The DroneShield Ltd (ASX: DRO) share price is lifting this morning following its announcement of multiple product orders.
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At the time of writing, the DroneShield share price is trading hands 3% higher at 16.5 cents a share.
It protects, it attacks
The DroneSentry-X is an on-the-move counter unmanned aerial system (C-UAS) that can be mounted on transportation such as vehicles and ships.
Customers ordered these systems in North America and Southeast Asia regions in both detection-only and detect-and-defeat variations.
According to the update, the orders totalled $500,000 and are an initial trial purchase for the systems. Additional follow-up orders are already in discussions, with amounts yet to be confirmed. Proceeds from these orders are expected to be received throughout March, June, and September quarters.
This positive development comes a week on from the company winning a government contract from a Five Eyes country. That order was valued at $1 million, exceeding the original $500,000 trial order in June 2020.
CEO commentary and recent results
Prior to jump in share price this morning, DroneShield CEO Oleg Vornik commented on the orders:
DroneSentry-X offers a truly unique capability for directional awareness of asymmetric warfare vectors such as nefarious UAS used for reconnaissance and payload delivery.
With DroneShield’s expertise in waveform design, it provides a complete bubble of surveillance around the deployed area. The devices utilise our unique AI-based RF software… We look forward to delivering these initial sales, and expanding to repeat sales, as we have recently done with our other products.
Recent contract wins add to the growth trend of the drone security company. In February, DroneShield published its full-year results for 2020, which saw a 58% increase in revenue for the period.
While recent orders have been $1 million or less, the company maintains a high conviction sales pipeline of $100 million.
DroneShield share price surveilled
The DroneShield share price has fared exceptionally well over the past 12 months. Companies within the defence space often make more ‘defensive’ investments due to the industry’s economic-agnostic nature. Typically, governments continue to spend money on defence regardless of recessions or impacts like COVID-19.
That might explain why the DroneShield share price has returned 60% in the last year. This compares to the S&P/ASX 200 Index (ASX: XJO), which returned 42% over the same period.
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Motley Fool contributor Mitchell Lawler 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.