Structural Monitoring lands Delta deal

Claremont-based Structural Monitoring Systems has inked an agreement with US airline Delta for the supply and use of its technology.

SMS said today it would supply Delta with its CVM sensors, hardware and related equipment along with licences to use the technology, which tests and monitors the structural integrity of objects.

The agreement is for an initial 10-year term with rolling 10-year extensions, and is expected to generate initial revenue between $US6 million-$US7 million.

“We have worked with Delta for a long time to finally achieve this extremely important company-making milestone agreement,” SMS chief executive Toby Chandler said.

“As SMS has matured into a progressive and rapidly evolving technology company, we are extremely fortunate to have such a high-profile, commercially powerful and globally recognised partner to accelerate CVM into the commercial realm.

“SMS has now well and truly arrived, and the company enjoys a very visible, and substantial first-mover advantage, coupled with a unique and highly disruptive technology; we intend to exploit these clear commercial advantages to their fullest.”

SMS is backed by New York-based hedge fund Drake Private Investments as its largest shareholder.

Shares in SMS were 1.6 per cent lower to $1.78 each at 11:30am.