The DroneShield Ltd (ASX: DRO) share price has been on fire today, after another new contract announcement. It shot up 14% higher to 23.5 cents before dropping in mid-afternoon trade to 21 cents. This week alone, the DroneShield share price has increased 42% on the back of two positive announcements.
Here's why the DroneShield share price is up again today.
About DroneShield
DroneShield is a global leader in drone security technology. The company designs and develops detection systems that use specialised technology to protect people, organisations and critical infrastructure from drones.
Its multi-layered drone countermeasures include detection and disruption products which are much needed in the current environment.
DroneShield awarded new defence contract
DroneShield has received an order from a southeast Asian country for its DroneSentry system. The $1 million contract includes a complete DroneSentry solution comprising sensors, radars, electronic warfare, electro-optics systems, ID and tracking.
This is DroneShield's first order from the southeast Asian country. It anticipates that further sales will lead to a multi-million earnings. The customer is expected to receive delivery in 4Q 2020.
DroneShield CEO Oleg Vornik said momentum in customers adopting its products was growing. This was underpinned by recent sales to European countries, and a new contract with the United States Defence Department.
Mr Vornik added that DroneShield was starting to see its extensive pipeline converting into end-user orders.
The sale is however subject to pending relevant export approvals.
Other recent updates
Yesterday, DroneShield advised it had received funding from the US Department of Defence for its DroneShield Complete Command-and-Control (C2) system. The DroneShield Complete provides real-time alerting, tracking and reporting information for users.
The targeted development will work on a list of enhancements expected to lead to multiple purchases of DroneShield's counter drone equipment. The company noted that the project will span several months.
How has the DroneShield share price performed?
The DroneShield share price has jumped 65% in the past month, but fallen 29% from a trailing 12 months. At a market capitalisation of $67 million, the company is still relatively small compared to some of its peers like Electro Optic Systems Hldg Ltd (ASX: EOS).
The DroneShield share price did reach a 52-week high of 46.5 cents, before pulling back late last year.
