CPS Technologies and Triton Systems Announce New Licensing Agreement
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The exclusive manufacturing licensing agreement between CPS Technologies and Triton Systems for Fiber-Reinforced Aluminum (FRA) Composites signifies a strategic move that may impact the materials sector, particularly in high-performance applications. FRA Composites are known for their superior wear-resistance and ability to withstand higher service temperatures, which can be a game-changer for industries that operate in extreme conditions, such as aerospace and defense.
From a materials science perspective, the isotropic properties of these composites, which mean they have uniform properties in all directions, can lead to significant improvements in reliability and durability of components. This could potentially reduce maintenance costs and extend the lifecycle of critical parts. Moreover, the integration of short ceramic fibers into high strength aluminum alloys is a notable advancement in composite materials, offering a unique blend of lightweight characteristics with enhanced mechanical strength.
The involvement of CPS Technologies in military applications, coupled with the patented FRA technology's suitability for use in military vehicles, positions the company to potentially secure lucrative contracts in the defense sector. The military's ongoing quest for advanced materials that can provide better protection and performance while reducing weight is well-documented. The application of FRA Composites in fixed-wing aircraft, helicopters, tiltrotor aircraft, UAVs and combat vehicles could lead to enhanced operational capabilities and improved survivability in combat scenarios.
In the long term, this partnership could result in CPS Technologies becoming a key supplier of high-performance materials for defense platforms, which could translate into a steady revenue stream, subject to the success of the technology's adoption and the scale of production achieved.
The financial implications of the licensing agreement for CPS Technologies hinge on the company's ability to capitalize on the exclusive rights to manufacture and sell FRA Composite products. The revenue-sharing model, where Triton receives a percentage of revenue from each FRA item sold, suggests a mutual interest in maximizing sales volume and market penetration. This could incentivize both parties to actively promote the adoption of FRA Composites across various industries.
Investors should monitor the adoption rate of FRA Composites in target markets, as well as the operational efficiency of CPS Technologies in scaling up production. The undisclosed terms of the agreement add a layer of uncertainty and stakeholders would benefit from transparency regarding potential financial obligations and the expected timeline for return on investment. It is also crucial to assess the competitive landscape and the potential for other advanced composites to challenge FRA's market position.
NORTON, Mass., March 06, 2024 (GLOBE NEWSWIRE) -- CPS Technologies Corporation (NASDAQ:CPSH) (“CPS”) and Triton Systems, Inc. (“Triton”) today announced they have signed a manufacturing licensing agreement for Fiber-Reinforced Aluminum (FRA) Composites®. Under the agreement, CPS has acquired the global, exclusive right to manufacture and sell products made using Triton’s FRA Composite technology. Triton possesses robust patent protection related to the technology, developed over a number of years. Triton will be compensated as a percent of revenue for every FRA item sold; additional terms were not disclosed.
FRA Composites are comprised of high strength aluminum alloys discontinuously reinforced with short ceramic fibers. They offer superior wear-resistance, increased aluminum service temperatures, and isotropic mechanical and physical properties. Based on these unique properties, the patented FRA material system has a multitude of applications in military vehicles (fixed-wing, helicopters, tilt rotor, UAVs, and combat vehicles) and commercial markets (aerospace, motor sports, heavy trucks, and oilfield drilling).
”For several decades, CPS has produced a variety of metal matrix composite materials using advanced manufacturing processes for both military and commercial applications,” said CEO & President Brian Mackey. “Adding FRA Composites to our product portfolio enables us to build upon our core competencies, provide value for our customers, and more rapidly grow the business. We are excited by the opportunity to partner with Triton to leverage our production capabilities going forward.”
“CPS is the ideal partner for us to leverage over a decade of Triton’s FRA composites technology development, launch the next phase of large-scale FRA composites manufacturing and insert a variety of FRA-based products into aerospace, defense and other markets,” noted Triton’s Executive Vice President, Dr. Anant Singh. “With this partnership, we will build further on our demonstrated track-record of developing deep science based innovations and collaboratively driving them all the way to implementation on the nation’s premier defense platforms and into commercial markets.”
About CPS
CPS is a technology and manufacturing leader in producing high-performance materials solutions for its customers. The company’s products and intellectual property address critical needs in a variety of applications, including electric trains and subway cars, wind turbines, hybrid vehicles, electric vehicles, Navy ships, the smart electric grid, 5G infrastructure and others. CPS hermetic packages can be found in many Aerospace and Satellite applications. CPS’ armor products provide exceptional ballistic protection and environmental durability at very light weight. CPS is committed to innovation and to supporting our customers in building solutions for the transition to clean energy.
About Triton
Triton Systems, (Triton) was founded as a technology and business incubator in 1992. Headquartered in Chelmsford, MA, Triton has grown to a global footprint by taking breakthrough ideas in a broad range of disciplines and creating a series of commercial products and independent spin-offs – represented by over
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CPS Technologies Corporation
111 South Worcester Street
Norton, MA 02766
www.cpstechnologysolutions.com
Investor Relations for CPS:
Chris Witty
646-438-9385
cwitty@darrowir.com
