Kwesst Micro Systems’ shares soared Wednesday after the Kanata-based defence technology company said it has landed its first customer for its next-generation battlefield laser detection system. The surge followed Kwesst’s announcement that a defence systems integrator agreed to purchase prototypes of a new version of its battlefield laser detection system (BLDS) for a “major North […]
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Kwesst Micro Systems’ shares soared Wednesday after the Kanata-based defence technology company said it has landed its first customer for its next-generation battlefield laser detection system.
The surge followed Kwesst’s announcement that a defence systems integrator agreed to purchase prototypes of a new version of its battlefield laser detection system (BLDS) for a “major North American armored vehicle program.”
Kwesst’s shares were up more than $8 to $16.08 in late-morning trading on the TSX Venture Exchange and rose nearly US$6 to US$11.55 on the Nasdaq.
Kwesst said it developed the latest battlefield laser technology in response to growing laser-guided threats on the battlefield. The company plans to open a new, expanded facility on Hines Road in Kanata next week as it seeks new market opportunities.
“In modern conflicts – most notably Ukraine – these systems have dramatically increased the lethality of conventional weapons, enabling precision targeting of personnel, vehicles and fortifications with devastating effectiveness,” the company said in a news release.
Kwesst president and CEO Sean Homuth said the contract is a “major validation of the strategic importance” of the new laser technology.
In a statement Wednesday, Homuth described the new system – which detects when lasers are being used to locate targets – as a “leap ahead in capability” because it allows more sensors to be attached to soldiers or military vehicles.
“The modern battlefield has changed,” Homuth added. “Lasers are now a silent, invisible threat that can turn any soldier or vehicle into a target in seconds. BLDS gives them back those seconds so they have a fighting chance.”
The new deal comes a few weeks after Kwesst said its revenues nearly tripled year-over-year in the second quarter of fiscal 2025.
The company generated revenues of nearly $1.3 million in the three-month period ending March 31, up from $486,000 a year earlier. Kwesst attributed the gain to $800,000 in new sales from its digitization business line that feeds data to soldiers in the field in real time.
Meanwhile, the company trimmed its net loss to $1.5 million, down from $3.5 million in the same period a year ago.
In addition to growing its revenues, Kwesst cut its operating expenses by $1.1 million compared with the previous year thanks to reduced spending on travel, consulting fees and R&D as some of its products moved into the commercialization stage.
The firm, which has more than 30 employees, specializes in three main product lines – systems that feed real-time information to soldiers in the field; measures that counteract deadly lasers and other space-age weaponry; and equipment such as high-tech anti-riot munitions designed to subdue aggressive protesters and other belligerents.
The Kanata company is now testing new technology, dubbed Kwesst Lightning, that will allow military personnel and first responders to instantly onboard its real-time situational awareness software. In financial filings last month, Kwesst said it expects the new product to be ready for market later this fiscal year.
In its second-quarter analysis, the firm’s management team said it expects revenues to continue to rise as contracts with the Department of National Defence ramp up, new products like Lightning are introduced and more customers buy its anti-riot technology.
Kwesst was awarded a subcontract by defence giant Thales Canada last year to deliver specialized software services to the Canadian Army. The company previously landed a five-year, multimillion-dollar contract in the spring of 2023 to perform software engineering services for DND.
Founded in 2017 by former Colt Canada executive Jeff MacLeod, Kwesst went public on the TSX Venture Exchange in 2020 and debuted on the Nasdaq in late 2022.
