The DroneShield Ltd (ASX: DRO) share price is on the move today. This comes after the drone security company announced that it has received a new order for one of its products.
At the time of writing, the DroneShield share price is up 4.55% to 17.3 cents.
DroneShield secures initial contract
The DroneShield share price is surging higher after providing investors with a positive update.
According to the release, DroneShield advised that it received an initial contract for its DroneSentry system.
The company did not reveal which country placed the order. However, it said that it was from a defence agency of 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 is expected to be worth approximately $600,000 with potentially larger future purchases if successful. The unknown customer is seeking to test the system to determine suitability for end user requirements.
DroneShield noted that it will continue to refine the software package towards the customer's specifications.
The DroneSentry system is an autonomous fixed system that integrates DroneShield's suite of sensors and countermeasures into a unified platform. It incorporates sensors, radars, electronic warfare, electro-optics systems, ID and tracking to respond to aerial threats such as drones.
The order is expected to be fulfilled with payment received sometime in the March 2022 quarter.
Words from the CEO
DroneShield CEO Oleg Vornik commented on the company's benefits from securing the order:
We are pleased to add another marquee first time defence customer to our user community. It is exciting in several ways.
First, there is a significant potential for large follow up systems to this customer, both this system configuration and cross selling of our other products.
Second, this is another validation of our AI-enabled signals intelligence (SIGINT) DroneSentry platform, utilising Artificial Intelligence (AI) across multi-spectrum, including radiofrequency and computer vision to enable threat awareness and dominance to the Defence customer, who is faced with the need to collect and process enormous volumes of data from multiple domains.
DroneShield share price review
Despite today's rise, the DroneShield share price is 1% down from 12 months ago. This is a stark contrast from when its shares were trading above 40 cents during November 2019.
Based on today's price, DroneShield has a market capitalisation of $72.14 million, with 418.22 million shares on its books.
