Digital Ally, Inc. (NASDAQ:DGLY)
Digital Ally, Inc. (NASDAQ:DGLY) which develops, manufactures and commercializes advanced video surveillance offerings for law enforcement, commercial and homeland security applications, issued its operating report for the quarter and full year closed December 31, 2016.
For FY2016, the total revenue declined 17% to almost $16.6 million, against revenue of nearly $20 million in the year closed December 2015. This decline can be attributed to ongoing confusion led by Taser’s misleading PR pertaining to company’s patents, the reexamination of patent initiated by Taser, and product quality control concerns with FirstVU HD product.
In addition, the company speculates that Taser conspired to keep them out of the market by engaging in improper, unfair and unethical competition. They anticipate FirstVU HD sales to improve during 2017 as the company prosecutes the patent cases against WatchGuard, Taser and others, and resolves product quality concerns. They consider the VuLink product differentiates the Digital Ally product offerings from its customer’s.
Stanton E. Ross, the CEO of Digital Ally, Inc. (NASDAQ:DGLY), reported that they were disappointed to post annual revenues for 2016 that dropped 17% from the preceding year, even though they witnessed a jump in service-based revenues. They are focusing on expanding their recurring service-based revenue to grow and stabilize revenues on a quarterly basis.
The company is pursuing numerous new market channels that don’t involve private security and traditional law enforcement clients. If successful, they consider that these latest market channels could result in increased recurring service revenues for in 2017 and beyond.
Digital Ally, Inc. (NASDAQ:DGLY) is assessing a new revenue model that brings together all product offerings, comprising the long-term lease of body-worn and/or in-car video/audio hardware, with a monthly subscription for company’s cloud storage, archiving and search services for the underlying video and audio material. They consider this revenue service model may entice clients, in specific non-law enforcement and commercial customers because it lowers the capital expenditure up front and removes repairs and maintenance in lieu for level monthly payments for the use of the data storage, equipment and management services.
The company recently announced the release of the ‘DVM-800’ HD in-car video setup, which they consider will be disruptive in the industry and will result in an expansion of overall market share in the law enforcement sector.
|Last Price a/o 3:21 PM EST||$4.60|
|Market Cap (mlns)||$24.84M|
|Shares Outstanding (mlns)||5.40M|
|Share Float (mlns)||4.47M|
|Short Interest Ratio||9.86|
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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.