UPDATE 1-Analysts downgrade Synchronoss after weak forecast

(Recasts, adds details, share movement)

BANGALORE, May 7 (Reuters) - At least three brokerages
downgraded Synchronoss Technologies Inc (SNCR.O: Quote, Profile, Research) on Wednesday,
a day after the communications software maker cut its 2008
outlook on declining revenue associated with Apple Inc's
(AAPL.O: Quote, Profile, Research) iPhone.

Synchronoss, whose shares fell as much as 44 percent to a
52-week low, gets paid when customers activate their iPhone
with AT&T Corp (T.N: Quote, Profile, Research), the only official U.S. service provider
for the smartphone.

However, many iPhone customers are choosing to "unlock" the
device and activate it with a cellular provider other than
AT&T.

Synchronoss, which derived 72 percent of its first-quarter
revenue from business related to AT&T, expects iPhone-related
revenue to decline $30 million in 2008.

Goldman Sachs analyst Elizabeth Grausam said the company's
management had "simply thrown in the towel in attempting to
meaningfully forecast iPhone contributions due to the near-term
erosion in activation visibility..."

The outlook implies that iPhone activations dramatically
decreased over April as consumers prepare for the widely
anticipated 3G iPhone launch in June, Grausam said.

However, the current lull in domestic iPhone demand is
expected to reverse in the second half of the year as the
next-generation handset hits the shelves this summer, Grausam
added.

Synchronoss slashed its 2008 earnings view to 55 cents to
60 cents a share, from its prior view of 92 cents to $1.01 a
share. It now expects revenue of $115 million to $120 million,
down from its prior view of $151 million to $160 million.

Analysts on average are expecting the Bridgewater, New
Jersey-based company to earn 66 cents a share, before special
items, on revenue of $127.8 million, according to Reuters
Estimates.

LOOKING BEYOND AT&T

Synchronoss is trying to diversify its customer base and
has added several new customers including Sprint Nextel Corp
(S.N: Quote, Profile, Research), European mobile company Vodafone (VOD.L: Quote, Profile, Research), Brightpoint
Inc (CELL.O: Quote, Profile, Research) and Art Technology Group Inc (ARTG.O: Quote, Profile, Research).

However, it does not expect to see the majority of the
impact from recently added customer engagements until 2009 and
beyond, Chief Financial Officer Lawrence Irving said in a
statement.

"Transparency and visibility have proven to be quite low in
Synchronoss's business," Avondale Partners analyst John Bright
said and downgraded the stock to "market perform."

Shares of the company were down about 43 percent at $13.15
in afternoon trade, making them the highest percentage loser on
Nasdaq. The shares touched a 52-week low of $12.72 earlier in
the session.

Following are the research actions by the brokerages:
Brokerage Rating Price
Target

New Old New
Old
Avondale Market perform Market outperform $15
$29
Goldman Sachs Buy# -- $19*
$38
Needham Hold Buy N/A
Raymond James Outperform# -- $18
$28
S&P Equity Hold Buy $14
$28
* Six-month price target
# Rating reiterated
(Reporting by Jennifer Robin Raj; Editing by Himani Sarkar)