ASX Tech Stocks: Droneshield scores $1m contract for counter-drone system

Droneshield nabs $1m contract from international government agency
SensOre eyes non-precious mineral rights at Gecko North where its tech found lithium targets
Cirrus Networks has won $11.5m of contracts for FY23 financial year to date

AI counter-drone company Droneshield (ASX:DRO) has just received a ~$1 million order for several of its DroneSentry-X units for an international government agency.

DroneSentry-X is a vehicle, ship or fixed site counterdrone system that comes in either detect-only or detect-and-defeat variants.

This order is for the full detect-and-defeat variant of the system which includes AI-powered software with quarterly software updates on a subscription basis.

“Small drones continue to demonstrate their capability for surveillance, payload delivery and other nefarious uses in warfare, terrorism and intelligence gathering operations,” DroneShield CEO Oleg Vornik said.

“Combined with a general rise in global tensions and increasing uncertainty, we are seeing a number of our existing and new customers globally strengthen their security posture and accelerate counterdrone acquisition programs.

“For this customer, it is an initial purchase that follows earlier trials, and is expected to follow up with a number of additional systems to be acquired in 2023.”

This order follows a bunch of recent wins for DroneShield in the last couple of months, including:

Being recommended by the Joint Counter-small Unmanned Aircraft Systems Office (JCO) for deployment across US DoD bases within the Science Applications International Corporation (SAIC) consortium;
A win of Small Business Innovation Research (SBIR) project for US DoD with Quantum Research International; and
Orders with US Army, European Government customers, first US airport deployment, and appointment to the Australian Department of Defence Intelligence, Surveillance, Reconnaissance and Electronic Warfare Standing Offer Panel.

DRO share price today:

Other tech stocks with notable news:

SENSORE (ASX:S3N)

The geoscience technology is giving its shareholders the opportunity to benefit from its technology with exposure to any major discovery – signing an agreement with privately held LithGold Minerals at Gecko North to spend a total of $2.5m over four years for a 51% interest in the non-precious mineral rights.

SensOre also has the opportunity to earn another 29% (total 80%) by completing a bankable feasibility study.

“The Gecko North Project demonstrates the combination of AI target generation and conventional exploration techniques coming together to fast-track target development,” CEO Richard Taylor said.

“Importantly, this approach gives SensOre shareholders the opportunity to benefit from the technology with exposure to any major discovery.”

The agreement includes a minimum spend of $270,000 over 18 months and SensOre will also issue $50,000 in SensOre equity to LithGold Minerals on successful completion of conditions precedent and due diligence.

CIRRUS NETWORKS (ASX:CNW)

The managed services and IT solutions company says for the FY23 financial year to date, they’ve won contracts in excess of $11.5m covering 16 Federal Government Agencies and Canberra based businesses, making it the strongest start the business has had to a financial year.

The contracts cover networks and connectivity, collaboration, digital transformation and hybrid cloud, and modern workplace and mobility.

Professional services revenues have been solid year to date, the company said, “despite continued uncertainty within the economic environment and global supply chains as well as tight labour markets and associated cost pressures”.

“We expect a lift in managed services revenue in 2H FY23 given a full six month contribution of the recently won Perth-based ENI Managed Service, as well as the ramp up of the very significant Canberra-based Icon Managed Service from 4Q FY23,” they said.