Digital Ally (DGLY) Reports Q2 Loss of $0.08; Revenues Rise 63%

Digital Ally (NASDAQ: DGLY) reported Q2 EPS of ($0.08), versus ($0.28) reported last year. Revenue for the quarter came in at $5.6 million, versus $3.4 million reported last year.

The Company shipped seven orders in excess of $100,000 each during the most recent quarter, for a total of $1.3 million, compared with no individual orders exceeding $100,000 each in the year-earlier quarter.

"Demand for our flagship DVM-800 digital in-car video system and our FirstVU HD body camera continued to gain momentum during the most recent quarter within the law enforcement community, while sales of the DVM-250 and DVM-250 Plus event recorders to commercial vehicle fleet operators rose more than 125% from prior-year levels," stated Stanton E. Ross, Chief Executive Officer of Digital Ally, Inc. "We shipped over 2,000 FirstVU HD units during the second quarter, including test and evaluation units, and incoming orders have continued to strengthen during the initial weeks of our third quarter. We are encouraged that orders for our FirstVU HD, DVM-800, and commercial event recorders continue to increase in response to growing recognition of the value of video evidence among law enforcement agencies throughout the U.S., along with a growing appreciation of the role that event recorders can play in fleet safety and the optimization of vehicle utilization."

"Our gross profit margin improved significantly to 54.9% of revenue in the second quarter of 2015, compared with 38.9% in the first quarter, as we addressed printed circuit board supply issues and improved the productivity of new employees hired to meet growing demand for body cameras and commercial event recorders. We anticipate further margin expansion towards our long-term goal of 60% during the second half of the year. Our plans include more efficient supply chain management through outsourcing production, quantity purchases, and more effective purchasing practices."

"Growing market recognition of the technical and competitive advantages of the FirstVU HD was demonstrated by the number of body-worn camera orders that we received during July 2015, the first month of our third quarter, including orders for more than 300 units each from the Camden (New Jersey) County Police Department and the Southeastern Pennsylvania Transportation Authority ("SEPTA")," continued Ross. "We expect orders for both in-car video systems and body-worn cameras to accelerate in the second half of the year and believe that both our law enforcement and commercial fleet customers will continue their adoption of our advanced technology."

"We move forward with a greatly strengthened balance sheet as a result of last month's completion of a registered direct equity offering with two institutional investors at a price of $13.64 per share, which generated net proceeds, after fees and expenses, of approximately $11.2 million to the Company. We also issued common stock purchase warrants to the investors, which warrants will not be treated as derivative liabilities. If these warrants are eventually exercised for cash, the combined gross proceeds from this financing could approach $31 million. As a result of the repayment of $2.5 million of subordinated notes made possible by this equity raise, we expect our balance sheet to be debt-free at the end of the current quarter. Our strong financial condition should also allow us to be more competitive in developing law enforcement and commercial fleet business channels and in exploring other channels that may benefit from our core expertise in digital audio and video recording," concluded Ross.

For earnings history and earnings-related data on Digital Ally (DGLY) click here.

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