Digital Ally® (NASDAQ: DGLY), headquartered in Lenexa, KS, specializes in the design and manufacturing of the highest quality video recording equipment and video analytic software. Digital Ally pushes the boundaries of technology in industries such as law enforcement, emergency management, commercial fleets, and consumer use. Digital Ally’s complete product solutions include in-car and body cameras, cloud and local management software, and automatic recording technology. These products work seamlessly together and are simple to install and operate. Digital Ally products are sold by domestic direct sales representatives and international distributors worldwide.

DGLY’s patented VuLink® auto-activation technology is the first product on the market to fully integrate in-car cameras and body-worn video. The Company has deployed over 93,000 units worldwide in 40+ countries, and more than 8,000 law enforcement officers in United States use DGLY products. The Company generated $2.9 million and $11.6 million in revenue for 3Q17 and 9M16.

DGLY has been in patent infringement suit that has been extended for over a year related to its ‘452 patent for hands-free video activation patent against Axon (NASDAQ: AAXN), formerly Taser Int; The U.S District Court for the District of Kansas has set the stage for a Markman hearing in early March 2018. In our view, the patent portfolio could be worth much more than the current market value, but depends on the outcome of the litigation. Also, a recent deal with VIEVU, a leading manufacturer of body cameras, is expected to drive new revenue growth in 2018.

With competitors dominated by smaller non-public entities or small divisions of large public companies, DGLY provides investors a compelling opportunity to invest in a pure-play in a fast-growing market. Two analysts have buy ratings on DGLY, with target prices of $4.00 and $6.00.

  • Company’s patented VuLink® auto-activation technology is the first product on the market to fully integrate in-car cameras and body worn video
    • Enables auto-activation of in-car camera, wireless microphone and body worn video camera
    • DGLY seeking injunctions against other major competitors from selling infringing products

  • DGLY has deployed 93,500 units worldwide (30 countries); 40+ international distributors
    • More than 8,000 total law enforcement officers in the USA use DGLY products
    • 87% of the Company’s business is from law enforcement
    • In-Car Video (88% of total law enforcement)
    • Body-Worn Cameras (12% of total law enforcement)

  • Company generated $2.9 million revenue in 3Q17 with $1.0 million in gross profits
    • DGLY reported $11.6 million revenue for 9M17


More Information | Company Website

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