Digital Ally Inc. - DGLY Message Board

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Technology Stocks : Digital Ally Inc. - DGLY

DGLY 1.610

-1.8%

Nov 7 9:30 AM EST

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From: David Alan Cook	8/10/2008 5:24:56 PM
	of 554

If anyone has the transcript for the 2nd qtr conference call . . .please post. My notes: * Company optimistic about meeting $40M Revenue Guidance and 29% average operating margins * Expect increase in profit margins in the 3rd and 4th qtrs as international sales which include a lower gross margin but a commensurate lower commission costs comprised 42% of all sales in the just completed 2nd qtr * Average order size is increasing * Building inventory in anticipation of big orders in the 3rd and 4th qtrs * EU Radio compliance testing going well * 4 new distributors signed in 2nd qtr * Flashlight sales increasing each month . . .expecting a "significant order". Not clear if significant in size or significant in first major buy * Starting to pariticpate in road shows and investment conferences. * 2 new analysts started coverage last qtr, several indicating they were waiting to see 2nd qtr numbers prior to starting coverage * L3 Patent suit filed against all 11 of its competitors, will take months or years to play out, management asserts it is without merit * Expecting 6 new products in 09. * Seeing interest in fire departments and other govt agencies with flashlight product * Short interest was noted as growing at 100,000 every two weeks. Management was asked why. Mgt not sure why, assumes shorts think DGLY will not meet $40M guidance. Mgt remains "very optimistic" that they will meet or exceed this guidance * Mgt expecting at least $22M in backend growth in the 3rd and 4th qtrs with incremental growth picking up in the 3rd qtr and continuing in the 4th qtr * Mgt is 'Very Optimistic" about the prospects of receiving several large international orders estimated between 1 to 3 Million per order. * Mgt commented that there " were at least a half a dozen or more that would be announced this year that DGLY was very, very confident that they would win" given specification details included in RFPs or follow-on buys with new customers * Number of customers increased from 1700 to 2000 this qtr * Mgt traveling to another country to attend a marketing meeting * DVM-250 appears very promising, will launch marketing effort later this qtr but has identified several candidates for purchase * DVM-750 development on track, optimistic about the prospects in this upper end market * Headcount increased from 81 to 93 as they added 10 more product sales reps * Have capacity to produce 1200 per month, 1500 if they work one or two saturdays * DVM-250 market . . .transportation industry . . . much, much larger than law industry * Already contacted by a DVM-250 customer that had 325 trucks. Company believes this product may provide a big upside surprise given interest and outlook * A international conversion product ready for release * Company is developing language packages so they can add files without rewriting software code

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