MARLBOROUGH, MA - Ondas Holdings Inc. (NASDAQ:ONDS), a key player in the private industrial wireless networks and commercial drone sectors, has announced the formation of Ondas Autonomous Holdings Inc. ("OAH"), a wholly-owned subsidiary designed to enhance its drone technology operations. This strategic move aims to streamline the management and financing of its Ondas Autonomous Systems ("OAS") business unit, which includes American Robotics Inc. and Airobotics Ltd.
The establishment of OAH is a response to the burgeoning demand for aerial security and data solutions in commercial and government markets. Ondas' leadership believes that this restructuring will provide the necessary organizational agility to capitalize on the growth opportunities within the drone sector.
OAS has shown promising early revenue growth, reporting a preliminary unaudited revenue of $9 million for the year ended December 31, 2023. Eric Brock, Chairman and CEO of Ondas Holdings, expressed confidence in the company's market position and its ability to deliver scalable solutions globally. Brock highlighted the potential for OAS to become a consolidator in the drone industry, offering a broad spectrum of technology and services.
Ondas' Optimus System, a fully autonomous drone platform, and the Iron Drone Raider, an autonomous counter-UAS system, are at the forefront of their offerings. The Optimus System recently received FAA Airworthiness Type Certification, allowing for expanded urban operations. The Iron Drone Raider is designed to protect against hostile drones, safeguarding critical infrastructure and borders.
The formation of OAH is part of Ondas' broader strategy to leverage its regulatory expertise and human capital to drive adoption of its drone systems in targeted industrial, government, security, and defense markets.
This news is based on a press release statement from Ondas Holdings Inc.
InvestingPro Insights
As Ondas Holdings Inc. (NASDAQ:ONDS) progresses with its strategic initiatives to enhance its drone technology operations, the financial metrics and market performance provide a backdrop to these developments. According to InvestingPro data, the company's market capitalization stands at a modest $78.05 million, reflective of its current stage within the high-growth but competitive drone technology sector.
The revenue growth figures are particularly striking, with a 405.33% increase over the last twelve months as of Q1 2023, signaling robust demand for the company's offerings. This aligns with the preliminary unaudited revenue of $9 million for the year ended December 31, 2023, mentioned in the company's press release. However, it's important to note that Ondas has a negative P/E ratio of -0.87, which has further declined to -1.48 when adjusted for the last twelve months, indicating that the company is not currently profitable.
InvestingPro Tips highlight that while analysts anticipate sales growth in the current year, they do not expect the company to be profitable within the same timeframe. This is further substantiated by the company's significant cash burn and the fact that its short-term obligations surpass its liquid assets. These factors contribute to the stock's volatility, which has seen a considerable hit over the last week, with a 10% negative total return.
For readers looking to delve deeper into the financial health and future prospects of Ondas Holdings Inc., additional InvestingPro Tips can be found at https://www.investing.com/pro/ONDS. There are 11 tips in total, offering a comprehensive analysis that can aid in making informed investment decisions. Interested users can also take advantage of a special offer using the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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