Like one of the drones using its technology, Ondas's (ONDS +5.24%) stock ascended notably across Tuesday's trading session. This was on the back of a new deal a key subsidiary of the company reached with a public-sector client in Europe. That provided enough lift to send its share price nearly 8% higher that day.
Sentrycs's success
Ondas announced that the subsidiary, counter-unmanned aircraft system (C-UAS) specialist Sentrycs, deployed its wares to an office of the German State Police. The systems will be used by the organization to help secure large-scale events. They will also play a role in sensitive missions, the company added.
Image source: Getty Images.
Ondas added that Germany has recently witnessed a rise in suspicious drone flights. It said that over 1,000 such incidents occurred in the large European country last year, and some were reported near sensitive facilities such as military bases and airports.
The company did not specify the value or duration of its sale to German State Police. It did say that the total five-year, addressable market for the handheld C-UAS systems it sells is roughly $9.8 billion.
This, it adds, indicates "the strong commercial opportunity for compact, field-deployable counter-drone solutions across defense, law enforcement, and homeland security markets."
NASDAQ: ONDS
Key Data Points
Countermeasures for the win
Of course, Ondas, like any other business, has a vested interest in touting the market potential of the goods it sells. In this case, though, I don't think that's hype -- we live in a world where drone technology is rapidly becoming more sophisticated, so demand for countermeasures is sure to increase. With that, I'd say Ondas was prescient when it acquired Sentrycs last year, and the business unit should help it improve its overall fundamentals robustly.
