It's proving to be a big day for the DroneShield Ltd (ASX: DRO) share price after the ASX-listed drone detection technology company announced a whopping government contract.
The $11 million order placed by a government agency customer marks a record for the defence-focused business.
And the market is reacting in its favour. After opening 17% higher at 20.5 cents, the stock leapt to an intraday high of 22 cents – marking a 26% gain.
The DroneShield share price is currently up 25.71%, trading for 22 cents.
Let's take a closer look at the news driving the ASX share sky high on Wednesday.
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DroneShield announces record $11 million order
DroneShield shares are taking off on news of an $11 million order, the proceeds of which will be received over the upcoming March and June quarters.
The order will be split across multiple batches. The first will be delivered shortly and the rest in late March. It includes several different types of the counterdrone and C-UAS equipment.
Payment from each batch will be received within a month of its delivery.
CEO Oleg Vornik commented on the news driving the ASX company's share price today, saying it was a "transformational next step in DroneShield's growth". Vornik continued:
From the start of the company 7 years ago, DroneShield has demonstrated a consistent progression, first by building and then refining its product suite along with global distributor network, then moving to customer demos, followed by initial smaller sales, repeat $1 million+ sales, and now moving into $10 million+ sales territory.
Over [the] last 24 months, we have made a significant investment in scaling our operations to ensure we continue to meet delivery expectations of our customers as we rapidly scale up.
DroneShield share price snapshot
Today's gain included, the DroneShield share price has outperformed the broader ASX in 2022. The stock has lifted around 20% since the start of 2022.
Comparatively, the benchmark All Ordinaries Index (ASX: XAO) has dropped 8% year to date.
