Digital Ally, Inc. Reports Second Quarter Operating Results
Digital Ally, Inc. Press ReleaseFlashlightNews.org - 08/15/2006
Video Flashlight Maker Says Sales Exceed $825,000 in First Full Quarter of Product Shipments
Digital Ally's Video Flashlight
LEAWOOD, Ka. - Digital Ally, Inc., which develops, manufactures and markets advanced video surveillance products for law enforcement, homeland security and commercial security applications, today announced its operating results for the second quarter and first half of 2006. The Company also reminds investors that it will host an investor conference call at 12:00 p.m. (Noon) EDT today.
The Company began shipping its Compact Digital In-Car Video System Integrated Into A Rear-View Mirror ("DVM") in late March, and this product generated virtually all of the Company's sales in the second quarter of 2006. Initial deliveries of the Digital Video Flashlight ("DVF") to customers will begin in the third quarter.
For the three months ended June 30, 2006, Digital Ally, Inc. reported revenues of $825,459, representing a significant increase relative to revenues of $11,985 in the quarter ended March 31, 2006. The Company reported an operating loss of ($424,706) and a net loss of ($728,259), or ($0.06) per share, for the second quarter of 2006. In the prior-year period, the Company had no revenues and recorded an operating loss of ($512,847) and a net loss of ($547,383), or ($0.07) per share. The net loss for the second quarter of 2006 included non-cash stock options expense of $298,264 that was related to stock options granted under the Company's 2005 Stock Option Plan. This non-cash expense was responsible for the majority of the difference between the operating loss and net loss for three months ended June 30, 2006. The weighted average number of shares outstanding totaled 12,200,027 in the most recent quarter, compared with 7,500,027 in the three months ended June 30, 2005.
For the six months ended June 30, 2006, the Company reported revenues of $837,444, an operating loss of ($1,122,862) and a net loss of ($1,744,818), or ($0.14) per share. In the corresponding period of the previous year, the Company had no revenues and recorded an operating loss of ($877,313) and a net loss of ($917,506), or ($0.12) per share. The net loss for the first half of 2006 included non-cash stock options expense of $620,511. This non-cash expense was responsible for the majority of the difference between the operating loss and net loss for six months ended June 30, 2006. The weighted average number of shares outstanding totaled 12,200,027 in the first half of 2006, compared with 7,500,027 in the six months ended June 30, 2005.
"We are very pleased to report over $825,000 in sales during our first full quarter of shipping products to the law enforcement community," stated Stanton Ross, Chief Executive Officer of Digital Ally, Inc. "Production and shipment of DVM systems continued to build throughout the second quarter and, to date, we have received orders from customers in 30 states and 8 foreign countries."
"Even though we have incurred far greater expenses this year while preparing to launch our DVM to the marketplace, and building our infrastructure to support our core business initiatives, we are proud to show a decrease in operating losses during the most recent quarter. This represented our first three-month period since the introduction of the DVM, and results are very promising."
"Customer interest in our Digital Video Flashlight system has also been very high, and although it has taken longer than expected to complete final development and begin shipping the DVF, our recent move to an assembly facility with greater capacity will allow us to begin such shipments this quarter."
"Based on information currently available to management, we expect third quarter sales to reach or exceed $2 million, with further strong gains expected in the final three months of the year," continued Ross. "Due to supply chain ramp-up issues, we have revised our sales estimate for the full year to $10 million. We are very pleased with product interest at the customer level and the rate at which orders have been building."
The Company will host an investor conference call at 12:00 noon today, August 15, 2006, to discuss second quarter results and the outlook for the balance of 2006.
Shareholders and other interested parties may participate in the conference call by dialing 888-562-3356 (international/local participants dial 973-582-2700) and referencing the ID code 7728986, a few minutes before 12:00 Noon EDT today, August 15, 2006. A replay of the conference call will be available two hours after the completion of the conference call from August 15, 2006 until August 22, 2006 by dialing 877-519-4471 (international/local participants dial 973-341-3080) and entering the conference ID 7728986.
About Digital Ally, Inc.
Digital Ally, Inc. is involved in the development, manufacturing and marketing of advanced technology products for law enforcement, homeland security and commercial security applications. The Company's primary development focus involves the field of Digital Video Imaging and Storage. For additional information, visit www.digitalallyinc.com
The Company is headquartered in Leawood, Kansas, and its shares are traded on the Pink Sheets under the symbol "DGLY."