News: DRO U.S. to announce $1.3 bln in military aid for Ukraine -sources, page-57

Thanks for the generous comment

The numbers provided are contracted numbers, not actual sales where they have revenue in their pocket. Some of the dollars quoted will be for ongoing support fees and will not be realised this year.

My really big question is around the delivery of the $33 Million contract. It has just been announced, and DRO has five months to deliver and be paid on more product than it has delivered in it's entire history. It needs to ramp up very fast if that $33 Million is to be received in full this year. It needs to find and onboard people, then train them, then ensure that it has enough inventory, then ensure that it has enough tools and enough space (we know it needs to find new premises), then there are the delivery terms. Their purchaser is the US government and they are going to demand favourable payment terms. Minimum 30 days, maybe 60 or even 90. I question whether they will get most of this money in their pocket (and hence FY accounts) by December 31.

There is nothing wrong with that and I am making no criticism of the company (they are doing a really fine job). My guess is that quite a bit of this money might be next year unless they have a very big head start. Growing a business is hard and takes time. I have this company as a buy but am suggesting being patient and avoiding too much hype. I am assigning a lower growth rate and am therefore more conservative on price. I protected myself by buying when the pom poms were in the sheds and the directors sold shares.