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LONDON (Alliance News) - Spectra Systems Corp Wednesday posted a widened pretax loss as higher sales costs and operating expenses offset revenue increases in 2013.
Spectra Systems provides technology for banknote and product authentication.
The company posted a pretax loss of USD717,000, widened from a pretax loss of USD668,000 in 2012, despite seeing revenue rise to USD11.6 million from USD9.4 million, as this was offset by higher sales costs and operating expenses.
In its fourth quarter, sales of Phosphour returned to historical levels, Spectra said, and this had continued into the first quarter of 2014.
During the first quarter of 2014 the company was informed by a central bank customer that it had decided to cancel its new-generation materials development programme. Spectra said that this was "a disappointment" but would not significantly hit its 2014 revenues. It will use the materials and sensor equipment that it developed under the programme for its "commercial benefit" it said.
These new products are ready to be marketed to central banks, Spectra said.
Spectra launched a new technology for cleaning soiled banknotes in 2013, which it said attracted interest at the 2014 Banknote conference in Washington in April.
The company said that, not including the loss of contract for the new generation materials, it had made "significant headway in 2013" and will continue to improve its performance in 2014.
Shares in Spectra were trading down 11% at 20.00 pence Wednesday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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