The following table presents the Condensed Consolidated Balance Sheet as previously reported, restatement adjustments and the Condensed Consolidated Balance Sheet as restated at December 31, 2016:



			Adjustments
	As Previously Reported **		Revenue - Hosting			Revenue - Evidence of Arrangement and Other Revenue			Acquisitions & Divestiture			Capitalized Software and Other			Income Taxes			As Restated
ASSETS
Current assets:
Cash and cash equivalents	$	181,018	$	—		$	—		$	—		$	(11,217	)	$	—		$	169,801
Restricted cash	—		—			—			—			41,632			—			41,632
Marketable securities	12,506		—			—			—			—			—			12,506
Accounts receivable, net	137,233		(344		)	(36,509		)	7,896			(802		)	—			107,474
Prepaid expenses and other assets	33,696		—			—			1,408			(1,166		)	4,339			38,277
Total current assets	364,453		(344		)	(36,509		)	9,304			28,447			4,339			369,690
Restricted cash	30,000		—			—			—			(30,000		)	—			—
Marketable securities	2,974		—			—			—			—			—			2,974
Property and equipment, net	155,599		—			—			(823		)	3,429			—			158,205
Goodwill	269,905		—			—			(41,358		)	—			(3,896		)	224,651
Intangible assets, net	203,864		—			—			(19,830		)	(21,066		)	—			162,968
Deferred tax assets	1,503		—			—			—			—			11,783			13,286
Other assets	7,541		—			—			(70		)	1,187			—			8,658
Note receivable from related party	83,000		—			—			(12,731		)	—			—			70,269
Equity method investment	45,890		—			—			(2,240		)	—			—			43,650
Total Assets	1,164,729		(344		)	(36,509		)	(67,748		)	(18,003		)	12,226			1,054,351

** Certain amounts reflected in this column have been adjusted for retrospective application of discontinued operations.



				Adjustments
	As Previously Reported **			Revenue - Hosting			Revenue - Evidence of Arrangement and Other Revenue			Acquisitions & Divestiture			Capitalized Software and Other			Income Taxes			As Restated
Current liabilities:
Accounts payable	$	15,770		$	—		$	—		$	—		$	1,287		$	—		$	17,057
Accrued expenses	69,435			—			5,274			971			246			956			76,882
Deferred revenues	27,542			33,398			(151		)	(3,360		)	1			—			57,430
Contingent consideration obligation	11,860			—			—			(9,027		)	—			—			2,833
Short-term debt	29,000			—			—			—			—			—			29,000
Total current liabilities	153,607			33,398			5,123			(11,416		)	1,534			956			183,202
Lease financing obligation - long term	12,121			—			—			41			288			—			12,450
Convertible debt, net of debt issuance costs	226,291			—			—			—			—			—			226,291
Deferred tax liability	49,822			—			—			—			—			(46,314		)	3,508
Deferred revenues	12,134			52,965			531			—			—			—			65,630
Other liabilities	3,783			—			—			—			1,679			2,731			8,193
Redeemable noncontrolling interests	49,856			—			—			(28,813		)	4,237			—			25,280
Commitments and contingencies
Common stock	5			—			—			—			—			—			5
Treasury stock	(95,183		)	—			—			—			(11,448		)	—			(106,631		)
Additional paid-in capital	575,093			—			—			(7,667		)	3,727			—			571,153
Accumulated other comprehensive loss	(43,253		)	—			658			—			138			107			(42,350		)
Retained earnings	220,453			(86,707		)	(42,821		)	(19,893		)	(18,158		)	54,746			107,620
Total stockholders' equity	657,115			(86,707		)	(42,163		)	(27,560		)	(25,741		)	54,853			529,797
Total liabilities & stockholders' equity	$	1,164,729		$	(344	)	$	(36,509	)	$	(67,748	)	$	(18,003	)	$	12,226		$	1,054,351

** Certain amounts reflected in this column have been adjusted for retrospective application of discontinued operations.

The following table presents the Condensed Consolidated Statement of Operations as previously reported, restatement adjustments and the Condensed Consolidated Statement of Operations as restated for the three months ended March 31, 2016:



				Adjustments
	As Previously Reported**			Revenue - Hosting		Revenue - Evidence of Arrangement and Other Revenue			Acquisitions & Divestiture			Capitalized Software and Other			Income Taxes			As Restated
Net revenues	$	104,219		$	2,119	$	(18,086	)	$	(10,006	)	$	—		$	—		$	78,246
Costs and expenses:
Cost of revenues*	46,448			—		—			(1		)	(296		)	—			46,151
Research and development	24,097			—		—			—			1,730			—			25,827
Selling, general and administrative	26,923			—		—			84			(1,093		)	—			25,914
Net change in contingent consideration obligation	341			—		—			(336		)	—			—			5
Restructuring charges	2,910			—		—			—			—			—			2,910
Depreciation and amortization	24,055			—		—			(1,111		)	(162		)	—			22,782
Total costs and expenses	124,774			—		—			(1,364		)	179			—			123,589
Loss from continuing operations	(20,555		)	2,119		(18,086		)	(8,642		)	(179		)	—			(45,343		)
Interest income	630			—		—			—			—			—			630
Interest expense	(1,576		)	—		—			—			—			—			(1,576		)
Other expense, net	(884		)	—		503			—			—			—			(381		)
Loss from continuing operations, before taxes	(22,385		)	2,119		(17,583		)	(8,642		)	(179		)	—			(46,670		)
Benefit for income taxes	361			—		—			—			—			15,159			15,520
Net loss from continuing operations	(22,024		)	2,119		(17,583		)	(8,642		)	(179		)	15,159			(31,150		)
Net income (loss) from discontinued operations, net of tax	10,941			—		(2,111		)	—			—			(10,016		)	(1,186		)
Net loss	(11,083		)	2,119		(19,694		)	(8,642		)	(179		)	5,143			(32,336		)
Net loss attributable to redeemable noncontrolling interests	(3,129		)	—		—			—			122			—			(3,007		)
Net loss attributable to Synchronoss	$	(7,954	)	$	2,119	$	(19,694	)	$	(8,642	)	$	(301	)	$	5,143		$	(29,329	)

Basic:
Continuing operations	$	(0.44	)															$	(0.65	)
Discontinued operations	0.26																	(0.03		)
	$	(0.18	)															$	(0.68	)
Diluted:
Continuing operations	$	(0.44	)															$	(0.65	)
Discontinued operations	0.26																	(0.03		)
	$	(0.18	)															$	(0.68	)
Weighted-average common shares outstanding:
Basic	43,423																	43,423
Diluted	43,423																	43,423


*	Cost of services excludes depreciation and amortization which is shown separately.


**	Certain amounts reflected in this column have been adjusted for retrospective application of discontinued operations.

The following table presents the Condensed Consolidated Statement of Comprehensive Income (Loss) as previously reported, restatement adjustments and the Condensed Consolidated Statement of Comprehensive Income (Loss) as restated for the three months ended March 31, 2016:



				Adjustments
	As Previously Reported**			Revenue - Hosting		Revenue - Evidence of Arrangement and Other Revenue			Acquisitions & Divestiture			Capitalized Software and Other			Income Taxes		As Restated
Net loss	$	(11,083	)	$	2,119	$	(19,694	)	$	(8,642	)	$	(179	)	$	5,143	$	(32,336	)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	9,668			—		(224		)	—			19			—		9,463
Unrealized gain (loss) on available for sale securities	20			—		—			—			—			—		20
Net income (loss) on intra-entity foreign currency transactions	(262		)	—		—			—			—			—		(262		)
Total other comprehensive income (loss), net of tax	9,426			—		(224		)	—			19			—		9,221
Comprehensive income (loss)	(1,657		)	2,119		(19,918		)	(8,642		)	(160		)	5,143		(23,115		)
Comprehensive income (loss) attributable to redeemable noncontrolling interests	(3,129		)	—		—			—			122			—		(3,007		)
Comprehensive income (loss) attributable to Synchronoss	$	1,472		$	2,119	$	(19,918	)	$	(8,642	)	$	(282	)	$	5,143	$	(20,108	)