The Mobilicom Ltd (ASX: MOB) share price has shot up by 43.75% on Friday to be trading at $0.12 per share. Mobilicom's share price gains come off the back of an announcement the company is scaling up an existing project and shifting to volume manufacturing.
What was in the announcement?
Mobilicom reported it has completed the development stage of a ground controller station for a leading drone supplier it started working with in 2019. Additionally, the project has been scaled up by $240,000 from its original $2 million contract.
Mobilicom provided two series of prototype units to the customer and completed integration with the drones and unmanned aerial vehicles of the customer. Following a successful review by the customer, Mobilicom is now commencing commercial manufacturing of the product with the first commercial batch planned for delivery in quarter 3 of the 2020 calendar year.
The customer intends to offer Mobilicom's ground control solution with all of its drones and small unmanned aerial vehicles worldwide. It has chosen Mobilicom as its vendor of choice in supplying ground control stations for these technologies. Mobilicom reports that it expects to receive additional orders from the customer in due course.
According to the announcement, the customer has revenues of more than $3.6 billion. It is an international high tech company engaged in a wide range of defence, homeland security and commercial programs around the world. The customer is one of the largest drone, small unmanned aerial vehicle and robotics suppliers outside the United States.
Mobilicom CEO Oren Elkayam indicated the company is now preparing for high volume production of its ground control stations.
"We are pleased this highly regarded company in the drone and unmanned systems sector has defined our solution as its building block for all future small UAV and drone projects, and demonstrates our capacity to meet the high specification needs of our clients," he said.
About the Mobilicom share price
Mobilicom is a technology company that designs, develops and delivers remote private mobile networks that can operate without existing infrastructure. Mobilicom's solutions have been deployed worldwide.
The company released its results for the March quarter in April. Mobilicom had cash receipts of $1.5 million in the first quarter of 2020, a 169% increase on the first quarter of 2019. At that time, the company reported it had a backlog of products to deliver, with invoices exceeding $2.1 million.
At the end of the March quarter, Mobilicom had a cash balance of $4.1 million with its cash balance declining $0.7 million during the quarter. Employees accepted a salary cut of 10–20% and the founders took a salary cut of 35%.
At the time of the quarterly announcement, the company continued to gain new customers with orders from Australia, the UK, France, Denmark and Israel.
In June, Mobilicom was granted a new patent from the US patents office for technology used in mobile and scalable ad hoc networks. It was also awarded a research project with Space Florida with a first year budget of $770,000.
The Mobilicom share price is up 263% from its 52 week low of $0.033 and it has returned 38.55% since this time last year. Since the beginning of 2020, the Mobilicom share price has dropped by 11.54%.
