Yesterday, I had the incredible opportunity to attend the Dubai Airshow, where Droneshield showcased its cutting-edge technology at the Australian pavilion. The presence of CEO Oleg Vornik and Business Development Manager Louis Gamarra added a personal touch to the event as they openly interacted with the enthusiastic crowd. As a shareholder, I had the privilege of engaging in a detailed conversation with Louis for nearly an hour, gaining valuable insights into the business.
The exhibition featured the impressive DroneGun Mk4 and RFPatrol Mk2, both meticulously manufactured in Australia. It was emphasized that every component is sourced locally to comply with regulations for sales to Five Eyes countries and others. Their commitment to security was evident, with a keen interest in understanding the background of those exploring their products, particularly if they appeared to be Chinese nationals. This vigilance took on added significance when later in the day, I discovered another company, Skyfend (https://www.skyfend.com), with a seemingly identical product line to Droneshield. Interestingly, this Chinese company exhibited products strikingly similar to those of Droneshield. Below Pictures I took of SkyFend Pavilion at 2023 Dubai Airshow
In my inquiry about the differences between the two, the only response from the Skyfend representatives, who were Chinese nationals, was a claim that their product was superior. This raises intriguing questions that warrant further investigation. However, it's worth noting that Droneshield's strategic advantage lies in its accessibility to Five Eyes countries, and given the current global environment, Western countries may be hesitant to embrace Chinese technology in this sector. The competitive landscape promises to be a compelling area for future exploration.
To further underscore Droneshield's commitment to innovation, I learned that the company currently boasts a team of 85 full-time engineers. According to Louis, Droneshield is deeply entrenched in the realm of hardcore engineering, a testament to their dedication to pushing technological boundaries. During our conversation, he provided valuable insights into the intricacies of their technology. Notably, he mentioned that due to stringent regulations in Australia, they conduct their new tech testing exclusively in Virginia, USA.
One prevailing theme that emerged from our discussion was the apparent reluctance of many Western countries to swiftly acknowledge or address the evolving threat posed by drones. This hesitation underscores a substantial opportunity, particularly in safeguarding critical infrastructures such as airports. As the world grapples with the increasing sophistication of drone technology, Droneshield's expertise and forward-thinking approach position them as a key player in mitigating these emerging threats. The company's emphasis on rigorous engineering and global testing reflects a commitment to staying at the forefront of this rapidly evolving landscape.
Further to @Summer12sstraw about the ShareCafe interview with Oleg I wanted to add a few notes. (I haven’t watched the Market Herald interview that @slymeats posted yet, but judging from the slide notes the content looks similar) Sometimes Droneshield can be a bit over promotional so I am trying to keep track of some of the statements made to compare to the actual outcomes over FY23.
- The company is now reaching its breakout phase of the growth profile. Size of contracts have been progressively getting larger as Droneshield establishes itself with the government departments globally. This is indicated by the two recent 8 figure contracts. Ongoing contracts are expected to be more of this nature going forward.
- SaaS was 5% of Revenue in FY2021. Oleg re-iterated that the goal is for this to make up 50% of Revenue within 5 Years. How this is tracking / growing will be able to be determined in the upcoming FY2022 results.
- Expecting follow up to multiple R&D contracts. These are great contracts for Droneshield as they develop relationships with the client and are improving their product / SaaS offering to directly meet clients needs. They also further Droneshield’s capacity in the adjacent AI / Machine Learning sectors. There may be some key personnel risk here if the company starts taking on too much work, but the other side of that coin is that they can use these types of contracts to further develop their teams.
- Australian DoD AI electronic warfare contract. The next contract is also expected to be larger than the previous ($3.8m over 2 years. Expected to end in the 2QFY23)
- Australian DoD AI computer vision contract. ($800k over 1 year). Phase 2 expected commence early 2023
- ISREW Panel
- Expecting similar work with US DoD eg. the SBIR Phase 1 JV with Quantam Research - due for completion in Q1FY2023
- Recommendation from the US DoD for Droneshield products to be deployed at military bases across the U.S. The rollout is expected to commence this year. This was a 12 month selection process, where 3 companies were selected to form a panel. I have listed the companies selected below which helps provide some insight into Droneshield’s competitors in the market. A point of interest is that D-Fend Solutions isn’t listed in Droneshield’s slides. It will be worth monitoring which companies are getting contracts and the associated values, in particular LITEYE.
- Droneshield - Detection & Defeat - Announcement
- D-Fend Solutions - Forced Land - Announcement
- LITEYE - Detection & Defeat - Announcement
- Bill amended last year in Australia for critical infrastructure owners to assess and mitigate threats against facilities. This will need to include threats from drones. (This could be a bit of an opportunity for AVA as well)
Nice exposure for DroneShield.
It’s no wonder they are nervous about drones, following the recent run-in they had with them at a recent public event.
How cool are the photos of guards sporting DroneGuns. I do hope those photos go viral
DroneShield Protects Brazil Presidential Inauguration
DroneShield Ltd (ASX:DRO) (DroneShield or the Company) is pleased to advise its DroneGun Tactical™ counterdrone/C-UAS system has been utilised in the inauguration ceremony for the president-elect of Brazil, Luiz Inácio Lula da Silva, held at the Cathedral of Brasilia.
Lula da Silva, a 77 year-old who already served as Brazil's president from 2003 to 2010, is taking the Presidential office for the third time.
Presidential security has utilised DroneGun Tactical™ to neutralise four suspicious drones that were heading towards the President at the inauguration event.
Tens of thousands of people have attended the ceremony.
Image: A security agent walks with DroneShield’s DroneGun Tactical™ next to the presidential Rolls-Royce that was used by President-elect Luiz Inácio Lula da Silva at his inauguration ceremony in Brasilia, on January 1, 2023 (Photo by CARL DE SOUZA / AFP)
DroneShield has expanded into the Brazil market in mid 2021, when it has received a formal approval from Anatel, the Brazilian National Telecommunications Agency responsible for issuing the concession of new radio frequencies, for deployment of its devices. Following the approval, the Company has now sold a quantity of its DroneGun Tactical™ units to Brazilian Government.
DroneShield CEO, Oleg Vornik, commented: “Brazil is a key South American market for DroneShield, and we are pleased to see deployment of our systems in the country at the highest level, which is expected to flow down to further systems being utilised in Brazil, as counter-UAS requirements continue to rapidly grow.”
Image: Brazil media coverage of the DroneGun Tactical™ at the Presidential inauguration (credit: Globo)
DroneShield Cash Receipts Surge in 2021
