Caly, any thoughts on suspended guidance? Sounds like orders are still there, but timing and grant money is an issue.
"We have determined to suspend our guidance on 2009 revenues based on a number of factors," continued Ross. "These factors include the delay in the introduction of the DVM-750 until later in 2009, continued deterioration in the global economic environment, and declines and reallocations in the budgets of law enforcement agencies. We believe that some of these factors will have an adverse impact on our operating results for the first half of 2009."
"On a more positive note, we believe that the Economic Stimulus Bill ("Stimulus Bill") recently passed by Congress should provide funding, including for equipment purchases, by domestic law enforcement agencies. Our analysis of the Stimulus Bill reveals that over $2 billion in funding will be available for law enforcement equipment, personnel, vehicles, etc. over the next 18 months. We believe that such funding will have a meaningful impact upon demand for advanced video surveillance products, such as the expanding line of products manufactured by Digital Ally. However, there remain uncertainties regarding the amount of federal economic stimulus funds that may reach law enforcement agencies, the allocation of these funds to new equipment purchases, and the time frame within which such funds are ultimately disbursed."
"Regarding the 'strategic alternatives' process that has been underway since November 2008, we have been notified by Banc of America Securities, our financial advisor, that the process will continue beyond the end of the first quarter, due to economic and market challenges in the U.S. and internationally," concluded Ross. |
