14th Aug 2015 09:00
LONDON (Alliance News) - Spectra Systems Corp said that on Thursday it improved its contract with a European corporate licensee, securing minimum order quantities of covert materials for banknote authentication for 2016 to 2019, as well as an order for USD1.2 million for delivery in 2015.
The authentication technology supplier said that the minimum order quantities are worth approximately USD700,000 per year, including a contracted 7% increase beginning in 2016 in the price of materials.
Taking into account recent levels of banknote royalties paid by this licensee, Spectra expects the modified contract to secure a minimum of USD6 million of revenue over the period from 2015 to 2019.
Spectra added that it is confident it will perform satisfactorily in 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," Chief Executive Nabil Lawandy said in a statement.
Shares in Spectra were untraded on Friday, last trading at 24.50 pence.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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