LONDON (Alliance News) - Spectra Systems Corp Thursday said a G8 central bank that had been funding materials and sensor development for a new technology has decided to cancel the programme.
In a trading update, the bank note and passport security feature developer said it expects its 2013 results to be in line with market expectations after phosphour sales reached levels last seen in 2011 in the last three months of the year.
However, it said it was disappointed about the ends of the technology development programme.
"The manner in which this program came to an abrupt halt is gravely disappointing and a loss to the central bank which has spent over USD1 million in development of materials and sensor design. Trials were performed over the last year with success and in the last technical discussions, enthusiasm was evident for the project and the success in the refinements made over the last year," Chief Executive Nabil Lawandy said in a statement.
Spectra will keep ownership of all the intellectual property developed under the project, and it also expects specific materials and data to be unclassified and available for the company to commercialise with other potential central bank clients.
"We are now free to take this fully completed technology to other central banks as a ready package paid for by the central bank rather than shareholders. We will pursue this aggressively," Lawandy said.
"In the meantime, this will have minimal impact on market expectations as only negligible revenues relating thereto had been anticipated in such expectations. In addition, this decision by the G8 central bank is not expected to have any impact on current generation business with the central bank to whom we will continue to deliver upgraded sensors throughout the year," the CEO added.
By Steve McGrath; stevemcgrath@alliancenews.com; @SteveMcGrath1
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Spectra (unres) (SPSY)