Synchronica boosted revenues and reduced losses in H1 2011

Next-generation mobile messaging firm Synchronica (LON:SYNC, TSE:SYN) increased revenue and reduced its loss during the first half of 2011, according to interim results released today.

Overall revenue during the six months to the end of June increased by 16 per cent to US$5.8 million, with US$3.9 million of that coming in the second quarter. The firm’s operating loss declined to US$379,000 from US$1.7 million in H1 2010, while its net loss fell to US$1.1 million from US$2.4 million in H1 2010.

But the most notable figure was recurring revenue growth of 207 per cent. Recurring revenue accounted for one-fifth of Synchronica’s revenues in the second quarter of 2011, compared with seven per cent in Q2 2010.

And the recent acquisitions of Neustar and Nokia Operator-Brand Messaging business (Nokia OBM) should boost recurring revenue even further, according to Synchronica chairman David Mason. “With the Neustar acquisition we gained key customers in Europe and a strong base of recurring revenue; the Nokia OBM acquisition is expected to advance us even further with its leading North American carrier customers and a revenue base that should be over 80 per cent recurring,” he said. “We have made great strides to becoming a global leader in mobile messaging with a software-as-a-service revenue stream.”

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