DroneShield (ASX: DRO) currently delivering on an over $2.5M order book of existing contracts

Highlights

  • DroneShield (ASX: DRO) had the foresight to anticipate the drone danger and the importance that governments around the world will attach to mitigating that danger.
  • End-users of DroneShield’s products include Olympic Games, a number of militaries including the US Department of Defense and a large Middle Eastern Ministry of Defence, and a number of law enforcement agencies (such as Queensland Police during latest Commonwealth Games).
  • DroneShield’s customer cash inflows of approximately $1 million for the quarter were 207% of its December 2018 quarter cash inflows (which were approximately $489K).
  • DroneShield is currently delivering on an over $2.5m order book of existing contracts.

It seems like almost every day the press covers the dangers of aerial drones and the accidents and deliberate crimes committed using drones around the world. Governments are starting to take notice and allocating funds to counter-drone protection in their budgets, especially after air travel in the UK was nearly paralyzed for two days by a rogue drone operator at the Gatwick Airport at Christmas.

Several years ago, DroneShield (ASX: DRO) had the foresight to anticipate the drone danger and the importance that governments around the world will attach to mitigating that danger. Since its listing in 2016, DroneShield has developed several high-tech drone detection and drone mitigation products, including DroneGun™ (image below), and commenced their sales.

His Excellency President of France Emmanuel Macron reviewing DroneShield’s DroneGun TacticalTM with Defence Minister Parly and Army Chief of Staff General Bosser at French Army Camp Mourmelon

DroneShield’s name has now become synonymous with the counter-drone industry worldwide, and the hard work on commercialization and marketing undertaken by DroneShield over the recent couple of years has now started paying off. With end-users of DroneShield’s products including Olympic Games, a number of militaries including the US Department of Defense and a large Middle Eastern Ministry of Defence, and a number of law enforcement agencies (such as Queensland Police during latest Commonwealth Games), the March 2019 quarter was the first quarter during which the company received customer cash inflows of over $1 million. DroneShield’s customer cash inflows of approximately $1 million for the quarter were 207% of its December 2018 quarter cash inflows (which were approximately $489K).

Additionally, DroneShield is currently delivering on an over $2.5m order book of existing contracts. Further, the company has recently announced to the market that it has a strong near-term sales pipeline of over $60m across a number of contract bids in advanced stages.

DroneShield’s annual cash receipts and orders (source: AGM Presentation)

Major players in the defence industry globally are starting to take notice. In addition to utilising its distributor network, which has now grown to 100+ distributors, in the recent months, DroneShield announced several important co-operation agreements – one with Thales (one of the world’s pre-eminent defence companies); another one with Zain (one of the largest telecommunications companies in the Middle East); and a third one with STC Specialized, a subsidiary of the Saudi Telecom Company.

DroneShield’s market leadership position is well-summarised in the chart below:

In the company’s latest quarterly report, its chairman Peter James (who is also the chairman of nearmap (ASX: NEA) and formerly a board member of iiNet) commented, “I have seen this time and time again in my career – at iiNet, nearmap and others – tilling the new emerging field takes time, but once a company has established itself as a leader in a new space, and once customers start adopting its products, the potential for a take-off in growth is very substantial. The DroneShield team is proud to be starting to hit that inflection point.”

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