SMS soars on Boeing approval
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Shares in Structural Monitoring Systems recorded big gains today after the Claremont-based company announced breakthrough agreements with The Boeing Corporation and the Federal Aviation Administration in the United States.
SMS said Boeing and the FAA have approved the use of its comparative vacuum monitoring (CVM) technology as an alternate maintenance program to conventional inspections.
Managing director Toby Chandler said that after many years of work, the company has finally achieved the end game it always envisaged for the technology.
“It is extremely gratifying to finally achieve this outcome – an outcome which now truly enables SMS to become a highly relevant and singular global leader exploiting the significant opportunities available to CVM in the global aerospace industry.”
Los Angeles-based Mr Chandler said the company now looked forward to capturing the huge market potential available to it.
SMS has spent the past 16 years commercialising its patented CVM technology, which is used to test for defects in aircraft fuselage and other materials.
The company has been listed on the ASX since 2004 but apart from a big rally in 2006 has spent most years’ languishing with little investor interest.
Its share price has achieved big gains this year, particularly in the past month, rallying another 24 cents today to close at $1.29.
Today’s breakthrough news came after the CVM technology was installed in Boeing 737-NG aircraft operated by Delta Air Lines.
That was followed by testing overseen by the FAA Airworthiness Assurance Center and Boeing.
SMS said these approvals mean CVM is the only commercially-approved technology for any on-aircraft application involving cracking, and related structural fatigue, in the world.
The company has other programs with The Airbus Group, Embraer SA and Sikorsky Aircraft.
Its major shareholders include New York-based hedge fund Drake Private Investments, its manufacturing partner Anodyne Electronics, Mr Gardner, and Bryant McLarty, who heads local advisory firm Mac Equity Partners International and has been a long-term backer of SMS.