Digital Ally, Inc. (DGLY) saw its loss narrow to $2.03 million, or $0.36 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $2.31 million, or $0.44 a share. On the other hand, adjusted net loss for the quarter narrowed to $1.26 million, or $0.22 a share from a loss of $1.76 million or $0.34 a share, a year ago.
Revenue during the quarter grew 18.73 percent to $5.23 million from $4.40 million in the previous year period. Gross margin for the quarter expanded 146 basis points over the previous year period to 43.54 percent. Operating margin for the quarter stood at negative 34.46 percent as compared to a negative 53.07 percent for the previous year period.
Operating loss for the quarter was $1.80 million, compared with an operating loss of $2.34 million in the previous year period.
"We are excited to report that first quarter revenues were up 19% from prior-year levels and 52% on a sequential basis," stated Stanton E. Ross, chief executive officer of Digital Ally Inc. "We shipped more mirrors in first quarter 2017 than any quarter since 2010 and our service revenues were up 71% in the three months ended March 31, 2017 compared to year-earlier levels. Our strategy of expanding our recurring service-based revenue to help stabilize and grow our revenues on a quarterly basis is apparent in our first quarter 2017 results."
Operating cash flow remains negative
Digital Ally, Inc. has spent $2.89 million cash to meet operating activities during the quarter as against cash outgo of $0.96 million in the last year period. The company has spent $0.07 million cash to meet investing activities during the quarter as against cash outgo of $0.07 million in the last year period.
The company has spent $0.01 million cash to carry out financing activities during the quarter as against cash outgo of $0.01 million in the last year period.
Cash and cash equivalents stood at $0.91 million as on Mar. 31, 2017, down 84.51 percent or $4.97 million from $5.88 million on Mar. 31, 2016.
Working capital drops significantly
Digital Ally, Inc. has witnessed a decline in the working capital over the last year. It stood at $6.82 million as at Mar. 31, 2017, down 59.80 percent or $10.15 million from $16.98 million on Mar. 31, 2016. Current ratio was at 1.78 as on Mar. 31, 2017, down from 6.44 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 147 days for the quarter from 190 days for the last year period. Days sales outstanding went up to 33 days for the quarter compared with 31 days for the same period last year.
Days inventory outstanding has decreased to 148 days for the quarter compared with 184 days for the previous year period. At the same time, days payable outstanding went up to 34 days for the quarter from 25 for the same period last year.
Debt increases substantially
Digital Ally, Inc. has witnessed an increase in total debt over the last one year. It stood at $4.19 million as on Mar. 31, 2017, up 6,223.58 percent or $4.12 million from $0.07 million on Mar. 31, 2016. Total debt was 24.56 percent of total assets as on Mar. 31, 2017, compared with 0.30 percent on Mar. 31, 2016.
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