Digital Ally (NASDAQ: DGLY) reported Q1 EPS of ($0.45), versus ($0.13) reported last year. Revenue for the quarter came in at $4.2 million, versus $3.9 million reported last year.

The Company reiterated its previous guidance that full-year 2015 total revenue is expected to approximate $25 million, compared with total revenue of $17.4 million in 2014.

While our first quarter revenue exceeded prior-year levels by 9%, we believe the increase would have been significantly greater if certain suppliers had been able to deliver long lead time components on a timely basis," stated Stanton E. Ross, Chief Executive Officer of Digital Ally, Inc. "As a result of certain component shortages, we were restricted in the number of FirstVU HD body-worn cameras that we were able to ship in the three months ended March 31, 2015. However, we are encouraged that orders for the FirstVU HD continue to increase in response to growing recognition of the value of video evidence among law enforcement agencies throughout the U.S. and abroad."

"From an industry perspective, we believe many police departments postponed their regular purchases of in-car video systems while they tested body-worn cameras and assessed their budgets. Some police departments appear to have delayed their purchases of body-worn and in-car video systems pending the clarification of recently announced federal and state matching programs."

"Our gross profit margin decreased significantly in the most recent quarter, primarily due to the costs of hiring and training new production line workers as we seek to substantially increase our production rates," continued Ross. "In addition, we encountered some printed circuit board issues that increased rework and scrap rates on our FirstVU HD product. We view the gross margin deterioration during the first quarter as temporary and expect more normal gross margins as the year progresses."

"Our body-worn camera has received tremendous media attention in recent months. Consequently many law enforcement agencies, both domestic and international, are actively testing and evaluating the FirstVU HD, and we expect demand to accelerate during the balance of 2015. We have dramatically increased our production and delivery capabilities relative to the FirstVU HD body-worn camera, and we continue to develop other new products, such as the MicroVU HD compact in-car video system, which we started delivering to customers recently. We have also expanded our cloud storage capabilities and will soon introduce our powerful Commercial Cloud Asset Management Software, FleetVU, to complement our popular line of event recorders for fleet operators. Overall, despite the modest increase in first quarter revenue, we are maintaining our guidance that full-year revenue has the potential to rise over 40% to the $25 million area, compared with $17.4 million in 2014."

"Finally, I would like to express our appreciation to Digital Ally shareholders for approving issuances of common stock above the Nasdaq Share Cap during our Special Meeting of Shareholders on February 13, 2015. Upon such approval, the Company satisfied all of the 'Equity Conditions' under its August 2014 financing, which released the restrictions on $1.5 million of our cash balances. In addition, the holder of the $4.0 million Senior Secured Convertible Note from our August 2014 financing fully converted its debt to equity and exercised most of its warrants to purchase common stock. While these transactions resulted in significant non-cash charges to our first quarter income statement, they dramatically improved our capital structure, working capital balances and liquidity, while releasing the holder's lien on our assets," concluded Ross.

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