Spectra (unres) Share Chat (SPSY)

trade...........

http://www.investegate.co.uk/spectra-systems--spsy-/rns/approval-to-deliver-suite-of-sensors-worth--8m/201311140700149886S/

Any reason for drop?

Net cash=26.51p, share price=31p So excluding cash, the market is attributing a value of 4.49p per share. With 37.2 million shares in issue that's a valuation of £1.67m. Crazy! Just £1.67m for a business that's brought in a $10m order and whose revenues for 2012 were $9.37m and growing at 26%. Gotta be some serious upside from here!

The long awaited execution of a development contract with a G8 central bank for new generation technology has proceeded on or ahead of schedule and is expected to lead to significant multi-decade revenue streams once adopted. We expect to realize significant additional development revenues next year as well as gain more insight as to the adoption timetable as we and the customer successfully progress through large‑scale tests. 2012 materials volumes were significantly higher than previous years and we expect this growth trend to continue in 2013, aided by a central bank issuing a new denomination during that period. We expect this increased demand to allow us to leverage improved margins from our in-house manufacturing facility which is now available to our customers and is expected to be inspected by our principal G8 customer in Q2 of 2013. Our partnerships with suppliers of public features have led to new opportunities. The Reserve Bank of India tender remains unresolved, although continues to be a live prospect for the Company. Other new significant opportunities include tax stamps as well as a Level II feature for a G8 passport, both of which we expect to have a decision for in 2013. In addition to our core banknote business, we have made significant advances towards adoption of our lock and key technology by a major consumer appliance manufacturer. During 2012 we delivered prototype sensors integrated into their consumer appliance and developed customized inks for all their suppliers in the United States of America, China and Korea which do not use the same types of printing processes. We are optimistic that we will arrive at a business arrangement in 2013 which will create a new materials business line with the potential for many additional adoption scenarios by the current target customer as well as by other customers that will follow suit. The Board therefore believes that the Company continues to have excellent prospects and will perform strongly in 2013.

$10m order for an £8.6m market cap July 30, 2013 Spectra Systems Corporation ("Spectra Systems") Spectra Systems Receives Large Order from Central Bank Spectra Systems, a leading provider of advanced technology solutions for banknote and product authentication, is pleased to announce that it has received as anticipated a significant order to supply its current machine-readable banknote authentication materials to a major central bank. The order has a value of $10M and will be delivered in the 12 month period commencing in August 2013. Commenting on the above, Nabil Lawandy, CEO of Spectra Systems, stated: "We are pleased to announce this significant order which largely underpins our revenue expectations for 2013. The maintenance of a large supply of back-up inventory of our materials by the Central Bank is indicative of the importance of our products as well as their long term use". http://uk.advfn.com/news/UKREG/2013/article/58594043

Spectra Systems Corporation (SPSY) Director name: Dr Nabil Lawandy Amount purchased: 25,000 @ 40.00p Value: £10,000

http://www.investegate.co.uk/Article.aspx?id=201206250700150396G

Dropped 80%, no news......... Someone think that they are going to be printing alot less in the ever so near future...hmmmm. Double trouble.

Assessment The company estimates that in excess of 100 billion banknotes are produced each year and that this volume of production is growing at an average of 6% per annum. It also estimate that the size of the banknote authentication market currently amounts to approximately $600 million per annum worldwide, and projects that it will reach $1 billion by 2015. These healthy underlying growth rates provide the firm with a fair tailwind and positive macro backdrop. Spectra is also well placed in terms of the competitive landscape, possessing a total of 34 directly granted US and foreign patents. Its products, which are engineered as opposed to being simply chemical in nature, have have a solid track record, having been been successfully deployed for over a decade and adopted by two G8 central banks. Recent trading has been positive, with the company having won a contract in July with a G8 central bank, which is expected to generate revenues of up to $10 million over several years. It also recently won an order for a significantly increased volume of consumable materials, commencing in August 2011, from one of the world's largest security printers for a G8 central bank customer. Furthermore, expansion looks set to continue, as the company is in ongoing discussions with the Reserve Bank of India concerning the new generation feature and other negotiations with potential purchasers of the company's solutions. Although we view the current valuation as demanding based on historic metrics, we like the market and the technology enough to recommend investors make this share one to watch.

Financials During the year to 31st December 2010, the company posted revenues of $7.3 million, down from $7.4 million in 2009. This yielded a gross profit of $4.3 million, up from $3.9 million in 2009, and a pre-tax profit of $0.4 million, up from $0.3 million. At the period end the company had net assets of $4.7 million.

The Business The 25th of July saw the admission of Spectra Systems Corporation to AIM, along with a £12.8 million placing. Shares in the firm, which develops and markets advanced technology-based security solutions used primarily to authenticate and process banknotes, have since risen to 100p to capitalise the company at £21 million. Founded in 1996 by its Chief Executive, Dr Nabil Lawandy, the company is focused on commercialising its technologically advanced security solutions, both covert and public, for banknotes and other documents. As well as providing engineered consumable materials for authentication and processing purposes, the firm develops and manufactures hardware and software systems to verify the presence of the authentication and processing materials. Through its strategic supply and licensing agreements with governmental, institutional and corporate partners, Spectra has achieved significant penetration of the currency and documentation markets. Its major customers include: a G8 central bank organisation; one of the world's largest commercial security printers and papermakers, which supplies the company's technology to a second G8 central bank and 13 other central banks; Crane & Co., the exclusive manufacturer and supplier of US currency and passport paper; and Technical Graphics Incorporated, which is a major supplier of security threads for world currencies.