Digital Ally Announces 2019 Financials, New Partnership
Monday, April 06, 2020 | Comments

Digital Ally announced its operating results for 2019. Total revenues decreased in 2019 to $10.4 million from nearly $11.3 million in 2018.

The decrease is mostly because of a decline in product revenues, offset by an increase in service and other revenue. “Product sales continue to face challenges for our in-car and body-worn systems because our competitors have released new products with advanced features and have maintained their product price cuts,” a statement said. “Our law enforcement product sale revenues declined over the prior period due to price cutting, willful infringement of our patents and other actions by our competitors and adverse marketplace effects related to the patent litigation.”

The company’s objective is to expand recurring service revenue to help stabilize our revenues on a quarterly basis. Digital Ally is pursuing several new market channels that do not involve its traditional law enforcement and private security customers, such as its NASCAR affiliation.

Patent infringement lawsuits during the year involved Axon and WatchGuard, and the Axon litigation is ongoing.

The company said that although it remains open as an “essential business” during the COVID-19 pandemic, its supply chain has been disrupted, and commercial customers in particular have been significantly impacted, which has in turn reduced its operations and activities.

Revenues for the first quarter of 2020 are consistent with revenues reported during the first quarter of 2019 based on preliminary financial information. Management was expecting a substantial increase in first quarter 2020 revenues given contracts that had been awarded and the traction of new products. Several contracts were delayed as a result of the coronavirus and therefore did not ship in the first quarter as originally expected.

Gross profit decreased 18% to $3.2 million for 2019 versus $3.96 million in 2018. The company reported an operating loss of $6 million for the year ended Dec. 31, 2019, compared to an operating loss of $10,556,057 in 2018. Digital Ally reported a net loss of $10 million in the year ended Dec. 31, 2019, compared with a prior-year net loss of $15.5 million.

Digital Ally also partnered with Trust Think Products, a company that is the exclusive distributor of the Danolyte disinfectant. Danolyte is a one-step disinfectant cleaner designed for cleaning and disinfecting hard, non-porous environmental surfaces in healthcare facilities.

Danolyte has demonstrated effectiveness against viruses similar to SARS-CoV-2 on hard porous and/or nonporous surfaces and has been listed on the Environmental Protection Agency (EPA) list of disinfectants for use against SARS-CoV-2, the virus that causes the novel COVID-19 disease also known as the coronavirus.

In response to the coronavirus pandemic, the two companies partnered to provide first responders with the Danolyte to disinfect workspaces such as patrol vehicles, ambulances and other surfaces with no harsh chemicals, harsh fumes or chemical residuals.

“Amid the coronavirus pandemic, we have partnered with Trust Think Products to provide first responders with vital disinfecting products that they can trust to provide defenses against the spread of the coronavirus disease as well as many others,” said Stan Ross, CEO of Digital Ally. “The ultimate goal is to use our existing relationships to provide first responders and others with the safest working space possible during this time and we are confident this partnership will help achieve this goal.”

Would you like to comment on this story? Find our comments system below.



 
 
Post a comment
Name: *
Email: *
Title: *
Comment: *
 

Comments

No Comments Submitted Yet

Be the first by using the form above to submit a comment!

Site Navigation

Close