Shares in next-generation mobile messaging services provider Synchronica (LON:SYNC, TSX-V:SYN) got a massive boost in early trade today after the group said it saw strong growth in 2010 and an extremely strong end to the year.
By midmorning, the stock was trading up nearly 17 percent at 31.50 pence.
In a trading update for the year to end-December, it said that, in the final quarter alone, the group won an additional 5 mobile operator contracts, and closed 2 new device manufacturer deals.
For 2010, Synchronica had revenues of approximately US$11 million, compared with USS$5.9 million in 2009, an 86 percent increase. The company recorded a very strong Q4 with revenues of approximately US$5.3 million and the full year revenue of 2010 was broadly in line with market consensus.
As at the end of December, Synchronica had expanded its customer base to 71 mobile operator customers from 20 operators at the end of 2009; representing an increase of some 200 percent amongst the combined addressable user base that now comfortably exceeds 1 billion. Synchronica now has a global customer base encompassing over 40 countries and five continents.
Broker Northland Capital issued a positive comment following the update, saying revenue performance was in line with the most recent analyst notes and demonstrates considerable growth in 2010.
As important, it said in its ‘Morning Note’, the number of mobile network operator (MNO) customers has more than trebled creating a massive addressable installed base for Synchronica’s Mobile Gateway messaging software.
“Rolling out these services typically takes 6-9 months and consequently we would expect to see many services launching in 2011 and follow up licence orders as MNOs eat through their initial licence commitments. This plus the development of services employing the recurring revenue model should increase revenue and cashflow visibility and gradually mitigate Q2 and Q4 weighting,” Northland added.