Digital Ally Soars; Company Says Cop Cam Inquiries Rise Amid Ferguson Riots
Digital Ally (NASDAQ: DGLY) extended its earlier gains in pre-market activity Wednesday after the police video camera company said customer inquiries "increased dramatically" in the wake of civil unrest in Ferguson, Missouri.
The company's shares gained more than 90 percent Tuesday and were up another 10 percent early Wednesday.
Taser International (NASDAQ: TASR), which also offers police video cameras, gave back 2.5 percent early Wednesday, but the stock is up nearly 30 percent in the past week.
Digital launched a police body camera in December and the product now accounts for 36 percent of recent second-quarter revenue of $3.4 million.
Yet Digital has struggled with its transition from in-car cameras to body mounted devices, reporting a 32 percent decline in revenue for the recent period, while its net loss widened to $0.43 per share, from $0.03 a year earlier.
Taser entered the law enforcement video business in 2012 and the segment's revenue doubled in the second quarter to $3.6 million of Taser's total revenue of $32 million. Its Axon body camera is similar to offerings from Digital Ally.
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