Q3 results

RNS Number : 6762S

Synchronica PLC

24 November 2011

 



Synchronica Releases Third Quarter Results for 2011

Royal Tunbridge Wells: November 24, 2011 - Synchronica plc, the international provider of next-generation mobile messaging services, announces that it has, in compliance with Canadian TSX Venture Exchange regulations, as well as its own best practice responsibilities, filed its financial statements and MD&A for the quarter ended September 30, 2011. Abridged highlights are set out below, and the full documents may be downloaded from www.sedar.com as well as the Company´s website at www.synchronica.com.

The Management Discussion and Analysis should be read in tandem with the unaudited interim financial statements, and all amounts are expressed in United States dollars.

Q3 Highlights:

·     US$7.0 million revenue, a 900 percent improvement from the same period 2010 (Q3'10: US$0.7 million)

·     1,098 percent growth in recurring revenue between Q3 '10 and Q3 '11, with 48 percent of recurring revenue now delivered as Software as a Service

·     Increases in overall cost base as expected as a result of the Nokia OBM acquisition

·     Aggressive cost cutting programme in place will result in expected savings of US$12 million per annum

·     Focused on delivering profitability and shareholder value as a matter of absolute priority

·     Two new Mobile Gateway deals, client development for the Android operating system and an order from Microsoft

·     Synchronica is focused on resolving delayed payments from handset manufacturers by completing the development of the third party operating code

"We are pleased with our results this quarter which reflect the full contribution of our recently acquired Operator Branded Messaging business," said Angus Dent, CEO. "A significantly larger portion of our revenue is now recurring which, along with our cost control program, moves us closer to a cash positive position in future quarters."

Quarter 3 Financial Results:

				Three Months Ended		Nine months ended
				30 September 2011	30 September 2010	30 September 2011	30 September 2010
				US$'000	US$'000	US$'000	US$'000
Revenue				6,969	746	12,790	5,747
Losses attributable to the equity holders				(9,411)	(4,100)	(10,551)	(6,461)
Losses before exceptional items				(7,472)	(3,618)	(11,942)	(5,956)
EBITDA losses				(3,548)	(2,236)	(6,182)	(2,879)
Total assets				56,681	25,501	56,681	25,501
Long Term Liabilities				11,687	2,654	11,687	2,654

Investor Conference Call:

A conference call will be hosted on Thursday, 24 November, 2011 at 4:00 PM Eastern Standard Time (9:00 UK GMT) to discuss Synchronica's financial and operational results for the quarter ended September 30, 2011.

To access the conference call from North America dial [phone] or 647-427-7450, or from the United Kingdom dial +0-800-051-7107.

The conference call will be archived for replay until Tuesday, September 6, 2011 at midnight. To access the archived conference call, please dial 416-849-0833 or 1-855-859-2056 and enter the reservation code 31297391.

A live audio webcast of the conference call will be available at www.newswire.ca. An archived replay of the webcast will be available for 365 days.

Severance Agreement with Carsten Brinkschulte:

Following his recent resignation, the Company is pleased to announce that it has reached an amicable severance agreement with its former CEO, Carsten Brinkschulte.  Mr Brinkschulte was instrumental in developing Synchronica from an embryonic software business into the one of the world's leading mobile messaging companies.  The Board wishes to thank Mr Brinkschulte for his outstanding contribution to the development of Synchronica and wishes him well for the future.

 About Synchronica

Synchronica plc is a leading developer of standards-based, next-generation mobile messaging solutions for mobile operators and device manufacturers. The Company's flagship product - Synchronica Mobile Gateway - provides pre-RCS push email, synchronisation, instant messaging (IM), and social networking services to any mobile phone currently in use. Synchronica's patented transcoding technology uses advanced streaming to download email attachments and dramatically reduces the consumption of wholesale network bandwidth by as much as 90 percent.

Synchronica's white-labelled products are licensed by more than 90 mobile operators and eight device manufacturers from emerging and developed markets, delivering mass market messaging services across the entire customer base, providing competitive advantage, diversifying revenues, and reducing churn.

Synchronica is headquartered in the United Kingdom and has a regional presence in Canada, as well as the USA, Hong Kong, Spain, and Dubai. Synchronica also operates dedicated development centres in Germany and the Philippines. A public company, Synchronica is traded on the AIM list of the London Stock Exchange (SYNC) and the Venture Exchange of the Toronto Stock Exchange (SYN). For further information, please visit www.synchronica.com

For investor relations enquiries, please contact:

Walbrook PR Ltd [phone]	Investor Enquiries, UK	Paul Cornelius [e-mail]
TMX Equicom [phone] Ext 290	Investor Enquires, North America	Craig MacPhail [e-mail]

For corporate information, please contact:

Synchronica plc [phone]	Chief Executive Officer	Angus Dent
Northland Capital Partners [phone]	Nominated Advisor Corporate Broker	Shane Gallwey; Rod Venables Katie Shelton
Walbrook PR Ltd [phone]	Media and Analyst Enquiries, UK	Paul McManus [e-mail]
TMX Equicom [phone] Ext 290	Media and Analyst Enquiries, North America	Craig MacPhail [e-mail]

Cautionary Statements

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

The foregoing information may contain forward-looking statements relating to the future performance of Synchronica. Forward-looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties, and actual results may differ materially from Synchronica's plans and expectations. These plans, expectations, risks and uncertainties are detailed herein and from time to time in the filings made by Synchronica with the TSX Venture Exchange and securities regulators. Synchronica does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.

 

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