Daily Archives: November 5, 2019

CNH Industrial acquires ATI Track Systems

London, November 5, 2019

CNH Industrial N.V. (NYSE: CNHI / MI: CNHI), today announced its agreement to acquire ATI Inc., a global manufacturer of rubber track systems for high horsepower tractors and combine harvesters. This acquisition will provide customers of CNH Industrial’s global agricultural brands, Case IH and New Holland Agriculture, with access to factory-fit industry-leading track technology, extending the available range and enabling them to tailor their choice based on their specific floatation, suspension and traction requirements. ATI Track Systems’ industry-leading track technology provides leading-edge suspension and high speed transport performance, unmatched durability and high productivity on rough terrain while minimizing compaction and maximizing traction in wet harvest conditions.

This acquisition includes ATI Track Systems’ engineering and manufacturing plant in Mt. Vernon, Indiana, U.S.A..

CNH Industrial has a long standing commercial supply agreement with ATI Track Systems dating back to 2012: where tracks are currently fitted to the New Holland T9 articulated tractor range. Following this acquisition, the track systems will be available on Case IH and New Holland combines produced at the Company’s Grand Island, Nebraska, U.S.A. facility starting in 2020, and will also be available for retrofit.

“The acquisition of ATI Track Systems forms part of CNH Industrial’s strategic acquisition program to drive consolidation in the agricultural segment,” stated Hubertus Mühlhäuser, Chief Executive Officer, CNH Industrial. “This latest addition to the CNH Industrial agricultural portfolio will provide professional agribusinesses with multi-patented, industry-leading track technology, will further cement CNH Industrial’s track-leadership position.”

Headquartered in Mount Vernon, Indiana, ATI Inc. was established in 1997 and initially specialized in rubber tracks used for seismic exploration on Alaska’s North Slope, following which the company extended this technology to a range of agricultural tracks.

The closing of this transaction is subject to various customary conditions precedent. Considering the already announced acquisitions of AgDNA and K-Line (expected to be consummated by the end of the year), the aggregate consideration related to M&A activity in the Agricultural Segment for these three transactions will be approximately equal to $85 million.

CNH Industrial N.V. (NYSE: CNHI /MI: CNHI) is a global leader in the capital goods sector with established industrial experience, a wide range of products and a worldwide presence. Each of the individual brands belonging to the Company is a major international force in its specific industrial sector: Case IH, New Holland Agriculture and Steyr for tractors and agricultural machinery; Case and New Holland Construction for earth moving equipment; Iveco for commercial vehicles; Iveco Bus and Heuliez Bus for buses and coaches; Iveco Astra for quarry and construction vehicles; Magirus for firefighting vehicles; Iveco Defence Vehicles for defence and civil protection; and FPT Industrial for engines and transmissions. More information can be found on the corporate website: www.cnhindustrial.com

Contacts:

Corporate Communications

Email: mediarelations@cnhind.com

Investor Relations

Email: investor.relations@cnhind.com

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Cyberport Venture Capital Forum 2019 Fuels the Rise in Corporate Venture Funding

Cyberport Investors Network raises over HK$360million for start-ups

Hong Kong, Nov. 05, 2019 (GLOBE NEWSWIRE) — HONG KONG, 5 Nov 2019 – Cyberport’s landmark tech investment event, the Cyberport Venture Capital Forum (CVCF), officially kicked off today. Its two-day programme featured over 40 leading industry leaders, investors, tech start-ups as well as rising stars from the Cyberport community. The first day of the event was packed with a plethora of illuminating keynotes and panel discussions which addressed the overarching theme of “New Frontier of Tech Venturing” and uncovered the latest trends in the tech venture capital market. The forum also officially announced the outstanding achievements of the Cyberport Investors Network (CIN) over the past two years which raised up to HK$360 million of funds for its start-ups.

Nicholas Yang, Secretary for Innovation and Technology of the Hong Kong SAR, Dr George Lam, Chairman of Cyberport, Mr Peter Yan, CEO of Cyberport, Mr Duncan Chiu, Chairman of Steering Group of the CIN, and the new Chairperson, Mrs Cindy Chow officiated the forum’s opening ceremony together.

Dr George Lam: Hong Kong’s technological development to grow and thrive despite obstacles 

In his welcome remarks, Dr George Lam, Chairman of Cyberport, expressed his confidence in the venture capital market in Hong Kong. “Despite the impact brought on by the macro environment, the rapid development of technology and digital transformation in Asia has not slowed down. The Cyberport Macro Fund has invested HK$106 million in 14 start-ups, and has brought in close to HK$500 million in co-investments since its launch. This brings the total amount of investments in start-ups to more than HK$600 million, which exemplifies the strength and potential of Hong Kong’s start-ups. Facing the challenges ahead, I believe Hong Kong’s development in innovation and technology will continue to march forward while seizing new opportunities arising from the Greater Bay Area.”

Bridging Investors and Start-ups

CVCF also marked the second anniversary of CIN which has built a network of over 100 investors, including venture capital funds, private equity, angel investments and family investment offices. The forum celebrated CIN’s success in raising an aggregated amount of HK$360 million for the Cyberport community and successfully matching 26 partnerships throughout the past two years. Mrs Cindy Chow, Executive Director of Alibaba Hong Kong Entrepreneurs Fund, officially succeeded Mr Duncan Chiu, Co-Founder and Managing Director of Radiant Venture Capital, as the new steering group chairperson of the CIN at the forum.

Mr Duncan Chiu, Chairman of Steering Group of the CIN said, “Beyond the heartening progress we’ve made in investments, this year we were successful in bringing in more investors from the Greater Bay Area, increasing the total number to over 20. We believe this will stimulate deal flow and help our local start-ups tapping into the Greater Bay Area market, all while promoting synergy and development within the region’s technology ecosystem.”

Mrs Cindy Chow, the new Chairperson of the CIN, expects the Network to experience continued growth and promote synergy between more start-ups and member investors, further stimulating the start-up investment landscape, all while driving new impetus in the local venture capital market.

Exploring corporate venture capital and technology investment

One of the forum’s focuses is on corporate venture and an impressive line-up including representatives from C capital, CLP Holdings, PM Equity Partner and China Resources Capital was assembled to impart insight on their partnerships with private and institutional investors to create value for their own businesses. Mr Josemaria Siota, Director of Research of IESE Business School, was present to dispel the seven myths of corporate venturing backed by results from his recent report findings.

With the overarching theme “New Frontier of Tech Venturing”, the event uncovered the multi-faceted dimensions of tech funding, including the rise of corporate venturing, an outlook on the tech investment scene in the US, China and the Belt & Road region, strategy formulation for family and early stage investments, the latest funding tech platforms and more.

Heavyweight speaker, Mr Michael Zhu, Managing Partner of Gobi Partners China, delivered an in-depth overview of current market development as well as future trend predictions of high-tech venture investments in China and along Belt and Road countries. Mr Dan Brody, Managing Director of Tencent Investment, imparted his insight on international investment opportunities.

The ideal platform to showcase start-up potential

To showcase Cyberport companies’ cutting edge technologies and facilitate investment matching, over 30 local start-ups, including many from the Cyberport Community, showcased their products and solutions at the Innovator Showcase, while the Founder Stage featured start-ups in the fields of FinTech, InsurTech, digital entertainment, esports, and smart living to pitch their innovative projects to investors.  One-on-one onsite meetings were also pre-scheduled and carried out at the event based on mutual investment appetites and funding demands via the forum’s exclusive online Investor Matching platform to facilitate investment and fundraising opportunities.

About Cyberport

Cyberport is an innovative digital community with around 1,400 start-ups and technology companies. It is managed by Hong Kong Cyberport Management Company Limited, which is wholly owned by the Hong Kong SAR Government. With a vision to be the hub for digital technology thereby creating a new economic driver for Hong Kong, Cyberport is committed to nurturing a vibrant tech ecosystem by cultivating talent, promoting entrepreneurship among youth, supporting start-ups on their growth journey, fostering industry development by promoting strategic collaboration with local and international partners, and integrating new and traditional economies by accelerating digital transformation in the public and private sectors. For more information, please visit www.cyberport.hk

Attachments

Hong Kong Cyberport
media@cyberport.hk

Research from Philips highlights the need for radiology staff empowerment and workflow-focused innovation

November 5, 2019

Findings underscore high rates of stress and burnout among radiology staff worldwide 

Amsterdam, the Netherlands – Royal Philips (NYSE: PHG, AEX: PHIA), a global leader in health technology, today announced the key findings of the Philips Radiology Staff in Focus study. This new research sheds light on the pain points that exist specifically for radiology technologists and imaging directors working in the U.S., France, Germany and the U.K., and identifies areas where technology and informatics can deliver meaningful improvements to workflow, imaging results, and patient and staff satisfaction.

Across the four countries surveyed, radiology technologists and imaging directors expressed, on average, only moderate satisfaction with their jobs. With pressure on imaging departments mounting amid rising patient volumes and a global shortage of qualified staff, it is critical that health systems consider how to maintain or improve staff satisfaction to help minimize attrition.

“The subject of burnout is a major topic of discussion in radiology, but there has not been sufficient focus on understanding the specific challenges faced by radiology technologists and imaging directors,” said Kees Wesdorp, General Manager, Diagnostic Imaging at Philips. “These critical stakeholders have a direct responsibility for image acquisition and quality, operations, and patient care. As we develop imaging solutions that advance radiology through improved workflow and efficiency, data integration and AI, it’s important that we support radiology staff to provide the best to care to each patient.”

Empowering the people behind the image
While radiology technologists are quite clear about causes of inefficiency in their departments, many do not feel empowered to effect change. On average, 43% felt either “not at all empowered” or only “somewhat empowered” to effect change in their department.

Imaging works as a system, and it can only deliver peak performance when all its stakeholders are empowered to do their jobs effectively. Imaging staff are on the front lines of patient care and it is essential to arm them with the right information to enable a workflow that gives them more time with patients. Focusing innovation efforts in these areas on the needs of imaging staff has great potential to improve workflow and throughput, enhance patient satisfaction, and decrease staff stress and burnout.

Efficiency and automation needed to get the right image the first time
When asked what the biggest barrier was for getting the image right the first time, technologists cited lack of patient preparation and patient information as the top contributor (37%). Technology factors (equipment quality and capability, mastery of the technology, and ease-of-use of imaging equipment) were second highest (36%). Workflow and colleague support ranked third (27%).

While staff consider many factors to be important to their job satisfaction, those they value most involve their ability to work as a team to deliver highly competent, patient-centered care. However, various demands for their time mean they cannot focus on these areas as much as they would like. The report offers insights from these key stakeholders about their top challenges, including sources of stress, technology confidence, and communication and information gaps, and how we can begin to address them more effectively.

High rates of stress and burnout among radiology technologists
According to the study, stress among radiology technologists is alarmingly high, with 40 to 97% of techs reporting moderate to severe levels of job stress. As a corollary, technologists in every geography similarly reported significant burnout, with over one-third of respondents reporting moderate to high levels of burnout. When combined with high burnout levels for radiologists [1], these numbers demonstrate a systemic problem across imaging. Across every geography, workload was cited as by far the greatest source of stress and burnout for imaging staff.
                                                                                                                                   
About the study
The Philips Radiology Staff in Focus report is based on a double-blind survey of 254 radiology technologists and imaging directors in the U.S., France, Germany and the U.K., and was conducted between May and June 2019. To download the report or to learn more about Philips’ solutions to support a precise diagnosis, please visit: www.philips.com/radiology.

Philips will demonstrate its integrated portfolio of imaging solutions at the 2019 Radiological Society of North America (RSNA) Annual Meeting in booth #6730. For more information about Philips’ presence at RSNA, visit www.philips.com/RSNA, and follow @PhilipsLiveFrom for #RSNA19 live updates.

[1] Medscape Radiologist Lifestyle, Happiness & Burnout Report 2019

For further information, please contact:

Mark Groves
Philips Global Press Office
Tel.: +31 631 639 916
Email: mark.groves@philips.com

Twitter: @mark_groves

About Royal Philips

Royal Philips (NYSE: PHG, AEX: PHIA) is a leading health technology company focused on improving people’s health and enabling better outcomes across the health continuum from healthy living and prevention, to diagnosis, treatment and home care. Philips leverages advanced technology and deep clinical and consumer insights to deliver integrated solutions. Headquartered in the Netherlands, the company is a leader in diagnostic imaging, image-guided therapy, patient monitoring and health informatics, as well as in consumer health and home care. Philips generated 2018 sales of EUR 18.1 billion and employs approximately 80,000 employees with sales and services in more than 100 countries. News about Philips can be found at www.philips.com/newscenter.

 

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Black Belt TX forms a strategic partnership with Praxis Biotech to develop new therapies targeting stress response pathways in cancer

Black Belt TX forms a strategic partnership with Praxis Biotech
to develop new therapies targeting stress response pathways in cancer

Stevenage, UK and San Francisco, US – 5 November 2019. Black Belt TX, a company focused on targeting stress response pathways in cancer, and Praxis Biotech, a biotech company focused on the discovery of small molecules modulating cellular stress mechanisms in different disease areas, have entered into a strategic partnership to jointly discover and develop new first-in-class small molecule therapeutics to undisclosed targets which are aimed at modulating key control mechanisms in the stress response pathways in cancer.

Cancer cells as well as immune cells experience severe and persistent stress in the tumour microenvironment. Cancer cells develop mechanisms to survive, grow and spread under these chronic-stress conditions while keeping the immune system at bay. Black Belt is targeting key control mechanisms in the stress response pathways to abolish cancers cells’ coping mechanisms to stress while reverting stress-induced immune cell dysfunction.

As part of this partnership, Black Belt will receive exclusive rights to several small molecule programmes of Praxis. In return, Praxis will receive a minority stake in Black Belt.  Upon the achievement of certain milestones, Praxis Biotech has the right to acquire an additional minority stake in the company. Black Belt will be responsible for the development and commercialization of the programmes. Praxis Biotech will continue to support the programmes using their small molecule discovery platform.

Robert de Jonge, CEO of Black Belt TX said: “We are delighted to partner with the expert team at Praxis Biotech. Bringing together Praxis’ expertise in small molecule discovery and stress response signalling pathways with Black Belts team of cancer and immunology specialists is a powerful combination. The collaboration accelerates Black Belts therapeutic programmes and brings the company to the next stage in its development.”

Dr. Sebastian Bernales, CEO of Praxis Biotech, said: “We believe Black Belt’s focus of targeting stress mechanisms in the tumour micro environment will have a major impact on the next generation of cancer treatments. We look forward to collaborating with Black Belt’s team that has proven to be able to quickly bring early stage assets to IND.”

Professor Peter Walter, professor in the Department of Biochemistry and Biophysics at the University of California, San Francisco, and a well-recognized key opinion leader in intracellular stress response signalling pathways will join Black Belt’s Scientific Advisory Board.

For further information please contact:
Black Belt TX Ltd.
Robert de Jonge, Chief Executive Officer
info@blackbelttx.com

About Black Belt TX

Black Belt TX is a preclinical stage biotechnology company focused on translating novel targets in the chronic stress response pathways into new therapeutic approaches to treat cancer. The therapeutic programmes are aimed at key control mechanisms involved in the stress response in the tumour microenvironment. The company has established a diversified pipeline of first-in-class small molecule programmes as well as a proprietary target discovery and validation platform. The company has an experienced team of drug developers and was created as a spin-off from Tusk Therapeutics which was acquired by Roche in September 2018 for 655 million EUR.

Black Belt TX is based in Stevenage at the Stevenage Bioscience Catalyst in the UK (London-Cambridge area).

About Praxis Biotech

Praxis Biotech is a discovery-stage small molecule company based in San Francisco, California, US, with several programs targeting key intracellular stress response signalling pathways that are important in cellular homeostasis and disease. Building on the scientific discoveries done by Professor Peter Walter, Praxis Biotech was co-founded in 2016 by a scientific team that includes Sebastian Bernales & Jit Chakravarty (ex-Medivation), William Rutter & Pablo Valenzuela (ex-Chiron), and Peter Walter.

PureCircle’s Latest Stevia Leaf Development Offers Significant Productivity Advantages

New Leaf Variety Yields More Stevia Ingredients

A PureCircle Stevia Plant

A PureCircle Stevia Plant

CHICAGO, Nov. 04, 2019 (GLOBE NEWSWIRE) — PureCircle (LSE: PURE), the world’s leading producer and innovator of great-tasting stevia sweeteners for the global beverage and food industries, has developed and is now expanding use of a new stevia leaf variety which provides significant advantages compared to previous generations of stevia plants.

Carefully cultivated by PureCircle and successfully field-tested, this new stevia varietal yields greater quantities of our great-tasting next generation stevia ingredients. This breakthrough — increasing the effective yield of PureCircle’s stevia plants — enhances the company’s production efficiency, and even further improves its ability to deliver a sustainable supply of these next generation stevia leaf ingredients to food and beverage companies.

With that greater yield, this new stevia variety – the result of the company’s expertise in stevia innovation and agronomy — provides further cost effectiveness as greater quantities of ingredients can be sourced from each leaf. PureCircle’s innovation strength has led to its securing 200 patents globally related to stevia.

PureCircle’s mission is to provide food and beverage companies even greater access to our non-GMO stevia ingredients cost effectively for them. That helps them offer their consumers expanded selections of healthy, low- and no-calories foods and beverages using our plant-based stevia ingredients. That democratizes – or spreads access to – healthy foods and beverages with less or no added sugar and sweetened with a natural, plant-based sweetener. That is good for the business of the food and beverage companies and for the health and wellness of their consumers.

This year, 20% of PureCircle’s stevia plants were comprised of this new variety, and the Company plans to switch 90% of its stevia crop to this variety in 2020.

All of PureCircle’s ingredients begin with the stevia plant. A sweetener is a “stevia sweetener” only if it starts with the stevia plant. Stevia-like ingredients produced in laboratories by others are not stevia ingredients. The Company works with farmers in Asia, Africa, Latin America and North America to grow and source its proprietary stevia plants. PureCircle’s agricultural programs, not only provide the company with high-quality stevia, but also help support sustainability and farm communities.

Commenting on the breakthrough stevia leaf variety, PureCircle CEO Maga Malsagov stated:

“We are excited about our expansion program for our latest stevia varietal. It is the result of, and a testament to, our world-class agronomy and innovation. This further enhances our ability to provide food and beverage companies access to the best tasting content from the leaf, offering them a globally scaled supply and a cost-efficiency which has never before been possible.”

In the last decade. largely due to PureCircle’s efforts, stevia has come a long way. Some years ago, it was viewed as a plant-based, zero-calorie, single-ingredient sweetener which worked well in some beverage and food applications. Today, our next generation stevia leaf sweeteners offer sugar-like taste and work well in broad array of beverage and food products. We maximize use of each stevia plant to offer a robust portfolio of next generation stevia leaf ingredients including Reb M, flavors and antioxidants. These ingredients help beverage and food companies increase their offerings of zero- and low-calorie products without sacrificing taste.

Enquiries: Media

Jackson Pillow, Media Relations Manager
Email: Jackson.Pillow@purecircle.com Phone: +1 630 256 8394

About PureCircle

  • PureCircle is the only company that combines advanced R&D with full vertical integration from farm to high-quality, great-tasting innovative stevia sweeteners.
  • The Company collaborates with farmers who grow the stevia plants and with food and beverage companies which seek to improve their low- and no-calorie formulations using a sweetener from plants.
  • PureCircle will continue to: lead in research, development and innovation; produce a growing supply of multiple varieties of stevia sweeteners with sugar-like taste, using all necessary and appropriate methods of production; and be a resource and innovation partner for food and beverage companies.
  • PureCircle stevia flavor modifiers work in synergy with sweeteners to improve the taste, mouthfeel and calorie profile, and enhance the cost effectiveness, of beverage and food products.
  • Founded in 2002, PureCircle is continually investing in breakthrough research and development and it has been granted 200 stevia-related patents with more than 250 applied for patents pending.
  • PureCircle has offices around the world with the global headquarters in Chicago, Illinois.
  • To meet growing demand for stevia sweeteners, PureCircle is rapidly ramping up its supply capability. It completed expansion of its Malaysian stevia extract facility in March 2017, increasing its capacity to rapidly supply the newer and great-tasting specialty stevia sweeteners and helping provide ever-increasing value to its customers.
  • PureCircle’s shares are listed on the main market of the London Stock Exchange.
  • For more information, visit: www.purecircle.com

About stevia

  • Given the growing global concerns about obesity and diabetes, beverage and food companies are working responsibly to reduce sugar and calories in their products, responding to both consumers and health and wellness advocates. Sweeteners from the stevia plant offer sugar-like taste and are becoming an increasingly important tool for these companies.
  • Like sugar, stevia sweeteners are from plants. But unlike sugar, they enable low-calorie and zero-calorie formulations of beverages and foods.
  • Stevia leaf extract is a natural-based, zero calorie, high-intensity sweetener, used by global food and beverage companies as a great-tasting zero-calorie alternative to sugar and artificial sweeteners.
  • Stevia is a naturally sweet plant native to South America; today, it is grown around the world, notably in Kenya, China and the US.
  • The sweet-tasting parts of the stevia leaf are up to 350 times sweeter than sugar: stevia’s high-intensity sweetness means it requires far less water and land than sugar.
  • Research has shown that the molecules of the stevia leaf are present and unchanged in the dried stevia leaf, through the commercial extraction and purification process, and in the final stevia leaf extract product. All major global regulatory organisations, across 65 countries, have approved the use of high-purity stevia leaf extracts in food and beverages.
  • For more information on the science of stevia, please visit https://www.purecirclesteviainstitute.com/

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/114d4eb9-f851-4ea0-b350-095fab553d2d

Synchronoss Technologies Announces Third Quarter 2019 Results; Signs New U.S.-based Tier 1 Cloud Customer; And Provides Update on relationship with Sequential Technology International

BRIDGEWATER, N.J., Nov. 04, 2019 (GLOBE NEWSWIRE) — Synchronoss Technologies Inc. (NASDAQ: SNCR), a global leader and innovator in cloud, messaging, digital and IoT platforms and products, today announced financial results for its third quarter ended September 30, 2019.

Glenn Lurie, president and chief executive officer, stated, “Thus far, 2019 has been an extremely active year for Synchronoss and our platforms are executing well with new customers, new partners and revenue in each. We have announced partnerships with leading companies in the TMT industry such as Amazon, AT&T, BT, Microsoft, Rackspace and others embracing Synchronoss solutions to accelerate revenue growth, reduce costs, and accelerate digital transformations. Many of these partnerships are success-based revenue-share models that are expected to drive meaningful and material revenue for the company in 2020 and beyond.”

Lurie added, “We are very excited to announce our third new cloud deal of the year, this time with a major U.S.-based Tier 1 carrier. This new customer, along with our previously announced new cloud deals, demonstrate that the Synchronoss white-label cloud is in the sweet spot of what carriers need as they prepare for the widespread launch of 5G cellular and continue to seek out new sources of revenue and profitability.”

David Clark, Chief Financial Officer, stated, “As Sequential Technology International (STI) is evaluating strategic alternatives, based on this process we have decided to take a more conservative approach to our financial relationship. As a result, in the third quarter, we wrote off $26 million of STI-related accounts receivable which are now deemed uncollectible. This revenue relationship with STI falls under the new lease accounting standards, so the write-down is accounted for as a cumulative adjustment to revenue recognized in 2018 and 2019, and as such reduces third-quarter GAAP revenue from $78.2 million to $52.2 million. Going forward, quarterly revenue from STI will be recognized based on the amount of cash we collect in payment for our services, currently estimated to be in the range of $2.5-$3.0 million per quarter. We believe this will enable Synchronoss management and our investors to focus on the future of the company; in particular, execution and delivery of the transactions we have announced this year. Before the STI prior period revenue adjustment, operationally we were trending toward our original revenue and EBITDA guidance for the year.”

Third quarter highlights:

    • Excluding the non-recurring STI revenue write-down, revenue for the quarter would have been $78.2 million. The non-cash $26.0 million write-down of STI’s accounts receivable balance, which is accounted for as a cumulative adjustment to prior revenue under the new lease accounting standards, resulted in GAAP revenue totaling $52.2 million.
    • GAAP net loss for the quarter, which includes the $26 million STI write-down, was $69.4 million, or $1.70 per share, compared to $54.5 million or $1.38 per share in the prior year’s third quarter. Excluding the STI write-down, Non-GAAP net loss attributable to Synchronoss was $25.3 million or 62 cents per share, compared to $33.5 million in the year-ago quarter or 84 cents per share.
    • Synchronoss delivered $5.8 million of adjusted EBITDA, compared to $9.4 million in the third quarter of 2018.
  Three Months Ended September 30,
$000s20192018% Change
Revenues$52,210$83,286(37.3)%
Non-GAAP Revenue Excluding STI Write-Down78,21083,286  (6.0)%
Net Loss(69,432)(54,529)(27.3)%
Non-GAAP Net Loss From Cont. Ops. Attributable to Synchronoss(25,361)(33,457)24.2%
Adjusted EBITDA5,7999,360(38.0)%
  Nine Months Ended September 30,
$000s20192018% Change
Revenues$218,161$243,737(10.5)%
Non-GAAP Revenue Excluding STI Write-Down244,161243,737 0.2%
Net Loss(122,049)(141,839)14.0 %
Non-GAAP Net Loss From Cont. Ops. Attributable to Synchronoss(51,276)(75,005)31.6%
Adjusted EBITDA21,098(1,413)  NM

New Business Update

New customer agreements and partnerships that the company has completed since the last earnings announcement include:

  • The new major U.S.-based Tier 1 cloud customer announced today, that is expected to launch the Synchronoss white label cloud service in 2020.
  • A partnership with Accruent, the world’s leading provider of physical resource management solutions, to combine Synchronoss’ expertise in smart building analytics with Accruent’s asset monitoring system. The collaboration will deliver valuable insights and efficiencies to enterprises, across facilities, and greatly expand the effectiveness of enterprise IoT solutions.
  • A letter of intent with CityFM to combine their expertise in facility management engineering with Synchronoss’ expertise in software analytics to create an end-to-end IoT facility management offering which is scalable and is expected to drive greater efficiencies.
  • Indosat Ooredoo, a leading telecom service provider in Indonesia, has chosen the Synchronoss Digital Experience Platform (DXP) to deliver a unified, interconnected user experience for customers across all of its engagement channels. The Synchronoss platform will also support Indosat Ooredoo’s “future digital economy ecosystem” project, a nationwide initiative to encourage collaboration and develop new ideas, products and use cases involving IoT technology to help drive economic growth.
  • British American Tobacco (BAT) is launching a multi-country pilot of the Synchronoss Digital Experience Platform across 25 of its 2,000 retail locations in Europe. The Synchronoss DXP solution will provide BAT with the ability to quickly design, deploy, manage and optimize customer journeys while providing a unified experience across all its owned retail locations. This is Synchronoss’ first DXP deployment outside of its traditional TMT customer base and is expected to provide a powerful proof case for traditional brick and mortar retailers.
  • The first live deployments using Synchronoss DXP with Amazon are underway with carriers in Singapore and Mexico. These carriers are in the process of being integrated with Amazon and are expected to begin offering Amazon services in the fourth quarter. Three other Amazon deployments are under way and we anticipate a number of larger deployments in 2020 and beyond.
  • Rackspace has signed a three-year agreement to deploy the Synchronoss Smart Building solution at five of its facilities in North America, including “The Castle,” Rackspace’s 1.2 million square foot global headquarters in San Antonio, Texas.
  • In addition, Rackspace has licensed the company’s Financial Analytics platform to manage costs and provide visibility and deliver savings by checking and validating the accuracy of its largest and most complex third-party partner expenses and invoices.

A reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included in this press release. An explanation of these measures is included below under the heading “Non-GAAP Financial Measures.”

Conference Call Details

Synchronoss will host a conference call on Monday, November 4, 2019, at 5:00 p.m. (ET) to discuss the company’s financial results. To access this call, dial 1-201-493-6784. Additionally, a live web cast of the conference call will be available on the Investor Relations page on the company’s web site at www.synchronoss.com.

Following the conference call, a replay will be available for a limited time at 1-412-317-6671. The replay pass code is 13695428. An archived web cast of this conference call will also be available on the Investor Relations page of the company’s web site, www.synchronoss.com.

Non-GAAP Financial Measures

Synchronoss has provided in this release selected financial information that has not been prepared in accordance with GAAP. This information includes historical non-GAAP revenues, gross profit, operating income (loss), net income (loss), effective tax rate, earnings (loss) per share and cash flows from operating activities. Synchronoss uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating Synchronoss’ ongoing operational performance. Synchronoss believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends, and in comparing its financial results with other companies in Synchronoss’ industry, many of which present similar non-GAAP financial measures to investors. As noted, the non-GAAP financial results discussed above add back fair value stock-based compensation expense, acquisition-related costs which includes integration costs, restructuring and cease-use lease expense, deferred compensation expense related to earn outs and amortization of intangibles associated with acquisitions as well as certain non-recurring adjustments.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures as detailed above. As previously mentioned, a reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included in this press release.

About Synchronoss Technologies, Inc.

Synchronoss transforms the way companies create new revenue, reduce costs and delight their subscribers with cloud, messaging, digital and IoT products, supporting hundreds of millions of subscribers across the globe. Synchronoss’ secure, scalable and groundbreaking new technologies, trusted partnerships, and talented people change the way TMT customers grow their businesses. For more information, visit us at www.synchronoss.com.

Forward-looking Statements

This press release includes statements concerning Synchronoss and its future expectations, plans and prospects that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. For this purpose, any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, the words “may,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “believes,” “potential” or “continue” or other similar expressions are intended to identify forward-looking statements. Synchronoss has based these forward-looking statements largely on its current expectations and projections about future events and financial trends that it believes may affect its business, financial condition and results of operations. These forward-looking statements speak only as of the date of this press release and are subject to a number of risks, uncertainties and assumptions including, without limitation, risks relating to the Company’s ability to sustain or increase revenue from its larger customers and generate revenue from new customers, the Company’s expectations regarding expenses and revenue, the sufficiency of the Company’s cash resources and its ability to satisfy or refinance its existing debt obligations, the Company’s growth strategies, the anticipated trends and challenges in the business and the market in which the Company operates, the Company’s expectations regarding federal, state and foreign regulatory requirements, the pending lawsuits against the Company described in its most recent SEC filings, and other risks and factors that are described in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, which is on file with the SEC and available on the SEC’s website at www.sec.gov. The company does not undertake any obligation to update any forward-looking statements contained in this press release as a result of new information, future events or otherwise.

Contact:

Investors:
Joe Crivelli,
Vice President, Investor Relations
908-566-3131
investor@synchronoss.com

Media:                        
CCgroup
US: Diane Rose, +1 727-238-7567 or International: Anais Merlin, +44 20 3824 9219                          
synchronoss@ccgrouppr.com

SYNCHRONOSS TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (In thousands)

September 30, 2019December 31, 2018
ASSETS
Current assets:
Cash and cash equivalents$19,193$103,771
Restricted cash216,089
Marketable securities, current89728,230
Accounts receivable, net of allowances for bad debt of $3,318 and $4,599 at September 30, 2019 and December 31, 2018, respectively73,574102,798
Prepaid expenses17,09645,058
Other current assets4,9348,508
Total current assets115,715294,454
Restricted cash
Marketable securities, non-current6,658
Property and equipment, net35,63167,937
Operating lease right-of-use assets55,308
Goodwill220,367224,899
Intangible assets, net81,17298,706
Other assets7,7698,982
Equity method investment1,619
Total assets$515,962$703,255
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$15,496$13,576
Accrued expenses54,21959,545
Deferred revenues, current53,78957,101
Short-term convertible debt, net of debt issuance costs113,542
Mandatorily redeemable financial instrument
Total current liabilities123,504243,764
Lease financing obligation9,494
Operating lease liabilities, non-current62,863
Long-term convertible debt, net of debt issuance costs
Deferred tax liabilities1,2701,347
Deferred revenues, non-current34,01859,841
Other non-current liabilities4,62410,797
Redeemable noncontrolling interest12,50012,500
Commitments and contingencies
Series A Convertible Participating Perpetual Preferred Stock, $0.0001 par value; 10,000 shares authorized; 210 shares issued and outstanding at September 30, 2019192,596176,603
Stockholders’ equity:
Common stock, $0.0001 par value; 100,000 shares authorized, 51,608 and 49,836 shares issued; 44,446 and 42,674 outstanding at September 30, 2019 and December 31, 2018, respectively55
Treasury stock, at cost (7,162 and 7,162 shares at September 30, 2019 and December 31, 2018, respectively)(82,087)(82,087)
Additional paid-in capital528,734534,673
Accumulated other comprehensive loss(33,880)(30,383)
Accumulated deficit(328,185)(233,299)
Total stockholders’ equity84,587188,909
Total liabilities and stockholders’ equity$515,962$703,255

SYNCHRONOSS TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)

Three Months Ended September 30,Nine Months Ended September 30,
2019201820192018
Net revenues$52,210$83,286$218,161$243,737
Costs and expenses:
Cost of revenues35,60243,714107,958127,788
Research and development18,57518,68457,28259,789
Selling, general and administrative30,53627,32082,86299,368
Restructuring charges(39)4,5397388,425
Depreciation and amortization18,50823,65858,92070,330
Total costs and expenses103,182117,915307,760365,700
Loss from continuing operations(50,972)(34,629)(89,599)(121,963)
Interest income2282037167,518
Interest expense(203)(1,370)(1,251)(3,935)
Gain on extinguishment of debt5822
Other (expense) income, net(422)(13,439)17(9,180)
Equity method investment (loss) income283(1,619)71
Loss from continuing operations, before taxes(51,364)(48,952)(90,914)(127,489)
(Provision) benefit for income taxes(9,849)2,308(6,614)1,604
Net loss(61,213)(46,644)(97,528)(125,885)
Net loss attributable to redeemable noncontrolling interests(25)(422)(931)2,122
Preferred stock dividend(8,194)(7,463)(23,590)(18,076)
Net loss attributable to Synchronoss$(69,432)$(54,529)$(122,049)$(141,839)
Earnings per share:
Basic$(1.70)$(1.38)$(3.01)$(3.51)
Diluted$(1.70)$(1.38)$(3.01)$(3.51)
Weighted-average common shares outstanding:
Basic40,91039,61240,56440,405
Diluted40,91039,61240,56440,405

SYNCHRONOSS TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 (In thousands) (Unaudited)

Nine Months Ended September 30,
20192018
Operating activities:
Net loss$(97,528)$(125,885)
Adjustments to reconcile Net Loss to net cash used in operating activities:
Depreciation and amortization58,92170,330
Change in fair value of financial instruments(3,849)
Amortization of debt issuance costs2721,060
(Gain) loss on extinguishment of debt(822)
Accrued PIK interest*(7,037)
Allowance for loan losses*18,225
(Earnings) loss from equity method investments*1,619(71)
Loss (Gain) on disposals15277
Amortization of bond premium(34)75
Deferred income taxes(25)(1,648)
Stock-based compensation17,03322,040
 Cumulative adjustment to STI receivable26,044
ROU Asset Impairment6,268
Changes in operating assets and liabilities:
Accounts receivable, net of allowance for doubtful accounts3,18028,789
Prepaid expenses and other current assets34,052(12,844)
Other assets1,966947
Accounts payable2,6158,195
Accrued expenses(9,418)(24,539)
Other liabilities(3,736)(3,886)
Deferred revenues(28,583)(30,841)
Net cash provided by (used for) operating activities11,839(60,662)
Investing activities:
Purchases of property and equipment(7,077)(8,565)
Purchases of capitalized software(9,289)(11,012)
Purchases of marketable securities available for sale(47,703)(15,784)
Maturity of marketable securities available for sale81,7943,050
Business acquired, net of cash(9,734

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ASEAN Plus Three Countries Pledge To Enhance Regional Connectivity

BANGKOK, The Association of Southeast Asian Nations, China, Japan and South Korea (ASEAN Plus Three or 10+3), pledged to enhance regional connectivity, to realise their collective efforts for regional integration and promote sustainable development.

The pledge was made at the 22nd ASEAN Plus Three summit.

In a statement issued after the summit, the ASEAN Plus Three countries agreed to promote regional connectivity, among them, by enhancing links and synergies between the Master Plan on ASEAN Connectivity 2025 (MPAC 2025) and key connectivity initiatives, promoted by China, Japan, South Korea and other sub-regional and multilateral cooperation frameworks and within ASEAN, in order to attain a people-oriented, people-centred community of peace and prosperity with sustainable and inclusive growth and development, for shared benefit in the region.

They vowed to promote complementary between the ASEAN Community Vision 2025 and the United Nations 2030 Agenda for Sustainable Development, where connectivity and infrastructure are components to catalyse sustainable development in the ASEAN Plus Three countries.

They promised to promote digital connectivity and innovation in the ASEAN Plus Three countries, by exchanging views and information on regulatory frameworks for the delivery of digital services, sharing best practices to support the digital economy of the region, supporting ASEAN’s efforts to establish an ASEAN open data network, and equipping micro, small and medium enterprises with the capabilities to access new technologies and financial support for development and innovation, among others.

The ASEAN Plus Three countries will also promote greater people engagement and cooperation on people-to-people connectivity initiatives, by enhancing facilitation of travel and tourist visits, as well as, developing quality tourism, and further strengthening cultural exchanges and cooperation, so as to enhance mutual understanding and greater awareness of each other’s culture.

The ASEAN Plus Three cooperation mechanism was established in the late 1990’s, when ASEAN countries decided to enhance cooperation with other major economies of Asia against the backdrop of economic globalisation.

The first ASEAN Plus Three summit was held in Malaysia in 1997, a time when countries in the region were facing economic setback. The financial crisis was regarded as having provided the impetus for this summit.

Source: NAM News Network