VANCOUVER, BC–(Marketwired – May 29, 2017) – Nanotech Security Corp. (TSX VENTURE: NTS) (
Highlights during the Second Quarter
- Revenue up 86% to $1,763,600 compared to the same period last year. Optics contributed revenues of $1,418,644, largely from paid development contracts and Tactical delivered $344,956, reflecting slightly improved equipment sales.
- Gross margin was 60% up from 52% in the same period last year. Gross margins continue to reflect strong margins in the Optics division.
- Cash balance of $1,391,514 at end of the quarter. Cash used in operations, excluding working capital, amounted to $579,030, an improvement from $1,436,779 in the same period last year.
- Paid development contracts are progressing well. The Company currently derives the vast majority of its Optics segment revenue from paid authentication development projects with major issuing authorities. These paid development activities incorporate both nano-optic and optical thin film (“OTF”) technologies and are focused on developing authentication features for future banknotes. All projects are progressing well, and the Company sees these projects as a significant growth area for the business.
- Signed development contract for up to $30.0 million. The Company has been awarded a development contract with an issuing authority to develop unique authentication features based on Nanotech’s core technologies for use on future banknotes. The contract provides government budgetary approval for up to $30.0 million over a period of not more than five years. Under the terms of the contract, the Company can apply to the issuing authority to draw upon the budget on a periodic basis. The contract is anticipated to have gross margins consistent with past development contracts, and it…