DroneShield Ltd (ASX: DRO) shares are climbing in mid-morning trade following the company's announcement of a contract win. At the time of writing, the DroneShield share price is swapping hands for 16.75 cents, up 8.06%.
What's pushing the DroneShield share price higher?
The DroneShield share price is soaring following the company's latest update released prior to this morning's open.
In its announcement, DroneShield advised it has been awarded another government contract from a Five Eyes country. The term 'Five Eyes' relates to a signals alliance between the United States, Canada, Australia, the United Kingdom, and New Zealand.
DroneShield noted that the new order, valued at $1 million, exceeds the original purchase made by the high-profile government customer. The company received a $500,000 payment in the June 2020 quarter for the trial procurement of the same product.
It's expected that the full payment of the current order will be accepted sometime in the June quarter of this year.
In further news boosting the DroneShield share price, the company also highlighted that current discussions are underway for follow-up orders with this customer. While the purchase amounts are still yet to be confirmed, DroneShield will update investors in due course.
What does DroneShield do?
According to DroneShield, the company is a global leader in drone security technology. It 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.
Words from the CEO
DroneShield CEO Oleg Vornik welcomed the repeat order, saying:
We are pleased to continue to support and strengthen our partnership with this customer, who has some of the most demanding requirements globally.
This significantly larger follow-on order is a testament to both the industry leading capabilities of DroneShield products and an example of a common procurement pattern in our industry, where an initial order and evaluation might take some time, but once the solution has been validated and thoroughly vetted by the end user, larger follow-on orders result.
The DroneShield share price has risen by just under 40% since this time last year. Year to date, however, the company's shares are down by around 7%.
