Digital Ally, Inc. (NASDAQ: DGLY) is in the business of designing and selling products that target law enforcement departments. Its products include small cameras worn by officers to record evidence. Shares of DGLY rose sharply on the day that followed the shooting in Dallas, Texas that left five police officers dead and at least seven others wounded.
Last week was marred by police shootings where both civilians and officers lost their lives and others got injured. There is likelihood that Digital Ally, Inc. (NASDAQ: DGLY) will see an uptick in demand for its products for law enforcement departments in the aftermath of the Dallas shooting and the other police killings that happened earlier in the week.
The kinds of products that DGLY offers law enforcement agents are used for surveillance and to record evidence. For instance, DGLY’s products include those that capture and store audio and video recordings. Its VuLink product provides law enforcement agents with audio and video surveillance from all vintage points. The company also sells miniature camera worn by officers, which is crucial in gathering evidence.
Increasing police safety and accountability
Because the Dallas shooting and the other shootings in the days earlier have highlighted the need for more police protection and accountability, demand for DGLY’s products is likely to grow. Not only will the police departments in the U.S. seek to equip officers with more surveillance and evidence recording tools, but law enforcement departments in other parts of the world are also likely to increase their budgets to increase officer safety to avoid the kind of police killings that took place in the U.S. soil.
It seems hopes of increased demand for Digital Ally, Inc. (NASDAQ: DGLY)’s law enforcement products is fueling interest in the stock. New demand for DGLY’s products should boost sales significantly considering that the company is already seeing strong demand for its law enforcement surveillance and evidence recording solutions.
Financial performance of Digital Ally, Inc. (NASDAQ: DGLY)
Digital Ally, Inc. (NASDAQ: DGLY) generated revenue of $4.4 million in 1Q2016, which increased from $4.2 million in the year-ago quarter. The company’s bottom-line also improved as it posted a smaller loss with EPS loss coming in at $0.44 compared to $1.90 in the year-ago period.