discontinued operations	0.23																	0.21
	$	0.18																$	0.06
Diluted:
Continuing operations	$	(0.05	)															$	(0.15	)
Discontinued operations	0.23																	0.21
	$	0.18																$	0.06
Weighted-average common shares outstanding:
Basic	43,560																	43,560
Diluted	43,560																	43,560


*	Cost of services excludes depreciation and amortization which is shown separately.


**	Certain amounts reflected in this column have been adjusted for retrospective application of discontinued operations.


†	See Note 3 - Summary of Significant Accounting Policies.

for the three months ended June 30, 2016:



(Unaudited)				Adjustments
	As Previously Reported**			Revenue - Hosting			Revenue - Evidence of Arrangement and Other Revenue			Acquisitions & Divestiture			Capitalized Software and Other			Income Taxes			As Adjusted
Net revenues	$	118,255		$	(12,840	)	$	16,211		$	(525	)	$	—		$	—		$	121,101
Costs and expenses:
Cost of services	48,467			—			—			(171		)	(116		)	—			48,180
Research and development	26,170			—			—			—			1,877			—			28,047
Selling, general and administrative	29,952			153			(472		)	296			(49		)	—			29,880
Net change in contingent consideration obligation	6,386			—			—			(3,276		)	—			—			3,110
Restructuring charges	1,139			—			—			—			—			—			1,139
Depreciation and amortization	25,262			—			—			(1,111		)	(58		)	—			24,093
Total costs and expenses	137,376			153			(472		)	(4,262		)	1,654			—			134,449
Loss from continuing operations	(19,121		)	(12,993		)	16,683			3,737			(1,654		)	—			(13,348		)
Interest income	591			—			—			—			—			—			591
Interest expense	(1,834		)	—			—			—			—			—			(1,834		)
Other expense, net	865			—			(197		)	—			—			—			668
Loss from continuing operations, before taxes	(19,499		)	(12,993		)	16,486			3,737			(1,654		)	—			(13,923		)
Benefit for income taxes	2,074			—			—			—			—			(2,444		)	(370		)
Net loss from continuing operations	(17,425		)	(12,993		)	16,486			3,737			(1,654		)	(2,444		)	(14,293		)
Net income from discontinued operations, net of tax	10,122			—			(1,188		)	—			1			10,050			18,985
Net loss	(7,303		)	(12,993		)	15,298			3,737			(1,653		)	7,606			4,692
Net loss attributable to redeemable noncontrolling interests	(2,864		)	—			—			—			(276		)	—			(3,140		)
Net loss attributable to Synchronoss	$	(4,439	)	$	(12,993	)	$	15,298		$	3,737		$	(1,377	)	$	7,606		$	7,832

Basic:
Continuing operations	$	(0.34	)																$	(0.26	)
Discontinued operations	0.24																		0.44
	$	(0.10	)																$	0.18
Diluted:
Continuing operations	$	(0.34	)																$	(0.26	)
Discontinued operations	0.24																		0.44
	$	(0.10	)																$	0.18
Weighted-average common shares outstanding:
Basic	43,450																		43,450
Diluted	43,450																		43,450


*	Cost of services excludes depreciation and amortization which is shown separately.


**	Certain amounts reflected in this column have been adjusted for retrospective application of discontinued operations.


†	See Note 3 - Summary of Significant Accounting Policies.

for the three months ended March 31, 2016:



(Unaudited)				Adjustments
	As Previously Reported**			Revenue - Hosting		Revenue - Evidence of Arrangement and Other Revenue			Acquisitions & Divestiture			Capitalized Software and Other			Income Taxes			As Adjusted
Net revenues	$	104,219		$	2,119	$	(18,086	)	$	(10,006	)	$	—		$	—		$	78,246
Costs and expenses:
Cost of services	46,448			—		—			(1		)	(296		)	—			46,151
Research and development	24,097			—		—			—			1,730			—			25,827
Selling, general and administrative	26,923			—		—			84			(1,093		)	—			25,914
Net change in contingent consideration obligation	341			—		—			(336		)	—			—			5
Restructuring charges	2,910			—		—			—			—			—			2,910
Depreciation and amortization	24,055			—		—			(1,111		)	(162		)	—			22,782
Total costs and expenses	124,774			—		—			(1,364		)	179			—			123,589
Loss from continuing operations	(20,555		)	2,119		(18,086		)	(8,642		)	(179		)	—			(45,343		)
Interest income	630			—		—			—			—			—			630
Interest expense	(1,576		)	—		—			—			—			—			(1,576		)
Other expense, net	(884		)	—		503			—			—			—			(381		)
Loss from continuing operations, before taxes	(22,385		)	2,119		(17,583		)	(8,642		)	(179		)	—			(46,670		)
Benefit for income taxes	361			—		—			—			—			15,159			15,520
Net loss from continuing operations	(22,024		)	2,119		(17,583		)	(8,642		)	(179		)	15,159			(31,150		)
Net income from discontinued operations, net of tax	10,941			—		(2,111		)	—			—			(10,016		)	(1,186		)
Net loss	(11,083		)	2,119		(19,694		)	(8,642		)	(179		)	5,143			(32,336		)
Net loss attributable to redeemable noncontrolling interests	(3,129		)	—		—			—			122			—			(3,007		)
Net loss attributable to Synchronoss	$	(7,954	)	$	2,119	$	(19,694	)	$	(8,642	)	$	(301	)	$	5,143		$	(29,329	)

Basic:
Continuing operations	$	(0.44	)															$	(0.65	)
Discontinued operations	0.26																	(0.03		)
	$	(0.18	)															$	(0.68	)
Diluted:
Continuing operations	$	(0.44	)															$	(0.65	)
Discontinued operations	0.26																	(0.03		)
	$	(0.18	)															$	(0.68	)
Weighted-average common shares outstanding:
Basic	43,423																	43,423
Diluted	43,423																	43,423


*	Cost of services excludes depreciation and amortization which is shown separately.


**	Certain amounts reflected in this column have been adjusted for retrospective application of discontinued operations.


†	See Note 3 - Summary of Significant Accounting Policies.

for the three months ended December 31, 2015:



(Unaudited)				Adjustments
	As Previously Reported**			Revenue - Hosting			Revenue - Evidence of Arrangement and Other Revenue			Acquisitions & Divestiture			Capitalized Software and Other			Income Taxes		As Adjusted
Net revenues	$	121,213		$	(2,519	)	$	(12,141	)	$	(20,090	)	$	—		$	—	$	86,463
Costs and expenses:
Cost of services	45,512			—			—			(17		)	203			—		45,698
Research and development	22,958			—			—			—			1,235			—		24,193
Selling, general and administrative	29,539			—			(3,042		)	—			8			—		26,505
Net change in contingent consideration obligation	760			—			—			755			—			—		1,515
Restructuring charges	(34		)	—			—			—			—			—		(34		)
Depreciation and amortization	20,931			—			—			(76		)	(172		)	—		20,683
Total costs and expenses	119,666			—			(3,042		)	662			1,274			—		118,560
Loss from continuing operations	1,547			(2,519		)	(9,099		)	(20,752		)	(1,274		)	—		(32,097		)
Interest income	564			—			—			—			—			—		564
Interest expense	(1,503		)	—			—			—			—			—		(1,503		)
Other expense, net	973			—			(149		)	(16		)	—			—		808
Loss from continuing operations, before taxes	1,581			(2,519		)	(9,248		)	(20,768		)	(1,274		)	—		(32,228		)
Benefit for income taxes	2,263			—			(534		)	—			—			5,381		7,110
Net loss from continuing operations	3,844			(2,519		)	(9,782		)	(20,768		)	(1,274		)	5,381		(25,118		)
Net income from discontinued operations, net of tax	7,478			—			—			—			—			1,836		9,314
Net loss	11,322			(2,519		)	(9,782		)	(20,768		)	(1,274		)	7,217		(15,804		)
Net loss attributable to redeemable noncontrolling interests	6,052			—			—			—			(6,680		)	—		(628		)
Net loss attributable to Synchronoss	$	5,270		$	(2,519	)	$	(9,782	)	$	(20,768	)	$	5,406		$	7,217	$	(15,176	)

Basic:
Continuing operations	$	(0.05	)															$	(0.57	)
Discontinued operations	0.17																	0.22
	$	0.12																$	(0.35	)
Diluted:
Continuing operations	$	(0.05	)															$	(0.57	)
Discontinued operations	0.17																	0.22
	$	0.12																$	1.26
Weighted-average common shares outstanding:
Basic	42,817																	42,817
Diluted	42,817																	42,817


*	Cost of services excludes depreciation and amortization which is shown separately.


**	Certain amounts reflected in this column have been adjusted for retrospective application of discontinued operations.


†	See Note 3 - Summary of Significant Accounting Policies.

for the three months ended September 30, 2015:



(Unaudited)				Adjustments
	As Previously Reported**			Revenue - Hosting			Revenue - Evidence of Arrangement and Other Revenue			Acquisitions & Divestiture			Capitalized Software and Other			Income Taxes			As Adjusted
Net revenues	$	109,297		$	(2,355	)	$	(18,195	)	$	—		$	—		$	—		$	88,747
Costs and expenses:
Cost of services	40,223			—			—			—			42			—			40,265
Research and development	23,986			—			—			—			165			—			24,151
Selling, general and administrative	20,410			—			—			—			(71		)	—			20,339
Restructuring charges	359			—			—			—			—			—			359
Depreciation and amortization	19,754			—			—			(20		)	(146		)	—			19,588
Total costs and expenses	104,732			—			—			(20		)	(10		)	—			104,702
Loss from continuing operations	4,565			(2,355		)	(18,195		)	20			10			—			(15,955		)
Interest income	546			—			—			—			—			—			546
Interest expense	(1,448		)	—			—			—			—			—			(1,448		)
Other expense, net	(1,030		)	—			109			—			—			—			(921		)
Loss from continuing operations, before taxes	2,633			(2,355		)	(18,086		)	20			10			—			(17,778		)
Benefit for income taxes	(4,448		)	—			—			—			—			12,228			7,780
Net loss from continuing operations	(1,815		)	(2,355		)	(18,086		)	20			10			12,228			(9,998		)
Net income from discontinued operations, net of tax	11,460			—			—			—			—			(10,320		)	1,140
Net loss	9,645			(2,355		)	(18,086		)	20			10			1,908			(8,858		)

Basic:
Continuing operations	$	(0.04	)																$	(0.24	)
Discontinued operations	0.27																		0.03
	$	0.23																	$	(0.21	)
Diluted:
Continuing operations	$	(0.04	)																$	(0.24	)
Discontinued operations	$	0.27																	$	0.03
	$	0.23																	$	(0.21	)
Weighted-average common shares outstanding:
Basic	42,491																		42,491
Diluted	42,491																		42,491


*	Cost of services excludes depreciation and amortization which is shown separately.


**	Certain amounts reflected in this column have been adjusted for retrospective application of discontinued operations.


†	See Note 3 - Summary of Significant Accounting Policies.

for the three months ended June 30, 2015:



(Unaudited)				Adjustments
	As Previously Reported**			Revenue - Hosting			Revenue - Evidence of Arrangement and Other Revenue			Acquisitions & Divestiture			Capitalized Software and Other			Income Taxes			As Adjusted
Net revenues	$	102,176		$	(5,586	)	$	(8,880	)	$	—		$	—		$	—		$	87,710
Costs and expenses:
Cost of services	35,945			—			—			—			—			—			35,945
Research and development	22,462			—			—			—			4			—			22,466
Selling, general and administrative	18,147			—			—			—			468			—			18,615
Restructuring charges	1,416			—			—			—			—			—			1,416
Depreciation and amortization	16,632			—			—			(20		)	(16		)	—			16,596
Total costs and expenses	94,602			—			—			(20		)	456			—			95,038
Loss from continuing operations	7,574			(5,586		)	(8,880		)	20			(456		)	—			(7,328		)
Interest income	471			—			—			—			—			—			471
Interest expense	(1,418		)	—			—			—			—			—			(1,418		)
Other expense, net	415			—			57			—			—			—			472
Loss from continuing operations, before taxes	7,042			(5,586		)	(8,823		)	20			(456		)	—			(7,803		)
Benefit for income taxes	(2,309		)	—			—			—			—			(6,101		)	(8,410		)
Net loss from continuing operations	4,733			(5,586		)	(8,823		)	20			(456		)	(6,101		)	(16,213		)
Net income from discontinued operations, net of tax	10,421			—			—			—			—			13,201			23,622
Net loss	15,154			(5,586		)	(8,823		)	20			(456		)	7,100			7,409

Basic:
Continuing operations	$	0.11																	$	(0.39	)
Discontinued operations	0.25																		0.56
	$	0.36																	$	0.17
Diluted:
Continuing operations	$	0.11																	$	(0.39	)
Discontinued operations	0.25																		0.56
	$	0.36																	$	0.17
Weighted-average common shares outstanding:
Basic	41,870																		41,870
Diluted	41,870																		41,870


*	Cost of services excludes depreciation and amortization which is shown separately.


**	Certain amounts reflected in this column have been adjusted for retrospective application of discontinued operations.


†	See Note 3 - Summary of Significant Accounting Policies.

for the three months ended March 31, 2015:



(Unaudited)				Adjustments
	As Previously Reported**			Revenue - Hosting			Revenue - Evidence of Arrangement and Other Revenue			Acquisitions & Divestiture			Capitalized Software and Other			Income Taxes			As Adjusted
Net revenues	$	95,431		$	(16,448	)	$	40,658		$	(10,000	)	$	—		$	—		$	109,641
Costs and expenses:
Cost of services	33,607			—			—			—			(705		)	—			32,902
Research and development	22,024			—			—			—			(71		)	—			21,953
Selling, general and administrative	20,315			—			—			—			(1,183		)	—			19,132
Restructuring charges	3,205			—			—			—			—			—			3,205
Depreciation and amortization	14,835			—			—			(20		)	(633		)	—			14,182
Total costs and expenses	93,986			—			—			(20		)	(2,592		)	—			91,374
Loss from continuing operations	1,445			(16,448		)	40,658			(9,980		)	2,592			—			18,267
Interest income	466			—			—			—			—			—			466
Interest expense	(1,342		)	—			—			—			—			—			(1,342		)
Other expense, net	14			—			(69		)	—			303			—			248
Loss from continuing operations, before taxes	583			(16,448		)	40,589			(9,980		)	2,895			—			17,639
Benefit for income taxes	(930		)	—			—			—			—			(3,162		)	(4,092		)
Net loss from continuing operations	(347		)	(16,448		)	40,589			(9,980		)	2,895			(3,162		)	13,547
Net income from discontinued operations, net of tax	10,908			—			—			—			—			(4,717		)	6,191
Net loss	10,561			(16,448		)	40,589			(9,980		)	2,895			(7,879		)	19,738

Basic:
Continuing operations	$	(0.01	)																$	0.33
Discontinued operations	0.26																		0.15
	$	0.25																	$	0.48
Diluted:
Continuing operations	$	(0.01	)																$	0.30
Discontinued operations	0.26																		0.13
	$	0.25																	$	0.43
Weighted-average common shares outstanding:
Basic	41,626																		41,626
Diluted	47,080																		47,080


*	Cost of services excludes depreciation and amortization which is shown separately.


**	Certain amounts reflected in this column have been adjusted for retrospective application of discontinued operations.


†	See Note 3 - Summary of Significant Accounting Policies.