Syntonic's much anticipated 4C released late this afternoon, confirming much of what has been achieved since relisting, and validating the hopes of LT investors. The market reacted with some immediate selling, but was just as quickly bought, to close a pip higher.
Highlights during the quarter include:
+ Syntonic successfully listed on the Australian Securities Exchange
+ Conversion of major new business opportunities into revenue pipeline
+ Syntonic extended its agreement with global telco Tata Communications
+ Syntonic signed agreement with Verizon Wireless for Syntonic platform services
+ Freeway by Syntonic® deployed in Indonesia and Malaysia
Cash receipts were $140K, mostly due to the fact that revenue deals have only be signed this quarter, and products only at initial testing launch stage in SEA. Some one of expenses left the bottom line at $2.7m. In short, the books are good, with low burn, and balance respectable for this start-up. What is not shown in the final figures is the expected growth, but in the eyes of the converted, the Quarterly provided plenty of encouragement, in that fantastic foundations are being laid now for enormous revenue growth in the next quarters.
A quote from the much respected CEO, Gary Greenbaum:
“I am very pleased with the expansion we have achieved in the last quarter. In a short period of time, our distribution reach has broadened to the U.S. and new geographies in Southeast Asia. We have successfully managed the conversion of our potential deal flow into binding agreements. We are excited by the revenue pipeline that Syntonic has developed which will fast-track our future revenue growth.
The markets for our products are evolving rapidly, and what has become clear over the last quarter is that there are increased market opportunities in the U.S. and other first world markets for our sponsored data product, Freeway by Syntonic.
During the quarter we also explored various ways to reduce customer acquisition costs and build effective awareness of our consumer brand. We are highly focused on optimizing our business operations and processes to attain further cost efficiencies while creating a satisfied user base that is deeply engaged with our service. We had a number of one-off costs in the September quarter and we expect to have a reduced cost structure going forward.
Our go-to-market feedback has been positive and our mission is laser focused on growing the business and increasing shareholder value.”
Some detail on the quarters highlights, with Syzbit commentary:
+ Tata will White Label Freeway using a perpetual licence of the Connected Service Platform that increases SYT's share by 50%. This is quite remarkable considering the depth of Tata's reach into the SEA mobile market. If sponsored data becomes the mode of choice for mobile users, and there is nothing to suggest it won't, (quite the contrary), then the revenue will be substantial.
+ Verizon and AT&T both signed with extended agreements and SYT is at the centre of these mega-telcos roll-out of sponsored data, enabling access to 75% of the US post-paid mobile subscribers. Once again, if SD becomes the norm for mobile phone plans, then Syntonic is sitting in position to earn handsomely from. This will increase significantly if the recent AT&T/Warner merger continues and integrates SD, as well as the change to SD on DirectTV that AT&T is already instigating.
+ Freeway was downloaded more than 50,000 times in Malaysia and Indonesia and was consistently listed in the Google Play Store’s TOP 25 lifestyle apps in Indonesia during the quarter. This is quite remarkable considering its pilot stage, and the download numbers are mostly accredited to Indonesia, which was entered later in the quarter.
+ The first non-telco contracts entered in India with the largest gaming providers. Billaway also signed.
+ Dataflex (split billing on smartphones) is a major step forward in resolving the growing personal/business use of BYOD.
Present quarter forthcoming's:
+ official launch in SEA and extension into remaining countries
+ release of Freeway on IOS (this has been delayed from last quarter)
+ launch into Sth America
+ potential launch into Europe, including Dataflex
For the full version: http://hotcopper.com.au/threads/ann-appendix-4c-september-2016-quarter-syt-ax.2999654/
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