Sinch partly recovers morning's losses as conference call soothes investors
12/07/2022 14:38
(Recasts with share move, detail on conference call, analyst
comments)
** Sinch SINCH.ST narrows daily losses to 12% after a
conference call where the Swedish cloud communication services
provider gave further explanation on its reassessment of
historical cost of goods sold urn:newsml:reuters.com:*:nL8N2YT0ZW
** The company said in the call it has found
bigger-than-expected deviation due to "operating failure in
certain parts of the organisation", but was not aware of any
need of further reassessments
** Axel Karlsson, active trading manager at Nordnet, says
the management gave a good impression in terms of their
responses and credibility
** "Taking into consideration that the company currently is
in a quiet period, I feel that they gave sound responses to a
lot of the issues which needed to be answered," Karlsson says
** Sinch's stock lost nearly a third of its value on Monday
after a report by short-seller NINGI Research was published on
Twitter urn:newsml:reuters.com:*:nL8N2YS372
** It fell further 22% on Tuesday morning, but clawed back
some of those losses after the call
** SEB analyst Pontus Wachtmeisters says it was reassuring
that Sinch bluntly said it has not changed revenue recognition
practices in messaging
** Wachtmeisters adds he trusts the statement that no
further reassessment is needed, as he assumes the company has
tweaked its models to make sure it covers costs more accurately
** Sinch released late on Monday reassessment stating its Q2
profit would be hit by 162 million Swedish crowns ($15.32
million) and said it "strongly opposes" NINGI Research's claims
that revenues for 2021 are overstated
($1 = 10.5739 Swedish crowns)
(Reporting by Marie Mannes and Izabela Niemiec)
((Marie.mannes@thomsonreuters.com))