Spectra Systems Corporation, a leading provider of high-speed banknote authentication and security technologies, has announced an agreement worth £29.7 million to manufacture sensors for an existing central bank customer.
Spectra Systems shares were 13% higher on the back of the news on Tuesday.
The contract is expected to expand further, with an additional £1.3 million tranche anticipated later this year upon signing of the related manufacturing agreement. This would bring the total value of the sensor manufacturing contract to £31 million.
Revenue from this substantial deal is projected to be recognised from the first quarter of 2025 through the fourth quarter of 2027, with additional manufacturing contract revenues of about £3.5 million expected to continue until 2029.
“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,” said Dr. Nabil Lawandy, Chief Executive Officer.