The following table presents the Condensed Consolidated Balance Sheet as previously reported, restatement adjustments and the Condensed 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 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

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



				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

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

The following table presents the Condensed Consolidated Statement of Operations as previously reported, restatement adjustments and the Condensed Consolidated Statement of Operations as restated for the three months ended June 30, 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	$	118,255		$	(12,840	)	$	16,211		$	(525	)	$	—		$	—		$	121,101
Costs and expenses:
Cost of revenues*	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 (provision) for income taxes	2,074			—			—			—			—			(2,444		)	(370		)
Net (loss) income 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) income	(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) income 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.



				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	$	222,474		$	(10,721	)	$	(1,875	)	$	(10,531	)	$	—		$	—	$	199,347
Costs and expenses:
Cost of revenues*	94,915			—			—			(172		)	(412		)	—		94,331
Research and development	50,267			—			—			—			3,607			—		53,874
Selling, general and administrative	56,875			153			(472		)	380			(1,142		)	—		55,794
Net change in contingent consideration obligation	6,727			—			—			(3,612		)	—			—		3,115
Restructuring charges	4,049			—			—			—			—			—		4,049
Depreciation and amortization	49,317			—			—			(2,222		)	(220		)	—		46,875
Total costs and expenses	262,150			153			(472		)	(5,626		)	1,833			—		258,038
Loss from continuing operations	(39,676		)	(10,874		)	(1,403		)	(4,905		)	(1,833		)	—		(58,691		)
Interest income	1,221			—			—			—			—			—		1,221
Interest expense	(3,410		)	—			—			—			—			—		(3,410		)
Other expense, net	(19		)	—			306			—			—			—		287
Loss from continuing operations, before taxes	(41,884		)	(10,874		)	(1,097		)	(4,905		)	(1,833		)	—		(60,593		)
Benefit for income taxes	2,435			—			—			—			—			12,715		15,150
Net loss from continuing operations	(39,449		)	(10,874		)	(1,097		)	(4,905		)	(1,833		)	12,715		(45,443		)
Net income from discontinued operations, net of tax	21,063			—			(3,299		)	—			1			34		17,799
Net loss	(18,386		)	(10,874		)	(4,396		)	(4,905		)	(1,832		)	12,749		(27,644		)
Net loss attributable to redeemable noncontrolling interests	(5,993		)	—			—			—			(154		)	—		(6,147		)
Net loss attributable to Synchronoss	$	(12,393	)	$	(10,874	)	$	(4,396	)	$	(4,905	)	$	(1,678	)	$	12,749	$	(21,497	)

Basic:
Continuing operations	$	(0.77	)															$	(0.90	)
Discontinued operations	0.48																	0.41
	$	(0.29	)															$	(0.49	)
Diluted:
Continuing operations	$	(0.77	)															$	(0.90	)
Discontinued operations	0.48																	0.41
	$	(0.29	)															$	(0.49	)
Weighted-average common shares outstanding:
Basic	43,449																	43,430
Diluted	43,449																	43,430


*	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.

The following table presents the Condensed Consolidated Statement of Comprehensive (Loss) as previously reported, restatement adjustments and the Condensed Consolidated Statement of Comprehensive (Loss) as restated for the three months ended June 30, 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	$	(7,303	)	$	(12,993	)	$	15,298	$	3,737	$	(1,653	)	$	7,606	$	4,692
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments	(6,224		)	—			109		—		—			—		(6,115		)
Unrealized loss on available for sale securities	(22		)	—			—		—		—			—		(22		)
Net income (loss) on intra-entity foreign currency transactions	624			—			—		—		—			—		624
Total other comprehensive loss, net of tax	(5,622		)	—			109		—		—			—		(5,513		)
Comprehensive loss	(12,925		)	(12,993		)	15,407		3,737		(1,653		)	7,606		(821		)
Comprehensive loss attributable to redeemable noncontrolling interests	(2,864		)	—			—		—		(276		)	—		(3,140		)
Comprehensive (loss) income attributable to Synchronoss	$	(10,061	)	$	(12,993	)	$	15,407	$	3,737	$	(1,377	)	$	7,606	$	2,319


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



				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	$	(18,386	)	$	(10,874	)	$	(4,396	)	$	(4,905	)	$	(1,832	)	$	12,749	$	(27,644	)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	3,444			—			(115		)	—			19			—		3,348
Unrealized loss on available for sale securities	(2		)	—			—			—			—			—		(2		)
Net income on intra-entity foreign currency transactions	362			—			—			—			—			—		362
Total other comprehensive income, net of tax	3,804			—			(115		)	—			19			—		3,708
Comprehensive loss	(14,582		)	(10,874		)	(4,511		)	(4,905		)	(1,813		)	12,749		(23,936		)
Comprehensive loss attributable to redeemable noncontrolling interests	(5,993		)	—			—			—			(154		)	—		(6,147		)
Comprehensive (loss) income attributable to Synchronoss	$	(8,589	)	$	(10,874	)	$	(4,511	)	$	(4,905	)	$	(1,659	)	$	12,749	$	(17,789	)


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

The following table presents the Condensed Consolidated Statement of Cash Flows as previously reported, restatement adjustments, and the Condensed Consolidated Statement of Cash Flows as restated for the six months ended June 30, 2016:



	As Previously Reported			Adjustments			As Restated
Operating activities:
Net loss continuing operations	$	(39,449	)	$	(5,994	)	$	(45,443	)
Net income from discontinued operations	21,063			(3,264		)	17,799
Adjustments to reconcile net loss to net cash provided by operating activities:	80,480			(18,425		)	62,055
Changes in operating assets and liabilities:	12,096			6,549			18,645
Net cash provided by operating activities	74,190			(21,134		)	53,056
Investing activities:
Net cash used in investing activities	(116,317		)	16,156			(100,161		)
Financing activities:
Net cash provided by financing activities	6,011			5,380			11,391
Effect of exchange rate changes on cash	(490		)	(640		)	(1,130		)
Net decrease in cash and cash equivalents	(36,606		)	(238		)	(36,844		)
Cash, restricted cash and cash equivalents at beginning of period	147,634			238			147,872
Cash, restricted cash and cash equivalents at end of period	111,028			—			111,028
Cash and cash equivalents per Condensed Consolidated Balance Sheet	111,028			(21,042		)	89,986
Restricted cash per the Condensed Consolidated Balance Sheet	—			21,042			21,042
Total cash, cash equivalents and restricted cash	$	111,028		$	—		$	111,028

Supplemental disclosures of cash flow information:
Cash paid for income taxes	$	3,208		$	—		$	3,208
Cash paid for interest	$	1,355		$	—		$	1,355