Spectra Systems Share Discussion Threads

[stewy_18] 24/7/2014 11:19

Yes, looking good for 2015. Hinted at successful trails, so I reckon once the have the patent and the machine is developed, the banks will be queueing up. Should be profitable this year without this, so things looking good. Looks like Cool Clean technologies have some real experience behind them so I think the future looks bright.

[rainmaker] 24/7/2014 10:43

And there it is El1ite-

TIDMSPSY TIDMSPSC
RNS Number : 1713N
Spectra Systems Corporation
24 July 2014
July 24, 2014
Spectra Systems Corporation
("Spectra Systems")
Partnership with Cool Clean Technologies for Design and Delivery of Production-Ready Aeris(TM) Banknote Cleaning Systems
Spectra Systems has executed a contract at a cost of $400,000 with Cool Clean Technologies of Eagan Minnesota for the development of a fully productized Aeris(TM) system using supercritical CO(2) to clean soiled banknotes. Cool Clean Technologies is a market leader in the use of CO(2) fluid systems for extraction and cleaning applications in the medical, aerospace, defense, and semi-conductor industries. Their knowledge of high pressure vessel design and worldwide variations in safety design requirements will ensure that the units are compliant with all geographical industry standards.
The system will incorporate temperature and pressure ranges and ease of use specifications arising from both our operational experiences as well as from central banks that recently performed testing on-site at Spectra Systems' facilities.
The contract will result in the delivery of the first system in November 2014 and has specified unit costs for two types of systems that are suited for 300,000,000 and 600,000,000 banknotes per year, respectively. The units are being designed for a ten year life cycle with routine preventative maintenance.
Nabil Lawandy, Spectra System's CEO, stated:
"We are extremely excited about partnering with Cool Clean Technologies after many discussions with other suppliers over the last six months. Their team brings a balance of innovation, reliability and price point which are all critical to winning our first customers. We are optimistic that the very positive results we have achieved with the various central bank cleaning tests, along with the operator-friendly system being developed to our specifications by Cool Clean Technologies, will position us to introduce the technology at a central bank facility in 2015."
Enquiries:
Spectra Systems Corporation
Dr. Nabil Lawandy, Chief Executive Officer Tel: [phone] WH Ireland Limited
Chris Fielding (Head of Corporate Finance) Tel: [phone] This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCVXLFLZDFZBBV

[el1te] 24/7/2014 10:12

Further encouraging news today - suggests that the trials done so far, went well

El1te

[glasshalfull] 22/7/2014 09:27

V promising announcement this morning and highlights the potential from a further area for long term growth as stewy noted above.

SPSY offers excellent value, especially when one considers the strength of the balance sheet.

WH Ireland agree:-

"SPSY has announced encouraging news this morning about its product authentication offering – a non-exclusive contract in China and an exclusive contract in South Korea with respectively two suppliers of product authentication services in Asia. These technologies enable the consumer to authenticate products using their smartphones, and at the same time provide a valuable data tool for the owners of brands. We expect that clothing and spirits will be among the FMCG product groups which will particularly benefit from this technology.

We view this is an innovative technology which has compelling practical applications and which we believe will provide an important new service to the Asian market. In financial terms, the announcement suggests a US$100k benefit to the FY2015E bottom line, based on a mix of license fees, paid annually, and minimum annual orders. We will be publishing our 2015E forecasts in due course, and in relation to today's announcement note the significant growth potential which is envisaged for the new product in 2016E and beyond.

This morning's news follows on from a series of positive announcements on SPSY's banknote cleaning technology, which is now being tested by four major banks, including the Central Bank of Indonesia, serving one of the most populous countries in the world. There is no change to our 2014E forecasts, however we believe the share price is still well underpinned by US$14m of net unrestricted cash (and $US2.5m of restricted cash). We retain our BUY recommendation and 40p price target.

Regards,
GHF

[stewy_18] 22/7/2014 08:01

Very interesting. Everyone was looking at the note cleaning POC for the big growth. This may be another one.

[el1te] 22/7/2014 07:19

It may be a small combined contract value at the minimum end of the scale, but it validates the technology and is a clear intention of plans to grow the business through the consumer side. Good to see the company keeping investors informed - it will be interesting to see if there is a market reaction

El1te

[galles] 10/7/2014 19:45

Fair enough. Many thanks

[battlebus2] 10/7/2014 08:57

MM'S move the stock around for various reasons, there doesn't need to be a trade involved.

[galles] 10/7/2014 08:35

Just wondering, the share price dropped ever so slightly with no apparent trade yesterday. How did that come about? This happened to another company I hold as well... Not that minor short term movements bother me but curious when there is no reported trade

[patviera] 04/7/2014 13:19

Buyers? Volume tiny

[rainmaker] 04/7/2014 12:24

Hmmmmmmm............the Buyers return and the share price looks set for another leg up.

regards

[rainmaker] 03/7/2014 13:19

The crux of the matter is a £13mln market cap Company, Spectra Systems currently trialing a service in a market worth US1bln pa with no competition, period.I don't believe the Company would be trailing AERIS, if they wasn't ready to sign up Customers and besides any issues with patents would lie with Spectra and not be of concern to the Central Bank.So I expect news of contracts signed this year.

regards

[stewy_18] 03/7/2014 12:51

Patviera,

Did you even bother to look at the presentation?

From slide 10....

A prototype machine has been developed and is being used to collaboratively test the process with central banks to evaluate its potential in the context of specific central bank practices and economics

[patviera] 03/7/2014 12:30

RainmakerIs it a prototype? Do ww need to spend money to build these machines?

[stewy_18] 02/7/2014 18:08

Kinkell,

The machine is only a prototype. It has not been developed. They need to find a company to develop it (again check slide 11 of the presentation at the top of my post 473).


Test info is in the presentation also. It is a great start but they have a long way to go.

Best

Stuart

[kinkell] 02/7/2014 16:08

Stewy,

The prototype has been developed - otherwise the central banks wouldn't be testing it, so I don't think there is still heavy development expenditure still to come in this regard.

Where did you find the 2015 test info please?

[someuwin] 02/7/2014 14:33

Certainly looks like £1 before year end should be easily doable.

[stewy_18] 02/7/2014 13:32

Hi Rainmaker,

Check out slide 11 of the presentation......

Commercialization of Aeris (TM) technology requires:
Aeris patents under review in USPTO Fast Track program
• USA Patent issuance expected in Q1-2015

That implies Q1 2015 by the earliest. Would a central bank sign a contract before then? Possible but I don't think any money will start rolling in before Q1 2015. They seem to be setting our expectations in that slide. There is a lot of work to be done. Note the other two points. They are not small pieces of work.

Exciting market, but some way to go before commercialisation. I think there will be news on the pilots this year for sure, and that will be enough to drive the share price. At the moment the bank cleaning is in for free so I'm not too bothered either way. Good not to be paying up front for these kinds of opportunities because that's where you get burnt.

Best

Stuart

[rainmaker] 02/7/2014 13:18

Very interesting film clip of Aeris, just in case anyone hasn't seen it, I've put the link in above.Very impressive eg 98% of the CO2 used is recovered and one machine can process a million bank notes in a single day.

Stew, I have to respectfully disagree as I firmly believe we will have news of contract wins for Aeris before the end of the year because like any new proven technology they will be a race to adopt it first.But we shall see.Regardless through Aeris, £13mln market cap Spectra Systems is the only entrant in a massive US$1bln market. If they they were listed on NASDAQ, the share price would be many more times the current price but nevertheless when the Company start winning orders for Aeris, IMHO the share price will rocket.

AIMHO, DYOR

regards

[stewy_18] 02/7/2014 10:17

Great presentation.

A couple of things that are important to note:-
- The machine that does the cleaning is only in prototype so cash burn for 2014 likely to be higher than last year ($2.5 million) to develop this prototype. Not really an issue because they have $13.5 million cash
- 4 more testing programs in 2015, so that is where we will see bank note cleaning really gaining traction
- Cleansing won't be commercial until at least next year (need patent, someone to build machine and a infrastructure in place to run machine in central banks)
- Phosphour sales increasing nicely. Other aspects of the business + cash should more than cover the current share price.

Would like to see a PTP for 2014. Brokers notes do not factor in any revenues for bank note cleaning and have a PTP of $1.3 million for 2014. That's not bad for a market cap of £12 million.

No doubt that the note cleaning technology is the hot topic. You only have to look at the figures to realise this is big. I would speculate that the margins would be high also. They can afford to be because of the cost savings.

Regarding competition for bank note cleaning, it doesn't look like anyone has this technology and I'm sure SPSY have a competitive advantage. I can't imagine it is easy to build a relationship with a central bank (trust issues), and SPSY have this already as they sell their phospour and sensor products to central banks already. However, it would be great to get that patent (expected Q1 2015). For sure they have a massive head start on anyone else I would suggest. The fact they have 6 central banks signed up for the trials tells you everything you need to know IMO.

Of course there are things that could go wrong. But while we wait for the outcome of the bank cleansing trials, you already have a functioning business selling other products (sensors and phosphour amongst others) and $13.5 million cash. This more than covers the current share price. So I'd say there is very little downside from here.

I don't think it will move particularly quickly. Central banks are not agile:( But I think the outcome of the trails will be enough to re-rate the share price this year, if positive, even if sales do not start until 2015 or 2016.

For sure, we should know this year what the two central banks testing it thing and whether they sign up. While we get that news, I'm happy to wait and see what happens.

Over 3 years, I think this will do very well.

As always comment welcome.

Best

Stuart

[rainmaker] 02/7/2014 10:07

No, definitely not Llmarkclay-see previous message and extract from their recently released annual report and accounts. I've also checked on line and can find no other Company offering this service. By their reckoning, it's a US1bln market which they have all to themselves.Furthermore the Company already has two G2 Central Banks as Customers and have delivered existing contracts on time and to exacting specifications.

regards

[llmarkclay] 02/7/2014 00:50

Does the company have any competition Rainmaker?

[sportbilly1976] 01/7/2014 15:52

indeed...although similar volume yesterday did move the price a bit..all at full offer today as well so I'm guessing not many left.

very odd - now you can get an online quote for 25k at 30.5p yet at times yesterday you could only get 50 shares!!

[sailing john] 01/7/2014 15:51

Yes cracking video - amazing that they can clean bundled notes!

Quite an easy process for the banks by the look of it - easier than loading a domestic dishwasher!

2014 presentation in case anyone not seen

[someuwin] 01/7/2014 15:39

Only a few trades so far. But all buys.