As the mass shooting in Las Vegas Sunday night provided yet another example of the proliferation of gun violence in the U.S., shares of shot detection technology maker ShotSpotter (SSTI) - Get Report jumped on Monday morning.
ShotSpotter and larger defense and security technology firms such as Raytheon (RTN) - Get Report , Rafael Advanced Defense Systems Inc., Safety Dynamics Inc. and Thales Group have developed systems to detect the origin of gunshots for police, the military or other security staff. The systems are increasingly part of smart-city technology deployments by companies such as General Electric (GE) - Get Report and AT&T (T) - Get Report in cities, airports and other environments.
Shares of ShotSpotter, which went public in a $30 million IPO on the Nasdaq in June gained 7.8% on Monday morning to $14.50. The gains follow news that the company won new business in Miami and Chicago late last week. Raytheon, which has developed systems for the military and security staff at utilities, dipped slightly to $186.30.
Determining the location of the Las Vegas shooter, who fired from the 32nd floor of the Mandalay Bay hotel, was not a challenge. In other instances, however, gunshot detection systems can alert law enforcement about shootings.
ShotSpotter deploys sensors that detect shots and triangulate the position of the shots and send alerts to police. General Electric is using the technology in its CityIQ internet of things platform, which includes AT&T. ShotSpotter's shareholders include Motorola Solutions (MSI) - Get Report. The company provides a software-as-a-service model, charging per square mile that its systems cover.
At mid-year 2017, ShotSpotter's systems covered 480 square miles in 90 U.S. cities and municipalities, wit New York City and the Puerto Rico Housing Administration representing its largest contracts. On Sept. 19, the company announced new deployments in Cincinnati, OH; Jacksonville, FL; Louisville, KY; Syracuse, NY and St. Louis County, MO., and others. Meanwhile, Miami officials voted to triple its deployment of ShotSpotter last Thursday and Chicago police announced they would expand use of the technology on Friday.
In the Newark, Calif., company's inaugural earnings call in August, CEO Ralph Clark told investors that 1,600cities in the U.S. and abroadand6,800college campuses,trainstations,andairports represent a total potential market of$1.4billion per year.
More of What's Trending on TheStreet: