Droneshield finds deal-flow momentum with new military contract
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Drone technology company Droneshield (ASX:DRO) has continued its strong run of news flow with two more announcements to end the week.
The company this morning announced the sale of its DroneSentry system — a platform service comprised of radars and electro-optic defence systems — to the military of an unnamed south-east Asian country.
Revenue from the deal is expected to be around $1m, Droneshield said.
Shares rose by almost 40 per cent yesterday afternoon, after the company said it had received funding from the United States Department of Defense (DoD) for the development of its DroneShieldComplete system,
The stock rose again today, bringing gains since May to more than 100 per cent, although still well off last October’s high of around 45c.
Commenting on today’s announcement, Droneshield CEO Oleg Vornik also highlighted recent sales agreements for military customers in the US and Europe.
“There is now a clear momentum in customer adoption of our products. Combined with our on-the-ground representation in over 100 countries globally, we are now starting to see our extensive pipeline converting into end user orders,” Vornik said.
For its latest contract announcement, Droneshield said each of the inputs would feed into the DroneShieldComplete Command-and-Control (‘C2’) engine — providing a multi-functional system to nullify drone threats.
“As a full capability initial order, it is expected to lead to additional multi-million-dollar sales following its deployment,” the company said.
The funding from the US DoD will go towards the development of feature enhancements on the DroneShieldComplete system, which the company expects to be a pillar of its sales strategy going forward.
“Importantly, following that period, the DoD is expected to make multiple purchases of DroneShield’s C-UAS equipment, which would run on the enhanced DroneShield Complete” system,” the company said.