Mobile email software specialist Synchronica sees further expansion after halving annual losses to £3 million on doubled turnover of £2.3 million.

The Tunbridge Wells-based company says a key milestone last year was winning a contract to supply software to US giant Sun Microsystems. Carsten Brinkschulte, chief executive officer of AIM-quoted Svnchronica, says Sun paid an initial £900,000 acceptance fee and will now pay annual royalties of $2.40 (120p) for each piece of equipment embodying the software used by any of Sun’s 240 million licensed users.

Synchronica also launched its own Mobile Gateway software into ‘high-growth and emerging’ markets and reached further multiple licensing agreements with an un-named ‘pan-African operator group’ with 30 million subscribers. Brinkschulte argues Africa and other emerging markets, such as South America, offer dramatic growth prospects for mobile specialists because, while personal computer market penetration is low, mobile phone market penetration is ‘soaring’.

To help fund expansion, last year Synchronica raised £3.5 million at 10p. So far in 2008, the company, which the other day appointed FinnCap as its new broker and nominated adviser, has raised another £1.8 million through an ‘equity swap’ placing at 6.25p with Lanstead Partners and a further £2 million through a placing at 7p.

Analysts expect Synchronica to break even and move into the black in 2009. The shares, which were floated at 130p four years ago, hit 352.5p in 2005 before collapsing spectacularly later on all the way to 5.25p last December.

Now 6.5p, valuing the company at an insignificant £9.6 million, they offer speculative recovery possibilities.

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Synchronica	AIM	£12.98m	3.62p	0.00p
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