The following table presents the Consolidated Balance Sheet as previously reported, restatement adjustments and the Consolidated Balance Sheet as restated at December 31, 2016:



			Adjustments
	As Previously Reported		Revenue - Hosting			Revenue - Evidence of Arrangement and Other Revenue			Acquisitions & Divestiture			Capitalized Software and Other			Income Taxes			As Restated
ASSETS
Current assets:
Cash and cash equivalents	$	181,018	$	—		$	—		$	—		$	(11,217	)	$	—		$	169,801
Restricted cash	—		—			—			—			41,632			—			41,632
Marketable securities	12,506		—			—			—			—			—			12,506
Accounts receivable, net	137,233		(344		)	(36,509		)	7,896			(802		)	—			107,474
Prepaid expenses and other current assets	33,696		—			—			1,408			(1,166		)	4,339			38,277
Total current assets	364,453		(344		)	(36,509		)	9,304			28,447			4,339			369,690
Restricted cash	30,000		—			—			—			(30,000		)	—			—
Marketable securities	2,974		—			—			—			—			—			2,974
Property and equipment, net	155,599		—			—			(823		)	3,429			—			158,205
Goodwill	269,905		—			—			(41,358		)	—			(3,896		)	224,651
Intangible assets, net	203,864		—			—			(19,830		)	(21,066		)	—			162,968
Deferred tax assets	1,503		—			—			—			—			11,783			13,286
Other assets	7,541		—			—			(70		)	1,187			—			8,658
Note receivable from related party	83,000		—			—			(12,731		)	—			—			70,269
Equity method investment	45,890		—			—			(2,240		)	—			—			43,650
Total Assets	$	1,164,729	$	(344	)	$	(36,509	)	$	(67,748	)	$	(18,003	)	$	12,226		$	1,054,351



				Adjustments
	As Previously Reported			Revenue - Hosting			Revenue - Evidence of Arrangement and Other Revenue			Acquisitions & Divestiture			Capitalized Software and Other			Income Taxes			As Restated
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	15,770		$	—		$	—		$	—		$	1,287		$	—		$	17,057
Accrued expenses	69,435			—			5,274			971			246			956			76,882
Deferred revenues	27,542			33,398			(151		)	(3,360		)	1			—			57,430
Contingent consideration obligation	11,860			—			—			(9,027		)	—			—			2,833
Short-term debt	29,000			—			—			—			—			—			29,000
Total current liabilities	153,607			33,398			5,123			(11,416		)	1,534			956			183,202
Lease financing obligation - long term	12,121			—			—			41			288			—			12,450
Long-term debt	226,291			—			—			—			—			—			226,291
Deferred tax liability	49,822			—			—			—			—			(46,314		)	3,508
Deferred revenues	12,134			52,965			531			—			—			—			65,630
Other liabilities	3,783			—			—			—			1,679			2,731			8,193
Redeemable noncontrolling interests	49,856			—			—			(28,813		)	4,237			—			25,280
Commitments and contingencies
Stockholder's equity
Common stock	5			—			—			—			—			—			5
Treasury stock	(95,183		)	—			—			—			(11,448		)	—			(106,631		)
Additional paid-in capital	575,093			—			—			(7,667		)	3,727			—			571,153
Accumulated other comprehensive loss	(43,253		)	—			658			—			138			107			(42,350		)
Retained earnings	220,453			(86,707		)	(42,821		)	(19,893		)	(18,158		)	54,746			107,620
Total stockholders' equity	657,115			(86,707		)	(42,163		)	(27,560		)	(25,741		)	54,853			529,797
Total liabilities & stockholders' equity	$	1,164,729		$	(344	)	$	(36,509	)	$	(67,748	)	$	(18,003	)	$	12,226		$	1,054,351

The following table presents the Consolidated Statement of Operations as previously reported, restatement adjustments and the Consolidated Statement of Operations as restated for the year ended December 31, 2016:



				Adjustments
	As Previously Reported			Revenue - Hosting			Revenue - Evidence of Arrangement and Other Revenue			Acquisitions & Divestiture			Capitalized Software and Other			Income Taxes			As Restated
Net revenues	$	476,750		$	(39,492	)	$	9,435		$	(20,399	)	$	—		$	—		$	426,294
Costs and expenses:
Cost of services	194,198			—			—			(43		)	529			—			194,684
Research and development	106,681			—			—			—			7,812			—			114,493
Selling, general and administrative	131,106			155			(4,470		)	461			(1,024		)	—			126,228
Net change in contingent consideration obligation	10,930			—			—			(9,736		)	—			—			1,194
Restructuring charges	6,333			—			—			—			—			—			6,333
Depreciation and amortization	99,311			—			—			(4,452		)	11,107			—			105,966
Total costs and expenses	548,559			155			(4,470		)	(13,770		)	18,424			—			548,898
Loss from continuing operations	(71,809		)	(39,647		)	13,905			(6,629		)	(18,424		)	—			(122,604		)
Interest income	2,428			—			—			(340		)	(181		)	—			1,907
Interest expense	(7,013		)	—			—			374			200			(975		)	(7,414		)
Other expense, net	1,863			—			253			(830		)	(264		)	—			1,022
Loss from continuing operations, before taxes	(74,531		)	(39,647		)	14,158			(7,425		)	(18,669		)	(975		)	(127,089		)
Benefit for income taxes	7,990			—			—			—			—			25,230			33,220
Net loss from continuing operations	(66,541		)	(39,647		)	14,158			(7,425		)	(18,669		)	24,255			(93,869		)
Net income from discontinued operations, net of tax	74,533			—			(397		)	17,844			—			(1,420		)	90,560
Net loss	7,992			(39,647		)	13,761			10,419			(18,669		)	22,835			(3,309		)
Net loss attributable to redeemable noncontrolling interests	(11,596		)	—			—			—			(3,607		)	—			(15,203		)
Net loss attributable to Synchronoss	$	19,588		$	(39,647	)	$	13,761		$	10,419		$	(15,062	)	$	22,835		$	11,894

Basic:
Continuing operations	$	(1.26	)																$	(1.81	)
Discontinued operations	1.71																		2.08
	$	0.45																	$	0.27
Diluted:
Continuing operations	$	(1.26	)																$	(1.81	)
Discontinued operations	1.71																		2.08
	$	0.45																	$	0.27
Weighted-average common shares outstanding:
Basic	43,571																		43,551
Diluted	43,571																		43,551


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


†	See Note 3 - Summary of Significant Accounting Policies.



				Adjustments
	As Previously Reported			Revenue - Hosting			Revenue - Evidence of Arrangement and Other Revenue			Acquisitions & Divestiture			Capitalized Software and Other			Income Taxes		As Restated
Net revenues	$	428,117		$	(26,908	)	$	1,442		$	(30,090	)	$	—		$	—	$	372,561
Costs and expenses:
Cost of services	155,287			—			—			(17		)	(460		)	—		154,810
Research and development	91,430			—			—			—			1,333			—		92,763
Selling, general and administrative	88,411			—			(3,042		)	—			(778		)	—		84,591
Net change in contingent consideration obligation	760			—			—			755			—			—		1,515
Restructuring charges	4,946			—			—			—			—			—		4,946
Depreciation and amortization	72,152			—			—			(136		)	(967		)	—		71,049
Total costs and expenses	412,986			—			(3,042		)	602			(872		)	—		409,674
Loss from continuing operations	15,131			(26,908		)	4,484			(30,692		)	872			—		(37,113		)
Interest income	2,047			—			—			—			—			—		2,047
Interest expense	(5,711		)	—			—			—			—			—		(5,711		)
Other expense, net	372			—			(52		)	(16		)	303			—		607
Loss from continuing operations, before taxes	11,839			(26,908		)	4,432			(30,708		)	1,175			—		(40,170		)
Benefit for income taxes	(5,424		)	—			(534		)	—			—			8,346		2,388
Net loss from continuing operations	6,415			(26,908		)	3,898			(30,708		)	1,175			8,346		(37,782		)
Net income from discontinued operations, net of tax	40,267			—			—			—			—			—		40,267
Net loss	46,682			(26,908		)	3,898			(30,708		)	1,175			8,346		2,485
Net loss attributable to redeemable noncontrolling interests	6,052			—			—			—			(6,680		)	—		(628		)
Net loss attributable to Synchronoss	$	40,630		$	(26,908	)	$	3,898		$	(30,708	)	$	7,855		$	8,346	$	3,113

Basic:
Continuing operations	$	0.01																$	(0.88	)
Discontinued operations	0.95																	0.95
	$	0.96																$	0.07
Diluted:
Continuing operations	$	0.01																$	(0.88	)
Discontinued operations	0.95																	0.95
	$	0.96																$	0.07
Weighted-average common shares outstanding:
Basic	42,284																	42,284
Diluted	42,284																	42,284


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


†	See Note 3 - Summary of Significant Accounting Policies.

The following table presents the Consolidated Statement of Comprehensive Income as previously reported, restatement adjustments and the Consolidated Statement of Comprehensive Income as restated for the year ended December 31, 2016:



				Adjustments
	As Previously Reported			Revenue - Hosting			Revenue - Evidence of Arrangement and Other Revenue			Acquisitions & Divestiture		Capitalized Software and Other			Income Taxes			As Restated
Net (loss) income	$	7,992		$	(39,647	)	$	13,761		$	10,419	$	(18,669	)	$	22,835		$	(3,309	)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(4,042		)	—			12			—		23			(107		)	(4,114		)
Unrealized gain (loss) on securities	198			—			(141		)	—		(161		)	107			3
Net loss on intra-entity foreign currency transactions	(725		)	—			—			—		—			—			(725		)
Total other comprehensive loss	(4,569		)	—			(129		)	—		(138		)	—			(4,836		)
Comprehensive (loss) income	$	3,423		$	(39,647	)	$	13,632		$	10,419	$	(18,807	)	$	22,835		$	(8,145	)
Comprehensive (loss) attributable to redeemable noncontrolling interests	$	(11,596	)	$	—		$	—		$	—	$	(3,607	)	$	—		$	(15,203	)
Total comprehensive (loss) income attributable to Synchronoss	$	15,019		$	(39,647	)	$	13,632		$	10,419	$	(15,200	)	$	22,835		$	7,058



				Adjustments
	As Previously Reported			Revenue - Hosting			Revenue - Evidence of Arrangement and Other Revenue		Acquisitions & Divestiture			Capitalized Software and Other			Income Taxes			As Restated
Net (loss) income	$	46,682		$	(26,908	)	$	3,898	$	(30,708	)	$	1,175		$	8,346		$	2,485
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(17,281		)	—			547		—			(58		)	(913		)	(17,705		)
Unrealized gain (loss) on securities	(54		)	—			—		—			53			(19		)	(20		)
Net loss on intra-entity foreign currency transactions	(1,335		)	—			—		—			—			—			(1,335		)
Total other comprehensive loss	(18,670		)	—			547		—			(5		)	(932		)	(19,060		)
Comprehensive (loss) income	$	28,012		$	(26,908	)	$	4,445	$	(30,708	)	$	1,170		$	7,414		$	(16,575	)
Comprehensive (loss) attributable to redeemable noncontrolling interests	$	6,052		$	—		$	—	$	—		$	(6,680	)	$	—		$	(628	)
Total comprehensive (loss) income attributable to Synchronoss	$	21,960		$	(26,908	)	$	4,445	$	(30,708	)	$	7,850		$	7,414		$	(15,947	)

The following table presents the Consolidated Statement of Stockholders equity as previously reported, restatement adjustments and the Consolidated Statement of Stockholders’ Equity as restated for the year ended December 31, 2014:



									Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)			Retained Earnings			Total Stockholders’ Equity
	Common Stock			Treasury Stock
	Shares	Amount		Shares		Amount
Balance at December 31, 2014 (As Previously Reported)	46,444	$	4	(3,733	)	$	(66,336	)	$	454,740	$	(20,014	)	$	160,713		529,107
Adjustments from:
Revenue - Hosting, before income tax effect	—	—		—		—			—		—			(20,152		)	(20,152		)
Revenue - Evidence of Arrangement and Other Revenue, before income tax effect	—	—		—		—			—		240			(60,478		)	(60,238		)
Acquisitions & Divestiture, before income tax effect	—	—		—		—			—		—			(5,960		)	(5,960		)
Capitalized Software and Other, before income tax effect	176	—		(159	)	(1,991		)	2,408		281			(4,599		)	(3,901		)
Income tax adjustments	—	—		—		—			—		1,039			23,569			24,608
Total adjustments	176	—		(159	)	(1,991		)	2,408		1,560			(67,620		)	(65,643		)
Balance at December 31, 2014 (As Restated)	46,620	$	4	(3,892	)	$	(68,327	)	$	457,148	$	(18,454	)	$	93,093		$	463,464

The following table presents the Consolidated Statement of Cash Flows as previously reported, restatement adjustments, the effect of early adopting Accounting Standard Update (“ASU”) 2016-18 Statement of Cash Flows (Topic 230) and the Consolidated Statement of Cash Flows as restated for the year ended December 31, 2016:



	As Previously Reported			Adjustments			Effect of Early Adoption of ASU 2016-18		As Restated
Operating activities:
Net loss continuing operations	$	(66,541	)	$	(27,328	)	$	—	$	(93,869	)
Net loss from discontinued operations	74,533			16,027			—		90,560
Gain (loss) on sale of discontinued operations, net of tax	(95,311		)	(17,818		)	—		(113,129		)

Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization expense	99,311			(4,400		)	—		94,911
Impairment of long-lived assets and capitalized software	—			11,055			—		11,055
Amortization of debt issuance costs	1,607			—			—		1,607
Accrued PIK interest	—			(34		)	—		(34		)
Gain (loss) on disposals	(952		)	830			—		(122		)
Discontinued operations non-cash and working capital adjustments	—			371			—		371
Amortization of bond premium	1,416			—			—		1,416
Deferred income taxes	32,826			(15,678		)	—		17,148
Non-cash interest on leased facility	1,111			281			—		1,392
Stock-based compensation	33,979			199			—		34,178
Contingent consideration obligation	10,930			(9,736		)	—		1,194
Changes in operating assets and liabilities:	—			—
Accounts receivable, net of allowance for doubtful accounts	(1,662		)	(11,988		)	—		(13,650		)
Prepaid expenses and other current assets	12,644			19,004			—		31,648
Other assets	10,054			(1,174		)	—		8,880
Accounts payable	(11,139		)	1,050			—		(10,089		)
Accrued expenses	22,024			(29,547		)	—		(7,523		)
Other liabilities	(6,558		)	—			—		(6,558		)
Deferred revenues	24,317			30,856			—		55,173
Net cash provided by operating activities	142,589			(38,030		)	—		104,559

Investing activities:
Purchases of fixed assets	(58,542		)	15,972			—		(42,570		)
Purchases of intangible assets and capitalized software	—			(7,677		)	—		(7,677		)
Purchases of marketable securities available-for-sale	(13,445		)	—			—		(13,445		)
Maturities of marketable securities available-for-sale	82,904			—			—		82,904
Change in restricted cash	(30,000		)	—			30,000		—
Proceeds from the sale of discontinued operations	18,135			9,200			—		27,335
Businesses acquired, net of cash	(98,428		)	12,106			—		(86,322		)
Net cash provided by (used in) investing activities	(99,376		)	29,601			30,000		(39,775		)



Financing activities:
Proceeds from the exercise of stock options	13,912			(279	)	—	13,633
Taxes paid on withholding shares	(8,885		)	8,885		—	—
Debt issuance costs related to the Credit Facility	(1,346		)	—		—	(1,346		)
Borrowings on revolving line of credit	144,000			—		—	144,000
Repayment of revolving line of credit	(115,000		)	—		—	(115,000		)
Repurchases of common stock	(40,025		)	—		—	(40,025		)
Proceeds from the sale of treasury stock in connection with an employee stock purchase plan	2,183			—		—	2,183
Repayments of capital lease obligations	(3,815		)	—		—	(3,815		)
Net cash (used in) provided by financing activities	(8,976		)	8,606		—	(370		)
Effect of exchange rate changes on cash	(853		)	—		—	(853		)
Net increase in cash and cash equivalents	33,384			177		30,000	63,561
Cash and cash equivalents at beginning of period	147,634			238		—	147,872
Cash and cash equivalents at end of period	181,018			415		30,000	211,433
Cash and cash equivalents	181,018			(11,217	)	—	169,801
Restricted cash	—			11,632		30,000	41,632
Total cash and cash equivalents at end of period	181,018			415		30,000	211,433

Supplemental disclosures of cash flow information:
Cash paid for income taxes	4,661						4,661
Cash paid for interest	6,981						6,981

Supplemental disclosures of non-cash investing and financing activities:
Issuance of common stock in connection with Openwave acquisition	$	22,000					$	22,000



	As Previously Reported			Adjustments			As Restated
Operating activities:
Net loss continuing operations	$	6,415		$	(44,197	)	$	(37,782	)
Net loss from discontinued operations	40,267			—			40,267

Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization expense	72,152			(1,103		)	71,049
Amortization of debt issuance costs	1,501			—			1,501
Gain (loss) on disposals	16			—			16
Amortization of bond premium	1,705			—			1,705
Deferred income taxes	8,319			(8,772		)	(453		)
Non-cash interest on leased facility	924			—			924
Stock-based compensation	31,711			(307		)	31,404
Contingent consideration obligation	(772		)	757			(15		)
Changes in operating assets and liabilities:
Accounts receivable, net of allowance for doubtful accounts	(27,577		)	7,803			(19,774		)
Prepaid expenses and other current assets	(8,543		)	(514		)	(9,057		)
Other assets	(4,282		)	531			(3,751		)
Accounts payable	6,185			(13,948		)	(7,763		)
Accrued expenses	16,333			(17,043		)	(710		)
Other liabilities	(402		)	2,530			2,128
Deferred revenues	(4,130		)	26,427			22,297
Net cash provided by operating activities	139,822			(47,836		)	91,986

Investing activities:
Purchases of fixed assets	(59,960		)	2,294			(57,666		)
Purchases of intangible assets and capitalized software	(1,200		)	(1,353		)	(2,553		)
Purchases of marketable securities available-for-sale	(139,569		)	—			(139,569		)
Maturities of marketable securities available-for-sale	106,210			—			106,210
Change in restricted cash	—			—			—
Businesses acquired, net of cash	(131,592		)	30,090			(101,502		)
Net cash provided by (used in) investing activities	(226,111		)	31,031			(195,080		)

Financing activities:
Proceeds from the exercise of stock options	19,936			—			19,936
Taxes paid on withholding shares	(17,043		)	17,043			—
Payments on contingent consideration obligation	(4,468		)	—			(4,468		)
Proceeds from the sale of treasury stock in connection with an employee stock purchase plan	1,902			—			1,902
Repayments of capital lease obligations	(2,021		)	—			(2,021		)
Net cash (used in) provided by financing activities	(1,694		)	17,043			15,349
Effect of exchange rate changes on cash	(350		)	—			(350		)
Net increase in cash and cash equivalents	(88,333		)	238			(88,095		)
Cash and cash equivalents at beginning of period	235,967			—			235,967
Cash and cash equivalents at end of period	$	147,634		$	238		$	147,872

Supplemental disclosures of cash flow information:
Cash paid for income taxes	$	29,868					$	29,868
Cash paid for interest	$	5,791					$	5,791

* Note there was no effect of early adopting ASU Topic 230

See accompanying notes to consolidated financial statements.

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

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.