The DroneShield Ltd (ASX: DRO) share price is pushing higher during afternoon trade following a business update from the company.
At the time of writing, the drone technology company’s shares are swapping hands for 17 cents, up 3.03%.
What did DroneShield announce?
In its statement to the ASX, DroneShield advised it recorded $7.4 million in customer receipts for the second quarter of 2021. It’s an all-time record for the company, despite COVID-19 continuing to impact business performance.
Over the first half of FY21, DroneShield achieved $9.1 million in customer sales, up 600% over the prior corresponding period.
The diversity in its quarterly cash receipts primarily came from Australia, the United States, and Middle Eastern customers. This consisted of payments across multiple product lines such as DroneShield’s $3.8 million contract with the Australian Department of Defence. The first payment of $1.9 million was received last month for a 2-year R&D contract in the Electronic Warfare/Signals Intelligence arena.
In addition, DroneShield is actively engaging in its US$50 million contract with a Middle Eastern customer. However, details remain sketchy as to who the deal is with and what it involves.
The company noted it has more than $200 million in its sales pipeline across the globe. This is a relatively small fraction of the $6 billion addressable market for counter-drone, electronic warfare and signals intelligence products.
Despite a substantial inventory investment of $5 million, DroneShield declared a healthy cash balance of $14.2 million, with no debt.
About the DroneShield share price
Over the last 12 months, the DroneShield share price has jumped by more than 54% but remains flat in 2021. The company’s shares reached a 52-week high of 25 cents in September last year.
At today’s price, DroneShield presides a market capitalisation of around $67 million, with close to 394 million shares outstanding.
The post DroneShield (ASX:DRO) share price lifts higher on business update appeared first on The Motley Fool Australia.
Should you invest $1,000 in DroneShield right now?
Before you consider DroneShield, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and DroneShield wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of May 24th 2021
More reading
- Worst ASX 20 shares of the past year: CSL (ASX:CSL) makes the cut
- Galan Lithium (ASX:GLN) share price surges to record on positive results
- Why this sector is lifting the ASX 200 higher today
- Time is money. But wealth is the result of time…
- These 3 ASX 20 shares are up more than 60% in a year
Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended DroneShield Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/3e7QRCs
Leave a Reply