Synacor (Nasdaq: SYNC), which in February launched a successful initial public offering, says it expects to see sales growth top 33 percent in 2012, with revenues of $121 million to $124 million. The company posted revenue of $91.1 million in 2011, an increase of 37 percent from 2010.
This week Synacor announced its first financial results as a public company, with Chief Executive Ron Frankel saying he was "proud of Synacor's outstanding performance and growth in 2011."
For the year, Synacor said net income was $9.9 million, or 7 cents per share, versus a loss of 2 cents per share a year ago. Revenue for the quarter was $28.9 million, up from $18.2 million in 2010.
Synacor has made its mark providing Internet services, including TV Everywhere, to companies like CenturyLink (NYSE: CTL) and Charter Communications (Nasdaq: CHTR); these two customers made up 60 percent of the Synacor's revenues in 2010.
The company's customer-branded platform enables cable, satellite, telecom and consumer electronics companies to deliver TV Everywhere, digital entertainment, services and apps to 21 million end-consumers. Synacor has more than 45 customers--including Google (Nasdaq: GOOG) and Toshiba America--as well as more than 81 million average monthly search queries, 2.8 billion average monthly advertising impressions and more than 75 content partnerships.
Synacor posted a $3.6 million loss last year on revenue of $66.2 million. It had a net profit of $2.2 million on sales of $62.1 million through the first three quarters of 2011, up from revenues of $48 million during the first nine months of 2010. Much of the 29 percent in revenue growth is a result of an increase in the revenue it gets from Google search and display ads--a deal set to expire in February 2014.
Synacor launched its IPO at $5 a share, after originally planning to launch at $10-$12. Trading closed up 5 percent to $5.25 on its first day, raising $34.1 million. The company closed Monday at $5.33 and was trading at $5.35 at midday today.
- see this MultiChannel News article
Special Report: IPTV 4Q 2011 earnings
Synacor's IPO gets lukewarm reception as shares open at $5
Synacor amends S-1 form; seeks up to $94M in IPO
Synacor taking second swing at IPO, this time for $75M
US Cable teams with Synacor to offer subscribers expanded access to online video content
EchoStar readying extensive OTT play for telcos, cable companies