- DroneShield (DRO) has ended the June quarter cashflow positive after reporting $2.1 million in record cash inflows
- Operating costs also fell significantly, down from around $1.8 million in the March quarter to around $50,000 in the June quarter
- The drone security company ended its June quarter with over $4 million in the bank
- It also used today’s quarterly report to reveal it had more than $85 million in future contracts in the pipeline
- The growth can be attributed to increasing global tension, prompting more nations to beef up their security technology
- Shares in DroneShield ended the day up 4.55 per cent, at 11.5 cents per share
DroneShield (DRO) has announced it has ended the June quarter in a position of strength, as it is now cashflow positive.
The drone security company released its quarterly report today, showing cash inflows totalled $2.1 million in the three months to June 30, 2020, a new record.
Operating costs also fell significantly, down from just under $1.8 million in the March quarter to around $50,000 in the June quarter.
Droneshield also ended the quarter with over $4 million in cash, up from around $3.5 million in the previous March quarter.
Looking ahead, the company said it has a number of big contracts in the works with different countries.
Its order book already totals $3.4 million, with more than $85 million in the pipeline as Droneshield expects more nations to invest in drone security technology.
“At the macro level, international tensions continue to rise, driving increases in security and national defence budgets,” the company said in today’s release.
Among the possible new orders is an almost $85 million contract with a Middle Eastern Government, who have awarded the company preferred bidder status.
This follows a previous Middle Eastern Ministry of Defence order, which has been finalised, with $2.7 million payment now expected.
The money has been delayed due to COVID-19, but is now expected in the next few months.
Other smaller contracts are also expected to start becoming profitable for the company in the next two quarters.
Among those contracts is one signed with the E.U. to supply DroneShield DroneGun Tactical product to the region’s police officers.
Following today’s positive report, shares in DroneShield closed up 3.55 per cent today, July 22, at 11.5 cents each.