Synchronoss Technologies (NASDAQ:SNCR) ranked second-worst performer last year in the tech sector – shares plummeted 76%, and the stock has been under pressure since the start of the year. The stock has the 52-week trading range of $6.51 – $33.66.
After hitting the bottom of $6.51 early this month, stock bounced back more than 25% in the last couple of sessions. SNCR stock currently trades above $9 – with the market capitalization of $420 million.
Synchronoss stock has set a positive tone, however, with the announcement of new CEO and Nasdaq compliance extension.
Glenn Lurie Will Lead the Transformation
Replacing Stephen Waldis, the company announced Glenn Lurie as Chief Executive Officer and a member of its Board of Directors.
“Glenn is a highly accomplished, transformational and well-respected leader with a proven track record of success and innovation in the telecommunications industry,” said Stephen Waldis, current Synchronoss Chairman.
Can Synchronoss Technologies Will Make Turn Around?
Synchronoss has been experiencing problems in smoothly running the business; they’ve had to sell-off their units, and the company is surrounded by strong competition. Synchronoss Technologies recently announced it would sell its communications and media business along with other non-core assets.
Alongside that, the company has agreed to sell its Intralinks Holdings to Siris Capital. Siris Capital also announced its intention to buy Synchronoss’ mobile cloud company.
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The CEO said, “These transactions would provide Synchronoss with a strong balance sheet and the capital flexibility to pursue a more focused business strategy that builds on our existing footprint in Cloud, Messaging, and Digital Transformation while executing on key growth vectors in each of these areas.”
With the sale of the assets, the company plans to expand its position as a technology solutions provider to communications and media companies. Overall, It’s too early to predict the smooth transition – but the sale of assets will significantly boost its investment potential in growth opportunities along with strengthening its debt position.
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