Structural Monitoring Systems Updates Investors on FAA Certification Progress
SMN (SMN) Share Update July 2024 Tuesday 16th
SMS Provides Update on FAA Certification Progress for CVM Smart Sensors
Structural Monitoring Systems Plc (ASX: SMN) has provided an update on the progress of FAA certification for their CVM Smart Sensors, specifically for the Aft Pressure Bulkhead inspection in Boeing 737 aircraft.
Instant Summary:
- Final tests for CVM Smart Sensors completed in May 2024.
- Boeing's Structures Technical Design Review Meeting rescheduled to August 1, 2024.
- FAA acceptance of Cert Plan anticipated by August 15, 2024.
- CVM deliverables to be routed to Boeing ODA for approval by September 3, 2024.
- FAA approval of deliverables and Service Bulletin release dates remain TBD.
Certification Progress
Structural Monitoring Systems Plc (SMS) has provided an update on the progress of the FAA certification for their CVM Smart Sensors, which are designed to inspect the Aft Pressure Bulkhead in Boeing 737 aircraft. The company announced that final tests were completed in May 2024, and Boeing is currently evaluating the results. The evaluation process was initially expected to be completed by the end of June 2024.
However, due to the availability of review members during the holiday season, the Structures Technical Design Review Meeting has been rescheduled to August 1, 2024. Despite this delay, SMS remains optimistic about the outcome of the tests and the overall progress towards certification.
Updated Timeline
The updated timeline for the certification process includes several key milestones. The draft copy of the proposed new service bulletin was circulated to the four largest US carriers (South West, United, Delta, American) in May 2024. The completion of Low-Stress Coord Sheet Test Requirements was confirmed in June 2024. The Cert Plan is set to be resubmitted to the FAA and EASA by July 17, 2024.
The Boeing Structures Technical Design Review Meeting is now scheduled for August 1, 2024. FAA acceptance of the Cert Plan is anticipated by August 15, 2024, although this may be impacted by the delayed submission. The Cert Plan deliverables are expected to be completed by August 30, 2024, and routed to Boeing ODA for approval by September 3, 2024.
Future Steps
The submission of CVM deliverables to the FAA, including Service Bulletins and Compliance Reports, was initially planned for September 30, 2024, but the exact date is now TBD. Similarly, the FAA approval of deliverables and the release of the Service Bulletin with AMOC, initially expected by December 20, 2024, are also TBD.
SMS is in ongoing discussions with Boeing to align on expectations for the conclusion of the certification process and to discuss the next priorities for their technology. A meeting is expected to take place within the next three weeks.
The delay in the certification process may cause some uncertainty among investors. However, the successful completion of final tests and the continued progress towards key milestones are positive indicators. If the certification is ultimately successful, it could significantly enhance SMS's market position and open up new opportunities with major US carriers.
Investor Reaction:
Investors have shown patience and optimism, encouraged by the progress reported by SMS. Analysts believe that the successful certification of CVM Smart Sensors could lead to substantial growth for the company, especially given the interest from major US airlines.
Conclusion:
Investors should continue to monitor updates from SMS regarding the FAA certification process. The outcome of the upcoming Boeing Structures Technical Design Review Meeting on August 1, 2024, will be crucial. A successful certification could lead to significant advancements for SMS and its shareholders.