Synchronoss Technologies Inc. is going through a management shakeup even as preliminary first-quarter financial results revealed a disappointing shortfall.Synchronoss Technologies Inc. is going through a management shakeup even as preliminary first-quarter financial results revealed a disappointing shortfall.
The Bridgewater-based cloud technology company said it expects total revenue for Q1 to come in at $13 million to $14 million less than the previously provided guidance, with operating margins of 8-10 percent, also below guidance.
In addition, both CEO Ronald Hovsepian and Chief Financial Officer John Frederick will be leaving the company, Synchronoss said in a news release. Company founder Stephen Waldis, the board chairman, will return to the CEO role, and former CFO Lawrence Irving will return to that position.
“I am incredibly passionate about Synchronoss,” Waldis said in a prepared statement. “I look forward to working with the entire team to drive success for our customers, partners, employees and shareholders. I am pleased that Larry is rejoining Synchronoss along with me. His extensive experience and deep knowledge of the company’s business and financial underpinnings will be major assets to me and the management team.”
Waldis led Synchronoss for 17 years after he founded the company, while Irving served as CFO fore nearly 13 years.
The company said both Hovsepian and Frederick will pursue other opportunities, with Hovsepian serving in a consulting role during the transition.
Synchronoss had purchased Intralinks Holdings Inc. for more than $800 million late in 2016, with Intralinks CEO Hovsepian taking over as Synchronoss’ CEO and Waldis becoming executive chairman.
“With a track record of meeting or exceeding expectations, we are of course disappointed with our Q1 performance in this first quarter following our acquisition of Intralinks,” Waldis said. “In view of the company’s performance in the first quarter, we expect this will impact our full-year guidance.”
