Synchronica Records a Strong 2010: 85 Percent Growth in Revenue over 2009
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Highlights
o 85 percent increase in revenue from USD 5.9 million in 2009 to USD 10.9 million in 2010
o Customer base comprises 83 mobile operators and eight device manufacturers (compared to 20 operators and one manufacturer at the end of 2009)
o Addressable end-user market of 1.3 billion at the end of 2010 compared to 300 million in 2009
o Completed the acquisition of Iseemedia Inc. and the instant messaging business of Colibria AS
o February 2011: Synchronica announced an agreement to acquire the instant messaging business of Neustar NGM Services Ltd.
Royal Tunbridge Wells, March 15, 2011. - Synchronica plc (AIM: SYNC, TSX-V: SYN), the international provider of push email, instant messaging, and social networking services, today announced revenues up 85 percent from USD 5.9 million in 2009 to USD 10.9 million for the year ended 31 December 2010. During 2010 and since the beginning of 2011, Synchronica has added contracts covering 63 operators and eight device manufacturers.
Synchronica has emerged as the de facto market leader for next-generation mobile messaging in developing countries, with groupwide agreements covering Latin America, Africa, and Russia, as well as contracts with large carriers in India. As of today, the company has an addressable end-user market of 1.3 billion, up from 300 million in 2009.
Through a combination of organic growth and growth by acquisition, Synchronica has secured 83 contracts with many of the world's leading mobile operators and eight handset manufacturers - including two of the world's top five brands.
"2010 was a very important and successful year for us"
The company continues to derive most of its revenue from software licensing, but increased recurring revenues from 13 percent in 2009 to 23 percent in 2010, progressing on the transition towards recurring revenue streams. The new segment of licensing Mobile Gateway to device manufacturers grew rapidly and represents 35.1 percent of the full year's revenue.
"2010 was a very important and successful year for us", says 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", Brinkschulte adds.
During 2010, Synchronica evolved its flagship product Mobile Gateway from a push email solution to a complete next-generation mobile messaging platform by adding instant messaging, social networking, and document transcoding services.
Subsequent Developments
On February 2, 2011, Synchronica announced an agreement to acquire the instant messaging business of Neustar NGM Services which includes Neustar NGM's technology and patents, eleven contracts with tier one and tier two mobile operators, and two contracts with tier one device manufacturers.
At Mobile World Congress 2011, the company also announced a major upgrade of its flagship product Mobile Gateway. Mobile Gateway 6 features a presence-enabled address book and integrates advanced document transcoding and new instant messaging capabilities acquired with Iseemedia and Colibria.
These, along with the latest acquisition of RCS (Rich Communication Suite) technology from former competitor Neustar NGM, enable Synchronica to tap into developed 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-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 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.
Headquartered in England, Synchronica also maintains development centers 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), and the Venture Exchange of the Toronto Stock Exchange (SYN). For further information, please visit www.synchronica.com
For more information, please contact:
Nicole Meissner
Chief Operating Officer
Tel.: +44 1892 5527 80
Mobile: +44 7977 2564 12
Fax: +44 1892 5527 21
nicole.meissner@synchronica.com
