Synchronica
Synchronica provides mobile push email and synchronization services to any mobile device around the globe. We're proud that our mobile synchronization and email software is built entirely on open industry standards, offering mobile services that are cost-effective, reliable, and accessible to all.
The award-winning product portfolio includes the flagship product Mobile Gateway, providing push email, synchronization, instant messaging (IM), backup and restore, and mobile connectivity to social networks. Synchronica's products are white-labeled and offered by mobile operators in emerging and developed markets to provide mass market messaging services, increasing data revenues and reducing churn.
Synchronica gets US$203,000 software bundling deal for MessagePhone order, sees FY revenue hit by or
Synchronica (AIM: SYNC) said that, as previously announced , its distribution partner for the MessagePhone low-cost device has received the first purchase orders for devices from subsidiaries of tier-1, multi-national mobile operator groups in Africa and Latin America. It has now received the first purchase order from the distributor for the Mobile Gateway email product worth US$203,000.
Mobile Gateway will be bundled with the initial 20,000 devices being shipped to the customer in Latin America. Once the devices have been shipped to the customer, the company will receive an additional 3% of the net device sales.
Synchronica and its partners officially launched the new MessagePhone on 10 February 2010. The product marks a significant milestone for the company, as it is the first time its software is being bundled and pre-installed with mass-market mobile devices. The MessagePhones utilise the infrastructure provided by Synchronica’s Mobile Gateway product, building an end-to-end entry-level push email product.
Additionally Synchronica informed investors that one of its customers, who ordered the Mobile Gateway product in December 2009, is currently involved in acquisition discussions. Consequently the relevant counter-signatures and purchase orders required to close the transaction has been delayed until the end March 2010.
The company's revenue for the year to 31st December 2009 with the above license purchase order would have been £5.1m. Due to the delay by the customer as a result of their acquisition discussions, Synchronica said that without this income, the board now expects the revenue for the financial year to be approximately £3.8m with a projected adjustment of £1m to the results for the year.
In a morning note to investors, Astaire Securities commented on the announcement stating "the inability to (full) recognise a contract has created a hole in FY09 performance – although it will still report strong growth".
Broker FinnCap reacted to the group's news today with a fairly upbeat note, saying that positive contract news from an unnamed Tier-1 Latin American operator should reassure traction is increasing despite the delay of a significant contract delivered during December 2009.
"Our FY09 revenue forecast is therefore reduced to £3.8m from £4.9m. However, the effect on FY09 LBIT is somewhat negated due to certain costs associated with the contract also being removed.
FinnCap is also maintaining its FY10 forecasts, despite the very real opportunity of the December 2009 contract landing during 2010, which could provide further upside to the broker's FY10 forecasts. "We are however reducing our fair value estimate to 5.5p (9.75p) or 10x FY10 EPS to reflect the increased execution risk," it added.
Since the year end, Synchronica has been making progress with its Mobile Gateway product. The company began the year with its large sale of the Mobile Gateway product, with an order for 300,000 devices over a period of 12 months. The US$1.05m deal was agreed with a distributor for one of Indonesia's largest mobile operators.
Whilst at the Mobile World Congress in February, Synchronica also said it added more than 30 new operator prospects to its already strong sales pipeline for 2010. It has established global reseller agreements with ‘tier-1’ players including Nokia Siemens, Brightstar and an un-named Asian headquartered international network equipment provider.
Also in February, Synchronica unveiled its next-generation messaging system, Mobile Gateway 5 - a complete mobile messaging suite available to all consumers and business users regardless of which handset they use. The company believes the new product will significantly improve its competitive positioning and it will result in an increased conversion rate of prospects as well as establishing further up-selling potential among existing customers.
Currently, the company and its distribution partner are in extended discussions with several mobile operators for a launch of the MessagePhone bundled with the Mobile Gateway product. The pipeline for potential new customers includes more than 30 mobile operators in Africa, Latin America and CIS and currently 20 mobile operators are testing the product.
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Other Synchronica news
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15/07/10 Synchronica upbeat about FY 2010 after H1 revenues jump
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05/07/10 Equity Development upbeat on Synchronica following recent contract wins
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01/07/10 Synchronica announces flurry of new business
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29/06/10 Synchronica lands deal to bundle Mobile Gateway in Asia and FSU, shares soar
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21/06/10 Synchronica signs-up 40th mobile operator and brings addressable market to 660m end-users
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17/06/10 Equity Development confident in Synchronica’s 'strong future', reaffirms forecasts
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10/06/10 Equity Development says FY09 was a year of significant progress for Synchronica
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08/06/10 Synchronica halves losses in FY09, says pipeline supports FY10 expectations
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17/05/10 Synchronica announces sixth contract win in Latin America
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12/05/10 Synchronica announces fifth contract win in Latin America
