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).
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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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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