Synchronica Plc - Directorate Change and Payment Delays

ROYAL TUNBRIDGE WELLS, United Kingdom, Sept. 23, 2011 /CNW/ - Synchronica plc ("Synchronica" or "the Company") (AIM: SYNC) (TSX VENTURE: SYN), the international provider of next-generation mobile messaging solutions, announces several changes to the Board of Directors.

Carsten Brinkschulte and Nicole Meissner have yesterday left Synchronica. The Board would like to express its thanks to them for their contribution to the Company and wishes them well for the future.

Appointment of Executive Chairman and Chief Executive Officer

With immediate effect, David Mason will become Executive Chairman and Angus Dent, previously Chief Financial Officer, will take the role of Chief Executive Officer. David has been non-Executive Chairman of Synchronica for four years and Angus has been a member of the Synchronica board for over five years. The Board therefore believes both have the skills and experience necessary to see the business through its next phase of its development.

Arthur Phillips ACA, Synchronica's Company Secretary, will become interim CFO of the Company. The Company has built an excellent senior management team and will seek to strengthen the Board over the coming months.

Acquisition of Nokia's OBM Business

The acquisition of Nokia's OBM business was completed on 31 July 2011. The first month's invoices under Synchronica's ownership of this business have now been raised and the Board is pleased to announce that they were in line with its expectations. Synchronica did not acquire accounts receivable as part of this transaction.

Delay in payment by customers

The Company is owed payment from a number of device manufacturer customers which were granted extended payment terms.  Payment terms for these orders were linked to the manufacture of devices to which Synchronica software was applied. However due to delays in delivery of third party software to these device manufacturers, many of these devices are yet to be manufactured.  The device manufacturers have yet to pay Synchronica for the software licences provided. It had been expected that some US$2 million would be collected from these customers in Q4 2011. However it is now clear that a significant part of this cash will not be collected until 2012. Synchronica continues to work with the customers and is confident that this situation will be resolved and Synchronica paid.

Although the above delay impacts Synchronica's cash flow, the Company expects to alleviate this through acceleration of payments from other customers, invoice discounting and / or short term loans. The Company will also seek to reduce its cost base.

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 center 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 (SYN). 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 David Mason, Executive Chairman +44 (0) 7802 317 507
  Angus Dent, CEO +44 (0) 1892 552 760
     
Walbrook PR   +44 (0) 207 933 8780
Media Enquiries Paul McManus paul.mcmanus@walbrookpr.com
Investor Enquiries Paul Cornelius paul.cornelius@walbrookir.com
     
TMX | Equicom Craig MacPhail cmacphail@equicomgroup.com
+1 416 815 0700 Ext 290
     
Northland Capital Partners   +44 (0) 207 796 8800
(Nominated Adviser) Shane Gallwey/Rod Venables  
(Corporate Broker) Katie Shelton

 

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Synchronica plc

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