Contract gain and purchase or

RNS Number : 5959O

Synchronica PLC

01 July 2010

 

1st July 2010

Synchronica plc

('Synchronica' or 'the Company')

US$ 1.25m Contract Win and Further Purchase Orders

Synchronica plc, the AIM listed mobile email, instant messaging and data synchronisation provider, announces that it has sold a large number of licenses for Mobile Gateway to a multinational operator group in Latin America. The contract has been secured through Synchronica's distributor, Brightstar Corp, with the initial license volume worth US$ 1.25m, recognizable in H1 2010. The Company also announces it has received its first purchase order through its global reseller agreement with Nokia Siemens Networks for a mobile operator in North Africa. Further, the Company has received a purchase order for Mobile Gateway licenses worth US$ 1.09m, recognizable in H1 2010, from a device manufacturer targeting Indonesia following a contract announced in March of this year. Finally, the Company received two purchase orders for a total of 100,000 annual licenses from a device manufacturer targeting to sell its devices bundled with Mobile Gateway to operators in India.

US$ 1.25m contract secured through Brightstar Corp for Latin America.

The contract and license order is for a Tier-1, multi-national operator group ("the Operator") in Latin America for a large number of Mobile Gateway 4.1 licenses. The initial license order is worth US$ 1.25m, to be recognised in H1 2010, with further orders, professional services and support services expected to follow.

As a leading provider of mobile services in Latin America, the Operator has experienced strong growth of its subscriber base between 2009 and 2010. In 2009 mobile phone subscriptions in Latin America experienced growth of 10.9%, and are forecast to increase a further 8.2% in 2010.

Synchronica's Mobile Gateway provides push email and mobile synchronisation services and has recently been expanded to include instant messaging, news feeds and access to popular social networking sites.  Mobile Gateway is based on industry standards and requires no additional software client to be downloaded to the handset and enables push email for the broadest range of handsets, from high-end Smartphones to low-cost, entry-level devices.

First purchase order through Nokia Siemens Networks for North African operator

Synchronica has received a purchase order for a mobile operator in North Africa, for an initial 100,000 licenses and professional services for Synchronica Mobile Gateway 4.1 and 20,000 licenses for Mobile Backup. The purchase order is the first generated through the preferred global reseller agreement with Nokia Siemens Networks announced on 17 February 2009.

$1.09m purchase order received from device distributor targeting Indonesian operator

The Company has received a purchase order for a large volume order of licenses for Synchronica Mobile Gateway 5 worth $1.09m from a device distributor ("the Distributor").  The Distributor will bundle Mobile Gateway with its devices for one of Indonesia's largest mobile operators. This purchase order confirms the committment from a contract previously announced on 9 March 2010 and will be recognised as revenue in full for H1 2010.

According to Business Monitor International's latest Telecommunications Report for Q2 2010, the total number of mobile subscribers in Indonesia is expected to rise to 360 million by 2014, reaching a penetration rate of 144% from the current level of 56.8%.

Purchase orders received from device manufacturer in India

The Company has received two purchase orders for a total of 100,000 annual licenses plus professional services for a device manufacturer ("the Manufacturer") in India. The Manufacturer will ship the devices to operators in the region.

Synchronica announced on 23 March 2010 that the Manufacturer had signed a reseller agreement whereby the Manufacturer will bundle Synchronica's award winning Mobile Gateway with handsets offered under its established brand which in turn will be sold to mobile operators.

India is one of the largest and fastest growing mobile phone markets in the world, with some 20.31 million new customers being added in March 2010 alone.

Commenting on these announcements, Carsten Brinkschulte, CEO of Synchronica, said, "We are very pleased to announce this flurry of contract wins and purchase orders for our flagship product Mobile Gateway. This once again demonstrates Synchronica's competitive strength as well as the Company's growing global footprint in emerging markets.  With the mobile phone fast becoming the primary device for internet access in emerging markets, Synchronica's technology provides a key component in the process of providing the end user with the ability to access the internet from even the most basic of handsets."

"We are pleased to see a significant contribution in revenue from the large volume orders for Latin America and Indonesia as they confirm the mass-market appeal of our product and underline the commercial traction the Company has achieved. Today's announcements also vindicate our dual strategy of bundling Mobile Gateway with devices as well as offering it as a device-independent solution directly to mobile operators and demonstrates the success of our channel strategy which provides us with global reach and local presence."

Enquiries:

Synchronica plc www.synchronica.com	Carsten Brinkschulte, CEO Angus Dent, CFO Nicole Meissner, COO	[phone] [phone] [phone]
finnCap	Clive Carver , Nomad	[phone]
	Charlotte Stranner, Corporate Finance	[phone]
	Stephen Norcross, Corporate Broker	[phone]
Walbrook PR Ltd	Ben Knowles	[phone] [phone] [e-mail]

About Synchronica

Synchronica plc is a leading developer of next-generation mobile messaging solutions based on open industry standards. The award-winning product portfolio includes the flagship product Mobile Gateway, providing push email, synchronization, instant messaging, backup & restore and mobile connectivity to social networks. Synchronica's products are white-labeled and offered by mobile operators in emerging and developed markets to provide mass-market messaging services, increasing data revenues and reducing churn.

Synchronica's Mobile Gateway provides a unique multi-protocol gateway combining Push IMAP, SyncML, ActiveSync, Email-to-MMS and Email-to-SMS, delivering push email and synchronization to literally any mobile phone currently in the market without requiring an additional client to be downloaded. Expanding Instant Messaging to mobile devices, Mobile Gateway establishes carrier-branded IM communities using the industry-standard XMPP and provides gateways to popular Internet IM communities connecting any IMPS enabled handset.

Headquartered in England, Synchronica also maintains a development centre in Germany, in addition to a regional presence in the USA, Hong Kong and Dubai. Synchronica plc is a public company traded on the AIM list of the London Stock Exchange (SYNC.L). For further information please visit www.synchronica.com.

 

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