Digital Ally, Inc. Anticipates 150% Increase in First Quarter Revenue to Over $8.6...

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Thu Apr 10, 2008 8:30am EDT

Digital Ally, Inc. Anticipates 150% Increase in First Quarter Revenue to Over
$8.6 Million
EIGHTH CONSECUTIVE INCREASE IN QUARTERLY REVENUE

OVERLAND PARK, Kan., April 10 /PRNewswire-FirstCall/ -- Digital Ally, Inc.
(Nasdaq: DGLY), which develops, manufactures and markets advanced video
surveillance products for law enforcement, homeland security and commercial
security applications, today announced that it expects to report that revenue
for the three months ended March 31, 2008 increased approximately 150% to over
$8.6 million when compared with revenue of approximately $3.4 million in the
first quarter of the previous year. This represents an increase of
approximately 17% over fourth quarter 2007 revenue of approximately
$7.3 million and will be the eighth consecutive increase in quarterly revenue
since Digital Ally commenced shipping its advanced digital surveillance
products to customers in March 2006.
    "We sold a record number of DVM-500 In-Car Video Mirror systems to law
enforcement agencies during the first quarter of 2008, and almost two-thirds
of these sales represented reorders from existing customers," stated
Stanton E. Ross, Chief Executive Officer of Digital Ally, Inc. "Our largest
shipment during the quarter involved a reorder for 265 additional DVM-500s
from an international customer that placed its first order with Digital Ally
in the second half of 2007. Our customer base now includes over 1,700 law
enforcement agencies in all 50 states and 12 foreign countries."
    "Based upon information currently available, we expect to report record
operating income for the quarter ended March 31, 2008, as well," continued
Ross. "We also remain comfortable with our previous guidance that 2008
full-year revenue should approximate $40 million, compared with $19.4 million
in 2007."
    About Digital Ally, Inc.
    Digital Ally, Inc. develops, manufactures and markets advanced technology
products for law enforcement, homeland security and commercial security
applications. The Company's primary focus involves Digital Video Imaging and
Storage.  For additional information, visit http://www.digitalallyinc.com
    The Company is headquartered in Overland Park, Kansas, and its shares are
traded on The Nasdaq Capital Market under the symbol "DGLY".
    This press release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Act of 1934.  These forward-looking statements are based largely on the
expectations or forecasts of future events, can be affected by inaccurate
assumptions, and are subject to various business risks and known and unknown
uncertainties, a number of which are beyond the control of management.
Therefore, actual results could differ materially from the forward-looking
statements contained in this press release. A wide variety of factors that may
cause actual results to differ from the forward-looking statements include,
but are not limited to, the following:  the Company's ability to have all of
its new product offerings perform as planned or advertised; whether there will
be a commercial market, domestically and internationally, for one or more of
its new products; its ability to commercialize its products and production
processes, including increasing its production capabilities to satisfy orders
in a cost-effective manner; its ability to continue to increase revenue and
profits, including the achievement of approximately $40 million in revenues
and 21% operating margins in 2008; whether the Company will be able to adapt
its technology to new and different uses, including being able to introduce
new products; competition from larger, more established companies with far
greater economic and human resources; its ability to attract and retain
customers and quality employees; its ability to obtain patent protection on
any of its products and, if obtained, to defend such intellectual property
rights; the effect of changing economic conditions; and changes in government
regulations, tax rates and similar matters. These cautionary statements should
not be construed as exhaustive or as any admission as to the adequacy of the
Company's disclosures. The Company cannot predict or determine after the fact
what factors would cause actual results to differ materially from those
indicated by the forward-looking statements or other statements. The reader
should consider statements that include the words "believes", "expects",
"anticipates", "intends", "estimates", "plans", "projects", "should", or other
expressions that are predictions of or indicate future events or trends, to be
uncertain and forward-looking. The Company does not undertake to publicly
update or revise forward-looking statements, whether as a result of new
information, future events or otherwise. Additional information respecting
factors that could materially affect the Company and its operations are
contained in its annual report on Form 10-KSB filed with the Securities and
Exchange Commission.                 For Additional Information, Please
Contact:

                    Stanton E. Ross, CEO at (913) 814-7774
                                      or
 RJ Falkner & Company, Inc., Investor Relations Counsel at (800) 377-9893 or
                       via email at info@rjfalkner.com
SOURCE  Digital Ally, Inc.

Stanton E. Ross, CEO of Digital Ally, Inc., +1-913-814-7774; or Investor
Relations Counsel of RJ Falkner & Company, Inc., 1-800-377-9893,
info@rjfalkner.com, for Digital Ally, Inc.
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