Last checked at 14 Aug 2015 07:00
Spectra Systems Corporation
("Spectra Systems")
Modified covert materials supply contract
Spectra Systems is pleased to announce that on 13 August 2015 it executed a contract modification with a European corporate partner and licensee which stipulates minimum order quantities of covert materials for banknote authentication for calendar years 2016-2019 and an order for $1.2MM for delivery in 2015.
The minimum order quantities are worth approximately $0.7MM per annum, including a contracted 7% increase beginning 2016 in the price of materials, which are used by 18 central banks.
Taking into account recent levels of banknote royalties paid by this licensee, this modified contract is expected to secure a minimum of approximately $6MM of revenue over the period 2015-2019. In the period 2010 to 2014 the preceding contract, without stipulated minima, generated approximately $1.6MM per annum including royalties.
The Board is confident that the Spectra Systems, which anticipates releasing its interim results for the 6 months ended 30 June 2015 in late August, will perform satisfactorily for the full year.
"This contract modification further underscores the stability of our banknote security business and also increases our margins going forward. Whilst the contract specifies minimum quantities, we would anticipate quantities equivalent to those of the prior period coupled with the benefit of the price increase. " said Dr. Nabil M. Lawandy, Spectra Systems CEO.
Enquiries:
Spectra Systems Corporation
Dr. Nabil Lawandy, Chief Executive Officer Tel: +1 (0) 401 274 4700
WH Ireland Limited
Chris Fielding (Head of Corporate Finance) Tel: +44 (0) 20 7220 1650