The stock is trading close to its all-time high of 102p off the back of the announcement.
Companies: Spectra Systems Corporation
Spectras Systems' (LON: SPSY) share price has jumped this morning off the back of news the Group will receive $11.2m in royalties over the next five years from a licensing agreement for one of its products.
Spectra is US-based, UK-listed company focusing on banknote authentication technologies, partnering with central banks and banknote suppliers worldwide.
The exclusive, worldwide agreement means a boost in Revenue for the Group, settled in eleven equally spaced instalments. This equates to around £810,000 every 6 months.
On top of the payments, Spectra will also receive an additional $1.5m - $2m in Revenues over the next five years from the same licensee for "covert materials".
As a result of the boost Management said Revenues and Profits for FY18 will "significantly exceed market expectations".
Shares in the Group spiked 17% to 100p on Monday morning, trading close to its all-time high of 102p since its 2011 IPO.
Dr Nabil Lawandy, Chief Executive of Spectra said:
"We are delighted to have consummated these agreements with our existing partner for over a decade and thereby provided shareholders with further contracted revenues on this product, which has already been in the market for 15 years."
The Group already had a cash balance of $9.5m last June, has an operating margin of 29% and ranks 95/100 on Stockopedia's useful StockRank rating.