Drone detection and countermeasure manufacturer DroneShield has been awarded a follow-on two-year R&D contract with a total value of $9.9 million by a Five Eyes nation’s Department of Defence (DoD), which the company chose not to name.
Five Eyes refers to the defence/intelligence alliance between the US, Canada, UK, Australia and NZ.
The award follows DroneShield completing a $3.8 million contract announced in 2021 with the DoD, with a final milestone payment expected this month.
DroneShield CEO Oleg Vornik said: “Follow-on contracts are the ultimate customer measure of our performance.
“This is the largest long-term contract received by DroneShield to date, significantly larger than the earlier, $3.8 million contract.”
“In the current uncertain geopolitical environment, there is a significant focus by the Five Eyes Governments to procure from defence industrial capability champions within their network of countries. Having deep engineering and research capability, TRL9 products and a track record of working with Defence, places DroneShield in a favourable position for ongoing work.”
At the same time Vornik confirmed that following $7 million in cash receipts 1Q23 quarter, the company was on track for an all-time record 2Q23 quarter and continuing on a trajectory for another record year for cash receipts in 2023.
According to his statement the company had also made significant progress on manufacturing, operations and inventory scale-up to support additional anticipated orders for remainder of 2023.
“DroneShield is currently finalizing the location for a larger industrial site to move its Sydney operations to enable the growth.”
The company’s current order book (committed and binding customer purchase orders) is approximately $29 million, an all-time record.