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LONDON (Alliance News) - Spectra Systems Corp Tuesday said it believes it is on track for a "satisfactory year-end profit performance", as it swung to a pretax profit in the half year to end-June.
The company posted a pretax profit of USD769,000 in the half, swinging from a pretax loss of USD1.3 million, as revenue rose to USD9.8 million from USD2.8 million, although this revenue growth was accompanied by a jump up in cost of sales. Additionally, operating expenses increased as a result of legal fees related to a legal settlement.
During the half-year period, Spectra settled a dispute with a shareholder for USD2.0 million, relating to a license agreement.
Revenue growth was driven by high demand for its consumables, the ongoing delivery of its sensors to a central bank, and the integration of acquisitions.
Spectra is optimistic for its future based on its new technology for cleaning soiled banknotes, Aeris. It has selected a partner to develop a commercial product from the technology, and has continued to file intellectual property applications to protect it. It expects to have the first feedback on the earlier patents filed by the end of 2014.
The company has a deal to deliver sensors to a G8 central bank until the first half of 2015, and said it expects its various opportunities to offset the end of this contract.
The company has begun a cost-cutting initiative, which it said it will complete by the year end, which will allow it to have lower operating costs following the conclusion of sensor manufacturing.
Shares in Spectra were trading down 2.6% at 28.50 pence Tuesday afternoon.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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