DroneShield Ltd (ASX: DRO) shares are climbing in mid-morning trade following the company’s announcement of a contract win. At the time of writing, the DroneShield share price is swapping hands for 16.75 cents, up 8.06%.
What’s pushing the DroneShield share price higher?
The DroneShield share price is soaring following the company’s latest update released prior to this morning’s open.
In its announcement, DroneShield advised it has been awarded another government contract from a Five Eyes country. The term ‘Five Eyes’ relates to a signals alliance between the United States, Canada, Australia, the United Kingdom, and New Zealand.
DroneShield noted that the new order, valued at $1 million, exceeds the original purchase made by the high-profile government customer. The company received a $500,000 payment in the June 2020 quarter for the trial procurement of the same product.
It’s expected that the full payment of the current order will be accepted sometime in the June quarter of this year.
In further news boosting the DroneShield share price, the company also highlighted that current discussions are underway for follow-up orders with this customer. While the purchase amounts are still yet to be confirmed, DroneShield will update investors in due course.
What does DroneShield do?
According to DroneShield, the company is a global leader in drone security technology. It 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.
Words from the CEO
DroneShield CEO Oleg Vornik welcomed the repeat order, saying:
We are pleased to continue to support and strengthen our partnership with this customer, who has some of the most demanding requirements globally.
This significantly larger follow-on order is a testament to both the industry leading capabilities of DroneShield products and an example of a common procurement pattern in our industry, where an initial order and evaluation might take some time, but once the solution has been validated and thoroughly vetted by the end user, larger follow-on orders result.
The DroneShield share price has risen by just under 40% since this time last year. Year to date, however, the company’s shares are down by around 7%.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
More reading
- Why the Droneshield (ASX:DRO) share price will be on watch tomorrow
- Why the DroneShield (ASX:DRO) share price is lifting 6%
Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. 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.
The post Here’s why the DroneShield (ASX:DRO) share price is flying 8% appeared first on The Motley Fool Australia.
from The Motley Fool Australia https://ift.tt/3tfA8ST
Leave a Reply