Digital Ally DGLY Stock News

Digital Ally, Inc. (NASDAQ: DGLY) announced its largest purchase order for a record number of body cameras today. As a result, the stock rocketed this morning, trading with gains over 100% in the premarket. Here’s what’s going on:

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DGLY Stock Soars On Large Purchase Order

In the announcement, Digital Ally said that the order was an initial purchase order under a substantical contract with the Director of Strategic Procurement for a country that is expected to deploy body cameras on its entire national police force.

The company said that the contract includes up to 5,000 body cameras with its web-based software infrastructure. The contract also includes services from DGLY for a period of 3 years.

As a result of this new contract, the company said that it will more than $4 million in additional revenues. This revenue growth will commence with the delivery of the initial purchase in the current month and continue with periodic purchases thereafter.

Once the contract is successfully fulfilled, it will be the largest body camera deployment and recurring service contract in the company’s history!

In a statement, Stanton E. Ross, CEO at DGLY, had the following to offer:

The award of this international contract is an important milestone for Digital Ally because the size and complexity of the deployment proves the scalability of the Company’s body camera hardware and its web-based software services. The Company has been working with one of its distributors on this contract for approximately twelve months, which illustrates the long sales cycle that is typical of large international market opportunities. We have sufficient inventory on hand and expect to fulfill the initial part of the order in the current quarter and continue deliveries as required.

The contract requires Digital Ally to provide its new web-based software that will generate significant recurring service revenues from the technology infrastructure necessary to retrieve and manage the audio and video evidence generated by the body cameras.

This Is Big News For DGLY

Any time a company signs the biggest contract that it’s had in its history, the news is big. That’s no different for Digital Ally.

Importnatly, the contract will lead to larger revenues than expected. In fact, in the press release, DGLY said that it previously provided guidance suggesting that 2020 revenues would exceed $13.5 million. However, this guidance did not factor in the new agreement.

Although the company did not give a number as to new revenue guidance, it made it clear that it expects to see revenue growth above and beyond what has been previously reported.

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