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Spectra Systems phosphor sales drive 182% profit increase
Secure transactions provider Spectra Systems announced on Monday that it almost tripled its pretax profits in 2017, as they rose 182% to $3.1m compared to the previous year.
The company benefitted from a 9% increase in revenues, up to $12.2m, and a 14% decrease in operating expenses to $5.6m amid record sales of high margin phosphors, which rose to $4.3m from $3.8m, and significant royalty payments from its license.
Nabil Lawandy, chief executive of Spectra Systems, said: "The Company's revenues have increased by 9% and PBTA has doubled over 2016 driven by sales of high margin phosphors, significant royalty payments by our licensee due to record print orders, and the inline performance of all other operating business lines."
The phosphors relate to the US central bank's redesign of banknotes which was completed in 2017, while the royalty payments stem from a licensing agreement with a major banknote supplier to 18 central banks.
"We have also laid the foundation for the expected adoption of a new security feature for polymer banknotes by a major central bank and have achieved success with the large scale production tests of our smartphone based TruBrand authentication technology," said Lawandy.
The company said it was debt free at period with cash on hand at $11.2m.
As of 1230 GMT, Spectra Systems' shares were down by 5.22% at 109.00p.