Loss surge at Synchronica
Article Date: Sep 26 2008Mobile email software provider Synchronica sounds upbeat despite an 87 per cent interim loss increase to £2.8 million.
The AIM-quoted company, whose goal is to profit by providing the enabling technology to bring mobile email to the developing world, saw revenue shrink from £762,000 to £190,000 in the six months to June. However, chief executive officer Carsten Brinkschulte insists Synchronica has made ‘significant progress’, with key contract wins in China and elsewhere and the £3.9 million paper acquisition of Axis Mobile.
He argues that a £5.1 million fundraising from institutions is helping the integration of Axis – previously a key competitor – and further expansion of Synchronica’s sales and marketing drive. The company has completed the development of its Mobile Gateway 3.2 product and is pushing for new business in Eastern Europe and Russia.
As yet, the stock market remains to be convinced. Synchronica’s shares have collapsed from 81.5p three years ago to 3p today. They remain a speculation on Brinkschulte’s strategy paying off.
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