Broker snap: Macro trends favour Synchronica

10th Jun 2010 10:42

Equity Development is keeping its current year revenue forecasts unchanged for mobile phone messaging group Synchronica despite the company's struggles in converting its sales pipeline into revenues.The research firm said "the revenue shortfall masked significant improvements in 2009, with 13 new mobile operator contracts and the launch of the low cost MessagePhone, which has been followed in 2010 with eight new contracts to date, including two for the MessagePhone, an upgraded product suite, and the acquisition of Colibria's Instant Messaging business.""Given the favourable mobile macro trends, the strength of the company?s sales pipeline, the repeat orders that will start to come through at some stage from the 13 contracts signed in FY09 [fiscal 2009], and the apparent strong interest in the MessagePhone, we believe that Synchronica has a strong future," Equity Development said. "The current share price weaknesses, whilst an understandable reaction to the revenue shortfall, does not, in our view, reflect the strategic value of the company," it added.