The DroneShield Ltd (ASX: DRO) share price is edging higher today following the release of its quarterly report for FY21.
Most of the day, the defence contractor's shares were flat. However, they have since lifted up 2.94% to 18 cents at the time of writing.
What does DroneShield do?
A global leader in drone security technology, DroneShield designs and develops detection systems that use specialised technology to protect people, organisations and critical infrastructure from drones.
Its multi-layered drone countermeasures include detection and disruption products which are much needed in the current environment.
Business update
For the period ending 30 September, DroneShield reported a robust result, despite COVID-19 impacts on areas of the business.
Multiple orders from a range of European, United States, Australian and other customers have contributed to $5.2 million in orders. A majority of these contracts is expected to be fulfilled in the current quarter.
Shipments and payments were affected in the short-term by COVID-19, with $0.4 million in operational cash inflows. In October alone, $0.8 million has been received thus far, doubling the prior quarter.
The company's pipeline is estimated to be around $100 million, underpinned by substantial United States government business. This includes the first research and development project to enhance the existing DroneSentry-C2 command-and-control system.
In addition, DroneShield has been shortlisted for a major-state-wide prison contract in the United States. The value is said to be worth around $15 million and will be announced between Q4 FY20 and Q1 FY21.
The company ended the quarter with a cash balance of $17.3 million.
Outlook
As international tensions rise, DroneShield is seeing countries increase their defence budgets to accommodate the threat of war. Its products have been used in more than 100 countries around the world through its wide distribution network.
The company said it was not dependant on any one customer for success, and continues to diversify product and service offerings into new markets.
DroneShield share price summary
The DroneShield share price has been slowly recovering from the fallout of COVID-19. After hitting a low of 8.4 cents in March, the company is tracking on an upward trajectory. With a market capitalisation of $67.9 million, DroneShield has room to grow and cement itself as a leading defence contractor.
