DroneShield (ASX:DRO) share price rises on new customer order

The DroneShield Ltd (ASX: DRO) share price is on investor radar today after announcing an order from a new customer. Here's all the details.

Aaron Teboneras

Author bio Aaron Teboneras is an ASX investment writer with a background in business, marketing and finance. He has been a contributor to The Motley Fool since 2020, covering market news, company announcements, broker views and financial results. Aaron’s previous notable appointments include National Australia Bank, and Computershare where he discovered his passion for the Australian sharemarket. Aaron has been investing for almost 20 years, using both fundamental and technical analysis to find opportunities. Aaron completed a Technical Analysis course with Mint Analysis in 2022 and is currently studying Training and Assessment. Outside the market, he has travelled to more than 45 countries and enjoys trekking, meeting new people and seeing different parts of the world. Areas of expertise ASX growth shares Founder-led companies Company announcements and financial results Fundamental and technical analysis Education Bachelor of Business from RMIT University Social media LinkedIn Instagram Favorite investment quote “If you don't find a way to make money while you sleep, you will work until you die.” — Warren Buffett

Published April 6, 2021 2:07 pm AEST

The DroneShield Ltd (ASX: DRO) share price is on investor radar today after announcing an order from a new customer. In early afternoon trade, the drone technology company's shares are swapping hands for 16.5 cents, up 3.1%.

DroneShield specialises 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 detection and disruption from unmanned aerial systems (UAS).

A young man pointing up looking amazed, indicating a surging share price movement for an ASX company — Image source: Getty Images

New customer opportunity

DroneShield shares are reaching higher after the company delivered a positive update to the ASX.

According to its release, DroneShield advised that it has received an initial order from a high-profile law enforcement agency in the United States.

DroneShield noted that the purchase order includes a mobile system of two passive/non-emitting UAS detection sensors. The platform is designed to operate in a mobile theatre with a rapidly deployed system setup. This allows the user to quickly detect and track incoming UAS.

The company stated that the contract is not material in value, but expected to lead to follow up orders. In addition, it's possible that other United States law enforcement agencies could place their own orders should this initial order become successful.

Total customer receipts for this contract is expected to be included in DroneShield's quarterly 4C report for Q2 FY21.

DroneShield CEO Oleg Vornik welcomed the new deal, saying:

We are pleased to continue expanding the breadth of our US customer base, now reaching into law enforcement. It is a large and important market, and this initial deployment will serve as a reference case for expected follow-on sales.

DroneShield share price summary

Over the last 12 months, the DroneShield share price has jumped to more than 65%, but down 3% year-to-date. The company's shares reached a 52-week high of 25 cents in September last year.

At the current share price, DroneShield presides a market capitalisation of around $64 million, with close to 390 million shares outstanding.

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