DroneShield shares up 23pc on record purchase order

DroneShield shares up 23pc on record purchase order

Droneshield's DroneGun MKIII.

After counter-drone technology company DroneShield (ASX: DRO) reported yesterday it was on track for record results this year, today it has announced a single order that surpasses its entire revenue for 2021.

The Sydney-based company's shares surged almost 23 per cent to reach 21.5cps in the morning trade after revealing a Government agency customer had put in an all-time record purchase order of $11 million for a variety of counterdrone/Counter Unmanned Aerial Systems (C-UAS) equipment. 

Due to the nature of its industry, DroneShield is seldom able to report the specific agencies it sells to, but the latest deal is of a magnitude higher than two others around the $1 million-mark over the past couple of months that were for an 'international Government agency' and a "Government agency of an Asian country allied with the West".

The group's technology is used around the world, and Oleg Vornik has previously told Sky News that DroneShield's equipment has been used in the Ukraine conflict via a military aid contract. The CEO himself is on a sanctions list from Russia's Foreign Ministry.

"With this transformational next step in DroneShield’s growth, and as the counterdrone industry continues to rapidly grow, we look forward to rapidly fulfilling this contract," Vornik said in an ASX announcement this morning.

"From the start of the Company seven years ago, DroneShield has demonstrated a consistent progression, first by building and then refining its product suite along with global distributor network, then moving to customer demos, followed by initial smaller sales, repeat $1 million-plus sales, and now moving into $10 million-plus sales territory," he said.

"Over [the] last 24 months, we have made a significant investment in scaling our operations, to ensure we continue to meet delivery expectations of our customers as we rapidly scale up."

This large contract win follows a number of other recent wins for DroneShield in last couple of months such as a recommendation by the US Department of Defence's Joint Counter-small Unmanned Aircraft Systems Office (JCO), and the first US airport deployment among other deployments across US, European and other Government customers.

The latest deal also comes roughly a month after DroneShield received a $3.7 million investment from California-headquartered Epirus, a developer of software-defined directed energy systems that enable unprecedented counter-electronics effects and power management solutions to optimise power efficiency in defense and commercial applications. This new investor has raised approximately US$300 million since it was founded in 2018.

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