Synchronica Posts 85 Per Cent Profit Increase

Synchronica has announced an 85 per cent increase in revenues, up from $5.9m (£3.7m) in 2009 to $10.9m for the year ending 31 December, 2010. During 2010 and since the beginning of 2011, Synchronica has added contracts covering 63 operators and eight device manufacturers. The company’s customer base now comprises 83 mobile operators and eight device manufacturers, compared to 20 operators and one manufacturer at the end of 2009. At the end of 2010, it had an addressable end user market of 1.3bn people, compared to 300m in 2009.

Synchronica says it is now the de facto market leader for next-generation mobile messaging in developing countries, with group-wide agreements covering Latin America, Africa and Russia, as well as contracts with large carriers in India.
The company continues to derive most of its revenue from software licensing, but increased recurring revenues from 13 per cent in 2009 to 23 per cent 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 per cent of the full year’s revenue.

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. And in February 2011, Synchronica announced an agreement to acquire Neustar’s Instant Messaging business, which includes Neustar NGM’s technology and patents, 11 contracts with Tier-1 and Tier-2 mobile operators and two contracts with Tier-1 device manufacturers.

“2010 was a very important and successful year for us,” says Synchronica CEO,Carsten Brinkschulte. “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.”