Spectra Systems Corporation (AIM:SPSY, OTC:SCTQ) has announced a new contract valued at $37.9 million to manufacture sensors for a central bank customer.
The contract includes an additional tranche of $1.7 million expected later this year, bringing the total contract value to $39.6 million.
"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 chief executive Dr. Nabil Lawandy.
Revenue from the contract will be realised from the first quarter of 2025 through the fourth quarter of 2027, with trailing revenues of approximately $800,000 annually until 2029.
The contract is expected to significantly boost the company's profit margins, Spectra added.