|
|
Metal Storm Limited (MTSX) |
|
|
|
CEOCFO Current
Issue |
This is a printer friendly page! Metal Storm’s forward-looking
technology is a marriage between information and firepower, compatible with where U.S.
defense forces and Homeland Security are headed BIO: The variable rate of fire, multi-barrel,
multi-caliber capabilities of Metal Storm technology has potential for numerous military
applications, ranging from small arms to heavy caliber, as well as unconventional weapons
systems of advantage, which are not presently available with existing mechanical systems. The HEM (Hybrid Electronic Mechanical) Combat Weapon is a two barrel
hybrid concept. One of the barrels fires NATO 5.56mm ammunition, using a conventional
mechanical system, and the other fires 20mm bursting ammunition utilizing Metal Storm
non-mechanical technology. The AICW (Advanced Individual Combat Weapon) will combine the
fire power of two barrels, with the bottom barrel planned as an upgraded version of the
current STEYR AUG Assault Rifle, firing standard 5.56mm NATO ammunition. The top barrel
will add advanced capabilities to the weapon, being capable of firing different types of
projectiles, ranging from potentially 20/40mm air bursting projectiles, to
less-than-lethal projectiles. This barrel will incorporate Metal Storm's electronic
ballistic technology, with the projectiles stacked in-line directly in the barrel. The Metal Storm ADWS (Area Denial Weapon System)
landmine replacement system differs from conventional minefields in that it places no
active explosives in or on the ground. Rather, the system works by positioning boxes or
"pods" of massed barrels containing various payloads, which may be ammunition,
cameras or non-lethal ammunition. Metal Storm's O'Dwyer VLe handgun is a 100% electronic
handgun. Its totally electronic firing system replaces conventional mechanical operating
parts and loading mechanisms, allowing guns for the first time to fully benefit from
modern computer technology. Presently in the prototype stage, the seven shot single
barrel, live firing O'Dwyer VLe handgun has an in-built electronic security system to
limit its use to authorized operators. As an electronically-controlled delivery system,
Metal Storm technology is expected to have significant non-military commercial
applications. In some applications bullets may be substituted by 'containers' of much
larger volume. Potentially significant commercial applications of the technology emerge by
varying the contents of the containers. Fire Fighting: Containers of fire retardant
chemicals can be substituted for bullets and be placed into modules. Agriculture: A
similar application is expected to enable distribution of containers of farm fertilizer,
seeds, herbicides or pesticides. Industrial Fastening: Industrial fasteners can be
substituted for bullets and fired from a portable multi-barreled multi-caliber unit,
eliminating the need to change equipment for different sized fasteners. Oil and Mineral
Exploration: The ultra rapid rate of fire capability of the technology allows the
development of a new means of generating complex seismic exploration signals in oil and
mineral exploration and recovery. It also allows harmonized acoustic fracturing of
hydrocarbon deposits, to enhance oil recovery from existing wells. CEOCFOinterviews: Mr.
Vehlow, please tell us about Metal Storm Ltd. and what services you provide? Mr. Vehlow: “Metal Storm is a new company that represents an exciting technology in the area of ballistics and electronic ballistics. The technology was invented by an Australian, Mr. Michael O’Dwyer, a number of years ago. The company itself has moved forward in both Australia and the United States. The technology is one that allows us to stack projectiles in barrels and fire them electronically, as opposed to having to cycle them through a single chamber through a mechanical mechanism. As a result of our ability to stack rounds, we are able to fire them much faster. Additionally, we can group different sized barrels together and let the operator at an electronic console select how he wishes to engage a target and with which weapon or caliber of that weapon he wants to use. The analogy is kind of like the head of a dot matrix printer. That is, when you request a printed letter on the paper, an electronic command goes to the printer cartridge, it heats up the ink and is squirted out on the paper. Metal Storm technology is essentially analogous to that through the multi-barrel stack round concept.” CEOCFOinterviews: Where is the company today in getting this to market? Mr. Vehlow: “Metal Storm Ltd. has looked very hard for the best market available to the technology and decided to initially focus on the U.S. defense market. After that focus on the defense market, we will look at commercial applications and other secondary potential licensing opportunities. We have established an office in Arlington, Virginia and I have been recently appointed CEO of the company.” CEOCFOinterviews: Why are you the right CEO at this juncture? Mr.Vehlow: “My background is in defense and I was an army helicopter pilot in Vietnam. I earned a Master of Science degree in Aero Engineering from MIT and Masters in Business Administration from Long Island University. Besides 28 years in the government on the operational side and the acquisition side, I had experience building helicopters, managing major helicopter programs from McDonnell-Douglas and The Boeing Company (NYSE: BA). I was asked if I could move Metal Storm forward into the defense market with a focus on Research and Development. Our product is one that still needs some development, but is well positioned with respect to initiatives on transformed forces that are using new electronic and digital type capabilities, as well as the initiatives that Homeland Security is bringing in with respect to protection and defense of high-value infrastructure facilities throughout the United States.” CEOCFOinterviews: Why the need for new technologies? Mr. Vehlow: “The technologies that are out there today have been around for a long time and they are mechanical technologies. They require a hands-on operator in most cases and they are very intensive from the standpoint of cost of maintenance and over-all operator requirements. What we offer is the ability to bring the electronic age into weaponry, and at the same time, integrate that with information. I think we are seeing on the Iraqi battlefield today how key information is; the ability for sensors, aircraft and un-manned air vehicles to target units and then send that information back to the commander to be used either through smart munitions or as a way of how they engage those targets. We think that the timing is great from the standpoint of Metal Storm’s capability in terms of fire-power and linking that to electronics. Additionally, with the electronic capability, we can fire at rates in excess of a million rounds per minute. That is impressive from the standpoint of comparing to current systems that fire typically at the rate of four or five hundred rounds per minute and some Gatlin guns being at the rate of three to six thousand rounds. We can put an awful lot of firepower onto a specific target if that happens to be the desire of the community.” CEOCFOinterviews: What is the market for the new technology in the defense department? Is it competition to be heard or competition to prove what you can do? Mr. Vehlow: “I think the competition in technology is very fierce. Commercial applications and technology pushes forward and that has a way of pushing weaponry forward. Were it not for electronics and the ability to electrically fire these multi-stacked cartridges, we would not be able to have a Metal Storm system. However, at the same time, we believe we are the only system today that offers this technology and this capability. We have multiple patents that are already registered and approved throughout the world. We continue to improve that patent portfolio because for small companies, intellectual properties are really the ‘family jewels’ with regard to the ability to commercialize that and move it forward into the marketplace.” CEOCFOinterviews: Where is Metal Storm positioned in its relationships with the US government? Mr. Vehlow: “We have been looking at the defense department opportunities and contacting many different agencies. We have been talking specifically with the Army, the Navy and the Air Force, with regard to their developmental agencies and labs, as well as specific program offices with respect to what we offer and what we represent as far as future growth and future development. We have won a number of contracts that will continue to move our technology forward with the Picatinney Arsenal, in terms of a robotic demonstration of our capability, with the U.S. Navy, through their CRANE facility and looking at Close-In ships defense, and through the missile defense agency and relating our technology to the STRATESPHERic Air SHIP. Another product we have is a handgun and we have a contract with the National Institute of Justice. That is to study and recommend a smart handgun capability. The handgun that we have reflects our technology and the ability to fire multiple rounds. What NIJ is looking for is the ability to have that individual weapon linked to the officer or the user in such a way that if it is taken away, stolen or dropped, it cannot be used against him. There is a lot of technology out there that has that capability. We can integrate fingerprint technology, electronic digital coding, and things such as that, directly into our handgun because it is an electronic gun. That is what is so interesting, exciting and challenging about the technology. While the technology is very simple, the application of the technology can cover many broad areas. We are talking with developmental agencies, services and program offices to find where people have an interest in the technology and a desire to incorporate it into developmental programs or technology enhancements that are part of their current efforts.” CEOCFOinterviews: Is the current world situation causing interest or is there a willingness to spend ? Mr. Vehlow: “I think the world circumstances under which we live have changed significantly, particularly since 9/11. The issue of security and particularly Homeland Security is certainly much more predominant now. Of high importance is defense of key installations, key military facilities, key public buildings, and high-value assets such as hydro-electric and nuclear power plants. The government and our nation will be getting very serious about potential threats against those and how we should be prepared. I think that is a way of life that we are going to have to accept, as a way of keeping our freedom and making sure those types of facilities are secure. With respect to our defense forces, I think that the current Iraqi crises is an outstanding demonstration of what U.S. technology can bring to the battlefield, not only today but to the battlefield of the future. It is not a function of brute force but a function of using information and then using selected firepower to engage and destroy the enemy.” CEOCFOinterviews: Will you be manufacturing product or licensing technology? How will the revenue come in? Mr. Vehlow: “Revenue will initially come in through research and development contracts. As we move those through testing and into prototype demonstrations, we will then look to manufacture and deliver production product. Right now, Metal Storm is talking to a number of different companies that could be contract manufacturers for us. We are not looking to build large facilities or to acquire facilities at this time. We would rather focus on completing the development, testing and certification of the product and then finding good partners. There are a lot of them not only in the U.S. but throughout the world to help us build that product and put it on the shelves so it can be sold.” CEOCFOinterviews: Will you tell us about the financial condition of the company? Mr. Vehlow: “We are a publicly listed company, listed on both the Australian Exchange and on Nasdaq. We are sold through American Depositary Receipts (ADRs). We have recently completed a private investment raise, as well as the money that comes to us through the stock market. We are financially viable and monitor our burn rate very carefully. We are looking to become cash positive within the next twelve to eighteen months.” CEOCFOinterviews: What should potential investors know that may not be apparent at first glance? Mr. Vehlow: I think potential investors should know the technology and the forward-looking part of Metal Storm’s technology is really compatible with where U.S. defense forces, Homeland Security and security efforts are headed. An information and firepower marriage is something that we feel very comfortable with, with respect to our current market space. We feel we are there without significant competition. We represent a good investment now for what lies ahead for us in the future. We like the space that we are in. We like the developmental efforts that we have and we certainly like the opportunities that are ahead of us, from the standpoint of the military and the military systems. It is an exciting technology and we really appreciate the people that have already invested in Metal Storm. We look for some exciting things in the future.” disclaimers |
|
|
|
To view Releases highlight & left click on the company name!
|
|
