Spectra Systems Share Discussion Threads

[someuwin] 30/6/2014 11:24

Difficult to buy any volume.

[checkers2] 27/6/2014 19:47

Looks like share price too is poised for next leg up, good chart

[fozzie] 25/6/2014 14:39

Yes that 20k at 26p earlier looked a pre cursor to this subsequent rise.

[pj 1] 25/6/2014 14:38

Doubled my small holding. Had to pay 27p !

[fozzie] 25/6/2014 14:09

I like the word 'poised' as in 'ready to' or 'about to' ;o)

[rainmaker] 25/6/2014 13:46

From Spectra Systems annual report and accounts, recently released "Spectra Systems market opportunity has expanded dramatically with our introduction
of the worlds first banknote cleaning system,Aeris™. With nearly 150 billion banknotes manufactured yearly at a cost approaching $10 billion annually along with the increasing demands that governments reduce costs,we are poised to capitalize on our banknote cleaning technology. Aeris machines have the
potential for generating over $1 billion of hardware sales with ongoing service revenue."

Edit-addition, next paragraph-"Aeris has no competition, and once patents are
granted, will be our market exclusively.The combination of the banknote authentication market, where we are one of several competing companies, along with the Aeris banknote cleaning system, where will be the sole suppliers,
dramatically expands the market potential of this sector of our business."

regards

[fozzie] 25/6/2014 11:59

20k at 26p

[stewy_18] 24/6/2014 08:47

Annual report out. Just going through it now.

[rainmaker] 23/6/2014 19:48

Don't worry, as you say, just be patient. I totally agree, IMHO very exciting times ahead and three figs can reached effortlessly and very quickly.Furthermore at current levels, where's the downside risk?

AIMHO, DYOR

regards

[stewy_18] 23/6/2014 14:09

Yes, a bit gauling that the shre price drops on this news:(

Heyho, I guess this really is a patience game. Exciting times ahead though IMO.

[rainmaker] 23/6/2014 13:48

I have no worries that Spectra Systems won't pick up lucrative contracts for Aeris,their soiled bank note cleaning solution because it makes such compelling economic sense to the Central Banks.That can't be denied. It's far, far more cost efficient to clean notes rather print new ones, period.The super critical fluid cleans the notes without interfering with any security features. Understandably there has already been considerable interest from Central Banks around the World-see previous post and it a massive market-the cost of printing new notes annually approaches US$10bln.IMHO the Market has been very,very slow to catch on here.Maybe there is an unwarranted credibility gap but there shouldn't be since the Company already has two Central Bank Customers and has an envious track record of delivering contracts on time and to exacting specifications.Spectra Systems

Then there is the tremendous kudos and favourable international exposure for the first Bank to employ this new technology since their Country will undoubtably be recognised as a technological leader and modern, progressive and socially responsible Country.Don't forget there is a big green angle here.

I'm absolutely convinced that "Mr Market" is asleep at the wheel, here. At the current share price IMHO you pay very little for the Company's very valuable intangible assets, namely its international patents.

AIMHO, DYOR

regards

[pj 1] 23/6/2014 10:20

Just my thoughts, and to be taken with large pinch of Salt.

But Bankers talk to Bankers, has crossed my mind if 'the word' is out in the Banking circles that SPSY have something that cannot be missed.

Again just thoughts

[fft] 23/6/2014 09:51

Are there any timescales fir these tests with the 4 central banks ? Its great news and presumably if one test works they all should and sales should then proceed quickly to them and other banks.

[el1te] 23/6/2014 07:31

Can't fault the news flow, that's for sure. These tests should unearth the reality about Aeris (i.e. transformational or not quite ready yet).

[battlebus2] 23/6/2014 07:02

Spectra hosts officials from the Central Bank of Indonesia for a preliminary round of testing of its Soiled Banknote Cleaning Technology.

The Board is delighted to announce that representatives of Central Bank of Indonesia will be at Spectra Systems on July 27th and 28th to perform tests in conjunction with our staff to evaluate the performance of the company's AerisTM technology which uses supercritical CO2 to clean soiled banknotes.

This initial in-house collaborative testing will be invaluable to the Company for determining the potential of this technology for producing significant savings for the central Bank of Indonesia. Spectra Systems is in the process of similar tests with other major central banks including the Banco de Mexico and two G8 central banks.

Nabil Lawandy, Spectra System's CEO, stated:

"We are honoured that members of the Central Bank of Indonesia are visiting the Company to witness firsthand the cleaning of banknotes being provided by the bank, at our facility. Indonesia, with over 250 million people and 3.5% of the world's population, provides us with a unique potential opportunity to employ our technology on a large scale."

[el1te] 20/6/2014 07:33

Cash must be around £8.5m now (assuming WHIs numbers are right), restricted and unrestricted. Good to have the lawsuit out of the way as it paves the way forward, albeit at a high initial cost. However, look to be some cost savings anyway which bring the net cost down.

Would be good to see Spectra push on now. If Aeris is successful, that litigation settlement potentially even opens up the possibility of a takeover, even if just for the IP. That would have to wait until the US patent is granted in Q1, and is dependent upon successful testing.

El1te

[battlebus2] 20/6/2014 07:09

Spectra Systems Corporation

("The Company" or "Spectra")

Spectra Systems Settles Lawsuit and Terminates Business Agreement

Spectra has agreed to settle a lawsuit filed by one of its shareholders and business partners and terminate the related royalty agreement for sales of certain banknote authentication materials.

The suit was filed on 13 February 2013 for damages totalling $2,136,091 to cover the period from 2004 to 2010. This amount was subsequently reduced to $1,272,397 due to enforcement of the statute of limitations, which bars claims that accrued more than six years prior to the filing of the lawsuit.

The Board is pleased to have reached a settlement which terminates the agreement and liabilities that would otherwise have continued through the remaining multi-year agreement, and settles the pending litigation and avoids further significant legal costs. The settlement was reached at a cost to Spectra of approximately $2.1MM.

The settlement will result in a one-time, exceptional charge to the Company's profits in 2013 of $1.8MM after offsetting accruals already made in respect of the period from 2006 - 2012. This appears as an exceptional item expense in its statement of income and as an increase to the accrual on its balance sheet and statement of cash flow, net of an estimated tax benefit of $700,000. This exceptional charge will be accounted for in Spectra's accounts for the year ended 31 December 2013, the preliminary statement of which was released on 30 April 2014.

It is anticipated that the Annual Report and Accounts will be circulated to shareholders of Spectra Systems Corporation on 24 June.

The Board's decision to accept this settlement was based on the legal advice that Spectra had a very high probability of success for the period from 2004 to 2013 and a likely, but less certain, probability of success for the remainder of the contract.

The amount which would have been owed, based on the highly probable outcome that we would prevail for the 2004 to 2013 period, would have been approximately $800,000. This, along with the estimated legal fees through trial of $500,000 would have resulted in a cost to Spectra of approximately $1.3MM.

The analysis for the less certain outcome relating to the future contract years based on the historical levels of authentication materials shipment before 2012 could have resulted in approximately $1.6MM of estimated contract payments for the future years remaining on the agreement and could have been much higher if the order volumes in the future years are in excess of these levels. The estimated potential cost of the base case for the future contract years, along with the successful outcome for the previous years, plus legal fees, could have resulted in $2.9MM of costs to the Company.

Based on the analysis described, the Board concluded that the settlement of approximately $2.1MM, with a termination of the agreement, is the correct business decision and will result in significant savings for Spectra.

[glasshalfull] 12/6/2014 15:34

Like that PJ1...my very first thoughts too this morning :-)

WHI provide a small piece of commentary surrounding today's RNS. Snippet here & to which I totally concur...no value being attributed to any of SPSY's businesses:-


"WH Ireland attended a global bank note industry conference in Washington DC earlier this year and witnessed first-hand the significant interest central banks from around the world showed in the new technology. This is not surprising given that it has the potential to save central banks millions in bank note issuance costs as notes are able to be held in circulation for longer. The announced tests represent significant progress on a development/proving programme that, it is hoped, will lead to some form of commercialisation of the technology in due course.

Spectra's share price is still substantially underpinned by the net unrestricted ($14m) and restricted ($2.5m) cash, equating to some 22.8p/share. Despite the share price coming off lows, the market continues almost fully to discount the value of Spectra's IPR both in its current commercialised state and its future opportunities, like the bank note cleaning technology. We therefore reiterate our BUY recommendation and 40p price target."


Regards,
GHF

[stewy_18] 12/6/2014 07:39

Yes, Lets hope this converts. Still lots to look forward to IMO.

[battlebus2] 12/6/2014 07:08

Good news with banknote testing at the Banco de Mexico....

Spectra Systems begins testing of its Soiled Banknote Cleaning Technology with the Banco de Mexico

The Board is delighted to announce that Spectra Systems has entered into a testing program with the Banco de Mexico to evaluate its technology, based on the use of supercritical fluids, to clean heavily soiled banknotes thereby allowing them to be returned to circulation and effectively increasing their life.
This testing program will be invaluable to the Company for determining the potential of this technology for adoption by major central banks. Spectra Systems is in the process of arranging similar tests with other major central banks in addition to the ongoing programs with the Banco de Mexico and two G8 central banks.

Nabil Lawandy, Spectra System's CEO, stated:
"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."

[harrogate] 01/6/2014 12:34

I don't think it will be the product authentication unit that drives the value here. The company they bought had been around for 15 year at least, never made any money and I strongly suspect has a lot of basic me- too technology. Brand protection is a highly competitive market and a much different sell to bank note related products. Have a look at the websites of OPSEC and Authentix to see the difference to Spectra in terms of customer focus and marketing expertise. Not saying Inksure wasn't a good buy for the money and they will turn it to profit but I don't think it will be the key in any way to the rerating here which will be driven by the core banknote unit and the excitement of the bank note cleaning technology which if it does what it says and the trials with the CBs are successful could easily be the trigger for an approach to take out SPSY. Fingers crossed for a good week ahead as the word spreads.

[battlebus2] 01/6/2014 12:07

Oh well aware of that Rainmaker hence buying most of my holding at 18p :))

[rainmaker] 01/6/2014 12:02

Battlebus-there has been a research note released recently with a 75p target. IMHO Spectra Systems is like all the best Value share opportunities where you pay nothing for the business and its future earnings.

AIMHO, DYOR

regards

[battlebus2] 01/6/2014 11:45

After Fridays rise we could see a news release to come, who knows maybe a large banknote cleaning contract won after the recent conference.