Following DRO's U.S. Governement Contract announced earlier this week, DRO has now advised they have received an approximately $1 million order for several of its DroneSentry units for an international Government agency.  

Full payment and shipment are expected prior to end of this quarter.  

DroneSentry-X is a vehicle, ship or fixed site counterdrone system that comes in either detectonly or detect-and-defeat variants. This order is for the full detect-and-defeat variant of the system.

The system includes AI-powered software with quarterly software updates on a subscription basis. $1 million refers to the upfront cost of the system, with future year subscriptions (if elected to continue by the customer) as an additional amount to be received by DroneShield.  

DroneShield CEO, Oleg Vornik, commented, “Small drones continue to demonstrate their capability for surveillance, payload delivery and other nefarious uses in warfare, terrorism and intelligence gathering operations. Combined with a general rise in global tensions and increasing uncertainty, we are seeing a number of our existing and new customers globally strengthen their security posture and accelerate counterdrone acquisition programs.” 

"For this customer, it is an initial purchase that follows earlier trials, and is expected to follow up with a number of additional systems to be acquired in 2023.” 

DroneShield Receives $2 million Order

DroneShield has received an approximately $2 million order for several of its systems from an international government agency.  

The funds will be received across March 2022 and June 2022 quarters. The order consists of an upfront purchase of $2 million with an additional recurring subscription element, which is unable to be estimated at this time, but expected to be material in the context of the order. 

Oleg Vornik, DroneShield CEO, added, “As drones continue to be increasingly used in modern warfare, we are seeing rapidly increasing demand for the DroneShield equipment. With the substantial investment in inventory over the last 12 months, ability to rapidly fulfil orders remains critical in current environment, and we are well placed.” 

It's great to see the Australian Government still backing Droneshield with a $1.1 million in cash payment as a grant (R&D Tax Incentive) for its 2020 activities.

Oleg Vornik, DroneShield’s CEO, commented:
 

“DroneShield appreciates the substantial support it receives from the Australian Government at Federal and State level. We are a high-tech defence and homeland security business, employing over 30 engineers in Australia presently, and rapidly growing. This grant reflects the world-class cutting edge R&D work done here in Australia.”

$2.3m Middle Eastern MOD Payment Received

DroneShield Ltd (ASX:DRO) (“DroneShield" or the “Company”) is pleased to announce it has received $2.3 million of the remaining due payment on a previously completed order (refer to ASX announcement 30 March 2020) to a Middle Eastern Ministry of Defence.

The payment will be included in the total customer receipts in the Appendix 4C cash flow report for this 2Q21 quarter.

Oleg Vornik, DroneShield’s CEO, commented, “In addition to the material value of this cash receipt, it demonstrates several critical points.

Firstly, it shows that DroneShield is able to successfully navigate doing business in one of the most challenging yet most lucrative regions globally for Western companies, in terms of successful management of stakeholders and achieving outcomes.

Secondly, this is the completion of a repeat purchase by this end user, with the next contract expected to be a much larger amount, approximately $60–70 million, which is currently being discussed, and will be announced to the market once the contract has been mutually executed.

Thirdly, this underscores the global leadership positioning of DroneShield products, and our best-in-breed performance, as confirmed by this customer who faces daily UAS threats on their home soil, like no other customer globally.”

This announcement follows on multiple recent contract wins globally announced in recent weeks, including $1.1 million Five Eyes agency repeat order announced on 7 April, US Law Enforcement Order contract announced on 6 April, and multiple DroneSentry-XTM orders announced on 24 March 2021.