Spectra Systems Corporation (AIM:SPSY, OTC:SCTQ) said it has negotiated a 21% increase in the price of certain specified materials for a contract with a longstanding central bank customer.
The price increase will begin with the next order and reflects its efforts to mitigate supply chain issues for the customer by bringing more processing in-house, Spectra said.
Under the amended contract there is also a built-in annual price escalator of approximately 3%.
In the year ended 31 December 2021, Spectra generated revenue of approximately US$5.9mln from sales of the specified materials under the procurement contract.
In addition, Spectra will receive a US$1.3mln one-time payment for the development effort undertaken to be able to provide this capability.
Nabil Lawandy, Spectra’s chief executive, said: "We are delighted to have been able to ensure the supply of critical materials for our central bank customer.
“We identified the potential supply chain problem well in advance of any ramifications to the program and initiated an internal development and capability which our customer greatly appreciated.
"In so doing, we have not only reduced risk for our customer but also significantly increased our revenues and earnings related to our consumables business with this central bank."