Digital Ally, a company which develops, manufactures and markets advanced video surveillance products for law enforcement, homeland security and commercial applications, announced significant improvements in revenue, gross profit, operating income, and net income in the first quarter of 2013 when compared with the prior-year period.
Digital Ally, a company which develops, manufactures and markets advanced video surveillance products for law enforcement, homeland security and commercial applications, announced significant improvements in revenue, gross profit, operating income, and net income in the first quarter of 2013 when compared with the prior-year period.
First Quarter Highlights:
- Total revenue increased 26 percent to US$4.8 million, compared with total revenue of $3.8 million in the first quarter of 2012.
- Gross profit margin expanded to 60.6 percent of revenue vs. 52.8 percent in prior-year period.
- General and administrative expenses declined 13 percent from year-earlier levels.
- The Company reported an operating profit of $181,417, which represented an improvement of $913,597 when compared with the first quarter of 2012.
- Net income improved to $113,695, or $0.05 per diluted share, compared with a year-earlier net loss of $804,729, or $0.40 per share.
- Non-GAAP adjusted net income improved to $393,552, versus a non-GAAP adjusted net loss of $414,672 in the prior-year quarter.
"Our first quarter financial results, which did not include any non-recurring gains or losses, clearly reflect the operating leverage resulting from decreases in overhead expenses, improved outsourcing of components and other supplier cost reduction initiatives, and the successful restructuring of our law enforcement products sales organization," stated Stanton Ross, CEO of Digital Ally. "Improved gross profit margins and a lower selling, general and administrative expense ratio allowed us to achieve a $913,597 improvement in operating income on a $998,093 increase in revenue. We also generated non-GAAP adjusted net income of $393,552 in the first quarter of 2013, which represented an $808,224 increase relative to a non-GAAP adjusted net loss of $414,672 in the year-earlier quarter. Our ability to achieve these gains was particularly impressive in light of the continuation of a challenging economic environment, which has continued to negatively impact state, county and municipal government budgets that fund the law enforcement agencies that represent our primary customer base."
Ross continued by pointing out the company's legacy in-car video systems accounted for the majority of the revenues, followed by products introduced over the past three years that accounted for 19 percent of total sales in the recent quarter compared with six percent in first quarter of 2012. Encouraged by the achievements during the first quarter, the company expects the new products will have a positive impact on profitability as they have higher gross margin than the legacy in-car video systems. The company looks toward the future with optimism, although, the market for law enforcement products remain challenging and highly competitive.