DroneShield shares fall despite tracking full-year revenue growth
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More news: DroneShield shares lowered on the ASX despite the defence tech company tracking full-year revenue growth, after it noted a downturn in sales over the nine months to 30 September compared to the previous corresponding period.
DroneShield shares fell 2.7% to 91.5 cents, having surged nearly 250% over the last 12 months.
DroneShield posts 18% rise in Q3 sales
The news: Defence tech small cap DroneShield reported an 18% rise in cash receipts during the September quarter, and said it is on track to top last year's revenue total.
The numbers: DroneShield reported third-quarter cash receipts of $9.1 million, up 18% compared to the previous corresponding period and the highest quarterly total in the company's history.
DroneShield posted a downturn in revenue during the nine months to 30 September ($31.1 million) compared to the same period in 2023 ($39 million).
However, boosted by additional deliveries scheduled for the upcoming quarter, DroneShield expects to deliver full-year revenue of $55.2 million from existing orders alone. This will mark an increase from $54.1 million in 2023, and does not include any additional orders to be received and delivered prior to the end of 2024.
The context: DroneShield noted that the counter unmanned systems (C-UxS) sector is continuing to consolidate in 2024, with Axon acquiring Dedrone, Bridgepoint acquiring MyDefence and High Point acquiring Radio Hill this year. It leaves DroneShield as the only publicly listed pure-play C-UxS company globally, it said.
The company also said the C-UxS market remains at a low saturation, with small drones continuing to be used by state and non-state bad actors.
DroneShield said that global conflicts, including in Ukraine and the Middle East, is driving "significant innovation" in small drone warfare, and consequently in C-UxS systems.
The company is responding to this "rapid evolution of drones on the battlefield" by building a "higher degree of flexibility in its hardware [...] as well as commercial structures in its engagement that reflect the fast changing technology landscape," it said.
The source: ASX announcement
