DroneShield Reports Record Q3 Cash Receipts and Expanding Market Presence

DroneShield Limited (ASX: DRO) achieved record cash receipts and grants in Q3 2023, positioning the company for continued growth in the Counter-UAS market. With a strong order backlog and product launches, DroneShield is meeting the increasing demand for advanced counterdrone security solutions.

Record Cash Receipts and Grants: DroneShield achieved a record of AU$10.2 million in cash receipts and grants for the September 2023 quarter, with grants accounting for AU$2.5 million. This is a significant increase from the previous quarter.

• Year-to-Date Performance: Year-to-date cash receipts and grants as of October 20, 2023, reached AU$48.2 million, which is three times higher than the entire fiscal year of 2022. Revenues for the same period were AU$43.3 million, marking a 2.5x increase compared to 2022.
• Contracted Order Backlog: DroneShield has a contracted order backlog of AU$51 million, with a sales pipeline exceeding AU$400 million, including approximately 80 qualified opportunities.
• Product Launches: The company successfully launched DroneSentry-X Mk2, a counterdrone solution, and SensorFusionAI (SFAI), a sensor-agnostic 3D data fusion engine for multi-sensor deployments. These innovations expand DroneShield's product offerings.
• Expansion: DroneShield is moving to a larger facility in Sydney, which is 2.5 times the size of the existing facility, with expansion options available. This move is expected to be completed in December, and the supply chain is also expanding to accommodate higher production volumes.
• Outlook: DroneShield is well-positioned to meet the growing demand for advanced counterdrone security solutions. The company is benefiting from an increase in defense and security budgets and has a strong presence in the Counter-UAS market.
• Global Demand for C-UAS: The global demand for Counter-Unmanned Aerial Systems (C-UAS) is expected to remain strong, driven by the use of drones in conflicts and the need for defense against them. DroneShield's technology is considered vital in addressing this threat.
• Drones in Modern Warfare: Drones are increasingly being used in modern warfare, highlighting the importance of C-UAS systems. These systems protect soldiers, vehicles, ships, and bases.
• US Market: The United States is a significant market for DroneShield, with a growing customer base across various government agencies. The company is involved in several key initiatives in the US.
• European Market: DroneShield has secured orders and agreements with European customers, indicating its global appeal.
• Continued Growth: With defense and commercial customer bases expanding, DroneShield is poised for continued significant growth. The company's leading position in the C-UAS market and its product lineup position it well for future opportunities.

Droneshield Limited (DRO) closed at a last price of $0.285, marking a positive change of $0.020 (7.547%) for the day, with a trading volume of 2,141,051 shares.

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