- Security company Spectur (SP3) is being forced to upgrade its manufacturing capabilities due to increased demand for its products in the past few months
- The company has shifted its focus somewhat from providing one-off hardware sales to longer-term rental contracts
- This shift will provide more reliable income than the short spikes associated with large sales, as well as providing higher gross margin returns over time
- The recent surge in demand has meant Spectur has had to manage customer expectations around delivery times
- The company is aiming to expand its production capacity to meet the increasing demand
- Spectur is up 45 per cent to 8.7 cents
Security company Spectur (SP3) is being forced to upgrade its manufacturing capabilities due to the increased demand for its products in the past few months.
New contracts
Spectur has shifted its focus somewhat from providing one-off hardware sales to longer-term rental contracts.
This shift has a two-fold benefit for the company, as it provides more reliable income than the short spikes associated with large sales, as well as providing higher gross margin returns over time.
All up, the company added $614,413 in new contracts in October, with around three quarters of that sum relating to longer-term rental arrangements.
The contracts are for the company’s solar powered security modules, the HD5 and the new premium STA6 model, launched in July.
The robust security solutions integrate cloud-based AI with visual and infra-red cameras, sensors and lighting for remote sensing applications across the utilities, government, resource, agriculture, and aged care sectors.
Spectur Managing Director Gerard Dyson says the company is looking towards sustainable growth.
“This is a very exciting time for Spectur as we see the fruits of investments we have made in the last 16 months into technology development, marketing and sales,” Gerard began.
“It is tremendous not just to see sales of the STA6, but to see sales and rentals with new customers, in our key target sectors,” he said.
“Spectur’s experience is that new customers tend to become repeat and growing customers, so we plan to expand these new strategic relationships in the longer term, underpinning sustainable growth,” he added.
Outlook
The October contracts saw Spectur add a number of new clients, as well as extend existing relationships.
The company claims its potential sales pipeline is also increasing, with advanced verbal approvals for 45 STA6 systems, including the new STA6 Pro, which offers 360-degree panoramic vision in 16K quality.
While these negotiations aren’t yet finalised, the company is confident at least a portion of them will come through.
The company recently experienced a surge in demand, which means it has had to manage customer expectations around delivery times.
The MD says Spectur will soon catch up, and be able to deliver its systems within its targeted timeframes.
“The popularity of the STA6 platform has also created demand that has temporarily outstripped our ability to supply within our preferred short cycle time, however, we have managed customer expectations accordingly and staged delivery and installations to suit,” Gerard said.
“These delays to installations have had some impact on our ability to recognise revenue however we have active plans to adjust to meet the growing demand and reduce our supply times of STA6 platforms going forward,” he added.
Spectur is up 45 per cent to 8.7 cents at 2:30 pm AEDT.