REG - Spectra Systems Spectra Systems-SPSC - New $37.9 million sensor manufacturing contract

Spectra SystemsAnnouncement

16/07/2024 07:00

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RNS Number : 4707W  Spectra Systems Corporation  16 July 2024

Spectra Systems Corporation

16 July, 2024

 

 

 

Spectra Systems Corporation ("Spectra")

 

New $37.9 million sensor manufacturing contract

Spectra Systems Corporation, a leader in machine-readable high speed banknote
authentication, brand protection technologies, security printing and gaming
security software, is pleased to announce that on 15 July 2024 it entered into
a contract worth $37.9 million to manufacture sensors for an existing central
bank customer. A second tranche of consideration of $1.7 million is expected
later this year upon signature of the related manufacturing contract. This
would bring the sensor manufacturing revenues from the new contract to a total
of $39.6 million.

Revenue recognition will be based on a standard cost accounting basis with
certain progress milestones related to expenditures.  The bulk of the
revenues related to the contract are expected to be received from Q1 2025
through Q4 2027, with trailing manufacturing contract revenues of
approximately $4.5 million thereafter until 2029.  This manufacturing
contract margin is expected to result in profits over its term that are
significantly higher than previously estimated.

Finally, the Board expects to execute a service agreement relating to the new
sensors with this customer in Q1 of 2025.

 

Dr. Nabil Lawandy, Chief Executive Officer, stated: "This long-awaited
contract for the third generation of sensors follows after over $14.8 million
of development funding by our customer and reflects both the continued need
for banknotes as well as the trust our customer has in Spectra Systems."

 

This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014, which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon
the publication of this announcement via a Regulatory Information Service,
this inside information is now considered to be in the public domain.

The person responsible for arranging the release of this announcement on
behalf of the Company is Dr. Nabil Lawandy, Chief Executive Officer of the
Company.

 

Enquiries:

 Spectra Systems Corporation                                Tel: +1 (0)401 274 4700

 Dr. Nabil Lawandy, Chief Executive Officer

 Zeus Capital Limited (Nominated Adviser and Joint Broker)  Tel: +44 (0)20 3829 5000

 Chris Fielding (Director, Investment Banking)

 James Bavister/ Andrew de Andrade (Investment Banking)

 Allenby Capital Limited (Joint Broker)                     Tel: +44 (0)20 3328 5665

 Nick Naylor/James Reeve (Corporate Finance)

 Amrit Nahal (Sales and Corporate Broking)

 

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