The
#Drone #Stocks Revolution; Sector Snapshot - (CSE: $DFLY.C) (TSXV: $FLT.V)
(OTC: $TAKOF), (NASDAQ: $FLIR), (NASDAQ: $AMZN); @DraganflyInc @DroneDeliveryCa @flir @amazon
Point
Roberts WA, Delta BC – November 5, 2019 - Investorideas.com, a leading
investor news resource covering drone and unmanned aerial vehicle (UAV) stocks
releases a sector snapshot reporting on the growth in the drone technology
market from commercial to military and how UAV leaders like Draganfly
Inc., (CSE: DFLY) are flying high
with the drone revolution.
How
big is the opportunity? According to PwC's study on the commercial
applications of drone technology, the emerging global market for business
services using drones is valued at over $127 bn. Experts are predicting a sky
full of drones for delivery services in the future as Amazon, CVS and other
pharmacies ramp up their programs.
Drone
stocks are being watched by astute investors, and IBD recently issued an analysis of the
top drone stocks across the industry from defense to commercial, based on IBD
Composite Ratings. According to the October article, “Drone stocks saw a major
milestone recently. In early October, UPS (NYSE: UPS) received FAA
approval to operate drones and made a delivery that marked the first
revenue-generating flight that went beyond line of sight.”
New
to investors following the space is Saskatoon based Draganfly
Inc. (CSE: DFLY), a creator of
quality, cutting-edge, unmanned vehicle systems and software. Draganfly is
making its debut in public markets and commenced trading on the CSE today,
November 5th, 2019.
According
to the Company, “Direct sales efforts are focused in Public Safety/Paramilitary
(law enforcement & security) organizations but Draganflyers are also sold
to Commercial Surveying and Commercial Mapping organizations. Additionally, we
have been asked to develop products and services in Agriculture, Media and Broadcasting,
Infrastructure, and Industrial applications.”
Although Draganfly is new to public
markets, it has a long history in the sector.
Draganfly is a twenty year old world leader in the UAV market and brings
with it a legacy of ‘firsts’ including:
·
first
public safety UAV to shoot aerial photos documenting a manned aircraft accident
in an urban area
·
first
UAV operated by a public safety organization flown at night to locate and save
a life
·
first
UAV helicopter to be granted a county wide U.S. FAA COA
·
and
recently named as a test platform at one of the U.S. FAA’s certified test sites
Announcing the listing,
Cameron Chell, Chairman and CEO stated “Draganfly is the world’s oldest
operating drone company and one of the early developers of the quadcopter.
Draganfly today remains a leading drone solutions innovator and with the
definitive government and industry shift to utilize North American unmanned
vehicle systems and software, Draganfly is in the right place at the right time
to establish itself as the cornerstone North American industry player.”
From
the news: With the completion of a $7
million equity raise, the company is in a
strong working capital position to execute its business plan and is well
positioned to pursue further opportunities in the drone sector. The Company’s
products are 100% manufactured in North America, with more than 9,000 drones
sold, and with 18 patents in its portfolio and 6 more pending in the
application stage, the Company has one of the most significant portfolios of
intellectual property in the sector and will continue to expand its
intellectual property docket.
Founded in 1998,
Draganfly is recognized as one of the first commercial multi-rotor
manufacturers and has a legacy for its innovation and superior customer
service. Draganfly has sold products and services to over 50 countries. To
date, Draganfly, has sold over 9,000 of its drones for multitudes of
applications around the world. Zenon Dragan is the founder of Draganfly, and is
a recognized leading expert on UAVs. Draganfly is positioning itself as an
integrated solutions provider to the UAV industry.
Draganfly
introduced its first systems in 1999 and has since evolved and shaped the UAV
industry. The company’s aircrafts are widely used by public safety agencies
worldwide and were one of the first UAVs to receive a Federal Aviation
Administration (“FAA”) Certificate of Approval the fall of 2009 with the Mesa
County Colorado Sheriff’s Office. In 2012, the Royal Canadian Mounted Police
(“RCMP”) flew one of the company’s drones to locate and save the life of an
accident victim. The RCMP system is on permanent display at the Smithsonian
National Air and Space Museum.
Another
relatively smaller player in the mix with some of the giants in the sector is
Toronto based Drone Delivery Canada
Corp. (TSXV:
FLT)
(OTC:
TAKOF),
a drone technology company focused on the design, development and
implementation of its proprietary logistics software platform using
drones.
The
Company recently
announced
that with the assistance of its sales agent, Air Canada, DDC has entered into a commercial agreement dated
October 28, 2019 with the Edmonton Regional Airports Authority ("ERAA"),
operating Edmonton International Airport ("EIA") and Villeneuve
Airport for the purpose of establishing
the world's first airport drone delivery hub, at Edmonton International Airport
using DDC's proprietary drone delivery platform.
DDC
and ERAA will build out flight routes from EIA using DDC's DroneSpot takeoff
and landing zones utilizing DDC's drone flight infrastructure. Leveraging
ERAA's expertise in airport operations, DDC and ERAA will implement, promote
and market DDC's drone delivery services in this controlled airspace to a
multitude of new and existing customers. All operations will be conducted in
accordance with the Canadian Aviation Regulations and Transport Canada flight
authorizations and shall be subject to DDC obtaining all required regulatory
approvals.
"With
ERAA, we will develop a drone logistics network centered at this world-class
airport as a hub for numerous drone routes for our customers. We will continue
to work with ERAA and Transport Canada to define particular routes, and with
ERAA and Air Canada to negotiate revenue metrics and other commercial terms, to
be announced in future press releases. Given the potential size and scope of
this disruptive offering, revenue outlook could be significant while
concurrently bringing tremendous logistical benefits to the region", said
Michael Zahra, President & CEO of DDC.
"To all our stakeholders, I am pleased to report that we will be
working closely with EIA to further our current expertise in operating at a
major airport in controlled airspace to monetize similar opportunities
globally."
The
initial term of the agreement is five years with additional successive one-year
terms to follow unless the Agreement is formally terminated.
"EIA
is proud to partner with industry leader DDC to establish Canada's first
airport drone delivery site and drastically modernize cargo logistics and
supply chain solutions. Together with our long-standing partnership with Air
Canada, we look forward to expanding DDC's network of customers at EIA's Airport
City, the Edmonton Metropolitan Region, and other strategic partners. DDC's
DroneSpot at EIA elevates intermodal connectivity to support the growing
E-Commerce, Pharmaceuticals, Courier and Oil & Gas sectors. Thanks to our
partners like NAV Canada and Transport Canada, our airport is leading in
embracing innovation," said Myron Keehn, EIA VP of Air Service and
Commercial Development.
FLIR Systems, Inc. (NASDAQ:
FLIR),
a world leader in the design, manufacture, and marketing of intelligent sensing
technologies, recently
announced
their financial results for the third quarter ended September 30, 2019.
Third
quarter 2019 revenue was $471.2 million, 8.4% higher than third quarter 2018
revenue of $434.9 million. Organic revenue growth was 2.5%, which excludes
revenue from acquisitions within the last twelve months. Third quarter total bookings
increased 13.0% from the third quarter of 2018 to $495.3 million, driven
primarily by a contract with a prime defense manufacturer in the Industrial
Business Unit, along with numerous smart city and industrial wins in the
Commercial and Industrial Business Units. At the end of the third quarter total
12-month current backlog stood at $668 million, an increase of 13.0% compared
to the balance at the end of the third quarter 2018. Similarly, total backlog
at the end of the third quarter increased 16.7% to $810 million over the same
period.
The
Commercial Business Unit revenues totaled $81.3 million, down 5.3% from the
prior year. Revenues were adversely affected by foreign exchange effects as
well as lower customer demand in the Maritime business primarily related to
macroeconomic conditions.
Partially
offsetting this decline was strong growth in the Intelligent Transportation
Systems (ITS) business. Third quarter operating income of $7.6 million and
operating margin of 9.3% decreased 27.5% and 286 basis points year-over-year,
respectively. This decrease was primarily driven by revenue declines in the
Maritime and Outdoor and Tactical Systems (OTS) businesses due to weaker
end-markets impacted by geopolitical and macroeconomic factors, as well as the impact
from foreign currency exchange and U.S. import tariffs.
Commenting
on FLIR’s third quarter results, Jim Cannon, President and Chief Executive
Officer said, “Overall, FLIR’s third quarter results were somewhat mixed. I am
pleased with the performance of the Government & Defense Business Unit,
which delivered franchise program awards, solid organic revenue growth
augmented by recent successful acquisitions, as well as improving organic
operating margins. We also continue to build momentum in the Industrial
Business Unit which generated strong bookings in the quarter along with
expanding operating margins. However, several product lines within our
Commercial Business Unit continue to face headwinds and some key end-markets
served by the Commercial Business Unit were negatively impacted by geopolitical
and macroeconomic factors. While consolidated earnings were in-line with our
expectations and cash flow from operations was very strong, I am not satisfied
with FLIR’s third quarter revenue performance.”
Mr.
Cannon continued, “Based on our year-to-date results and outlook for the fourth
quarter, we are slightly reducing full-year revenue expectations. However,
year-to-date total bookings are up 13.5% and total backlog is up 16.7% from a
year ago, bolstered by important franchise program wins, providing us with a
long runway for growth. We remain very confident in our long term strategy and
continue to believe that FLIR is poised to deliver profitable growth in the
quarters and years ahead.”
Amazon.com, Inc. (NASDAQ:
AMZN),
who recently
announced
their financial results for third quarter ended September 30, 2019, is becoming
a potentially game changing player in the drone and delivery market.
“We are ramping up to make our 25th holiday
season the best ever for Prime customers — with millions of products available
for free one-day delivery,” said Amazon CEO, Jeff Bezos in a statement.
“Customers love the transition of Prime from two days to one day — they’ve
already ordered billions of items with free one-day delivery this year. It’s a big
investment, and it’s the right long-term decision for customers. And although
it’s counterintuitive, the fastest delivery speeds generate the least carbon
emissions because these products ship from fulfillment centers very close to
the customer — it simply becomes impractical to use air or long ground routes.
Huge thanks to all the teams helping deliver for customers this holiday.”
A
recent news
article
discussed Amazon’s evolving drone/delivery plans stating, “The company
announced earlier this year that it would start testing a shift from Prime
two-day shipping to one-day shipping. That’s on top of
its existing services like Prime Now, which offers same-day shipping of certain
products in certain markets, and Whole
Foods grocery delivery, among many others spanning food and
household item delivery. The company has also been aggressively building out
its contract delivery service, Amazon Flex, and even started exploring
robotic ground delivery. Drones for package delivery by air are also
still in the works.”
More
and more consumers and businesses are becoming reliant on the unmanned vehicles
sector for their delivery needs and as drone software and technology continues
to improve and drop in cost, their seems to be little slowing for this segment.
Just like the UPS delivery, the opportunities for the sector potentially are
“beyond the line of sight.”
For a list of drone
stocks and other defense stocks visit Investorideas.com directory
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