ASX Tech Quarterly Wrap: AI, semiconductor and counter-drone players in focus

News.com.au

01-05-2025

Special Report: It's been a topsy-turvy start to 2025 for the ASX tech sector, weighed down by global geopolitical tensions, economic uncertainty and concerns over President Donald Trump's proposed Liberation Day tariffs.
Markets see-sawed as investors turned risk-off in response to high initial tariffs on US trading partners and the threat of a trade war with China.
After a strong start in January, the S&P/ASX Information Technology Index slumped through February and March, before regaining ground in April as Trump softened his stance on global tariffs and China.
Against this backdrop, here's how some ASX tech stocks have advanced over the past quarter.
DroneShield (ASX:DRO)
DroneShield, which specialises in tech for drone detection and security, kicked off 2025 with a bang, delivering a record $33.5 million in revenue for the March quarter, more than double the amount it pulled in this time last year. That's already higher than any previous full year, and it's still early days.
With $94.4 million already locked in through purchase orders for 2025 delivery, it's shaping up to be a bumper year for the company.
Cash receipts hit $16.7 million in the quarter, also more than double year-on-year. And while some of that revenue hasn't landed in the bank just yet, due to timing of deliveries, it's in the pipe.
SaaS revenue is climbing, too, up nearly 200% to $1.67m, as customers lean into DroneShield's AI-powered software upgrades for drone detection and response. A bunch of new subscription tools are also in the works to push recurring revenue even further.
On the tech front, DroneShield is pouring cash into R&D and prepping its next-gen products for 2026.
It's still betting big on radio frequency as the backbone of drone detection, and is bundling in other sensors as needed for clients who want the full kit in one clean package.
The company rolled out new variants of its flagship DroneGun and RfPatrol kits in the quarter to meet rising demand.
With $197 million in the bank and no debt, DroneShield's balance sheet is rock solid.
The pipeline is quite fat, $1.6 billion worth of opportunities, with Europe, Asia and the US leading the charge.
Defence spending across the globe is on the rise, especially in Europe with the €800 billion ReArm plan, and in the US under a new US$1 trillion defence budget.
In April, which is after the quarter-end, Droneshield locked in five fresh defence contracts worth $32.2m from a military customer in the Asia Pacific via a big-name global reseller.
DroneShield is also finding new legs in non-military markets, with growing demand from airports and police forces rolling out 'Drone as First Responder' systems.
The company is sitting on $70m in inventory, ready to ship.
Decidr Ai Industries (ASX:DAI)
During Q3 FY25 the company formally changed its name from Live Verdure to Decidr AI. Decidr said the board believes the name change better communicates its core activities and long-term vision as an artificial intelligence (AI)-native business focused on building and commercialising horizontal Agentic AI technology across diverse industries.
The name change followed the company's acquisition of a controlling 51% stake in Decidr.ai Pty Ltd in December 2024.
During the quarter Decidr secured several new multi-year subscriptions with Australian and US customers, across finance, manufacturing, advertising, and lending, which the company said showcased agility and scalability of its AI platform.
Delivery of won contracts began in March 2025, resulting in annualised revenue of $1m, in Decidr's first full quarter of commercialisation.
Global strategic partnerships were signed with BeeRoll, Go1 and Amazon Web Services (AWS), further expanding Decidr's embedded partnership commercial model complementing existing partnerships with CareerOne and ELMO Software.
Decidr said while its partnership with CareerOne was not due for full launch until Q4 FY25, it delivered early revenue following the beta launch of ApplyPass, an AI-powered matching engine built using Decidr's core technology.
ApplyPass forms the foundation for two upcoming products – the AI Recruiter for employers and the Talent Agent for jobseekers.
Decidr's Edible Beauty business maintained its positive e-commerce trajectory with strong online sales during the quarter. The company reported e-commerce sales in Q3 grew 35% on prior corresponding period (pcp), driven by strong focus on new customer acquisition and increasing average order value.
During March, the company raised capital of $11m from an oversubscribed institutional placement. It also raised ~$700,000 from the conversion of unlisted options, from existing, supportive shareholders.
Decidr ended with the quarter with a cash position of $11.1m, which it said provided sufficient runway over the medium term.
Adisyn (ASX:AI1)
In early January, the ambitious player in the semiconductor industry completed its 100% acquisition of 2DG, which has developed a patented graphene process to facilitate smaller, faster, cooler, and more energy-efficient semiconductor devices.
2DG's innovative technology centres around the aim of improving the device performance by replacing the copper interconnect with graphene.
Following the acquisition, Adisyn made several board and management changes to reflect its new strategic direction. Globally-recognised leader in the semiconductor industry Kevin Crofton was appointed chairman, while 2DG founder and CEO Arye Kohavi became a non-executive director.
Australian-based technology entrepreneur Mr Dominic O'Hanlon appointed as non-executive director.
During the quarter Adisyn entered a partnership deal with Jan Koum Center for Nanoscience and Nanotechnology at Tel Aviv University (TAU), which includes access to a Automic Layer Deposition Machine to accelerate the development of graphene-based interconnects for next generation semiconductors.
The company also strengthened its balance sheet after completing a heavily oversubscribed $10m placement, supported by domestic and international institutional and sophisticated investors.
Crofton demonstrated his confidence in Adisyn by participating in the placement and buying shares on market.
The company also entered into a binding heads of agreement with Metacorp Developments Pty Ltd for the divestment of its Miner Hosting business, which provides infrastructure and services for clients to facilitate mining of cryptocurrency. It has been determined to be a non-core, immaterial part of the business.
Commenting on activities completed during Q3 Crofton said Adisyn was entering a very exciting period for the company and semiconductor industry.
"Our technology has the potential to revolutionise next-generation semiconductor manufacturing," he said.
"By collaborating with partners on chip design, lithography, and advanced materials like graphene, we aim to extend Moore's Law and push the boundaries of performance and efficiency.
The company ended the quarter with a cash position of $11.1m, which it said provided sufficient runway over the medium term.
At Stockhead, we tell it like it is. While Decidr AI Industries and Adisyn are Stockhead advertisers, they did not sponsor this article.