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Synchronica plc - Preliminary Financial Results for the year ended 31 December 2010

^{Published on 2011-03-15 05:11:15 - Market Wire}
 

ROYAL TUNBRIDGE WELLS, UK, March 15 /CNW/ -Synchronica plc ("Synchronica" or "the Company") (AIM: SYNC) (TSXV: SYN) the international provider of push email, instant messaging and social networking services, has today issued its consolidated financial results for the year ended 31 December 2010.

All currency is expressed in U.S. dollars.

2010 Highlights:

• 85% increase in revenue from US $5.9 million in 2009 to US $10.9 million in 2010.
• 45% increase in gross profits to US $10.4 million from US $5.7 million in 2009.
• EBITDA loss decreased by 65% to US $0.8 million from US $2.9 million in 2009.
• 83 mobile operators and eight device manufacturers in customer base, compared to 21 operators and one manufacturer at the end of 2009.
• 1.3 billion users in the Company's addressable market at the end of 2010, a more than fourfold increase over 300 million in 2009.
• Completed the acquisition of iseemedia Inc. and the Instant Messaging business of Colibria AS.
• Listed on TSX Venture Exchange.

4th Quarter 2010 Highlights:

• 57% increase in revenue from US $3.3 million in Q42009 to US $5.2 million in Q4 2010.
• EBITDA doubled to US $2.0 million in Q42010 from US $1.0 million in Q42009.
• Four operator contracts signed for a total value of US $3.1 million, along with an expansion order worth US $975,000.
• Initiated device certification program with major Latin American operator group, ensuring compatibility with Synchronica's Instant Messaging service.

"2010 was a very important and successful year for us," said Carsten Brinkschulte, CEO of Synchronica. "We accelerated customer acquisition with both mobile operators and device manufacturers which in turn drove record growth in our addressable market, expanded our global footprint and established our position as the leader in the mobile messaging market for emerging economies. At the same time, we added new technology to our flagship Mobile Gateway platform to increase functionality. As we move forward in 2011, these accomplishments will enable us to further build our customer base, focus on increasing usage across the networks and expand our target to the developed markets."

Financial Highlights

Subsequent Developments

On 2 February, 2011, Synchronica announced an agreement to acquire the Instant Messaging business of Neustar NGM Services Limited ("Neustar NGM") which includes Neustar's technology and patents, 11 contracts with Tier-1 and Tier-2 mobile operators and two contracts with Tier-1 device manufacturers.

At Mobile World Congress 2011 in February, the Company also announced a major upgrade of its flagship product Mobile Gateway. Mobile Gateway 6 features unified messaging, a presence enabled address book and integrates advanced document transcoding and new Instant Messaging capabilities acquired with iseemedia Inc ("iseemedia") and Colibria AS ("Colibria"). These, along with the latest acquisition of RCS (Rich Communication Suite) technology from former competitor Neustar NGM, are helping Synchronica to address the requirements in developed markets.

The complete Preliminary Unaudited Consolidated Financial Statements of Synchronica plc is available on SEDAR at [ www.sedar.com ].

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.