Trading update

RNS Number : 4176S

Synchronica PLC

21 November 2011

 



Synchronica plc

Trading Update

Synchronica plc ("Synchronica" or "the Company") (AIM: SYNC) (TSX Venture: SYN), the international provider of next-generation mobile messaging services, announces an operational trading update.

Operational Update

Synchronica has now completed the majority of its corporate reorganisation. Management has also taken the initiative to restructure the technical development and client service functions in its Research and Development centres.

Strategic research and development is now carried out by Synchronica's Berlin and Montreal facilities, while the Company has further leveraged its lower-cost Mumbai and Manila facilities for specific client code development.

The Company's cost reduction initiatives, which will be fully implemented at the end of the current quarter, for the period ending December 31, 2011, will align Synchronica's costs with its current recurring revenue stream, and will see license and professional service income fall straight through to profit.

Third Quarter Financial Statements and MD&A

The Company expects to file its financial statements for the Quarter-ended September 30, 2011 and the accompanying Management Discussion and Analysis (MD&A) with SEDAR before 29 November 2011.

Acquisition of Third-Party MediaTek software

Synchronica announces that it has acquired the third party messaging software which had delayed the production of handsets based on MediaTek technology. The Company's R&D facilities have now commenced code development and are focused on expediting the delivery of the software.

Synchronica expects that it will release a beta version before the end of the current Quarter, with a final version of the software being released four weeks later.

Crucially, Synchronica will also provide the software as part of its MediaTek Toolkit. This complete set of technical and commercial resources provides Synchronica with a key competitive advantage that enables MediaTek device manufacturers to effortlessly integrate advanced messaging services onto their mass-market handsets.

Issuance of Ordinary Shares on Conversion of Subscription Receipts

In accordance with the terms and conditions of the private placement which Synchronica completed in North America in July 2011, the Company is also announcing the conversion of all subscription receipts issued in that transaction into a total of 30,765,000 ordinary shares of the Company, as well as 15,382,500 warrants. Each warrant is exercisable at C$0.25 per ordinary share (current equivalent £0.155 per ordinary share) at any time until November 17, 2014.

Outlook

Synchronica is presently negotiating large license deals with several high-profile customers, while also working with existing customers on initiatives to stimulate user uptake of their services. The Company remains confident that 2011 will continue to provide positive results with a more predictable revenue and cash inflow.

For investor relations enquiries, please contact:

Walbrook PR Ltd [phone]	Investor Enquiries, UK	Paul Cornelius [e-mail]
TMX s="bb">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 "az">Media and Analyst Enquiries, North America	Craig MacPhail [e-mail]

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

Cautionary Statement

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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