In this paper we introduce spatial phase coding of incoherent optical
signals for representing signed numbers in optical processors and pres
ent an experimental demonstration of this coding technique. If a diffr
action grating, such as an acousto-optic cell, modulates a stream of l
ight, the image of the grating can be recovered from the diffracted be
am. The position of the grating image, or more precisely its phase, ca
n be used to denote the sign of the number represented by the diffract
ed light. The intensity of the light represents the magnitude of the n
umber. This technique is more economical than current methods in terms
of the number of information channels required to represent a number
and the amount of post processing required.