After reporting a decline in revenues and a narrower net loss for the fourth quarter of 2018, Digital Ally (DGLY) will be conducting a conference call at 11:15 am today. Analysts will be looking for updates on the company’s ongoing patent lawsuit with its rivals in the digital surveillance services sector.
Last month, Digital Ally said it received a favorable verdict in the patent case, with the US Patent Office rejecting a request by the complainants to invalidate its auto-activation patents. Considering the impact of the lawsuit on the company’s top-line performance in the recent quarters, any new update on the matter could influence the stock’s movement, which is currently trading lower.
Digital Ally reported the fourth quarter financial results on March 29, ahead of the scheduled release date, reporting a net loss of $5.3 million or $0.51 per share, compared to a loss of $4.4 million or $0.63 per share in the year-ago quarter. Revenues decreased 17% annually to about $2.4 million, while Selling, General and Administrative expenses increased by 37%.
Last month, Digital Ally said the US Patent Office rejected a request by the complainants in the lawsuit to invalidate its auto-activation patents
The management said Law Enforcement revenues declined year-over-year in the fourth quarter due to the willful infringement of the company’s patents by competitors, primarily Axon and WatchGuard, as well as adverse marketplace effects related to the litigation.
Currently, it is estimated that charges related to the ongoing litigation would continue to impact profitability during the rest of 2019, and probably beyond.
Digital Ally shares have gained 29% since the beginning of the year and 62% over the past twelve months. The stock closed the last session slightly down and traded lower in the early hours of Monday’s session.
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