| Basis of Presentation and Consolidation | Basis of Presentation and Consolidation Basis of Presentation and Consolidation The accompanying interim unaudited condensed consolidated financial statements have been prepared by Synchronoss and in the opinion of management, include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the interim periods. They do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“GAAP”) for complete financial statements and should be read in conjunction with the Company’s audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K/A for the year ended December 31, 2017 . The results of operations for the three and six months ended June 30, 2018 are not necessarily indicative of the results to be expected for the year ending December 31, 2018 . The condensed consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and variable interest entities (“VIE”) in which the Company is the primary beneficiary and entities in which the Company has a controlling interest. Investments in less than majority-owned companies in which the Company does not have a controlling interest, but does have significant influence, are accounted for as equity method investments. Investments in less than majority-owned companies in which the Company does not have the ability to exert significant influence over the operating and financial policies of the investee are accounted for using the cost method. All material intercompany transactions and accounts are eliminated in consolidation. Certain prior year amounts have been reclassified to conform to the current year's presentation. For further information about the Company’s basis of presentation and consolidation or its significant accounting policies, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K/A for the year ended December 31, 2017. Restricted Cash Restricted cash includes amounts to various deposits, escrows and other cash collateral that are restricted by contractual obligation. During the six months ended June 30, 2018 , $87.3 million was released from escrow on notification that Siris would exercise its option on the issuance of preferred stock. These funds were restricted from the proceeds received upon the sale of Intralinks, through the date of issuance of preferred stock. Remaining amounts were primarily attributed to cash held in transit, and operating cash held by the Company’s consolidated joint venture Zentry, LLC (“Zentry”), which cannot be used to fulfill the obligations of the Company as a whole. Recently Issued Accounting Standards Recent accounting pronouncements adopted Standard Description Effect on the financial statements Accounting Standards Update (“ASU”) 2017-09 Stock Compensation (Topic 718), Scope of Modification In May 2017, the Financial Accounting Standards Board (“FASB”) issued guidance which clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. Entities will apply the modification accounting guidance if the value, vesting conditions or classification of the award changes. The guidance also clarifies that a modification to an award could be significant and therefore require disclosure, even if modification accounting is not required. ASU 2017-09 is effective for fiscal years, and interim periods within those years, beginning after December 31, 2017. Early adoption is permitted as of the beginning of an annual period for which financial statements have not been issued. ASU 2017-09 should be applied prospectively to an award modified on or after the adoption date. This ASU did not have a material effect on the Company’s condensed consolidated financial statements. Date of adoption: January 1, 2018. Standards issued not yet adopted Standard Description Effect on the financial statements ASU 2017-09 Stock Compensation (Topic 718), Scope of Modification In January 2016, the FASB issued ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), which addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. ASU 2016-01 is effective for the Company in its first quarter of fiscal 2019, and earlier adoption is not permitted except for certain provisions. The Company does not expect that the pending adoption of this ASU will have a material effect on its condensed consolidated financial statements. Date of adoption: January 1, 2019. ASU 2016-13 Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13 which replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The ASU is effective for public companies in annual periods beginning after December 15, 2019, and interim periods within those years. Early adoption is permitted beginning after December 15, 2018 and interim periods within those years. The Company is currently evaluating the impact of the adoption of this ASU on its condensed consolidated financial statements. Date of adoption: January 1, 2020. ASU 2016-02 Leases (Topic 842) In February 2016, the FASB issued ASU 2016-02 which requires lessees to recognize, for all leases of 12 months or more, a liability to make lease payments and a right-of-use asset representing the right to use the underlying asset for the lease term. Additionally, the guidance requires improved disclosures to help users of financial statements better understand the nature of an entity’s leasing activities. This ASU is effective for public reporting companies for interim and annual periods beginning after December 15, 2018, with early adoption permitted, and must be adopted using a modified retrospective approach. The Company is in the process of evaluating the effect of the new guidance on its condensed consolidated financial statements and disclosures.This guidance may be adopted using a modified retrospective approach. The Company is in the process of forming a project team to evaluate and implement this guidance and is reviewing its practical expedient elections. Date of adoption: January 1, 2019. In May 2014, the FASB issued a new accounting standard related to revenue recognition, ASU 2014-09, “Revenue from Contracts with Customers,” (“Topic 606”). The new standard supersedes the existing revenue recognition requirements under U.S. GAAP and requires entities to recognize revenue when they transfer control of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. It also requires increased disclosures regarding the nature, amount, timing, and uncertainty of revenues and cash flows arising from contracts with customers. On January 1, 2018, the Company adopted Topic 606 applying the modified retrospective method to all contracts that were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for the prior period. The Company recorded a net reduction to opening retained earnings of approximately $10.1 million as of January 1, 2018 due to the cumulative impact of adopting Topic 606. The impact to revenues for the six months ended June 30, 2018 was an increase of $20.3 million as a result of adopting Topic 606. The impact to costs is not material. The impact of adoption primarily relates to (1) the delayed pattern of recognition under Topic 606 for certain professional services revenue when such professional services involve the customization of features and functionality for subscription services customers, (2) the earlier pattern of recognition under Topic 606 for license revenue when the Company provides hosting services for on-premise license customers. In the case of professional services that involve the customization of features and functionality for subscription services, under historic accounting policies the professional services were considered to have standalone value, and as a result were recognized as the services were performed. Under Topic 606, such professional services are not considered to be a distinct performance obligation within the context of the subscription services contract, and as such each month’s customization services revenue is recognized over the shorter of the estimated remaining life of the subscription software (typically three years) or the remaining term of the subscription services contract. In the case of license contracts sold in association with hosting, under historic accounting policies the license revenue was recognized over the hosting term due to the lack of vendor specific objective evidence (“VSOE”) of fair value for the hosting services. Under Topic 606, VSOE is no longer required in order separate revenue between the license and the hosting elements, and the license revenue is generally recognized upon delivery of the software based on the relative allocation of the contract price based on the established standalone selling price (“SSP”). Additional impacts of adoption include (1) in certain cases changes in the amount allocated to the various performance obligations in accordance with the relative standalone selling price method required by Topic 606 compared to the amount allocated to the various elements in accordance with the residual method or the relative selling price method, as applicable, under historic accounting policies, (2) the capitalization and subsequent amortization of certain sales commissions as costs to obtain a contract under ASC 340-40, whereas under historic accounting policies all such amounts were expensed as incurred (3) the timing and amount of revenue recognition for certain sales contracts that are considered to involve variable consideration under Topic 606, but were considered to either not be fixed or determinable or to involve contingent revenue features under historic accounting policies, (4) in certain limited cases, the accounting for discounted customer options to purchase future software or services as material rights under Topic 606, as well as (5) the income tax impact of the above items, as applicable. Changes in accounting policies as a result of adopting Topic 606 and nature of goods The following is a description of principal activities from which the Company generates revenue. Revenues are recognized when control of the promised goods or services are transferred to the Company’s customers, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. The Company generates all of its revenue from contracts with customers. Subscription and Transaction revenues consist of revenues derived from the processing of transactions through the Company’s service platforms, providing enterprise portal management services on a subscription basis and maintenance agreements on software licenses. The Company generates revenue from Subscription services from monthly active user fees, software as a service (“SaaS”) fees, hosting and storage fees, and fees for the related maintenance support for those services. In most cases, the subscription or transaction arrangement is a single performance obligation comprised of a series of distinct services that are substantially the same and that have the same pattern of transfer (i.e., distinct days of service). The Company applies a measure of progress (typically time-based) to any fixed consideration and allocates variable consideration to the distinct periods of service based on usage. When the Company does not allocate variable consideration to distinct periods of service, the total estimated transaction price is recognized ratably over the term of the contract. Transaction service arrangements include services such as processing equipment orders, new account set‑up and activation, number port requests, credit checks and inventory management. Transaction revenues are principally based on a contractual price per transaction and are recognized based on the number of transactions processed during each reporting period. Revenues are recorded based on the total number of transactions processed at the applicable price established in the relevant contract. Many of the Company’s contracts guarantee minimum volume transactions from the customer. In these instances, if the customer’s total estimated transaction volume for the period is expected to be less than the contractual amount, the Company records revenues at the minimum guaranteed amount on a straight line based over the period covered by the minimum. Set‑up fees for transactional service arrangements are deferred until set up activities are completed and recognized on a straight‑line basis over remaining expected customer relationship period. Revenues are presented net of discounts, which are volume level driven, or credits, which are performance driven, and are determined in the period in which the volume thresholds are met, or the services are provided. The Company recognizes revenues from support and maintenance performance obligations over the service delivery period. The Company’s software licenses typically provide for a perpetual or term right to use the Company’s software. The Company has concluded that in most cases its software license is distinct as the customer can benefit from the software on its own. Software revenue is typically recognized when the software is delivered to the customer. Contracts that include software customization or specified upgrades may result in the combination of the customization services with the software license as one performance obligation. The Company’s professional services include software development and customization. The contracts generally include project deliverables specified by each customer. The performance obligations in the agreements are generally combined into one deliverable and generally result in the transfer of control over time. The underlying deliverable is owned and controlled by the customer and does not create an asset with an alternative use to us. The Company recognizes revenue on fixed fee contracts on the proportion of labor hours expended to the total hours expected to complete the contract performance obligation. Most of the Company’s contracts with customers contain multiple performance obligations which generally include either 1) a perpetual software license with support and maintenance and sometimes a hosting agreement or 2) a term SaaS agreement, in many cases these are sold along with professional services. For these contracts, the Company accounts for individual goods and services separately if they are distinct performance obligations, this often requires significant judgment based upon knowledge of the products, the solution provided and the structure of the sales contract. In SaaS agreements, the Company provides a service to the customer which combines the software functionality, maintenance and hosting into a single performance obligation when the customer doesn’t have the ability to take possession of the underlying software license. The Company may also sell the same three goods and services in a contract, but they may be three performance obligations, where the customer has the right to take possession of the software license without significant penalty. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. The Company estimates standalone selling prices of software based on observable inputs of past transactions to similarly situated customers. When such observable data is not available for certain software licenses because there is a limited number of transactions or prices are highly variable, the Company will estimate the standalone selling price using the residual approach. Standalone selling prices of services are typically determined based on observable transactions when these services are sold on a standalone basis to similarly situated customers or estimated using a cost plus margin approach. Estimating the transaction price of variable consideration including the variable quantity subscription or transaction contracts in a multiple performance obligation arrangement requires significant judgment. The Company generally estimates this variable consideration at the most likely amount to which the Company expects to be entitled and in certain cases based on the expected value. The Company includes estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. The Company’s estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of the Company’s anticipated performance and all information (historical, current and forecasted) that is reasonably available to us. The Company reviews and update these estimates on a quarterly basis. The Company’s typical performance obligations include the following: Performance Obligation When Performance Obligation is Typically Satisfied When Payment is Typically Due How Standalone Selling Price is Typically Estimated Software License Software License Upon shipment or made available for download (point in time) Within 90 days of delivery Observable transactions or residual approach when prices are highly variable or uncertain Software License with significant customization Over the performance of the customization and installation of the software (over time) Within 90 days of services being performed Residual approach Hosting Services As hosting services are provided (over time) Within 90 days of services being provided Estimated using a cost-plus margin approach Professional Services Consulting As work is performed (over time) Within 90 days of services being performed Observable transactions Customization SaaS: Over the remaining term of the SaaS agreement License: Over the performance of the customization and installation of the software (over time) Within 90 days of services being performed Observable transactions Transaction Services As transaction is processed (over time) Within 90 days of transaction Observable transactions Subscription Services Customer Support Ratably over the course of the support contract (over time) At the beginning of the contract period Observable transactions SaaS Over the course of the SaaS service once the system is available for use (over time) Within 90 days of services being performed Estimated using a cost-plus margin approach Disaggregation of revenue The Company disaggregates revenue from contracts with customers into the nature of the products and services and geographical regions. The Company’s geographic regions are the Americas, EMEA, and APAC. The majority of the Company’s revenue is from the Technology, Media and Telecom (collectively, “TMT”) sector. Three Months Ended June 30, 2018 Cloud Digital Messaging Total Geography Americas $ 36,563 $ 20,172 $ 2,260 $ 58,995 APAC — 931 9,717 10,648 EMEA 2,157 1,083 3,859 7,099 Total $ 38,720 $ 22,186 $ 15,836 $ 76,742 Service Line Professional Services $ 3,576 $ 4,294 $ 1,831 $ 9,701 Transaction Services 2,442 2,116 — 4,558 Subscription Services 32,666 14,454 6,954 54,074 License 36 1,322 7,051 8,409 Total $ 38,720 $ 22,186 $ 15,836 $ 76,742 Three Months Ended June 30, 2017 Cloud Digital Messaging Total Geography Americas $ 75,910 $ 24,808 $ 3,103 $ 103,821 APAC — 2,047 7,574 9,621 EMEA 1,786 1,296 2,466 5,548 Total $ 77,696 $ 28,151 $ 13,143 $ 118,990 Service Line Professional Services $ 16,915 $ 5,429 $ 335 $ 22,679 Transaction Services 3,136 5,587 — 8,723 Subscription Services 54,488 13,558 9,875 77,921 License 3,157 3,577 2,933 9,667 Total $ 77,696 $ 28,151 $ 13,143 $ 118,990 Six Months Ended June 30, 2018 Cloud Digital Messaging Total Geography Americas $ 72,423 $ 41,051 $ 4,871 $ 118,345 APAC — 2,615 25,640 28,255 EMEA 4,601 1,531 7,719 13,851 Total $ 77,024 $ 45,197 $ 38,230 $ 160,451 Service Line Professional Services $ 7,020 $ 10,002 $ 6,390 $ 23,412 Transaction Services 4,785 3,895 — 8,680 Subscription Services 64,795 29,531 15,733 110,059 License 424 1,769 16,107 18,300 Total $ 77,024 $ 45,197 $ 38,230 $ 160,451 Six Months Ended June 30, 2017 Cloud Digital Messaging Total Geography Americas $ 126,005 $ 47,300 $ 3,687 $ 176,992 APAC — 3,520 13,324 16,844 EMEA 3,540 1,996 5,715 11,251 Total $ 129,545 $ 52,816 $ 22,726 $ 205,087 Service Line Professional Services $ 19,422 $ 12,317 $ 3,614 $ 35,353 Transaction Services 6,215 10,945 — 17,160 Subscription Services 98,393 22,441 16,002 136,836 License 5,515 7,113 3,110 15,738 Total $ 129,545 $ 52,816 $ 22,726 $ 205,087 Trade Accounts Receivable and Contract balances The Company classifies its right to consideration in exchange for deliverables as either a receivable or a contract asset. A receivable is a right to consideration that is unconditional (i.e. only the passage of time is required before payment is due). For example, the Company recognizes a receivable for revenues related to its time and materials and transaction or volume-based contracts. The Company presents such receivables in Trade accounts receivable, net in its consolidated statements of financial position at their net estimated realizable value. The Company maintains an allowance for doubtful accounts to provide for the estimated amount of receivables that may not be collected. The allowance is based upon an assessment of customer creditworthiness, historical payment experience, the age of outstanding receivables and other applicable factors. A contract asset is a right to consideration that is conditional upon factors other than the passage of time. For example, the Company would record a contract asset if it records revenue on a professional services engagement, but are not entitled to bill until the Company achieves specified milestones. Contract asset balance at June 30, 2018 was immaterial. Amounts collected in advance of services being provided are accounted for as contract liabilities, which are presented as deferred revenue on the accompanying balance sheet and are realized with the associated revenue recognized under the contract. Nearly all of the Company's contract liabilities balance is related to services revenue, primarily subscription services contracts. The Company’s contract assets and liabilities are reported in a net position on a customer basis at the end of each reporting period. Significant changes in the contract liabilities balance (current and noncurrent) during the period are as follows (in thousands): Contract Liabilities* Balance - January 1, 2018 $ 115,009 Revenue recognized that was included in the contract liability (def. revenue) balance at January 1, 2018 (82,424 ) Increases due to cash received, excluding amounts recognized as revenue during the period 38,281 Balance - June 30, 2018 $ 70,866 ________________________________ * Comprised of Deferred Revenue Revenues recognized during the six months ended June 30, 2018 for performance obligations satisfied or partially satisfied in previous periods were immaterial. Contract acquisition costs In connection with the adoption of Topic 606 and the related cost accounting guidance under Accounting Standards Codification (“ASC”) 340, the Company is required to capitalize certain contract acquisition costs consisting primarily of commissions and bonuses paid when contracts are signed. The Company adopted Topic 606 on January 1, 2018 and capitalized $0.7 million in contract acquisition costs related to contracts that were not completed. For contracts that have a duration of less than one year, the Company follows a Topic 606 practical expedient and expenses these costs over the estimated customer life, because it does not pay commissions upon renewals that are commensurate with the initial contract. In the six months ended June 30, 2018 , the amount of amortization was immaterial and there was no impairment loss in relation to costs capitalized. Contract Fulfillment Costs Under ASC 340-40, the Company evaluates whether or not it should capitalize the costs of fulfilling a contract. Such costs would be capitalized when they are not within the scope of other standards and: (1) are directly related to a contract; (2) generate or enhance resources that will be used to satisfy performance obligations; and (3) are expected to be recovered. No such costs were capitalized as of June 30, 2018 . Transaction price allocated to the remaining performance obligations Topic 606 requires that the Company disclose the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied as of June 30, 2018 . The Company has elected not to disclose transaction price allocated to remaining performance obligations for: 1. Contracts with an original duration of one year or less, including contracts that can be terminated for convenience without a substantive penalty; 2. Contracts for which the Company recognizes revenues based on the right to invoice for services performed; 3. Variable consideration allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct good or service that forms part of a single performance obligation in accordance with Topic 606 Section 10-25-14(b), for which the criteria in Topic 606 Section 10-32-40 have been met. Many of the Company’s performance obligations meet one or more of these exemptions. As of June 30, 2018 , the aggregate amount of transaction price allocated to remaining performance obligations, other than those meeting the exclusion criteria above, was $383.8 million , of which approximately 80% is expected to be recognized as revenues within 2 years , and the remainder thereafter. Estimates of revenue expected to be recognized in future periods also exclude unexercised customer options to purchase services that do not represent material rights to the customer. Customer options that do not represent a material right are only accounted for in accordance with Topic 606 when the customer exercises its option to purchase additional goods or services. In accordance with Topic 606, the disclosure of the impact of adoption to the Company’s Condensed Consolidated Balance Sheet and Condensed Consolidated Statement of Operations was as follows: June 30, 2018 As Reported Impacts of the New Revenue Standard Adjusted amounts under prior GAAP ASSETS Current assets: Cash and cash equivalents $ 222,785 $ — $ 222,785 Restricted cash** 3,480 — 3,480 Marketable securities 5,411 — 5,411 Accounts receivable, net 51,439 9,790 41,649 Prepaid expenses and other current assets (2) 57,387 (164 ) 57,551 Total current assets 340,502 9,626 330,876 Marketable securities 9,021 — 9,021 Property and equipment, net 89,310 — 89,310 Goodwill 233,298 — 233,298 Intangible assets, net 128,164 — 128,164 Deferred tax assets — — — Other assets (2) 13,090 418 12,672 Note receivable from related party** 84,314 — 84,314 Equity method investment 30,412 — 30,412 Total assets $ 928,111 $ 10,044 $ 918,067 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 13,924 $ — $ 13,924 Accrued expenses 54,540 (12,013 ) 66,553 Deferred revenues, current (3) 31,391 (2,234 ) 33,625 Total current liabilities 99,855 (14,247 ) 114,102 Lease financing obligation 10,319 — 10,319 Convertible debt, net of debt issuance costs 228,410 — 228,410 Deferred tax liabilities 12,472 — 12,472 Deferred revenues, non-current (3) 39,475 14,632 24,843 Other liabilities 15,390 — 15,390 Redeemable noncontrolling interest 12,500 — 12,500 Commitments and contingencies (Note 12) Series A Convertible Participating Perpetual Preferred Stock, $0.0001 par value; 10,000 shares authorized; 188 shares issued and outstanding at June 30, 2018 168,945 — 168,945 Stockholders’ equity: Common stock, $0.0001 par value; 100,000 shares authorized, 49,439 and 52,024 shares issued; 42,277 and 46,965 outstanding at June 30, 2018 and December 31, 2017, respectively 5 — 5 Treasury stock, at cost (7,162 and 5,059 shares at June 30, 2018 and December 31, 2017, respectively) (82,084 ) — (82,084 ) Additional paid-in capital 554,218 — 554,218 Accumulated other comprehensive loss (4) (28,938 ) 60 (28,998 ) Accumulated deficit (102,456 ) 9,599 (112,055 ) Total stockholders’ equity 340,745 9,659 331,086 Total liabilities and stockholders’ equity $ 928,111 $ 10,044 $ 918,067 ________________________________ ** See Note 5 -Investments in Affiliates and Related Transactions for related party transactions reflected in this account. Three Months Ended June 30, Six Months Ended June 30, As Reported Impacts of the New Revenue Standard Adjusted amounts under prior GAAP As Reported Impacts of the New Revenue Standard Adjusted amounts under prior GAAP Net revenues (3) $ 76,742 $ 9,284 $ 67,458 $ 160,451 $ 20,266 $ 140,185 Costs and expenses: Cost of revenues* (5) 39,525 256 39,269 84,074 364 83,710 Research and development 20,200 — 20,200 41,105 — 41,105 Selling, general and administrative (2) 33,938 51 33,887 72,048 101 71,947 Restructuring charges 2,778 — 2,778 3,886 — 3,886 Depreciation and amortization 23,401 — 23,401 46,672 — 46,672 Total costs and expenses 119,842 307 119,535 247,785 465 247,320 Loss from continuing operations (43,100 ) 8,977 (52,077 ) (87,334 ) 19,801 (107,135 ) Interest income 3,763 — 3,763 7,315 — 7,315 Interest expense (1,318 ) (33 ) (1,285 ) (2,565 ) (72 ) (2,493 ) Other (expense) income, net (23 ) — (23 ) 4,259 — 4,259 Equity method investment loss (7 ) — (7 ) (212 ) — (212 ) Loss from continuing operations, before taxes (40,685 ) 8,944 (49,629 ) (78,537 ) 19,729 (98,266 ) Provision for income taxes (579 ) — (579 ) (704 ) — (704 ) Net loss from continuing operations (41,264 ) 8,944 (50,208 ) (79,241 ) 19,729 (98,970 ) Net loss (41,264 ) 8,944 (50,208 ) (79,241 ) 19,729 (98,970 ) Net loss attributable to redeemable noncontrolling interests 1,259 — 1,259 2,544 — 2,544 Preferred stock dividend (7,260 ) — (7,260 ) (10,613 ) — (10,613 ) Net loss attributable to Synchronoss $ (47,265 ) $ 8,944 $ (56,209 ) $ (87,310 ) $ 19,729 $ (107,039 ) Basic: Continuing operations $ (1.20 ) $ 0.22 $ (1.42 ) $ (2.14 ) $ 0.48 $ (2.62 ) Discontinued operations** — — — — — — $ (1.20 ) $ 0.22 $ (1.42 ) $ (2.14 ) $ 0.48 $ (2.62 ) Diluted: Continuing operations $ (1.20 ) $ 0.22 $ (1.42 ) $ (2.14 ) $ 0.48 $ (2.62 ) Discontinued operations** — — — — — — $ (1.20 ) $ 0.22 $ (1.42 ) $ (2.14 ) $ 0.48 $ (2.62 ) Weighted-average common shares outstanding: Basic 39,456 39,456 40,812 40,812 Diluted 39,456 39,456 40,812 40,812 ________________________________ * Cost of revenues excludes depreciation and amortization which is shown separately. ** See Note 3 - Acquisitions and Divestitures for transactions classified as discontinued operations. (1) Reflects the impact of changes to the contract term as defined by the new revenue recognition standard. (2) Reflects capitalization of costs to obtain a contract. (3) Reflects the impact of changes in the delayed pattern of recognition on the Company’s professional services, timing of revenue recognition and allocation of purchase price on software license contracts and legally enforceable rights and obligations prior to when persuasive evidence of an arrangement exists. (4) Reflects the impact of foreign currency translation related to the above impacts. (5) Reflects the impact of amortization of third party costs over the term of the contract. The table below shows Topic 606 Retained earnings reconciliation: Cumulative catch up Topic 606 adjustment as of January 1, 2018 $ (10,130 ) Net loss from continued operations 19,729 Retained Earnings at June 30, 2018 $ 9,599 |
