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Highlights:
- The share price of DroneShield increased by 6% to trade at AU$0.18 per share on Thursday, 1 September 2022.
- The artificial intelligence-based platform provider has received an order of AU$2 million from the European market.
- The European customer has placed an order for DroneSentry fixed site detect-and-defeat systems.
Shares of DroneShield Limited (ASX:DRO) are heading north on Thursday (1 September 2022) morning after the company shared that it has secured an order worth AU$2 million from the European market.
The share price of DroneShield surged by 6.06% to AU$0.18 apiece at 10:02 AM AEST. Meanwhile, the All Ordinaries index was down 1.95%, and ASX 200 dropped 2.02% to 6,845.60 around the same time.
Details of AU$2million European order
According to today’s release, DroneShield has received an order from a European Government customer for its multiple DroneSentry fixed site detect-and-defeat systems.
DroneShield said that this order is a record size contract for its European market.
Reportedly, the majority of the payment is expected to be received by the September quarter of the financial year 2022. The balance amount is to be received on installation of the system prior to end of calendar 2022.
What did management say?
Oleg Vornik, CEO, DroneShield, commented on the development that this order demonstrates the company’s progression from developing technology to small scale sales to recurring small size sales to large contracts. Vornik added that there is a significant near-term sales pipeline in place, and now they are getting converted into sales contracts.
Financial performance of DroneShield
Recently, the company had shared its half yearly report for the year ended 30 June 2022 (1HFY22). During these six months, the company generated revenue of AU$3.6 million, a fall of 6% on the previous half. The cash receipts increased to AU$5.2 million from AU$4.3 million in 2HFY21.
While sharing its half yearly results, the group informed the market that it has AU$350 million of identified global sales pipelines. The number includes AU$100 million in projects tracked to the 2022 end.
As per ASX announcement, the company is moving towards the SaaS space by advancing software related work and using a subscription pricing model. The company expects the SaaS business to account for majority of the group’s earnings.
About DroneShield
Headquartered in Sydney, DroneShield offers Artificial Intelligence based platforms that extend protection against advanced threats like autonomous systems and drones. The company is specialised in machine learning, artificial intelligence, counterdrone, RF sensing, Electronic Warfare, rapid prototyping, sensor fusion and MIL_SPEC manufacturing.
The customer base comprises of critical infrastructure, law enforcement, government, military, VIPs and commercial worldwide.
