Synchronica Plc : Trading Update
11/21/2011 | 05:00am
Synchronica plc
Trading Update
Synchronica plc ("Synchronica" or "the
Company") (AIM: SYNC) (TSX Venture: SYN), the
international provider of next-generation mobile messaging
services, announces an operational trading update.
Operational Update
Synchronica has now completed the majority of its corporate
reorganisation. Management has also taken the initiative to
restructure the technical development and client service
functions in its Research and Development centres.
Strategic research and development is now carried out by
Synchronica's Berlin and Montreal facilities, while the
Company has further leveraged its lower-cost Mumbai and
Manila facilities for specific client code development.
The Company's cost reduction initiatives, which will be
fully implemented at the end of the current quarter, for the
period ending December 31, 2011, will align Synchronica's
costs with its current recurring revenue stream, and will see
license and professional service income fall straight through
to profit.
Third Quarter Financial Statements and MD&A
The Company expects to file its financial statements for the
Quarter-ended September 30, 2011 and the accompanying
Management Discussion and Analysis (MD&A) with SEDAR before
29 November 2011.
Acquisition of Third-Party MediaTek software
Synchronica announces that it has acquired the third party
messaging software which had delayed the production of
handsets based on MediaTek technology. The Company's R&D
facilities have now commenced code development and are
focused on expediting the delivery of the software.
Synchronica expects that it will release a beta version
before the end of the current Quarter, with a final version
of the software being released four weeks later.
Crucially, Synchronica will also provide the software as part
of its MediaTek Toolkit. This complete set of technical and
commercial resources provides Synchronica with a key
competitive advantage that enables MediaTek device
manufacturers to effortlessly integrate advanced messaging
services onto their mass-market handsets.
Issuance of Ordinary Shares on Conversion of Subscription
Receipts
In accordance with the terms and conditions of the private
placement which Synchronica completed in North America in
July 2011, the Company is also announcing the conversion of
all subscription receipts issued in that transaction into a
total of 30,765,000 ordinary shares of the Company, as well
as 15,382,500 warrants. Each warrant is exercisable at C$0.25
per ordinary share (current equivalent £0.155 per ordinary
share) at any time until November 17, 2014.
Outlook
Synchronica is presently negotiating large license
deals with several high-profile customers, while also working
with existing customers on initiatives to stimulate user
uptake of their services. The Company remains confident that
2011 will continue to provide positive results with a more
predictable revenue and cash inflow.
For investor relations enquiries, please
contact:
For corporate information, please contact:
|
Synchronica plc
+44 (0) 1892 552 720
|
Chief Executive Officer
|
Angus Dent
|
|
Northland Capital Partners
+44 (0) 207 796 8800
|
Nominated Advisor
Corporate Broker
|
Shane Gallwey;
Rod Venables
Katie Shelton
|
|
Walbrook PR Ltd
+44 (0) 20 7933 8780
|
Media and Analyst Enquiries, UK
|
Paul McManus
paul.mcmanus@walbrookpr.com
|
|
TMX | Equicom
+1 416 815 0700 Ext 290
|
Media and Analyst Enquiries, North America
|
Craig MacPhail
cmacphail@equicomgroup.com
|
About Synchronica
Synchronica plc is a leading developer of
standards-based, next-generation mobile messaging solutions
for mobile operators and device manufacturers. The
Company's flagship product - Synchronica Mobile Gateway -
provides pre-RCS push email, synchronisation, instant
messaging (IM), and social networking services to any mobile
phone currently in use. Synchronica's patented
transcoding technology uses advanced streaming to download
email attachments and dramatically reduces the consumption of
wholesale network bandwidth by as much as 90 percent.
Synchronica's white-labelled products are licensed
by more than 90 mobile operators and eight device
manufacturers from emerging and developed markets, delivering
mass market messaging services across the entire customer
base, providing competitive advantage, diversifying revenues,
and reducing churn.
Synchronica is headquartered in the United Kingdom and
has a regional presence in Canada, as well as the USA, Hong
Kong, Spain, and Dubai. Synchronica also operates dedicated
development centres in Germany and the Philippines. A public
company, Synchronica 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
Cautionary Statement
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.
The foregoing information may contain forward-looking
statements relating to the future performance of Synchronica.
Forward-looking statements, specifically those concerning
future performance, 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 filings made by Synchronica with the
TSX Venture Exchange and 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.
