I was intrigued by the recent hire of the International Salesman and that cycle seems to be tracking for them. They accurately mentioned that this takes some time. They also mentioned that the rearview mirror product can be installed in any vehicle which is a salesman’s dream. . I was truly encouraged by the guidance they gave to get to 60% margins for the remainder of 2010 and when asked about achieving this they responded that they had achieved as high as 69% in other quarters so it seems to be a one off with the recent decline in margins.
I had some questions about the back log and how to view this metric…but this can wait for another day. Go listen to the replay. This is a cool company who benefits from the need for new technology in the security space. They are getting traction in the international sales channel and this is something to watch. Unlike other people covering this stock, we have no position in Digital Ally and are not paid by the company.
See recent press below.
In a conference call with investors Thursday morning, May 6, 2010, Digital Ally, Inc. (NASDAQ:DGLY - News), which develops, manufactures and markets advanced video surveillance products for law enforcement, homeland security and commercial security applications, provided revenue and operating results guidance for the year ending December 31, 2010.
"Based upon the consistency in demand for our DVM in-car digital video systems and the anticipated impact of new products upon sales, we are optimistic that our domestic revenue will improve significantly from last year's levels," noted Stanton E. Ross, Chief Executive Officer, during the conference call. "In addition, future new orders and our recent successes in Turkey, South America and the Middle East that are expected to result in meaningful reorders, lead us to believe that international sales will be strong in the current year. Based upon information currently available to the Company, we believe Digital Ally will achieve record revenue and operating income in the year ending December 31, 2010."
Digital Ally's previous record year in terms of operating results was achieved in 2008, when the Company reported operating income of approximately $5.1 million on revenue of approximately $32.6 million. In 2009, the Company reported an operating loss of approximately ($1.8 million) on revenue of approximately $26.4 million.
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