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SMN - STRUCTURAL MONITORING SYSTEMS PLC


mminion

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Well dr_dazmo,

 

 

I think we have just had our dawn. How timely your previous post.

 

 

I am of the view the company is very much restricted on what it can say about progress and deliberations with any of the partners they are dealing with hence the virtual news blackouts. Thus in an indirect but very positive way they announce a significant expansion to their sensor production rate by about 4 times, employment of specialised staff to handle this production and a comment about the breadth of potential airlines they are dealing with. So the company wouldnÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢t be doing this unless they knew some partnerships were all but imminent. I regard this announcement as huge.

 

 

Yes indeed it had become dark before this dawn. But now might there be light!!!!

 

 

 

 

Structural Monitoring Systems plc (ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“SMSÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚ or ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“the CompanyÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚ÂÂ) is pleased to reaffirm that the recent acquisition of Anodyne Electronics Manufacturing Corporation (ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“AEMÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚ÂÂ) has provided SMS with a fully integrated R&D and manufacturing platform. SMS now fully controls and oversees the critical manufacturing, engineering, R&D and quality assurance functions related to the CompanyÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s CVMÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâ€Â¦ÃƒÆ’‚¾ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ technology platform ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâ€Â¦ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ coinciding with the commencement of SMSÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s full global commercial rollout of CVMÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâ€Â¦ÃƒÆ’‚¾ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ to major aerospace OEMs and airlines. The process of identification and formal approval for multiple applications, on multiple aircraft types with multiple airlines, is now well underway.

 

The clear path, and proximity, to significant revenue has allowed the Company to accelerate several key operational and platform decisions:

 

1- Significantly expand CVMÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâ€Â¦ÃƒÆ’‚¾ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ manufacturing capacity at AEM

 

Sensor production capability at the AEM facility is currently limited to approximately 500-600 sensors per month, due primarily to a lack of clean-room capacity and floor area. The Company will increase sensor production capacity to, initially, approximately 2,000 sensors per month through:

 

1- significantly expanding the footprint area of the production clean room,

 

2- purchasing a new, state-of-the-art laser machine used to manufacture the sensors. The cost of this machine is approximately C$40,000,

 

3- the identification and on-boarding of additional CVMÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâ€Â¦ÃƒÆ’‚¾ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ equipment line-production staff which will effectively treble current production staff headcount, and

 

4- the identification of additional primary materials and parts suppliers to provide full redundancy back up and eliminate potential bottle-necks that could negatively impact ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“in-houseÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚ production capacity.

 

With these core changes implemented over the next 90 days, estimated top-line monthly sensor revenue will increase to several US$-million per month, and as a clear demonstration of the previously highlighted operating leverage the Company enjoys, this revenue capability will be achieved with a total capital investment of less than $C200,000. SMS firmly believes that the immediate planning and integration of the measures above is essential to satisfying projected industry demand for CVMÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâ€Â¦ÃƒÆ’‚¾ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ sensors and related equipment in 2018 and beyond.

 

 

 

 

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Hi Draughtsman,

Sometimes wishful thinking actually pays off!

 

An increase in production capacity by 233-300% per month seem to indicates the company are confident of substantial industry uptake in the near future.

Perhaps discussions with the FAA, OEMs & Operators are finally gaining traction.

 

I'm also hoping that "With these core changes implemented over the next 90 days, estimated top-line monthly sensor revenue will increase to several US$-million per month.." the company isn't being overly optimistic.

Given that 90 days isn't too far off, and even allowing for some slippage in targets, I doubt that the Management would make such a statement without solid indications from customers.

 

I'm pleased to see some beefing up in the human resources, which again suggests the ducks are finally waddling into a row.

 

I must confess, I was very tempted to buy a few more yesterday to top up my holding, but despite my wishful thinking, my track record in picking the bottom kept me on the sidelines! :sleep:

 

Cheers

Dr_Dazmo

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Hi Draughtsman,

Just wondering your thoughts on the "estimated top-line monthly sensor revenue will increase to several US$-million per month".

 

"Several" million per month implies (to me) in the order of $US2-3m or potentially $24-36m p.a.

 

As previously announced (half yearly report), the Delta agreement indicated "initial threshold sales of CVM equipment to Delta are expected to generate about US$6-7 million in revenue for SMS within the next 2 years."

 

Was the Delta estimate wildly conservative (or based on fewer aircraft applications) or could it be that Delta (and maybe Embraer) have worked their magic and signed up a number of operators across a number of applications?

Perhaps, a major OEM is planning to put out a directive to use CVM across a number of aircraft / applications?

 

Interesting times! :rolleyes:

 

Cheers

Dr_Dazmo

 

 

 

 

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Hi All,

Looks like clarification from "Will" to "Potentially".

 

I would obviously have preferred "Will", but equally as disappointing is that the internal processes didn't raise a red flag on the wording before the original release was issued. :stun:

Maybe there needs to be a review of the Investor Relations management?

 

Still a positive announcement, just not as (immediately) positive.

 

Cheers

Dr_Dazmo

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Hi All,

If sensor inventory production can potentially be increased by $3-4 million per month, and sensor production is planned to be approx 2,000 per month (initially), is the cost per sensor $1500-$2,000?

Not sure if my understanding is correct, or if the initial sensor production clouds the issue?

 

Cheers

Dr_Dazmo

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As well as a sell price for their sensor I understand they also are to receive a licensing fee as well.

 

So whether this fee is included in their $3-4m per month is quite an unknown. But hey as you say $3m to $4m per month is $36m to $48m per year and is a heck of a good start. But it is almost the case that the more information this company releases the more there is to speculate upon.

 

I wonder if there is some sort of tipping point to be reached where once a few airlines are in on this sensing technology then they will all have or want to follow? I would like to think that this will be the case.

 

And thanks for keeping us well primed on news on this stock dr_daz

 

cheers

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Hi All,

An updated Top 20 shareholders was recently posted on HC.

The report isn't dated (from what I can see), so it could potentially be relatively old, or possibly quite current.

The company website hasn't been updated since 31 March 2017.

 

Anyway, it shows some movement within the top 20, with an additional 938K shares moving into the Top 20.

The most notable is perhaps the re-entry of Mr Paul Cozzi with 1.28m shares, and the departure of Kinetic Trade P/L (who previously held 621K).

 

Also of interest is the reduction in Bryan James McLarty's shareholding by 48,351 shares.

McLarty previously held slightly over 4m, so the sale seems quite insignificant in the grand scheme.

It does make me wonder if, as the Top 20 is simply a snapshot, the reduction in shareholding of 48K is simply the net balance of some significant movements between the latest Top 20 report & the previous back in January?

 

I love a good conspiracy theory, and coincidentally, the shareholding of JP Morgan Nominees is up 50K from 1.874m in January.

As a novice, it seems odd that individuals/entities with such relatively large shareholdings would be selling (or buying) 50K here & there as a single transaction (although it is no doubt a possibility).

It could also be possible that a couple, or potentially several, connected Top 20 shareholders/entities have (and possibly are) moving shares between their various entities in order to massage the price lower with the ultimate aim of increasing their collective shareholdings (the Top 20 are up 938K since Jan18).

Of course, I could be entirely wrong & it is simply the result of some internal portfolio rebalancing. :laugh:

 

Cheers

Dr_Dazmo

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