DroneShield Ltd (ASX: DRO) shares could be on the move today following the company's latest announcement regarding a new government contract. At yesterday's market wrap, the DroneShield share price finished the day flat at 16 cents.
Let's take a closer look and see what the drone security company updated the ASX with.
Image source: Getty Images
New government contract
According to this morning's release, DroneShield received a follow-up order from a high-profile government customer 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.
The deal, valued at $1.1 million, represents ongoing commitments from government agencies, which have sought DroneShield products in the past. Just yesterday, the company announced that a US law enforcement agency purchased a mobile system of two passive/non-emitting UAS detection sensors.
The new contract is an addition to previous orders made by the high-profile government customer earlier last month. Both parties are holding discussions for future orders.
Droneshield expects to receive the customer receipts for this contract during the current quarter (Q2 FY21).
Word from management
DroneShield CEO Oleg Vornik commented:
This rapid sequence of increasing repeat orders is precisely the right position to be in our industry, following initial lengthy periods of educating the end users on the merits of our offering and undergoing military and Government procurement processes.
This is a testament to the world class performance of the DroneShield products, and strongly positions us as these end users are commencing larger deployments of counter-UAS systems.
DroneShield share price review
DroneShield shares have catapulted in the last 12 months, flying close to 50% higher. However, the Droneshield share price has dropped around 5% year-to-date, with volatility over the past 6 months driving a price range from 21 cents to 15 cents.
Based on valuation grounds, DroneShield commands a market capitalisation of roughly $62.3 million, with 389.8 million shares outstanding.
