Spectra Systems Corporation Modified Covert Materials Supply Contract (0417W)
August 14 2015 - 2:00AM
UK Regulatory
TIDMSPSY TIDMSPSC
RNS Number : 0417W
Spectra Systems Corporation
14 August 2015
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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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