NEW YORK--(BUSINESS WIRE)--Levi & Korsinsky announces it has commenced an investigation of Synacor, Inc. (“Synacor” or “the Company”) (NASDAQGM:SYNC) concerning possible violations of federal securities laws.
On May 4, 2016, Synacor announced it had secured a three-year contract with AT&T Inc. to host web and mobile services. On August 9, 2017, Synacor issued a press release announcing that “The joint AT&T-Synacor team has made the strategic decision to prioritize portal engagement right now over monetization.” In the press release, Synacor CEO Himesh Bhise was quoted as stating that “a significant portion of the revenue that we were expecting in Q3 and Q4 this year is delayed to 2018, and we are adjusting our financial guidance for 2017 accordingly.”
Then on March 15, 2018, the Company held a conference call during which Bhise noted that given the focus on engagement, “in the last three quarters of 2017, we generated approximately $25 million in revenue from AT&T” and that “Clearly, this forecast is below the $100 million annual revenue target that AT&T and Synacor announced when we first discussed the portal contract…”. Following this news, shares of Synacor fell more than 14% to close at $1.75 on March 16, 2018. To obtain additional information, go to:
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