The DroneShield Ltd (ASX: DRO) share price blasted up by 26.67% today within minutes of announcing it had obtained funding from the United States Department of Defense (DoD). DroneShield manufactures systems to detect and disrupt drone activity. This range of non-ballistic technologies includes base stations and field use weapons.
What moved the DroneShield share price?
The company announced targeted funding for the development of its DroneShieldComplete Command-and-Control (C2) system. This is an intuitive and feature rich C2. It provides real time alerting, tracking and reporting information. The DoD is working with the company to provide funding for an agreed list of feature enhancements. In addition, the project is expected to span over several months. Accordingly, the DoD is expected to make multiple purchases of DroneShield products to run on the enhanced control system.
Investors have seen a lot of good news that has impacted the DroneShield share price in recent time. Specifically, orders from 2 European countries, including one new client. As well as a successful deployment of its DroneSentinel system at a medium-sized European Airport.
Some of the companies other recent deployments during CY20 include EU Police 4-year framework agreement for DroneGun Tactical units, European Ministry of Defence purchase of DroneShield command and control systems, as well as several other orders for anti-drone technology.
What did management say?
DroneShield CEO Oleg Vornik said the project underscored the company's leadership not only as a product/sensor manufacturer, but also as an integrator of fixed site and mobile C-UAS systems. He said:
We are proud to be working with the United States Department of Defense, one of most demanding defence customers globally, on this project to ensure our DroneShieldComplete C2 stays at the cutting edge of customer requirements.
This contract is a material milestone in cementing our close working relationship with the largest defence customer globally. In addition to expected purchases associated with this paid development contract, further orders for other DroneShield solutions are expected as part of developing a trusted supplier relationship with this customer.
Droneshield share summary
The Droneshield share price is up by 23.33% at the time of writing. Over the past month it has risen by 43.4%. The company achieved revenue from customers of $3.07 million for the 1H20 half-year period, an increase of 29% relative to the prior half-year. Moreover, it continues to progress a formal contract in relation to the previously announced $70–$85 million Middle Eastern bid.
