Trading Update

RNS Number : 7572A

Synchronica PLC

07 February 2011

 



7 February 2011

Synchronica plc

("Synchronica" or "the Company")

Synchronica Announces Strong Q4 Results with 2010 Revenue Increasing 86 per cent over 2009

Synchronica plc, the international provider of next-generation mobile messaging services, announces the following trading update for the year ended 31 December 2010.

Highlights:

·     Strong deal flow with 5 carrier contract wins and 2 device manufacturer contract wins in Q4 2010

·     Approximately US$11 million in revenue in 2010, an 86 per cent increase over 2009 (US$5.9 million)

·     Total number of operator customers increased to 71, up from 20 in 2009

·     Addressable user market expanded to over 1 billion users, compared to 331 million in 2009

Synchronica recorded strong growth in 2010 and an extremely strong end to the year, increasing its customer base both organically, as well as by acquisition. In the final quarter of 2010, Synchronica won an additional 5 mobile operator contracts, and closed 2 new device manufacturer deals. Synchronica also received expansion orders from 2 existing operator customers for additional Mobile Gateway user licences. Synchronica remains confident that it has the right distribution channels, product, and skills in place to grow further and expand the customer base in the future.  

For 2010, Synchronica had revenue of approximately US$11 million (2009:  £3.83m or US$5.9m), an increase of 86 per cent over FY 2009. The Company recorded a very strong Q4 with revenues of approximately US$5.3m and the full year revenue of 2010 was slightly above most recent analyst note and broadly in line with consensus. In 2010, Synchronica also diversified its business model combining both perpetual and recurring revenue licence agreements. This is starting to show positive results with an increased contribution from recurring revenue resulting in a more predictable revenue and cash flow.

Carsten Brinkschulte, CEO of Synchronica, said, "The fourth quarter of 2010 was a strong growth period for Synchronica, continuing the success we had in the rest of the year. In particular, the significant growth in operator customers, which has tripled our addressable user market, positions us well for continued growth. Device manufacturer contracts were also a strong contributor to revenue in 2010, Synchronica signed 2 contracts with device manufacturers last year each with a value of over US$1 million."

Synchronica's success to date is the result of its strategy of focussing its business on opportunities in high growth emerging markets. As at the end of December, Synchronica had expanded its customer base almost five fold to 71 mobile operator customers (2009: 20 operators); representing an increase of some 200 per cent amongst the combined addressable user base that now comfortably exceeds 1 billion (2009: 331 million). Synchronica´s growth strategy has resulted in a global customer base encompassing over 40 countries and five continents.

Post Period Events

Post 31 December 2010, Synchronica has announced an agreement to acquire the instant messaging business of Neustar NGM Services Ltd. This acquisition includes the related intellectual property, 11 live contracts with Tier-1 and Tier-2 mobile operators and two contracts with Tier-1 device manufacturers for a cash consideration of US$251,000 (of which US$1,000 has been paid and the balance of US$250,000 is payable 90 days after closing).

Enquiries:

Synchronica plc	Carsten Brinkschulte, CEO	[phone]
	Angus Dent, CFO	[phone]
www.synchronica.com	Nicole Meissner, COO	[phone]
Northland Capital Partners
(Nominated Adviser)	Shane Gallwey/Rod Venables	[phone]
(Corporate Broker)	Katie Shelton	[phone]
Walbrook PR Limited		[phone]
(media enquiries)	Paul McManus	[e-mail]
(investor enquiries)	Paul Cornelius	[e-mail]

About Synchronica

Synchronica plc is a leading developer of next-generation mobile messaging solutions. Mobile Gateway, Synchronica's flagship product, provides push email, synchronization, instant messaging (IM), and social networking services to any mobile phone currently in use. Synchronica's patented transcoding engine uses advanced streaming to download email attachments and can dramatically reduce the consumption of network bandwidth by as much as 90 percent.

Mobile operators and device manufacturers from emerging and developed markets rely on Synchronica's white-labelled product for providing mass market messaging services across the entire customer base, diversifying revenues and reducing churn.

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

 

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