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This Small Business Innovative Research (SBIR) Phase I project will demonstrate the feasibility of using a new type of adaptive receiver as part of a low-cost laser ultrasonic inspection system for manufacturing inspection and process control. The test of feasibility will be very high detection sensitivity, while maintaining the capability to compensate for mechanical vibrations and atmospheric turbulence that are present in the factory environment. High sensitivity helps to reduce power/energy requirements for lasers used in an inspection system and thus to reduce overall production costs. The cost of the receiver, itself, will also be lower as a result of simplicity of design. Phase I will develop analytical models to describe receiver performance, characterize receiver experimental performance, and evaluate a laboratory prototype eceiver. There is a broad need for low cost sensors for many manufacturing applications. Laser ultrasonic inspection can be used to inspect hot and/or rapidly moving parts and to scan large structural panels. Systems cost reduction is expected to justify laser ultrasonic inspection over a wider range of manufacturing applications