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

Three people in a corporate office pour over a tablet, ready to invest.
Broker Notes

Top brokers name 3 ASX shares to buy today

Here's what brokers are recommending as buys this week.

Read more »

Senior man wearing glasses and a leather jacket works on his laptop in a cafe.
Broker Notes

Should I still swap my CSL for CBA shares or has the market corrected?

The two stocks have travelled opposite directions this month.

Read more »

Man with rocket wings which have flames coming out of them.
Resources Shares

Why Macquarie expects this ASX All Ords copper stock could surge 38%

With costs coming in below expectations, this ASX All Ords copper stock could rocket higher over the coming months.

Read more »

woman holding 'hiring' sign in shop
Broker Notes

Can you guess whether Macquarie prefers REA Group, CAR Group or SEEK shares?

Which ASX online classifieds business offers the best investment opportunity today?

Read more »

An ASX shares broker analysing a chart tracking the A2 Milk share price
Share Market News

Are these two struggling ASX materials shares undervalued?

Are these buy-low candidates?

Read more »

Female miner smiling in front of a mining vehicle as the Pilbara Minerals share price rises
Broker Notes

Expert says this ASX All Ords small cap mining stock could rocket 38%

Big upside ahead?

Read more »

Happy man working on his laptop.
Share Market News

5 things to watch on the ASX 200 on Wednesday

It looks set to be another good session for Aussie investors tdaoy.

Read more »

Two laughing young women hold shopping bags and ride an escalator up to another level in a Scentre Group shopping centre.
Broker Notes

3 ASX consumer sector shares to buy in July: expert

A leading expert has named its top 3 picks.

Read more »