News - Improved Operating Results, Higher Gross Margins, Improved Cash Position
The Company reported a net loss of ($0.01) per share in the three months ended September 30, 2011, compared with a net loss of ($0.03) per share in the year-earlier period and a net loss of ($0.07) per share in the three months ended June 30, 2011.
On a non-GAAP basis, the Company reported adjusted net income (before income taxes, depreciation, amortization, interest expense and stock-based compensation), a non-GAAP financial measure, of $453,590, or $0.03 per diluted share, in the quarter ended September 30, 2011, versus an adjusted net loss of ($17,479), or ($0.00) per share, in the quarter ended September 30, 2010. (Non-GAAP adjusted loss is described in greater detail in a table at the end of this news release).
"We are very pleased to report a significant improvement in revenue and a 92% reduction in operating loss in the third quarter of 2011, when compared with the second quarter of 2011," commented Stanton E. Ross, Chief Executive Officer of Digital Ally, Inc. "While domestic sales declined 28% from the year-earlier period, as lower tax revenues continued to negatively impact equipment spending by many law enforcement agencies, international sales more than doubled from year-earlier levels in the most recent quarter. Of even greater importance to our bottom line, gross profit margins improved to 51.4% of sales in the quarter ended September 30, 2011, compared with 46.8% in the quarter ended September 30, 2010 and 41.4% in the second quarter of 2011. Gross margins benefited from cost reduction initiatives that were implemented in the first quarter of 2011 and from the growing contribution of higher-margin new products to our sales mix in the most recent quarter. Despite a 17% year-over-year decline in revenue during the most recent quarter, we were able to reduce our operating loss by 84% to ($92,440) when compared with an operating loss of ($592,001) in the year-earlier period." |
