Droneshield [ASX:DRO] Launches Area-Specific Satellite Denial Systems

DroneShield [ASX:DRO], a leading provider of counter-drone solutions, today announced the launch and initial order of its target area-specific Satellite Denial Systems.

The systems are designed to disrupt the Global Navigation Satellite Systems (GNSS) used by drones and other unmanned aerial vehicles (UAVs).

The initial order for the Satellite Denial Systems has come from an undisclosed Five Eyes government and will iterate on previously designed systems by the company.

The Five Eyes refers to the US, UK, Canada, Australia, and NZ intelligence alliance.

The announcement sent shares up 7.5%, trading at 32 cents per share, as investors see the possibility of the R&D project becoming another successful sales contract.

DroneShield’s share price has soared in the past 12 months, with shares up 69.7% after landing a $33 million order from the US Department of Defence for its counter-drone equipment and other minor Five Eyes contracts.

Source: TradingView

The future of drone satellite denial

Droneshield has received a paid order from a member of the Five Eyes alliance to develop a drone satellite denial system area through a funded Research and Development (R&D) project.

The new systems utilise Global Navigation Satellite Systems (GNSS) denial techniques to counter unauthorised drone activities in a specific area.

This development marks a significant milestone for the company as it expands its expertise in the domain and opens up potential opportunities for future growth.

DroneShield has been developing GNSS denial technology for several years. The company’s systems work by emitting radio waves that interfere with the GNSS signals received by drones.

This interference can cause the drones to lose their way and crash.

There are multiple GNSS systems used around the world — the US GPS system being the most known, along with the Russian GLONASS, the Chinese BeiDou and the European Galileo system.

The dollar value of the initial order is not disclosed but is expected to be modest as it will mainly focus on R&D funding.

However, DroneShield expects that Satellite Denial Systems will become a significant revenue driver in the future.

DroneShield’s CEO, Oleg Vornik, commented today:

‘DroneShield has proven a successful ability to rapidly innovate and deliver on defence R&D contracts, as recently demonstrated in our Electronic Warfare domain efforts, where the Company has progressed from the initial $600,000 project to $3.8 million, to $9.9 million, all within a three-year period.’

Geopolitics likely to push demand

The launch of DroneShield’s Satellite Denial Systems is a significant development for the company.

They have shown their ability to turn these initial orders into larger long-term contracts, and investors are excited.

The use of drones is becoming increasingly widespread. Drones are used for various purposes, including commercial, recreational, and military.

However, the proliferation of drones has also raised security concerns.

The war in Ukraine has highlighted the massive increase of drones used to carry out attacks and gather intelligence.

Ukraine is said to be losing around 10,000 drones a month on the battlefield.

As the threat posed by drones increases, demand for effective counter-drone solutions will become prominent in military and critical infrastructure spaces.

Source: Precedence Research

The R&D project does hold some risk as competitors are also developing similar systems, but their proven expertise in the domain should give them an advantage.

With the endorsement from a Five Eyes government and the potential for growth in the coming months, DroneShield is poised to strengthen its position as a major player in the counter-drone industry.

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