Why the DroneShield (ASX:DRO) share price is surging higher

The DroneShield Ltd (ASX: DRO) share price is up 5.8% today following the company’s record fourth-quarter performance.

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Source: Droneshield Prospectus

The DroneShield Ltd (ASX: DRO) share price is running hot today following the company’s record quarterly results.

At the time of writing, the defence contractors’ shares are up 5.8% to 18 cents. In comparison, the All Ordinaries Index (ASX: XAO) is up 0.1% to 6,856 points.

Quick take on DroneShield

DroneShield is a global leader in drone security technology. The company designs and develops detection systems that use specialised technology to protect people, organisations and critical infrastructure.

Its multi-layered products are centred around on detection and disruption from unmanned aerial systems (UAS).

What did DroneShield announce?

In this morning’s ASX release, DroneShield advised that it has achieved a record fourth quarter in cash receipts.

For the three months ending 31 December, the company collected around $2.1 million from purchases in relation to its counter-UAS technology. In addition, DroneShield was awarded $250,000 in grants during the period, bringing the total to $2.4 million received.

The company will release further information about its quarterly results before the end of the month.

DroneShield CEO Oleg Vornik welcomed the results, saying:

The record quarterly receipts consisted of a wide geographic range of customers, including the Five Eyes countries and a number of others.

Our global model continues to ramp up as defence customers increase their spending, despite the COVID environment. The quarterly receipts also include both first time and repeat orders. Importantly, both our near-term pipeline and the manufacturing order book are at an all-time high.

DroneShield share price snapshot

Over the past 12 months, the DroneShield share price has faulted, sending shareholders returns to a loss of 37%. The company’s shares hit an all-time low of 8.4 cents in March last year from COVID-19 impacts.

Since then, the DroneShield share price has moved higher, but is still a long way off its 52-week high of 30 cents.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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