Digital Ally (DGLY) Misses Q4 EPS by 60c
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Digital Ally (NASDAQ: DGLY) reported Q4 EPS of ($0.80), $0.60 worse than the analyst estimate of ($0.20). Revenue for the quarter came in at $3.45 million versus the consensus estimate of $5.9 million.
"We were disappointed to report revenues for the year ended 2016 that decreased 17% from the year prior, even though we saw an increase in our service-based revenues in 2016," stated Stanton E. Ross, Chief Executive Officer of Digital Ally Inc. "We are concentrating on expanding our recurring service-based revenue to help stabilize and grow our revenues on a quarterly basis. We are pursuing several new market channels that do not involve our traditional law enforcement and private security customers. If successful, we believe that these new market channels could yield increased recurring service revenues for us in 2017 and beyond. We are testing a new revenue model that bundles our product offerings, including the long-term lease of our body-worn and/or in-car audio/video hardware, together with a monthly subscription for our cloud storage, search and archiving services for the underlying audio and video material. We believe this revenue service model may appeal to our customers, in particular our commercial and other non-law enforcement customers because it reduces the capital outlay up front and eliminates repairs and maintenance in exchange for level monthly payments for the utilization of the equipment, data storage and management services."
"We recently announced the launch of the DVM-800 HD in-car video system, which we believe will be disruptive in the market and will lead to an expansion of our overall market share in the law enforcement channel. The DVM-800 HD system provides full 1080P high definition video at a cost effective price point, which is a competitive market advantage for us."
"Our international revenues increased to $1,191,012 in 2016 compared to $148,667 during 2015 and were aided by approximately $760,000 of revenue from the sale our FirstVU HD body worn cameras, storage systems and extended service agreement to a non-law enforcement international customer that will continue for three years. This order demonstrates the possibilities of deploying our FirstVU HD body cameras globally across various industries and applications in addition to the traditional law enforcement market."
"We entered 2017 with a strong balance sheet and liquidity, which should be able to support a higher level of product sales and shipments if anticipated orders are forthcoming," added Ross. "Unrestricted cash and equivalents totaled $3.9 million at December 31, 2016, and we had approximately $11.7 million in net working capital available at the end of 2016, including $2.5 million of accounts receivable and $9.6 million of inventory. Our goal is to reduce inventory levels during 2017 to provide additional funding for operations," concluded Ross.
For earnings history and earnings-related data on Digital Ally (DGLY) click here.
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