Synchronica announces flurry of new business

Synchronica’s (LON:SYNC) sales pipeline has received a considerable boost as the company announced several new business wins. The company landed a US$1.25m contract via its distributor in Latin America; a US$1.09m purchase order from a device distributor targeting Indonesia; the first order through its deal with Nokia Siemens Networks; and two purchase orders from a device manufacturer in India.

Synchronica develops industry-standard mobile push email and synchronization products. Its portfolio includes the flagship Mobile Gateway product and the device backup solution, Mobile Backup. Mobile operators in emerging and developed markets use Synchronica's white-labelled products to offer their consumer and business subscribers mobile email, PIM synchronization, and backup and restore services.

"We are very pleased to announce this flurry of contract wins and purchase orders for our flagship product Mobile Gateway,”Synchronica chief executive Carsten Brinkschulte commented. “This once again demonstrates Synchronica's competitive strength as well as the Company's growing global footprint in emerging markets.”
Earlier this week, the company won an 18-month contract, worth US$1.28m in the first 6-months, with an emerging markets focused devise manufacturer to bundle the Mobile Gateway in Asia and the former Soviet Union.

In the first of the new deals announced today, through its distributor in Latin America, Brightstar Corp, Synchronica will provide ‘a large number’ of Mobile Gateway 4.1 licenses for a Tier-1, multi-national mobile operator. The initial license order, worth US$1.25m, will be recognised in H1 2010, and the company expects further orders, professional services and support services to follow.

Synchronica highlighted that “as a leading provider of mobile services in Latin America, the operator has experienced strong growth of its subscriber base between 2009 and 2010”, furthermore the company noted that “in 2009 mobile phone subscriptions in Latin America experienced growth of 10.9%, and are forecast to increase a further 8.2% in 2010".

The company has also received a purchase order for the recently launched Mobile Gateway 5, in a US$1.09m deal to provide ‘a large volume’ of licenses to a device distributor, who will bundle the software with its devices for one of Indonesia's largest mobile operators.

Synchronica noted that this purchase order “confirms the commitment from a previous contract”, announced on 9 March 2010 and it will be recognised as revenue in full for H1 2010.

The company also highlighted a report by an expert business research and forecasting group, Business Monitor International, citing “the total number of mobile subscribers in Indonesia is expected to rise to 360 million by 2014, reaching a penetration rate of 144% from the current level of 56.8%”.

"We are pleased to see a significant contribution in revenue from the large volume orders for Latin America and Indonesia as they confirm the mass-market appeal of our product and underline the commercial traction the Company has achieved,”Brinkschulte added.

Back in February 2009, Synchronica signed a preferred global reseller agreement with Nokia Siemens Networks. Today the company confirmed it has received the first purchase order through Nokia’s deal with a mobile operator in North Africa. The purchase order is for an initial 100,000 licenses, and professional services, for Synchronica Mobile Gateway 4.1, as well as 20,000 licenses for Synchronica’s Mobile Backup.

In March 2010, Synchronica signed a reseller agreement with an Indian device manufacturer, to bundle Mobile Gateway with its handsets, to be sold in-turn to mobile operators. Today, Synchronica confirmed it has received 2 separate purchase orders for a total of 100,000 annual licenses plus professional services. Subsequently, the device manufacturer will ship the pre-bundled devices to operators in the region.

In the statement Carsten Brinkschulte said the flurry of new business “vindicates our dual strategy of bundling Mobile Gateway with devices as well as offering it as a device-independent solution directly to mobile operators and it demonstrates the success of our channel strategy which provides us with global reach and local presence."

“With the mobile phone fast becoming the primary device for internet access in emerging markets, Synchronica's technology provides a key component in the process of providing the end user with the ability to access the internet from even the most basic of handsets."

These significant deals secured by Synchronica this week further add to the company’s growing sales profile. The company had already started 2010 with a string of new deals, as momentum gathered both for the flagship Mobile Gateway product and for its latest addition to its product range: the MessagePhone low-cost device which was officially launched in February.

Earlier this month, Synchronica told investors that it has reached an important sales milestone, with the signing of its 40th mobile operator customer. The company currently has 20 mobile operators in live operation, with Synchronica's mobile email and mobile instant messaging products, and its mobile messaging products are currently being deployed to a further 20 carriers with launch dates pencilled in between June and August.

The company highlighted that it has now grown its customer base by 300% since 2007 and its products now have an addressable market of 660 million end-users.