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􀂃 SMS has protected its technological platform by acquiring a large portfolio of patents. The CVM technology has
established a considerable lead position in Structural Health Monitoring of aircraft with any other emerging
technology having to go through the long, demanding and costly approval process with the large aircraft
manufacturers. SMS expects the technology to outperform any technology likely to be developed by its
competitors. The company has been granted four product patents in the U.S. and is already in the process of
acquiring patents in 24 countries. This is in line with its strategy of becoming a global player in aircraft
maintenance and SHM systems.
􀂃 SMS developed CVMTM based sensors and has secured first mover advantage by getting the sensors approved as a
replacement for the existing manual NDT inspection methods. In recognition of its efforts, SMS was awarded the
Sandia National Laboratories award by the U.S. Government for the first successful installation of Structural
Health Monitoring system on a commercial aircraft. The company has also successfully targeted commercial and
military aerospace markets.
􀂃 The company intends to target other lucrative markets in addition to the aerospace industry. Currently, SMS is
considering the option of monitoring operational stress and fatigue in civil structures, such as bridges and has
developed a remote CVM based system for this purpose. The company is planning to widen its application
spectrum, backed by the potential of CVMTM technology that is validated in the aerospace industry. SMS is also
developing Bridge Monitoring Systems, which will boost its growth. With the infrastructure in developed nations
becoming outdated, the need to monitor the operational sustainability of civil structures is bound to gain more
importance.
􀂃 Going forward, SMS plans to further strengthen its core competency by widening the technology portfolio to
acquire long-term sustainability and profitability in the market. Therefore, to supplement the SHM systems, the
company is developing other innovative technologies. SMS has signed an agreement to develop an advanced strain
gauge technology and is currently assessing the opportunity of commercialising technologies that have been
developed by the Australian Government’s Commonwealth Science & Industry Research Organization (CSIRO).
Though, the strain gauge technology is still in the testing stage, the company expects to commercialize it under the
name Nanostron in the near term.
© Khandaker Partners. All rights reserved. The information and data contained herein is not warranted or represented to be accurate and complete.
This report is intended for U.S. residents and for information purposes only and should not be considered as advice or solicitation to buy or sell any
Security.
􀂃 The Company has a stream of next generation products in development based on the CVM and other technologies
in order to maintain the lead it has established in aircraft Structural Health Monitoring.
© Khandaker Partners. All rights reserved. The information and data contained herein is not warranted or represented to be accurate and complete.
This report is intended for U.S. residents and for information purposes only and should not be considered as advice or solicitation to buy or sell any
Security.
Corporate Events and Actions
􀂃 April 21, 2008 – SMS announced that it has received orders worth US$231,000 (AU$250,000) from Embraer, the
largest Brazilian regional aircraft manufacturer. The order is the first stage of a three-year program to develop and
qualify the company’s leading edge CVMTM system for use on Embraer aircraft. This system is expected to be
incorporated into existing and future Embraer aircraft. SMS is to provide CVMTM instrumentation, sensors and
training and consultancy services to the program.
􀂃 April 14, 2008 – SMS announced that Dr Dennis Roach, a distinguished member of Technical Staff, Sandia National
Laboratories, had offered his congratulations to the CVMTM Sensor team from Boeing, FAA, SMS, Sandia Labs and a
number of U.S. airlines that have received the Sandia Employee Recognition Award (ERA).
􀂃 April 8, 2008 – SMS announced it had achieved an important milestone with the first trial installation of a production
CVMTM system on a Boeing commercial aircraft structure. On March 8, 2007, the company announced the “world’s
first” agreement by The Boeing Company to incorporate its CVMTM structural health monitoring technology into the
Boeing Common Non-Destructive Inspection (NDI) manual.
􀂃 April 2, 2008 – The technology adoption, which would facilitate the installation of a range of CVMTM products on the
　
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