Release Date: November 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Will the Trump election help win or delay any new military contracts? How might it impact Draganfly's operations in the U.S. and Canada? A: Cameron Chell, President, CEO, and Director: The Trump administration's policies are unlikely to significantly impact our overall numbers. The penetration of drones in military markets is still small, and the adoption cycle is just beginning. While policy changes might occur, the demand for drones is expected to grow, especially in the Pacific Rim, which has a larger budget than the Eastern European theater.
Q: What is the status of the distributor partnership in Australia? How is the sales cycle progressing? A: Cameron Chell, President, CEO, and Director: The sales cycle in Australia is similar to what we experienced with military clients about 1.5 years ago. It will take about a year to complete. We are currently in testing and pilot projects, with budgets expected to open up in early Q2. The response has been positive, and Australia is seen as a key market for military and public safety applications.
Q: Are there any updates on mergers and acquisitions (M&A)? A: Cameron Chell, President, CEO, and Director: The M&A landscape remains active, but we have chosen not to participate so far. We are focused on organic growth and meeting existing demand. While there are interesting opportunities, we must be discerning due to opportunity costs. The industry is seeing consolidation, and we are monitoring developments closely.
Q: How is Draganfly addressing supply chain issues, especially with concerns about China? A: Cameron Chell, President, CEO, and Director: Supply chain issues are re-emerging, but they currently do not directly affect us. The demand curve is increasing, and security concerns are causing disruptions. We anticipate a shift towards North American manufacturing for critical parts. We are actively addressing these concerns and expect no significant impact on our financials in the next 3 to 4 quarters.
Q: Which of Draganfly's drones is receiving the most attention currently? A: Cameron Chell, President, CEO, and Director: The FPV drones are currently very popular, with sales cycles shortening. The APEX drone, launched last quarter, is also in high demand. The Commander 3XL has the most pilot time and integrated payload partners, generating demand. Each platform has its strengths, and we are seeing demand across categories, with FPVs being a significant focus.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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