The DroneShield Ltd (ASX: DRO) share price soared 7% today after announcing increased research and development operations in the US.
DroneShield says it provides AI-based platforms for protection against advanced threats such as drones and autonomous systems. Its customers include military, intelligence community, government, law enforcement, critical infrastructure and airports.
The company’s handheld solutions are part of its wider counter-drone portfolio which spans dismounted, vehicle-mounted and fixed-site solutions that “fuse multiple sensors and effectors integrated” through its software. It enables operators to detect, track, identify and defeat hostile drones.
Increased research and development in the US
The company is planning to significantly increase its R&D and testing capabilities in the US and will lead to a more than doubling in its workforce in the US. The rise in the Droneshield share price implies the market is excited by this announcement.
Droneshield said over 30% of the new roles will be dedicated to software development and further strengthening its AI team and capabilities.
The company is going to add a second location to its US headquarters in Virginia, which is about “reinforcing its dedication to breakthrough technology and better positioning the team to meet rapidly growing global demand for advanced CUxS solutions.”
This US expansion comes after a recent announcement of its expansion of production facilities in Australia and new office established in the European Union. The company said it’s working on broadening its international footprint and establish a stronger physical product near customers in key markets.
The company also said this growth positions DroneShield to support US Department of Defense’s push for advanced counter-drone solutions.
Management commentary
The Matt McCrann, CEO of DroneShield said:
As we continue to scale our operations globally, this expansion in the U.S. plays a crucial role in enhancing our ability to innovate and deliver advanced solutions for the evolving defense industrial base right here in the U.S.
We’re investing in the future of defense, and our growing footprint and impact in the U.S. market directly supports that effort.
Final thoughts on the Droneshield share price
The company continues to impress investors and this latest move suggests the company is expecting further demand growth in the coming years. I’m not sure how large the business can become, but drones are becoming an increasingly utilised tool in normal life and on the battlefield, so this is a good move by the ASX share to capitalise on that demand.
