Buffalo, NY-based technology vendor Synacor has announced that it's in the process of winding down its deal with AT&T to maintain the telecom’s ATT.net customer facing portal. Synacor will migrate the digital asset to another technology services provider, the company said.
Synacor said it expects the process of ending the portal relationship to take many months.
ATT.net accounted for $9.3 million of the 20.7 million in revenue generated by Synacor’s portal and advertising segment in the first quarter.
“Synacor is a $100M-plus revenue business without the AT&T portal, and we have never been more excited about the significant opportunities in our $49M high-margin, recurring-revenue-driven enterprise software business,” said CEO Himesh Bhise, in a statement.
The announcement was made after closure of the Nasdaq today. Synacor stock was down more than 11% in after-hours trading.
“The Synacor-powered ATT.net platform enabled AT&T to retake control of its brand on the portal, drive strong user engagement across mobile and desktop, and deliver against its advertising budget expectations,” Bhise added. “While we were optimistic regarding the strength of our renewal proposals as well as our accomplishments for ATT.net, we have been actively managing the Synacor business to prepare for any outcome and have remained focused on our high-growth products and services. We will continue to execute on our strategy to drive profitable growth through an increasing level of high-margin revenue.”
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