Syniverse rises on improved Q1 financials
Shares of Syniverse Holdings Inc. (NYSE: SVR) got a boost late today after the Tampa, Fla.-based technology services provider beat analysts’ first-quarter estimates.
For the quarter ended March 31, Syniverse reported net income of $7.6 million, or $0.21 per share, on revenue of $82.7 million, compared with net income of $3.6 million, or $0.05 per share on revenue of $73.4 million in the prior year period.
Nine analysts polled by Thomson First Call estimated earnings per share of $0.18 on revenue of $79 million.
By 7:15 ET, the company’s shares were trading up $0.96, or 9.3%, to $11.27. The stock has traded between $9.93 (March 6) and $18.15 (and May 5, 2006) in the past year.
Syniverse President and CEO Tony Holcombe said the company saw increases in its data products and an expansion of its services on a global level during the quarter.
Citing an “intense” competitive environment in North America, Holcombe said in a written statement that Syniverse would make efforts to lower its costs and increase the differentiation of its product offerings.
Meanwhile, the firm reiterated its existing outlook for 2007, and projected net revenue of $325 million to $335 million on adjusted EBITDA of $125 million to $130 million.
In late December 2006, Syniverse named a new non-executive chairman – Robert J. Marino, after previous chairman G. Edward Evans left the company to pursue other opportunities.
Evans was part of a group of investors that last year agreed to buy the two pro basketball franchises in Seattle. He also was part of an investor group that bought Syniverse, then TSI Telecommunication Services Inc., from Verizon Communications (NYSE: VZ) for $800 million in 2002.
Evans also led Syniverse's public offering in February 2005 that raised $281.6 million.
