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

ROYAL TUNBRIDGE WELLS, UK, Feb. 7 /CNW/ - Synchronica plc ("Synchronica" or "the Company") (AIM:SYNC; TSX VENTURE:SYN) the international provider of push email, instant messaging and social networking 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).

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, synchronisation, instant messaging, backup & restore and mobile connectivity to social networks. Synchronica's products are white-labelled 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 synchronisation 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 development centres 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 which is traded on the AIM list of the London Stock Exchange (SYNC.L), and the Venture Exchange of the Toronto Stock Exchange (SYN.V). For further information, please visit www.synchronica.com

Cautionary Statements
The foregoing information may contain forward-looking statements relating to the future performance of Synchronica plc. Forward-looking statements, specifically those concerning future performance or results, 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 public filings and announcements made by Synchronica, including those made with AIM, a market of the London Stock Exchange, with the TSX Venture Exchange or with 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.

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.

SOURCE Synchronica plc

For further information:

Synchronica plc
www.synchronica.com
          Carsten Brinkschulte, CEO
Angus Dent, CFO
Nicole Meissner, COO
      +44 (0) 7977 256 406
+44 (0) 7977 256 347
+44 (0) 7977 256 412
                     
Northland Capital
Partners
          (Nominated Adviser) Shane Gallwey,
Rod Venables, (Corporate Broking)
Katie Shelton,
      +44 (0) 20 7492 4774
+44 (0) 20 7492 4778
+44 (0) 20 7492 4769
                     
TMX |Equicom           Craig MacPhail       416 815 0700, ext. 290
cmacphail@equicomgroup.com

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