Interim Results for the Six Months Ended 30 June 2010

July 17, 2010 (PRLEAP.COM) Business News
Royal Tunbridge Wells, July 17, 2010. - Synchronica plc, the AIM-listed mobile email, instant messaging, and data synchronization provider, has announced interim results for the six months ended 30 June 2010.

Synchronica plc's award-winning product portfolio includes the flagship product Mobile Gateway which provides push email, synchronization, instant messaging, backup and restore, and mobile connectivity to social networks. Synchronica's white label products are sold to mobile operators and device manufacturers targeting high-growth emerging markets.

Financial Highlights

* Revenues up 2.5 times to GBP 3.43 million (first half 2009: GBP 1.33 million), 90 percent of previous full-year revenues (fiscal year 2009: GBP 3.8 million)

* Costs increased modestly to GBP 4.1 million (first half 2009: GBP 3.5 million)

* Gross profits up significantly to GBP 3.28 million (first half 2009: GBP 1.18 million)

* Gross margin continues to be high at 96 percent

* Loss before tax reduced to GBP 1.34 million (first half 2009: GBP 2.49 million loss)

Operational Highlights

* Launched MessagePhone in February 2010, introducing the first low-cost messaging device bundled with Mobile Gateway; two purchase orders received from operators in Africa and Latin America, and sales are expected to accelerate in the second half of 2010

* Announced major product upgrade to Synchronica Mobile Gateway 5, adding instant messaging and mobile social networking, enhancing value proposition and improving the competitive position

* Acquired Colibria's IMPS business with groupwide framework agreements covering over 320 million subscribers in Latin America

* Announced ten deals with mobile operators and device manufacturers in the first half 2010; expanded customer base to more than 40 contracts representing a total addressable market of 660 million subscribers

* Extended global reseller network contributed six deals in the first half 2010; reseller network now includes Brightstar, Nokia Siemens Networks, and an Asian-based telecoms vendor

* Significantly increased deal size towards the end of the first half 2010, with three deals larger than USD 1 million signed in June 2010

* Increasing traction with deals from three additional device manufacturers in the first half 2010, bundling low-cost messaging devices with Synchronica Mobile Gateway to provide end-to-end push email, instant messaging, and mobile social networking

Carsten Brinkschulte, CEO of Synchronica, said: "We have made significant progress over the past six months and expect to continue this accelerated momentum in the second half of the year. Not only are we signing up more customers, we are also seeing an increase in the average deal size. With a sustained commitment to innovative product development in tandem with our global international reseller network of system integrators and device manufacturers, Synchronica is on its way to become the market leader for next-generation mobile messaging services in emerging markets."

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, 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 Mobile Gateway provides a unique multi-protocol gateway combining Push IMAP, SyncML, ActiveSync, Email to MMS, and Email to SMS, delivering push email and synchronization 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.

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For more information, please contact:

Nicole Meissner
Chief Operating Officer
Tel.: +44 1892 552 780
Mobile: +44 7977 256 412
Fax: +44 1892 552 721