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Synchronica wins second purchase order for MessagePhone mobile devices

Last updated: 17:57 03 Feb 2010 AEDT, First published: 18:57 03 Feb 2010 AEDT

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Mobile email and data synchronisation group Synchronica PLC (AIM: SYNC) announced the second purchase order for the MessagePhone low-cost mobile devices it is developing with third parties in a collaboration agreement that was announced in July 2009.

It said its partners have received an initial purchase order for 20,000 MessagePhone devices from one of the largest worldwide operator groups in emerging markets. 

Synchronica secured the first order in November 2009. It had not been expecting sales of the devices until the 2010 calendar year. The first order was placed by a Central-African mobile operator which had purchased a 100,000 user license for Synchronica’s Mobile Gateway mobile email product only days prior to the MessagePhone order.

When the company announced the collaboration in June, it said it was likely to be for an initial term of four years, and that it planned to contribute a total of US$1 million to the collaboration in equal monthly instalments over two years towards the additional operating expenses incurred by one of the collaboration parties.

The MessagePhones utilise the infrastructure provided by Mobile Gateway, building an end-to-end entry-level push email product.  Under the collaboration agreement, Synchronica will receive a commission of 3 percent of the net sales revenue from the sales of the MessagePhones. This revenue will be in addition to licence, professional services, support and hosting revenues from Mobile Gateway.

The MessagePhone is optimized for push email and mobile synchronisation services provided by Mobile Gateway, provides a full HTML web browser and access to social networking sites. The partners will officially introduce the MessagePhone to the market on February 10 2010.

Synchronica said a recent report by Informa estimates the mobile social networking market will undergo substantial growth over the next 3 years. At the end of 2008, there were approximately 92.5 million mobile social networking users globally, with conservative estimates putting this number at 641.6 million by 2013.  With mobile social networking activities ranging from simple chat services to multimedia-rich dialogue, the MessagePhone support all levels of networking that the user requires.

CEO Carsten Brinkschulte commented on the latest order: “The order from such a dominant operator in the telecommunications market and in Latin America shows the traction of Synchronica's product in regions where PC ownership is low and where operators can offer email and mobile synchronisation direct to customers on a low cost device.”
 
The revenue from this order will be recognised in the financial year ending December 31 2010.

Synchronica develops of 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.

Headquartered in England, Synchronica also maintains a development centre in Germany, in addition to a regional presence in the US, Hong Kong and Dubai.

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