DroneShield receives a record $9.9 million DoD Contract

• Five Eyes┬áDoD awards DroneShield a record $9.9 million contract
• The award follows┬áDroneShield successfully completing a $3.8 million contract with the same customer
• Ongoing significant momentum in the business in a rapidly expanding market

SYDNEY, July 5, 2023 /PRNewswire/ — DroneShield Ltd (ASX:DRO) (DroneShield┬áor the Company) has been awarded a follow-on 2-year┬áR&D┬ácontract┬áwith a total value of $9.9 million by a Five Eyes Department of┬áDefence (DoD).┬áApproximately┬á$4.5 million is due in the September and December 2023 quarters.┬áFive Eyes refers to the defence/intelligence alliance between the US, Canada, UK, Australia and NZ.

The award follows DroneShield materially completing the $3.8 million contract announced 4 June 2021 with the DoD, with a final milestone payment expected this month.

Oleg Vornik, DroneShield’s CEO, commented, “Follow-on┬ácontracts are the ultimate customer measure of our performance.┬áAs an Australian sovereign industrial capability business, DroneShield is proud and pleased to continue undertaking multi-year┬ácontracts of increasing size with this customer.”┬á

“This is the largest long-term contract received by DroneShield to date, significantly larger than the earlier, $3.8 million contract. The 2-year term locks in cash receipts over a period of time. Further larger contracts are anticipated following completion of this phase.”

“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.”

Operational Update

• Following a strong $7 million cash receipts 1Q23 quarter,┬áDroneShield is on track for an all-time record 2Q23 quarter and continuing on a trajectory for another record year for cash receipts in 2023. Further detail will be provided in the next 4C quarterly, due to be released later in July.
• Significant progress on manufacturing, operations and inventory scale-up to support additional anticipated orders for remainder of 2023.┬áDroneShield is currently finalizing the location for a larger industrial site to move its Sydney operations to enable the growth.
• With the $11 million contract announced in December now fully delivered and paid for,┬áDroneShield is progressing the inventory build of the second $11 million order announced in January, expected to be delivered later this year.
• Current order book (committed and binding customer purchase orders) of approximately $29 million, an all-time record.
• Over $200 million qualified opportunities pipeline (in addition to the order book), across approximately 80 projects.
• Ongoing record demand for┬ácounterdrone / C-UAS equipment, underscored by the events in Ukraine and increasing defence and security budgets globally. ┬á
• In addition to military and intelligence communities, significant engagement with critical infrastructure plants, airports and other civilian customers.

Further Information

Oleg Vornik
CEO and Managing Director
Email: oleg.vornik@droneshield.com
Tel: +61 2 9995 7280

About DroneShield Limited

DroneShield (ASX:DRO) provides Artificial Intelligence powered platforms for protection against advanced threats such as drones and autonomous systems. We offer customers custom counterdrone (or counter-UAS) solutions and off-the-shelf products, designed to deliver highly effective capabilities for multiple missions and use cases. Our customers include military, government, law enforcement, critical infrastructure, and airports globally.

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SOURCE DroneShield Ltd