Contract win & trading update

RNS Number : 6227I

Synchronica PLC

16 March 2010

 



Synchronica plc

('Synchronica' or 'the Company')

Contract Win & Trading Update

Synchronica plc, the AIM listed mobile email, instant messaging and data synchronisation provider, would like to summarize the events of the first two trading months of the year following the recent contracts and product updates.

US$203,000 Order for MessagePhone from Tier-1 Latin American Operator

As previously announced, the distribution partner for the MessagePhone has received the first purchase orders for devices from subsidiaries of tier-1, multi-national mobile operator groups in Africa and Latin America. The Company is pleased to announce that it has now received the first purchase order from the distributor for Mobile Gateway worth US$203,000. Mobile Gateway will be bundled with the initial 20,000 devices being shipped to the customer in Latin America. Once the devices have been shipped to the customer, the Company will receive an additional 3% of the net device sales.

Contract Update

Further to the announcements of 5 January 2010 and 1 February 2010, Synchronica has been informed by a customer which requested the delivery of the Synchronica's Mobile Gateway product in December 2009, that, as a result of that customer being involved in acquisition discussions, the relevant counter-signatures and purchase orders required to recognize the related revenue cannot now be given before end March 2010.

As the customer had scheduled the launch of Synchronica Mobile Gateway for mid January 2010, the contract negotiations were completed in December, purchase orders for professional services and a purchase order for a large number of licenses were agreed with the customer, and the software licence keys and associated professional services were delivered before end December 2009.

The Company's revenue for the year to 31^st December 2009 with the above license purchase order would have been £5.1m. Due to the delay by the customer as a result of their acquisition discussions, the market is advised that without this income the board now expects the revenue for the year ended 31 December 2009 to be approximately £3.8m with a projected adjustment of £1m to the results for the year.

Mobile Gateway 5 Product Update

The Company announced Mobile Gateway 5 (http://www.synchronica.com/products/syncml-gateway-for-mobile-operators.html), a new major version of its core product on February 16 and demonstrated the product to more than 40 prospective mobile operator customers at Mobile World Congress in Barcelona from February 15 to 18. Mobile Gateway 5 significantly expands the product functionality and introduces support for instant messaging, social networking and newsfeeds in addition to push email and synchronisation. Initial feedback from existing and prospective customers has been very positive and the Directors of the Company believe that the new product will significantly improve the competitive positioning and will result in an increased conversion rate of prospects to customers as well as establish further up-selling potential to existing customers.

Mobile Gateway Sales Update

During 2009, the company signed 13 new contracts with mobile operators. Mobile Gateway revenues have increased by 175% between 2007 and 2008 and by a further 175% between 2008 and 2009. Mobile Gateway now represents the vast majority of the Company's revenues growing from £1.157m in 2008 to £3.1m in 2009.

The Company has begun the year with its largest sale to date of Mobile Gateway as announced on 9 March 2010. At Mobile World Congress in February, the Company added more than 30 new operator prospects to its already strong sales pipeline for 2010. The Company has established global reseller agreements with tier-1 players including Nokia Siemens Networks, Brightstar and a further global, Asian headquartered Network Equipment Provider, complementing the Company's direct sales activities with global scale and local presence. During 2009, the Company won four new contracts from its reseller channel and expects this number to increase in 2010.

MessagePhone Product Update

The Company and its partners officially launched the new MessagePhone (www.message-phone.com) on February 10^th 2010 in London. The launch of the MessagePhone represents a significant milestone for the Company as for the first time the Company's software products are bundled and pre-installed with mass-market mobile devices opening a new distribution channel and adding significant competitive advantage over software-only players. The launch event was well received and resulted in significant international media coverage in print and Internet publications which have generated several inquiries by prospective customers for the product.

Currently, the Company and its distribution partner are in extended discussions with several mobile operators for a launch of the MessagePhone bundled with the Company's Mobile Gateway product. The pipeline for potential new customers includes more than 30 mobile operators in Africa, Latin America and CIS and currently 20 mobile operators are testing the product.

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	Paul McManus	[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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