Analysts regularly review the Synchronica stock, evaluate the company's strategy, and observe the telecom market as a whole. Here you find excerpts from what they say:
August 2011. - Stonecap Securities in an analysis: "Management continues to target hitting break-even on a quarterly basis in the fourth quarter 2011 and for the business to be profitable on a full-year basis in fiscal year 2012. We believe these are attainable targets and are supported by the early progress of the operator-branded messaging (OBM) integration which appears to be tracking in line with the company's expectations."
August 2011. - Northland Capital Partners in a morning report: "With a full Nokia contribution in the first half plus further organic growth, we expect Synchronica to move into sustained profitability, and the per price-earnings ratio (PER) drops rapidly to 3.2x in fiscal year 2012. We maintain our buy rating and 53p price target."
August 2011. - David Johnson from Northland Capital Partners about the Nokia deal: "The acquisition gives Synchronica a substantial customer base in North America - ten mobile network operators (MNO) including tier one carriers with circa six million active users and more than 80 percent recurring revenues. […] The acquisition is not without execution risk - it more than doubles Synchronica's revenue and headcount -, and operator-branded messaging (OBM) had not been a core business for Nokia, and Synchronica needs to re-energize the business. These risks are more than fully reflected in the current share price - Synchronica's price-to-earnings ratio (PER) in fiscal year 2012 is 3.5x - hence we maintain our buy rating and 53p price target."
July 2011. - David Johnson from Northland Capital Partners in a morning report: "This week will also see the general meeting to approve the proposed acquisition of the Nokia operator-branded messaging (OBM) division and associated USD 15 million placing. This transforms the business by creating a substantial presence in North America with a number of MNOs plus a large active user base. Synchronica also becomes a strategic supplier to Nokia. None of this potential or progress is reflected in the current share price, and we maintain our buy rating and 53p price target."
July 2011. - David Johnson from Northland Capital Partners about the contract with a third device manufacturer targeting India: "Synchronica can now boast three device manufacturers, as well as two large network operators, as customers. Contract also demonstrates that business has not been too disrupted by the proposed acquisition of the Nokia business […]"
July 2011. - David Johnson from Northland Capital Partners in a morning report: "Synchronica is contracted to provide development, support, and maintenance services to Nokia for at least 18 months. This contract is worth circa USD 18 million in revenues at an estimated circa 33 percent operating margin, and there is good opportunity to expand the scope and length of the contract. […] Synchronica is a good home for the business as it will maintain and extend Nokia's offering and support core customers for Nokia's handsets."
July 2011. - Philip Carse from Equity Development about the conditional acquisition of Nokia's operator-branded messaging business: "The deal transforms Synchronica's financial outlook, with the five months contribution increasing our fiscal year 2011 revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA) forecasts by 75 percent and 145 percent respectively, with our revenue, EBITDA, and earnings per share (EPS) forecasts all at least doubling in fiscal year 2012 and fiscal year 2013." Read the report 
