Ref: Multiple Transaction Offers when the stock was at $4. . .
Digital Ally, meanwhile, this month hired Banc of America Securities LLC to help it consider what CFO Tom Heckman described as multiple transaction offers prompted by the dipping of company stock to less than $4; it topped $9 as recently as Sept. 2.
The company has no debt and $3.22 million in cash. Revenue rose 66 percent in the third quarter, though earnings fell 70.6 percent, primarily because of tax and order-timing issues. Digital Ally nearly doubled its work force to 115 in the past year and could hire 10 more by year’s end, Heckman said.
“We’re gaining more market acceptance,” he said. “We’re in our third year of deliveries, and we’ve got a great reputation out there.”
John Putnam, an analyst for Dawson James Securities Inc., said it’s probably premature for Digital Ally, public since Jan. 1, to sell.
“They have potential to keep growing on their own,” he said.
Putnam said Digital Ally is in a strong position, with products that probably won’t fall victim to budget cuts. He touts Digital Ally’s initial system as tops in the industry because of its inclusion in a rearview mirror instead of the traditional dash positioning of ICOP’s product.
“Digital Ally’s product takes up less space and doesn’t require somebody to look down, which anyone would conclude is not a good thing,” Putnam said. |
