Synacor plunges on revenue miss, soft guidance

|About: Synacor (SYNC)|By:, SA News Editor

Synacor (SYNC -13%) is guiding for Q3 revenue of $25M-$26M, well below a $34.8M consensus and implying a 19%-23% revenue drop.

2013 guidance is for revenue of $108M-$112M, below prior guidance of $122M-$126M and a $121.9M consensus, and implying an 8%-12% revenue drop. 2013 adjusted EBITDA is expected to total $3M-$5M, down from 2012's $11.6M.

On the CC, Synacor stated weak PC sales have hurt the ad revenue it generates via its OEM start page deals. Unique visitors/month (20M) and display ad impressions (10.3B) were flat Y/Y in Q2, but search queries fell 26% to 177M.

Synacor is counting on its Android tablet browser start page deals to help stabilize sales. The company asserts "there's significant demand for [its] new products among consumer electronics manufacturers and wireless carriers."

But Synacor adds the timing of product launches for new start page, TV Everywhere, and Cloud ID deals is "difficult to predict."

Opex fell 5% Y/Y in Q2, while revenue fell 13%.

Q2 results, PR