Spectra Systems Share Discussion Threads

[patviera] 17/10/2014 12:11

RmI just added

[allstar_07] 17/10/2014 12:03

Interesting thoughts shanklin. Id be fairly certain they haven't done any tests with ebola so presume that's an unknown. What is strange is that the mexico bank only had one test done, why would you do that, it just doesn't make sense to me. Easy to supply enough notes to find optimum test conditions. Unless spectra did do more tests but only provided the results from the best test to Mexico.Strange.

[shanklin] 17/10/2014 11:09

I guess the question one might ask on the cash cleaning front is what happens if a note covered in the ebola (or similar virus) is subjected to the cleaning process. Up until it is subject to the cleaning process, if such a note causes the spread of infection this is not IMHO the responsibility of the central bank.

However if a note which is subjected to the cleaning process does subsequently infect somebody, presumably the CB would find itself in the line of fire. Is this a risk it would want to take or are they prepared to pay out vast sums for replacement notes so as to avoid this issue?

I have no idea, but I presume this has come up as an issue during testing?

[stewy_18] 17/10/2014 08:50

Not great news. I think we will have a better understanding of the credibility of the cleansing process after the other pilots. Too early to sell for me. Want to see the results of the other pilots.

[stegrego] 17/10/2014 08:13

18p cash and 19p to buy.

Happy days :)

[fozzie] 17/10/2014 07:43

Well at least i now know where my MAE money is going!

[pj 1] 17/10/2014 07:39

Well good luck with that

Im out

One reason is because of the Markets and not even good news is being bought, so Im selling any disappointing news.

Surely they run their own tests before involving the Banks. If they do then something is wrong. If they do not then.............

Another disappointment and a count to 3 and their knocked out surely?

On the watch list still

Good luck !

PJ

[fozzie] 17/10/2014 07:13

Well at the end of another horrendous week this was definetly not the news i was hoping for. Anyway they want to dress it up this is a failure of the product to do what it says on the tin. The customer was not impressed enough to place an order. Lets not forget how thrilled the company was to secure the tests with BdM.

''We are very pleased that the Banco de Mexico has provided us with the opportunity to collaboratively assess the efficacy and economic impact of our banknote cleaning technology for Mexico's banknotes. Mexico is one of the countries which has adopted polymer notes for its lower denominations and has had extensive experience with the issues of soiling and reducing banknote replacement costs. In addition, the Banco de Mexico has one of the most highly respected central bank research and development teams in the world and has developed important data on banknote life cycles. We are extremely excited about the opportunity to gain their insight on the value of our breakthrough technology''

If memory serves we also lost a G8 bank last year who didnt progress trials beyond a certain stage. Is there a problem with the technology? Why does it take 4 months to test banknotes and reach a conclusion? Where are the test results from the two G8 banks that have been testing?

[patviera] 17/10/2014 06:48

Not sure why they are pleased to give this updateBut alls not lost as I think they will get contracts

[someuwin] 17/10/2014 06:47

Failure.

"Based on this test, the Banco de Mexico stated that: "specifically for the Mexican banknote mix and design, the cleaning process does not meet the central bank's needs at this time and we will consider a second trial of the cleansing technology for the new series of Mexican banknotes, to be issued in 2019".

[pj 1] 17/10/2014 06:41

Now we know why!



:-(

[pj 1] 06/10/2014 14:45

Very good write up. Not sure if stevemp posts here or not. thanks Stewy.

I have a small holding here. Like the look of the Co but cannot understand why the Banks would not chase the Bank Note restoration process savings more if they were realistic, especially with the Green side to this.

You get the impression that the Banks are just waiting for something to happen via SPSY (edit), but from experience I do not think that is how it works!

Just IMO

[stewy_18] 06/10/2014 13:04

Nice post by stevemp on other place:-

[glasshalfull] 01/10/2014 06:00

IMHO good set of results & v pleased with the progress SPSY's making.

The statement is littered with positives; new manufacturing facility completed leading to margin improvement; Aeris developments continuing to progress; launch of Trubrand smartphone authentication; phosphor sales strong; net cash worth 18p per share underpinning shareprice and cost base reductions on the menu.

WHI agree & note

Spectra’s interim results demonstrate substantial progress at both the financial and operating levels. First half numbers have benefited from strong sales of higher margin consumable materials, offsetting the slower than expected delivery of sensor hardware (the balance of the sensor contract flowing into FY 2015).

Revenues to June 2014 increased 355% to $9.8m. As a consequence, the adjusted EBIT of $0.73m is a substantial improvement on the $1.4m loss reported in H1-13. Spectra exited the period with unrestricted cash of $9.6m, after acquisitions costing $1.0m and the payment of the contingent liability.

While the banknote authentication business is performing well again, Spectra’s new technologies in bank note cleaning (Aeris) and mobile brand protection (TruBrand) have made demonstrable progress and could deliver a meaningful contribution in the next few years. Each of these prospects has the potential to realise significant returns for shareholders. Determining the timing remains the biggest risk, although the balance sheet remains in a robust state with $9.6m of unrestricted cash available.

With our FY 2014 estimates looking substantially underpinned (revenue $16.3m, profit $1.3m, EPS 1.8p), prospects beyond FY 2014 looking increasingly healthy and with the shares well backed by a cash-strong balance sheet, we retain our Buy recommendation and 40p price target.


Regards,
GHF

[fozzie] 30/9/2014 09:17

Ah yes just seen those trades come through. Lets hope so ;o)

[fozzie] 30/9/2014 09:15

WHIreland Reiterates Buy and 40p target lol

Big volume?

[patviera] 30/9/2014 09:10

big volume
director buying?

[fozzie] 30/9/2014 08:38

All good stuff imo. Just one to tuck away and forget. They seem to have everything well in hand and as you say Stewy we are profitable while we await the bigger news.

[shanklin] 30/9/2014 08:35

I guess it was marked down before the results in sympathy with the DLAR weakness. However, there seems to be no read across from them.

[stewy_18] 30/9/2014 08:10

Interesting. Important to manage expectations about Aeris:-

"we expect that we will be able to install a system within the next two years".

So the next milestone is to get the patent. I am hoping for some news there in Q1 2015. Things moving in the right direction. It seems the banks are keen but it is not yet close to the finished article.

"Phosphour sales have returned to their high historical levels and have already exceeded the 2014 full year plan".

This is great news. SPSY will be profitable while we wait for the outcome of Aeris.

TruBrand seems to be progressing, but I don't really know how this will impact SPSY revenues.

It seems to me that SPSY are in a unique position. They already have good relationships with Central Banks, and the banks in turn seem willing to work with SPSY. I note the progress is said to be "steady". I can't imagine they are fast moving organisations, but they seem to be responsive to testing.

I found this comment intriguing:-

In addition, we have begun work on developing additional banknote related uses for AerisTM which will require on-going consumables.

No idea what these other uses would be.

While we wait, we will have a year/end profit to look forward to.

Tidy.

This time in 2016 Rodney :)

[shanklin] 30/9/2014 06:40

Pleasantly surprised that they made a profit.

[battlebus2] 30/9/2014 06:17

Great results....

Financial highlights ($000's):

-Revenue 255% ahead of last year at $9,807 (2013: $2,761)

-Transition into profit with basic earnings before taxation of USD $769 (2013: ($1,292))

-Basic earnings per share of $0.01 (2013: ($0.03))

-Strong, debt-free balance sheet, with cash of $9,637 (2013: $14,231) at 30 June

Commenting on the results, Nabil Lawandy, Chief Executive Officer, said:

"The Company's revenues have increased by over 255% and losses last year have turned into positive earnings. This strong performance is fuelled by the combination of high demand for our consumables and the ongoing delivery of sensors to a G8 central bank, which underpins the use of our consumables for the next decade. Additionally, strong performances from the now fully integrated acquisitions in both physical and software based technologies continue and are expected to further support our expectation for a satisfactory year-end profit performance.

"In 2013 we introduced a new technology for cleaning soiled banknotes which has the potential to expand our business within the banknote industry through products which reduce cost and environmental disposal issues facing central banks. We have made steady progress working collaboratively with central banks to validate the technology and determine its suitability for various banknote designs and processing scenarios. Based on the continuing interest in the technology, we have selected a partner to develop a commercial product. In parallel, we have continued to file intellectual property to protect the technology and expect to have the first feedback on the earliest patents filed by close of 2014.

"Notwithstanding the strong performance in H1-2014, we have begun a cost cutting initiative which will be completed by year-end. This initiative will allow us to lower operating costs following the conclusion of the sensor manufacturing referred to above, while at the same time maintain our ability to respond to new opportunities.

"The Board believes that the various opportunities available to the Group will offset the sensor manufacturing revenues which are scheduled to conclude in H1-2015.

"The Board therefore believes that the Company, by achieving key business milestones, will continue to perform well for the remainder of 2014 and continues to have excellent prospects."

[briangeeee] 10/9/2014 21:39

Met them in London recently, and they were carrying a couple of brown envelopes. When they passed one one over, they said the money was clean. I guess that means it has been laundered. Apparently there's a lot of money to be made in that business!

I don't know if the company have said anything/much about stiffening, but I think it's one of their experimental technologies. The results look very impressive indeed, with the notes looking substantially rejuvenated. Money laundering and bank note Viagra - they'll make millions!