Digital Ally, Inc. (DGLY) saw its loss widen to $4.28 million, or $0.80 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $2.69 million, or $0.53 a share. On the other hand, adjusted net loss for the quarter widened to $3.48 million, or $0.63 a share from a loss of $2.02 million or $0.40 a share, a year ago.
Revenue during the quarter plunged 31.79 percent to $3.45 million from $5.05 million in the previous year period. Gross margin for the quarter contracted 2664 basis points over the previous year period to 4.32 percent.
Operating loss for the quarter was $4.01 million, compared with an operating loss of $2.70 million in the previous year period.
"We were disappointed to report revenues for the year ended 2016 that decreased 17% from the year prior, even though we saw an increase in our service-based revenues in 2016," stated Stanton E. Ross, chief executive officer of Digital Ally Inc. "We are concentrating on expanding our recurring service-based revenue to help stabilize and grow our revenues on a quarterly basis. We are pursuing several new market channels that do not involve our traditional law enforcement and private security customers. If successful, we believe that these new market channels could yield increased recurring service revenues for us in 2017 and beyond. We are testing a new revenue model that bundles our product offerings, including the long-term lease of our body-worn and/or in-car audio/video hardware, together with a monthly subscription for our cloud storage, search and archiving services for the underlying audio and video material. We believe this revenue service model may appeal to our customers, in particular our commercial and other non-law enforcement customers because it reduces the capital outlay up front and eliminates repairs and maintenance in exchange for level monthly payments for the utilization of the equipment, data storage and management services."
Operating cash flow remains negative
Digital Ally, Inc. has spent $5.90 million cash to meet operating activities during the year as against cash outgo of $7.69 million in the last year.
The company has spent $0.94 million cash to meet investing activities during the year as against cash inflow of $0.88 million in the last year.
Cash flow from financing activities was $3.80 million for the year, down 64.39 percent or $6.88 million, when compared with the last year.
Cash and cash equivalents stood at $3.88 million as on Dec. 31, 2016, down 43.92 percent or $3.04 million from $6.92 million on Dec. 31, 2015.
Debt increases substantially
Digital Ally, Inc. has witnessed an increase in total debt over the last one year. It stood at $4.04 million as on Dec. 31, 2016, up 5,209.65 percent or $3.97 million from $0.08 million on Dec. 31, 2015.
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