Synchronica 2Q loss grows $1.96m
Mobile messaging firm Synchronica suffered a heavy increase in net loss during 2Q11, with the figure almost matching its loss for the entire first half of 2010.
The UK-headquartered firm’s net loss hit $2.04 million (€1.4 million) in 2Q11 compared to $83,000 in 2Q10, as revenue fell from $4.4 million in the 2010 quarter to $3.8 million this year. Figures for the first half paint a brighter picture, with a reduction in net loss from $2.3 million in 1H10 to $1.1 million in 1H11.
Despite the mixed first half, chairman David Mason believes the company is well placed to “deliver in line with market expectations for the full year,” predicting a strong second half as the firm reaps the benefit of acquiring Nokia’s operator-branded messaging business on June 30.
The Nokia acquisition has opened doors to the North American market – ten tier-1 mobile operator customers were included in the purchase -, while the buy of Neustar’s instant messaging business in February has boosted the firm’s European business, Mason explains.
One of the key benefits of the Nokia acquisition is a “revenue base that should be over 80% recurring,” the chairman states. Recurring revenues accounted for 20% of sales during the first half, compared to 7% in 1H10.