Investing.com -- Ouster Inc (NASDAQ:OUST) shares rose 16% in premarket trading after the company announced that the U.S. Department of Defense approved its OS1 digital lidar sensor for use in unmanned aerial systems.

The Defense Innovation Unit added the technology to an approved list of UAS components and software, marking a significant development for the sensor maker.

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The OS1 is a high-resolution 3D lidar sensor that the company states provides better performance in weight, power efficiency, and reliability under rugged conditions when compared to previously approved 2D lidar solutions.

Prior to this announcement, Ouster shares had already gained 31% year-to-date through Tuesday’s close.

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