Synchronica plc – Pre-Close Trading Update

Synchronica plc – Pre-Close Trading Update

Synchronica plc - Pre-Close Trading Update

Synchronica plc, the AIM listed mobile email and data synchronisation provider, announces the following update on trading for the six months ended 30 June 2009.

The Company expects that revenue for H1 09 will be at least £1.20m, demonstrating a six-fold increase on the same period last year (H1 08: £0.19m). Historically, Synchronica’s results are weighted towards the second half and the strong performance in the first half gives the Board confidence for the full year.

The Company's cash position at the end of the period was in line with management expectations, and this was bolstered post the period end by the Placing concluded earlier this month which raised £4.7m in gross proceeds.

The collaboration to design, build, market and sell low cost mobile devices continues on track and the Company has received positive initial feedback from prospective customers.

In the first half of the year, Synchronica secured a number of significant contracts in the fast growing emerging markets of India, Eastern Europe and Latin America. Most recently, Synchronica announced the third mobile operator win in Latin America demonstrating the strength of its relationship with a strategic distribution partner. The Company has also received first and significant revenue from the software licensing agreement with the major US hardware manufacturer.

While the reseller agreement with Nokia Siemens Networks, announced in February, has not yet contributed to revenues in the first half, it underlines that Synchronica now has scalable access to the global market addressing the rapidly growing demand for mobile push email. As a result of its direct sales activities and the access to global distribution channels, the Company expects in the second half to add further new customers for its award winning technology and meet the market`s expectations for its 2009 revenue.

The Company is confident that its offering will continue to be attractive, even in a recessionary environment, as its technology enables push email for all mobile handsets in the market, not only for high-end Smartphones but importantly also for low-cost entry level devices. Synchronica’s Mobile Gateway helps mobile phone operators to reduce churn and generate additional revenues from existing customers rather than relying on selling expensive and highly subsidized devices to new customers for growth.

Synchronica will announce results for the six months ended 30 June 2009 in September 2009.

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