Digital Ally, Inc. (NASDAQ:DGLY)
Law firm, Purcell Julie & Lefkowitz LLP, has confirmed it is investigating Digital Ally, Inc. (NASDAQ:DGLY) over alleged violations of fiduciary duty by the board of directors. The law firm has yet to issue details on what the investigations pertain to, having stated that interested shareholders should contact it for additional information.
Digital Ally Earnings Call
News of the class action investigation comes on the developer of advanced digital technology products reporting that it will announce its Q1 2017 results on May 15, 2017. The company will also host an investor conference call to discuss its operating results as well as its long-term plans.
The last time Digital Ally, Inc. (NASDAQ:DGLY) posted financial results it said its revenue for the full year ending December 31, 2016, dropped by 17% to $16.6 million. Revenues in the fourth quarter were also down by 32% to $3.4 million compared to revenues of $5.1 million in Q4, 2015. Gross profit, on the other hand, came in at $148,807, down from $1.5 million the previous year same quarter.
Airport Upgrade Contract
Separately, Digital Ally, Inc. (NASDAQ:DGLY) says it has signed a three-year service contract to upgrade Airport shuttle bus fleet video systems for one of its customers. The customer in question is one of the largest near-airport parking companies with more than 30 locations in 20 airports. Under the terms of the agreement, the company is to upgrade the customer’s fleet of 388 DVM-250 in-bus event recorder systems.
Digital Ally, Inc. (NASDAQ:DGLY) will also install 78 new DVM-250 in-bus video systems fitted with Its FleetVU Manager. The contract should earn the company $400,000 including service revenues over the course of three years.
“We continue to be pleased by the success of our commercial division, specifically with our ability to retain and extend our current customer contracts. We pride ourselves on our ability to provide our customers with the most innovative and cost effective end-to-end total video solution available on the market, “said Chief executive officer Stan Ross.
The three-year contract pulls Digital Ally, Inc. (NASDAQ:DGLY) into a new market, the company having enjoyed success in the ambulance, taxi, Limousine market with the DVM-250 series. According to the CEO, they continue to gain significant market share in the airport ground transportation market. Focus going forward now shifts to widening the company’s sales channels as the race for new market opportunities heats up.
Digital Ally, Inc. (NASDAQ:DGLY)’s stock was up by 2.5% in Wednesday trading session consequently closing the day at $4.10 a share.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.