Why the DroneShield (ASX:DRO) share price is climbing higher

The DroneShield Ltd (ASX: DRO) share price is climbing today after a positive update about its next-generation software.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The DroneShield Ltd (ASX: DRO) share price is climbing higher today. This comes after the company announced that it had deployed its recently updated next-generation software.

At the time of writing, the DroneShield share price is trading up 2.9% to 17.5 cents.

What did DroneShield announce?

In this morning's release, the defence contractor started rolling out its newest artificial intelligence (AI) software to all existing customers' systems.

Droneshield tested the machine learning/AI-based detection and classification software against unmanned robotic systems and other potential threats in electronic warfare fields. The company noted that it saw the updated software substantially improve on detection responsiveness and lower false positives. This led to faster speeds in detecting, classifying and tracking new threats from DroneShield systems.

The company highlighted its technological advantage through the use of lightweight machine learning architecture. Designed to run on low power FPGA (Field-Programable Gate Array) hardware, the system can operate in environments where power is limited. The chip can also operate far away from unsecured networks for long periods where security has been compromised.

The company stated that the new software package is compatible with all current DroneShield platforms. This includes RfPatrol, DroneSentry, and DroneSentry-X.

Words from the CEO

Commenting on the software, DroneShield CEO Oleg Vornik, said:

DroneShield customers receive regular software updates via enrolling into a Subscription-as-a-Service (SaaS) model at the time of purchase of their systems. Importantly, the software also has capabilities for deployment outside of the C-UAS space, on a hardware agnostic basis. DroneShield is currently engaging in such deployments with its Five Eye country military customers.

DroneShield share price review

Despite today's rise, the Drone Shield share price is down almost 20% from 12 months ago.

The company's shares took a steep dive in April, falling to an all-time low of 8.4 cents. Since then, its shares slowly began to turn around, moving on an upwards trajectory. However, in the last 6 months, the DroneShield share price has stabilised around the late teens.

Based on the current share price, the company has a market capitalisation of $68 million.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Young man with a laptop in hand watching stocks and trends on a digital chart.
Share Market News

Which investment trends drove equity markets in May according to Macquarie?

The ASX 200 increased 4.2% in May.

Read more »

Person pretends to types on laptop drawn in sand.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a miserly session for investors today.

Read more »

Modern accountant woman in a light business suit in modern green office with documents and laptop.
Opinions

Too high? These 2 ASX shares might be due for a correction

These popular blue chips are looking dicey to me.

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Broker Notes

These ASX 200 shares could rise 20% to 35%

These shares are being tipped to deliver market-beating returns by analysts.

Read more »

Keyboard button with the word sell on it.
Broker Notes

8 ASX All Ords stocks downgraded to sell ratings

Find out which shares are out of favour with the experts.

Read more »

Woman smiling whilst shopping in a clothing store.
Dividend Investing

Why this quality ASX 300 dividend stock is tipped to surge 54%

A leading fund manager forecasts significant outperformance from this quality ASX 300 dividend stock.

Read more »

A group of businesspeople clapping.
Broker Notes

Bell Potter names more of the best ASX 200 stocks to buy in June

These stocks could be best buys this month according to the broker.

Read more »

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
Share Market News

Why Clarity, Coronado Global, Iperionx, and Lynas shares are roaring higher today

These shares are having a strong session on Thursday. Why are investors buying them?

Read more »