Digital Ally (DGLY) saw its loss widen to $3.26 million, or $0.61 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $2.14 million, or $0.45 a share.
Revenue during the quarter dropped 14.85 percent to $4.34 million from $5.10 million in the previous year period. Gross margin for the quarter expanded 684 basis points over the previous year period to 46.86 percent. Operating margin for the quarter stood at negative 74.70 percent as compared to a negative 42.01 percent for the previous year period.
Operating loss for the quarter was $3.24 million, compared with an operating loss of $2.14 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $2.68 million compared to negative $1.51 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 61.87 percent for the quarter compared to negative 29.69 percent in the last year period.
"We believe our third quarter 2016 revenues were negatively impacted by the ongoing confusion caused by Taser’s misleading press release regarding our patents," stated Stanton E. Ross, chief executive officer of Digital Ally, Inc. Additionally, our FirstVU HD sales were hindered by FirstVu HD production issues in 2016. We expect FirstVU HD sales to recover during the remainder of 2016 because we have resolved the FirstVU HD product issues and continue to prosecute the patent lawsuits against our competitors. We believe that the “auto-activation” technology embodied in our VuLink product is becoming a standard requirement for agencies utilizing body-worn cameras. We are encouraged by the progress of litigation instituted against our competitors to protect our patented technology, given the favorable ruling in the Taser International lawsuit we recently announced."
Operating cash flow remains negativeDigital Ally has spent $4.73 million cash to meet operating activities during the nine month period as against cash outgo of $7.03 million in the last year period. The company has spent $0.37 million cash to meet investing activities during the nine month period as against cash inflow of $1.11 million in the last year period
The company has spent $0.01 million cash to carry out financing activities during the nine month period as against cash inflow of $10.69 million in the last year period.
Cash and cash equivalents stood at $1.82 million as on Sep. 30, 2016, down 76.76 percent or $6 million from $7.81 million on Sep. 30, 2015.
Working capital drops significantly
Digital Ally has witnessed a decline in the working capital over the last year. It stood at $11.74 million as at Sep. 30, 2016, down 43.34 percent or $8.98 million from $20.73 million on Sep. 30, 2015. Current ratio was at 3.99 as on Sep. 30, 2016, down from 6.79 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 192 days for the quarter from 376 days for the last year period. Days sales outstanding went up to 71 days for the quarter compared with 65 days for the same period last year.
Days inventory outstanding has decreased to 208 days for the quarter compared with 377 days for the previous year period. At the same time, days payable outstanding went up to 86 days for the quarter from 65 for the same period last year.
Debt comes down significantly
Digital Ally has recorded a decline in total debt over the last one year. It stood at $0.05 million as on Sep. 30, 2016, down 42.66 percent or $0.04 million from $0.09 million on Sep. 30, 2015. Total debt was 0.28 percent of total assets as on Sep. 30, 2016, compared with 0.33 percent on Sep. 30, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
