Digital Ally Awarded Largest Body Camera/Video Solution Contract in Its History
February 04 2020 - 7:00AM
Digital Ally, Inc. (NASDAQ: DGLY) (the “Company”), which develops,
manufactures and markets advanced video recording products for law
enforcement, emergency management, fleet safety and security, today
announced the receipt of the initial purchase order under a
substantial contract awarded by the Director of Strategic
Procurement of that country for the expected deployment of body
cameras to its entire national police force. The contract will
include up to 5,000 body cameras with Digital Ally’s web-based
software infrastructure service for a three-year period. The
contract is expected to result in revenues exceeding $4.0 million
commencing with delivery of the initial purchase order in February
2020 and the release of periodic purchase orders thereafter. Upon
completion, this contract would be the largest body camera
deployment in the Company’s history and the largest contract for
recurring service revenues for its web-based software related to
the body cameras.
The contract was awarded to Digital Ally after
an extensive evaluation process resulting in the national police
force replacing a competitors’ hardware and services with Digital’s
body camera and new web-based software services offerings.
“The award of this international contract is an
important milestone for Digital Ally because the size and
complexity of the deployment proves the scalability of the
Company’s body camera hardware and its web-based software
services,” stated Stanton E. Ross, Chief Executive Officer of the
Company. “The Company has been working with one of its distributors
on this contract for approximately twelve months, which illustrates
the long sales cycle that is typical of large international market
opportunities. We have sufficient inventory on hand and expect to
fulfill the initial part of the order in the current quarter and
continue deliveries as required,” continued Ross. “The contract
requires Digital Ally to provide its new web-based software that
will generate significant recurring service revenues from the
technology infrastructure necessary to retrieve and manage the
audio and video evidence generated by the body cameras,” concluded
Ross.
Update of Revenue Guidance for Fiscal
Year 2020
The Company notes that this international order
was not originally factored into the initial Revenue Guidance for
the fiscal year 2020. It had previously provided guidance that its
expected revenues for this year would exceed $13.5 million. The
increase in expected revenues will not necessarily be proportionate
during the fulfillment of the contract. The Company also
anticipates the continuation of its increased recurring service
revenues during the term of the contract.
About Digital Ally
Digital Ally®, headquartered in Lenexa, KS,
specializes in the design and manufacturing of the highest quality
video recording equipment and video analytic software. Digital Ally
pushes the boundaries of technology in industries such as law
enforcement, emergency management, fleet safety and security.
Digital Ally’s complete product solutions include in-car and body
cameras, web-based software, and automatic recording technology.
These products work seamlessly together and are simple to install
and operate. Digital Ally products are sold by domestic direct
sales representatives and international distributors worldwide.
For additional news and information please visit
www.digitalallyinc.com or follow additional Digital Ally Inc.
social media channels here:
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Contact InformationStanton Ross, CEOTom
Heckman, CFODigital Ally,
Inc913-814-7774info@digitalallyinc.com
This press release contains forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Act of 1934. These
forward-looking statements are based largely on the expectations or
forecasts of future events, can be affected by inaccurate
assumptions, and are subject to various business risks and known
and unknown uncertainties, a number of which are beyond the control
of management. Therefore, actual results could differ materially
from the forward-looking statements contained in this press
release. A wide variety of factors that may cause actual results to
differ from the forward-looking statements include, but are not
limited to, the following: whether the Company will be able to
deploy the body cameras and implement the web-based software
efficiently and effectively under the contract; whether the
national police force will continue releasing periodic purchase
orders under the contract; whether the Company will be able to
expand the market share for its products from additional domestic
and international law enforcement and government agencies and
continue the growth of its recurring service revenues; whether the
Company’s guidance regarding its 2020 revenues will be accurate;
whether the Company will be able to adapt its technology to new and
different uses, including being able to introduce new products;
competition from larger, more established companies with far
greater economic and human resources; its ability to attract and
retain customers and quality employees; the effect of changing
economic conditions; and changes in government regulations, tax
rates and similar matters. These cautionary statements should not
be construed as exhaustive or as any admission as to the adequacy
of the Company's disclosures. The Company cannot predict or
determine after the fact what factors would cause actual results to
differ materially from those indicated by the forward-looking
statements or other statements. The reader should consider
statements that include the words "believes", "expects",
"anticipates", "intends", "estimates", "plans", "projects",
"should", or other expressions that are predictions of or indicate
future events or trends, to be uncertain and forward-looking. The
Company does not undertake to publicly update or revise
forward-looking statements, whether as a result of new information,
future events or otherwise. Additional information respecting
factors that could materially affect the Company and its operations
are contained in its annual report on Form 10-K for the year ended
December 31, 2018 and quarterly report on Form 10-Q for the three
and nine months ended September 30, 2019, as filed with the
Securities and Exchange Commission.
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